Decision Maker: Cabinet
Decision status: Recommendations Approved
Is Key decision?: Yes
Is subject to call in?: Yes
The Cabinet considered the report of the Executive Director of Corporate Resources and Customer Services which provided an update on the progress and delivery of new homes as part of the Phase 1 Business Plan for Sandway Homes Limited and follows on from previous reports provided to Members on the development and activities within the Company.
The report also provided an update on delivery of construction activity and the forecasted financial performance, comparing it to the previously agreed Business Plan and highlighting key decisions required by the Council, and details of the current progress in respect of Phase 2 Business Planning.
Decision Made: That
1) approval be given to the revisions to the Phase 1 Business Plan as provided by the Company to the Council as at November 2022, including changes to the financial forecast, duration of the programme and timing of the dividend, capital receipt and repayment of debt;
(2) the range of external economic factors that have materialised over the last 6 months that could impact financial performance be noted;
(3) the options currently identified from the updated exit strategy that would be available to the Council should the company fail to continue to operate be noted;
(4) that any further material variations to the revised financial forecast in respect of the Phase 1 Business Case (the base case) that arise be presented back to the Cabinet for further decision at the earliest opportunity; and
(5) it be noted that the progress being made in respect of potential business cases for 2 sites that would be included in a Phase 2 Business Plan and that subject to progress these will be reported to cabinet during the second half of 2023. This timeline will be driven by the Council having assurance that the financial objectives of Phase 1 have been or will be met. This will require projected sales income having been achieved and the financial risk to the council having been reduced.
Reasons for the Decision:
Since 2016 the Council has been considering its role in the provision of housing throughout the Borough to complement an active third and private sector market.
There was significant demand for housing sites and housing development within Sefton, with over 11,000 housing units being required, over the Local Plan period, in order to meet with the local housing demand.
There was a national shortfall of circa 1m homes (of which 400,000 fall into affordable homes) whilst across the Liverpool City Region a total of circa 50,000 housing units would be required in the medium term. Sandway Homes Limited seeks to increase housing completions and the availability of choice for residents and those wishing to live in Sefton. This would be achieved by working with the Council and stakeholders including Homes England and the Liverpool City Region Combined Authority to leverage in brownfield enabling funds to assist the local authority in proactively re-developing sites included in its brownfield disposal register
Alternative Options Considered and Rejected:
Report author: Stephan Van Arendsen
Publication date: 06/12/2022
Date of decision: 01/12/2022
Decided at meeting: 01/12/2022 - Cabinet
Effective from: 14/12/2022