LONDON BOROUGH OF HACKNEY (1 – 45 MARIAN COURT (PHASE 4)) COMPULSORY PURCHASE ORDER 2017
STATEMENT OF REASONS
London Borough of Hackney Town Hall Mare Street London SE8 1AE
2 CONTENTS 1.
DESCRIPTION OF ORDER LAND
OWNERSHIP OF THE ORDER LAND
BACKGROUND TO MAKING THE ORDER
THE PURPOSE OF THE ACQUIRING AUTHORITY AND THE MAKING OF THE ORDER
CONSULTATION WITH STAKEHOLDERS
10. SCHEME VIABILITY AND DELIVERY
11. THE PLANNING POSITION IN RESPECT OF THE ORDER LAND
12. PURPOSE AND JUSTIFICATION FOR THE USE OF COMPULSURY PURCHASE POWERS
13. HUMAN RIGHTS
14. EQUALITIES STATEMENT
15. EASEMENTS/RIGHTS ETC
16. ANY SPECIAL CONSIDERATIONS AFFECTING THE ORDER LAND
17. COMPULSORY PURCHASE BY NONMINISTERIAL ACQUIRING AUTHORITIES (INQUIRIES PROCEDURE) RULES 2007
18. OTHER CONSENTS REQUIRED
20. CONTACT INFORMATION AND DEPOSIT OF DOCUMENTS
21. RELEVANT DOCUMENTS FOR THE INQUIRY
The London Borough of Hackney has made a Compulsory Purchase Order (“CPO”) entitled “London Borough Hackney (1 – 45 Marian Court (Phase 4)) Compulsory Purchase Order 2017” (“the Order”). This document is the Statement of Reasons of the Council for the Order. The Order was made on 23 January 2017 pursuant to section 226(1)(a) of the Town and Country Planning Act 1990 (as amended by Section 99 of the Planning and Compulsory Purchase Act 2014) (“the 1990 Act”) and Section 13 of the Local Government (Miscellaneous Provisions) Act 1976. In this Statement of Reasons, the London Borough of Hackney is referred to as “the Council” and the land and rights included within the Order are referred to as “the Order Land”.
This Statement of Reasons has been prepared in compliance with the “Guidance on Compulsory purchase process and The Crichel Down Rules for the disposal of surplus land acquired by, or under the threat of, compulsion” issued by The Department of Communities and Local Government on 29 October 2015.
The Council is satisfied that the proposed acquisition of the Order Land will facilitate the carrying out of development, redevelopment or improvement of the Order Land. In considering whether to exercise its powers to make the Order, the Acquiring Authority has had, as is required, regard to Section 226(1)(a) of the 1990 Act and considers that the proposed redevelopment will promote and/or improve the economic, social and environmental well-being of the Council’s administrative area.
Description of the Order Land
The Order Land, incorporating land and residential property known as 1-45 Marian Court (also known as “the Estate”), is situated to the east of Hackney Central Town Centre, between Homerton High Street and the London Overground Railway, in the Homerton ward of the London Borough of Hackney. It extends to approximately 0.4 hectares, with the boundary of the Order Land being shown edged in red on the CPO Plan (“the Map”).
The Order Land is bounded to the north by the access into Marian Court from Link Street, to the west by Link Street itself, to the east by Ponsford Street, and to the south by commercial units occupying the arches beneath the viaduct of the London Overground Railway.
The Order Land is within walking distance of both Hackney Central and Homerton Stations on the London Overground North London Line. A significant number of bus routes serve Marian Court on Homerton High Street, and numerous bus stops are situated within walking distance, both on Morning Lane to the south of the railway line and to the west on Mare Street. Hackney Central Town Centre, to the east of the Order Land, is one of the commercial centres of the borough, where civic and cultural facilities are concentrated.
With the exception of the City Academy, located on the opposite side of Homerton High Street, and some commercial premises on the ground floor of properties on the northern side of the High Street, land uses surrounding the Order Land are predominantly medium density residential development.
