Decision details

The board considered a report of the interim Executive Director of Housing, Property and Regeneration that sought approval in principle for the disposal of the site at Abberley Street to the developer for the purpose of a 100% affordable housing scheme.

It was noted that the report submitted sought to address the issues and concerns raised by members at the last meeting (15 January 2024) when a decision on the report was deferred. 

The Head of Strategy & Analysis, Rob Lamond, summarised the responses to the issues raised with regards to the historical and current valuations of the site, assurance and options considered.

Councillor Hughes reported that liaison between the WMCA and Sandwell Council needs to be better moving forward but he supported the site being utilised for residential and affordable housing.

In relation to concerns expressed by Gary Taylor regarding the WMCA overpaying for land which could distort the real estate market, the Head of Property & Strategic Assets, Nigel Ford, reported that all valuations are now based on current market conditions and prevailing planning policy.

Councillor Grinsell considered the need to document lessons learnt and to monitor decisions taken by Senior Officers exiting the organisation.

The Executive Director of Finance and Business Hub, Linda Horne, reported that the WMCA’s Audit, Risk & Assurance Committee had undertaken an investigation into housing as part of a whistleblowing report and all actions had been implemented. She undertook to share the committee report with members on a confidential basis.

Further to the enquiry made by Councillor O’ Boyle at the last meeting regarding why leasehold is not being considered by the WMCA for its land disposals, the Director of Commercial and Investment, Ian Martin, reported that if the land was disposed of on the open market the developer would require the freeholder. He advised this was because a developer would wish to sell houses on with a freehold title and the legislation was now moving away from allowing leasehold for new build houses. However, if the WMCA wished to protect from the scenario where development did not occur, then Housing colleagues have reported that the WMCA could include a buy back option into any land disposal covering an event where the developer purchases a freehold and does not build within a specified time period.

Resolved that:

1.    Approval in principle to the exploration of the freehold disposal by the WMCA of the site at Abberley Street (which is shown edged on red on the Plan attached to the report) at a price that is consistent with the current unrestricted market value for the purpose of affordable housing, to enable a period of due diligence to inform Best & Final Offer be agreed and

2.    The work above be undertaken in order to fully inform Investment Board on the matter, for which final approval to the Best & Final Offer would be sought at a later date be noted.