Decision details

The purpose of the report was for Cabinet to consider the creation of a Housing Joint Venture partnership between the Council and Cross Keys, in line with the Council’s approved Budget and the recommendations of a cross party task and finish group that considered changes to the Council’s strategy with regards housing in Peterborough. 

Cabinet considered the report and APPROVED:

1.   The establishment of a JV Limited Liability Partnership (“LLP”) with Cross Keys Homes Development Ltd (“Cross Keys”);

2.   The Director of Growth and Regeneration in consultation with the Leader of the Council, the Director of Governance and Corporate Director: Resources to exercise delegated authority to finalise and agree all necessary legal agreements with Cross Keys and the LLP to establish the JV’s structure and operation;

3.   The investment of £100,000 into the Joint Venture for operating capital;

4.   The withdrawal of the existing Affordable Housing Capital Funding Policy;

And AGREED:

5.   That future grants from Section 106 Planning Receipts will be approved by the Corporate Director – Growth and Regeneration, except where they are intended to be given to the Housing Joint Venture in which case they will be approved by the Head of Service - Sustainable Growth Strategy;

And NOTED:

6.   The allocation of the Right to Buy receipts for the Housing Joint Venture in line with the Council’s approved Budget for 2016/17; and

And RECOMMENDED TO COUNCIL:

7.   Amendments to the Constitution ‘Appointments to external organisations’ to include the joint venture company once established within the key partnerships category to enable to the Leader to make appointments to the Housing Joint Venture Board.

The recommendations allowed the housing delivery company approved by Full Council in the 2016/17 budget to be put into place, creating a mechanism for implementing recommendations from the cross-party task and finish group previously mentioned in within the report.  This new joint venture would also allow a more active, targeted use of the Right to Buy receipts, facilitating greater delivery of affordable housing.  It would also help the Council to directly act to ensure the Local Plan’s five-year supply requirements continued to be met, which would assist in fending off unwanted, speculative development and the range of detrimental consequences such development could potentially have. 

Do nothing - The Council could choose not to work to develop housing itself.  This was rejected because it contradicts the recommendations of the task and finish review group mentioned within the report.  It would also be inconsistent with the Council’s increasingly proactive approach to delivery. 

Develop housing directly through a wholly-owned company or under contract - The Council could choose to work alone rather than with a partner (either through a subsidiary company owned 100% by the Council, or by placing development contracts). This option was rejected because the Council had limited internal development experience, and building such experience both takes time and introduces risk until it is embedded. 

Use the Peterborough Investment Partnership - The PIP’s progress of the Fletton Quays scheme had been an unarguable success.  It was therefore considered early on as to whether an arrangement that included the PIP would be possible for the delivery of housing.  Whilst the PIP was clearly capable of developing housing schemes, this option was rejected because the Housing Joint Venture’s (at least initial) focus on facilitating affordable homes (including their retention and management) was felt to work better with a partner whose primary focus was that, for which Cross Keys would be a better fit. 

Councillor Holdich declared a pecuniary interest in the item in that he sat on the Board of Cross Keys and was paid an allowance.

Councillor Fitzgerald declared a pecuniary interest in the item in that he sat on the Board of Cross Keys and was paid an allowance.

None.