The Order Land comprises one six storey block of flats, containing 45 properties. These 45 residential units are made up of 10 bed-sits, 23 two-bed units and 12 three-bed units. Since the blocks were built in the 1960s, the properties have deteriorated and would require an extensive and costly refurbishment to bring them up to the Decent Homes Standard. This is a wellestablished set of standards published by the Department for Communities and Local Government. In summary, a home will meet the standard if a) it meets the current statutory minimum standard for housing; b) it is in a reasonable state of repair; c) it has reasonably modern facilities and services; and d) it provides a reasonable degree of thermal comfort.
The Order Land comprises of Council housing built by the Local Authority in the early 1960s. The building is a deck access slab block consisting of 6 storeys. The block is setback from the high street, creating an underused semi-public space with a lack of active frontages and permeability.
Ownership of the Order Land
The Council owns the freehold interest in the Order Land.
Of the 45 residential units which are proposed for compulsory purchase, 13 are owned by private leaseholders purchased under the Right-to-Buy legislation. The remaining 32 units are owned and managed by the Council, 22 of which are empty and 5 of which are occupied by secure Council tenants. 5 of the units are currently being used as temporary accommodation to house homeless families.
Currently, all of the empty properties within 1-45 Marian Court are being refurbished for the purposes of providing temporary accommodation in order to respond to the borough’s housing needs prior to their demolition. The refurbishment work is due to be completed by March 2017.
The Council also wishes to acquire all private rights, covenants and other qualifying interests by which the Order Land is burdened, details of which are recorded in the schedule to the Order. The Order will ensure that the land is secured with clean title, thereby ensuring there is no impediment to scheme delivery.
Background to the making of the Order Housing in Hackney and Socio-Economic Considerations
Hackney is one of the most densely populated local authority areas in the United Kingdom and has experienced dramatic household growth over recent decades. This has transformed the borough’s built environment, housing stock and tenure profile and since 2001 nearly three quarters of new housing growth has been in the private sector. Despite this, Hackney still has the highest proportion of social rented housing stock in London and continues to have a significant need for all forms of affordable housing to reduce overcrowding and homelessness.
A combination of this growing demand for new homes and an increasingly buoyant local housing market have meant that house prices in Hackney have risen faster than in many other parts of East London. As a result many of Hackney’s residents have been priced out of this market, creating a growing polarisation between those on low incomes, mostly living in social rented housing and high earners who can afford to buy property on the open market. There is now a growing housing gap for moderate earners who cannot afford to buy a home on the open market. This presents a challenge to the creation of sustainable, cohesive communities in the borough. As Hackney becomes increasingly popular as a place to live, with greater opportunity and prosperity, the Council must plan and address the borough’s requirements for a range of high quality housing to suit all income groups and meet the needs of a changing and diverse community.
Housing has a vital role to play in shaping places and neighbourhood identity allowing people from all sections of the community to thrive, prosper and realise their ambitions at every stage in their lives. Housing in Hackney should be responsive to the needs and support requirements of the borough’s most vulnerable residents and contribute to social, environmental and economic wellbeing. It will also act as a catalyst that will continue to help attract new investment and skilled and professional workers to the borough. It is critical that housing in Hackney is designed, built, maintained and managed to high standards, is energy efficient and sustainable, and is set in attractive, environmentally friendly neighbourhoods with good transport connections to employment opportunities, social infrastructure and high quality public amenities.
Giving residents access to a range of housing opportunities that help meet their needs and aspirations is essential to local economic growth and to maintaining high levels of community cohesion. Opportunities include social
7 housing and private rented housing available to those on low incomes, and homes available to the mid-market, to help meet the home ownership aspirations of a skilled workforce. The Council’s Estate Regeneration Programme has a key role to play through the creation of new mixed tenure communities with new homes for social rent, shared ownership and outright sale. The Review Estates and the Council’s Estate Regeneration Programme 4.5.
In July 2004, the Council established a list of “Review Estates” as part of its programme of bringing its housing stock up to the Decent Homes Standard. The Bridge and Marian estate was one of the Review Estates. As part of establishing the Review Estates, the Council appointed Source Partnership, an Independent Tenant and Leaseholder Advisor (“ITLA”), and worked with them to establish a residents steering group – the Six Estates Steering Group – to act as the residents’ voice in shaping the proposals for transforming the estates, including Bridge and Marian.
