This site has been owned by Eastleigh Borough Council for a number of years and open to the public, whilst also being leased for grazing cattle. It has been the subject of several development briefs (plus detailed layout documents) and several public consultations. A planning application was submitted on 14 December 2015 (App No. F/15/77718) and the decision to permit development was made at the Hedge End 2000 Centre in March 2016.
Special Purpose Vehicle (SPV)
This site is a pilot in the way the funding has been raised and the manner of resulting income generation in that not all the houses will be sold. Some will be retained for the rental market to ensure an income stream over the years.
The following is an extract from a Local Government Association document entitled “Supporting housing investment A Case Study Guide”;-
Eastleigh Borough Council offered a “guaranteed purchase” model for developers who had sites with existing planning permission but were unsure if they could sell the houses, leading to stalled development. Eastleigh provided a letter of guarantee that the council would buy the property if it failed to sell on the open market. Under this arrangement the developer had an agreed period to sell, and the flats were in fact all sold to private buyers. Eastleigh is exploring options for developing a set of sites that are too small to attract commercial interest. Partnership with neighbouring authorities and local housing associations would allow the council to link up sites and share resources and expertise. A Special Purpose Vehicle is being established and options for housing delivery are being considered by councillors. It is likely that any new housing would include affordable housing as well as homes for market rent, to ensure viability.
With regards to Economy, Efficiency and Effectiveness, under the Housing Joint Venture, the Council was proposing to form a new company, limited by guarantee in partnership with Fareham Borough Council, First Wessex and Radion Housing Association for the purposes of facilitating housing and economic development in a sustainable manner. The company would be undertaking a continuing business which would have project based Special Purpose Vehicles (SPV’s) underneath the main structure for each major housing project.
Source: Extract from Audit & Resources Committee Minutes held on 10 June 2014, item 4 paragraph 4
When will Site Construction Commence?
A number of residents have been asking me when can it be expected that house building on this site will start? Under the terms of the planning permission, the developer has three years to commence, before they would have to reapply for permission. In this case, where Eastleigh Borough Council is an owner of the site and part of the development team, it would have hoped to have started construction within days of gaining permission, but it is thought that site construction will not start until near the end of 2016.