The process of assessing the options for the Review Estates was completed in July 2005, when the Council gave the estates ‘decant status’ and resolved to seek a development partner to undertake their regeneration. A developer and Registered Social Landlord (“RSL”) partner were selected in conjunction with residents in 2007. However, following the down-turn in the housing market, the selected developer and RSL partner withdrew as it was not possible to reach agreement on a scheme which met the Council's and residents' aspirations.
In 2010, the Council bid for and received grant funding for the regeneration of five of the Review Estates under the LA (Local Authority) New Build Programme. One of the sites to be regenerated through the use of grant funding was Bridge House Phase 1 (see paragraph 4.18 below).
Subsequent to the success of the LA New Build Programme bid, changes to the rules governing local government finance in 2012 have meant that the Council is now able to undertake the regeneration of the Review Estates itself. Accordingly, the Council is now undertaking an extensive programme of redevelopment and regeneration on a number of housing estates and sites across the borough, known as the “Estate Regeneration Programme” (“the Programme”). The Bridge and Marian estate is included within the Programme.
The Programme is the key regeneration project for the Council’s housing stock. It will help meet the Council’s central objectives of improving the
8 design, quality and condition of existing homes on the Council’s estates as well as, over time, delivering extra homes at higher densities or, potentially, through infill developments. The changing population demographic within the Borough means there is a need for properties with increased numbers of bedrooms. Crucially it will also meet wider objectives for neighbourhood renewal such as improving opportunities and quality of life, promoting social inclusion and reducing inequality. 4.10. The Programme was approved by the Council’s Cabinet on 18 July 2011, to deliver some 2,304 new homes over the following eight years (with flexibilities allowed in terms of scheme details and delivery timeframes). This was estimated to include 1,110 new build affordable homes comprising of circa 626 homes for social rent and 484 homes for sale on shared ownership terms. In addition, a further 1,194 homes were proposed for outright sale on the open market. In total, the Programme (including a further 195 social rented homes and 80 leasehold homes proposed to be refurbished) will provide a sustainable balance of homes: 49% for sale on the open market and 51% for social rent and shared ownership. Since 2011 the Programme has been updated and further refined with an increase in the level of affordable housing now forecast to be delivered. 4.11. The Programme is designed to improve living standards on many of the Borough’s estates and to deliver new high quality, mixed tenure developments, whilst also re-providing existing homes for social rent. The Programme is structured so as to develop some of the sites primarily for private sale (i.e. open market) homes. This acts to balance the tenure mix on existing estates and to generate the cross subsidy required to finance the construction of new homes for social rent and shared ownership elsewhere. 4.12. The Programme should be seen in the context of the severe housing need in the Borough. In 2014, the Council carried out a housing needs assessment in accordance with Government guidance. A borough wide survey was undertaken covering 1,504 households. The subsequent report concentrated on the need for more affordable housing and the supply and demand for housing across all tenure groups. It used data from the survey (along with other sources) to make estimates about future housing requirements in the Borough. 4.13. At the time of the 2011 Census, it was estimated that there were approximately 101,690 households in the Borough. Of these households, 26.1% were owner-occupiers (including 2.3% in Low Cost Home Ownership, with 43.7% living in the social rented sector and 30.2% in the private rented sector. The 2014 housing needs assessment also found that overcrowding
9 was a concern, 34% of social tenants were overcrowded and needed at least one additional bedroom. It also found that social rented tenants had more problems with their property than other tenures - over 50% of social tenants surveyed stated they experienced issues with each of cold, damp and mould. 4.14. The number of households in Hackney is expected to rise by 36,672 for the period 2011 – 2035. The Objectively Assessed Housing Need for Hackney (identified within the Strategic Housing Market Assessment (2014) is 1,758 dwellings per annum). Although this figure includes need from a variety of groups who would not usually be expected to receive social housing in a London Borough, even if that need were deducted, the total need would remain far in excess of any reasonable build rate in an already heavily urbanised area. Hackney already has a severe need for more genuinely affordable housing, with over 11,000 households waiting for social housing on the Council’s housing register, and over 2,700 households living in temporary accommodation (November 2016). The Bridge and Marian Estate Regeneration Scheme 4.15. The redevelopment of 1-45 Marian Court represents the fourth and final phase of the Bridge and Marian Estate Regeneration Scheme (“the Bridge and Marian Scheme”). The Bridge and Marian Scheme is intended to replace the existing 135 poor-quality residential units on the estate with up to 350 new high quality homes, delivered across four phases, along with new retail and commercial facilities, a new community centre, and improved amenity space and public realm. 4.16. The Bridge and Marian Scheme represents an opportunity to deliver increased numbers of residential units in order to maximise the use of the land and to enable the renewal of an existing housing estate which has deteriorated, is costly to run due to energy inefficiencies, and where refurbishment to the Decent Home Standard would be expensive and not cost effective. It will also re-configure and provide improve amenity space for residents as well as deliver significant improvements to the public realm. Further detail of the component parts of the redevelopment proposals and the wider benefits that will be delivered are set out in Section 5. 4.17. Phase 1 of the Bridge and Marian Scheme, known as Bridge House Garages, involved the redevelopment of land to the south of Bridge House. The redevelopment of this land, which contained a number of existing garages, was completed in 2013 and delivered 40 new homes, 20 for social rent and 20 for shared equity/ownership.
10 4.18. Detailed planning permission was granted for Bridge House (Phase 2) and Marian Court (Phase 3) in November 2012 (Ref. 2012/1731). In order to assemble the land required for scheme delivery within both of these phases, the Council made and secured the confirmation of a CPO in November 2014. The demolition of Bridge House (Phase 2) is due to complete in February 2017, and a start on site will be made shortly thereafter in order to deliver 75 new homes, including 28 for social rent, 39 for shared ownership, and 8 for outright sale, as well as improved public realm. 4.19. Marian Court (Phase 4) was granted outline planning approval (Ref. 2012/1731) in November 2012 for 78 homes, including 16 for social rent, 30 for shared ownership and 32 for outright sale, together with 1 new commercial unit. As stated in paragraph 4.15, this is the final phase of the Bridge and Marian Scheme. The Council now wishes to deliver Marian Court (Phases 3 and 4) together, supported by a single design team. The Council has appointed Adam Khan Architects in this regard with the intention of submitting a new planning application in the autumn of 2017 (see Section 7 for further details). It is the Council’s intention to commence development in respect of Marian Court (Phases 3 and 4) in early 2019, having obtained vacant possession of 1-45 Marian Court through the Order. 1-45 Marian Court 4.20. In common with many of the estates within the Programme, the properties within the Order Land were constructed in a different era, catering for different social needs, and using different building technologies and standards. Since the construction of Marian Court there has been a gradual deterioration in the condition of the blocks and for a number of years it has been widely recognised that they are at the end of their economic life and are in need of redevelopment. 4.21. 1-45 Marian Court suffers from significant fabric failures; the windows, electrical circuits and elements of plumbing have all reached the end of their useful lives; and some of the residential units do not have central heating or modern insulation. Asbestos has also been identified in all the flats recently tested. The Marian Court blocks themselves do not meet modern social housing standards and the residential units within them are not fit for purpose. In common with the other Review Estates and the blocks within the Programme, this means that renovation/refurbishment is not an economically viable option. 4.22. In July 2005, the Council’s Cabinet approved the comprehensive redevelopment of Bridge House and Marian Court. This was recommended
11 based on the outcome of an options appraisal process which was set out in the Cabinet report. In relation to non-monetary considerations, the report concluded that upgrading the Bridge and Marian estate to the Decent Homes Standard would have a significant impact on improving the internal standards within flats, but not bring the overall Estate up to the modern standards desired by residents. Further, the Cabinet report set out that the total redevelopment option was considered preferable as this would comprehensively create a modern, mixed tenure neighbourhood. 4.23. As stated in paragraph 4.21 the Order Land is considered beyond repair such that its refurbishment would not be economically viable.
The Purpose of the Acquiring Authority and the Making of the Order
The Council’s purpose in seeking to acquire the Order Land is to undertake the fourth and final phase of the Bridge and Marian Scheme.
The Council’s Cabinet approved the use of its compulsory purchase powers in order to assemble the land required to deliver the redevelopment of the Order Land on 23 January 2017.
The redevelopment of the Order Land comprises part of the wider Marian Court Scheme (“the Scheme”), which is intended to deliver the following: • • • •
Up to 200 new homes; An enhanced public realm, including new play space and landscaped areas; A new community centre; and New retail and commercial floorspace.
Further details about the proposals for the Order Land and the public benefits to be delivered as part of the Scheme are provided in Section 7.
The Acquiring Authority is the local planning authority for the Order Land.
Section 226 of the 1990 Act enables a local authority to acquire land compulsorily for planning purposes. Specifically, Section 226(1)(a) of the 1990 Act authorises a local authority to exercise its compulsory purchase powers if it thinks that acquiring the land in question will facilitate the carrying out of development, redevelopment, or improvement on, or in relation to, the land being acquired.
Section 226(1)(A) of the 1990 Act prevents a local authority from exercising its powers under section 226(1)(a) unless the local authority thinks that the proposed development, redevelopment or improvement is likely to contribute to the achievement of any one or more of the following objects: the promotion or improvement of the economic, social or environmental well-being of its area.
The Council is satisfied that the proposed use of compulsory purchase powers will result in the redevelopment of the Order Land in a manner which will bring about social, economic and environmental improvements through the provision of new residential dwellings and ancillary development. It will secure new outright sale and affordable housing in place of poor quality housing, thus securing both quantitative and qualitative improvements to the housing stock within the Borough.
The Acquisition of Land Act 1981 (as amended by the Planning and Compulsory Purchase Act 2004) sets out the process for compulsory acquisition and therefore, applies to the Order. The acquiring authority is the Council.
Section 13 of the Local Government (Miscellaneous Provisions) Act 1976 permits local authorities to acquire new rights over land by way of a CPO. The Council is satisfied that new rights are required to deliver the proposed redevelopment.
Furthermore, land held by the Council for housing purposes which is required for the proposed redevelopment will be appropriated to planning purposes.
As to the “Guidance on Compulsory purchase process and The Crichel Down Rules for the disposal of surplus land acquired by, or under the threat of, compulsion” (“the CPO Guidance”), this recognises that the power in section 226 of the 1990 Act provides a positive tool to help local authorities with
14 planning powers to assemble land and implement proposals in their local plan or where suitable planning justification for the use of the power exists. 6.9.
The CPO Guidance states that land assembly must be set within clear strategic framework which is founded on an appropriate evidence base, and which has been the subject of consultation.
6.10. Paragraph 76 of Section 1, Tier 2 of the CPO Guidance sets out the factors the Secretary of State can be expected to consider in deciding whether or not to confirm an order under Section 226(1)(a) as follows: •
Whether the purpose for which the land is being acquired fits in with the adopted planning framework for the area – see Section 11;
The extent to which the purpose for which the land is being acquired will contribute to the promotion or improvement of the economic, social or environmental well-being of the area – see Section 7; and
Whether the purpose for which the Acquiring Authority is proposing to acquire the land could be achieved by any other means – see Section 7.
The Scheme The Outline Permission
The Council is currently working on a revised scheme for the Order Land, which will result in an improvement to the existing outline planning permission. The design team have been appointed and a new detailed planning application is scheduled for submission in September 2017.
The Outline Permission still remains valid and implementable. The reason for seeking a new consent is because the Council believes it can improve upon the existing design and increase the amount of new affordable housing being delivered.
As stated in paragraph 4.15 above, the redevelopment of 1-45 Marian Court represents the fourth and final phase of the regeneration of the Bridge and Marian Estate.
Subsequent to the Review Estates process referred to above, in 2009, the Council's Cabinet agreed that the condition of the Bridge and Marian Estate was such that regeneration proposals needed to be brought forward. Following detailed design work and consultation with local residents, this resulted in the current proposals for a comprehensive, multi-phase, estatewide redevelopment, the first phase of which (Bridge House Garages) is now complete.
With regard to Phase 4 of the Bridge and Marian Scheme in particular, having considered the feedback received during the public consultation process, as well as the results of a housing needs assessment conducted by the Council in 2011 in partnership with the ITLA, Source Partnership, the Council included the provision of 78 new, high quality, mixed tenure homes (16 social rent, 30 shared ownership and 32 outright sale) within the proposals for 1-45 Marian Court.
Planning permission for 1-45 Marian Court was originally granted on 7 November 2012. Permission to develop Phase 4 was obtained in outline (with all matters reserved save for access and scale) (“the Outline Permission”), however, this formed part of a broader hybrid planning permission (Ref. 2012/1731) (“the Hybrid Permission”) which also included the land within Phases 2 and 3 and sought permission for these phases in full.
The Outline Permission authorises the erection of a part 5 and part 6 storey building (including lower ground floor) located at the north west of the Order
16 Land comprising 25 x 1 bed and 53 x 2 bed residential units and 104 sq. m of flexible commercial (use classes A1/A2/D1) floorspace. In addition to the 78 residential units comprised within Phase 4, the Hybrid Planning Permission secures the delivery of 75 residential units within Phase 2 (13 x 1 bed, 39 x 2 bed, 22 x 3 bed and 1 x 4 bed units) and 41 residential units within Phase 3 (3 x 1 bed, 24 x 2 bed, 10 x 3 bed and 4 x 4 bed units). Re-designing Marian Court Phases 3 and 4 7.8.
However, as stated in paragraph 4.15, the Council now wishes to deliver Phases 3 and 4 of the Bridge and Marian Scheme together, and has appointed Adam Khan Architects to prepare a new scheme design which encompasses both phases. Given the changing nature of the area since the Hybrid Permission was granted in November 2012, the proximity of the Marian Court Estate to the town centre, and the continued increase in demand for affordable housing in Hackney, the Council considers that there is an opportunity to revisit the redevelopment proposals for the Marian Court Estate and, in particular, to redesign a comprehensive scheme which will improve upon the Council’s ability to meet the aspirations of the local community.
The London Plan Density Matrix indicates that 200 units/ha would be considered appropriate across Phases 3 and 4. The Marian Court site has a PTAL rating of 6a, and there is therefore a strong planning argument to increase density on the site over and above the circa 150 units/ha delivered by the existing Hybrid Permission. Notably, the emerging Hackney Central and Surrounds Masterplan, which was publicly consulted on in October 2016 and at the Cabinet Meeting on 23 January 2017 the ‘pre-publication’ version was endorsed1. The emerging Masterplan also contains a number of scheme proposals in the close vicinity of the Order Land that are of a similar density.
7.10. The demand for social rent, intermediate, and outright sale housing in the borough makes it imperative that the Council seeks to maximise density wherever possible, within the existing site context and associated constraints, in order to deliver as much housing as it can for local residents. 7.11. This opportunity also allows the Council to increase the amount of new affordable housing to be delivered on the Order Land, as well as an improved commercial and retail offer. The Order Land sits adjacent to a Priority 1
The decision to endorse the Masterplan is required so that Council Officers can carry out a ‘prepublication’ period on the document in order to ensure that consultees who made representations as part of the public consultation, have the opportunity to consider and comment on the amendments to the Masterplan made in response to the consultation.
17 Employment Area and is adjacent to a new private sector led fashion and retail development. Accordingly, there is scope to reconsider the proposed uses at ground floor level across the Order Land. The Site Allocations Local Plan (SALP) 2016 also allocates the Order Land for residential with supported retail, employment and community facility uses. 7.12. The design of a new comprehensive scheme for the site will be informed by the Marian Court Estate Regeneration Design Brief (“the Design Brief”). The Design Brief was issued in July 2016 as part of the Invitation to Tender to architect firms on the GLA ADUP Lot 2 Framework. 7.13. The Design Brief identifies a number of site specific requirements, including the need to increase permeability through the site, the need for any development proposals to be sympathetic to the Clapton Square conservation area to west of the site, and to respond appropriately to the hard edges of the site located along Ponsford Street and Homerton High Street. 7.14. The objectives of the new scheme will still be as outlined in paragraph 5.3, but in order to enhance the design additional site specific considerations now form part of the Design Brief, which was included in the procurement documentation sent out to the architect practices bidding for the scheme. These include the following: Movement • • • •
Relocate an existing access point to the site if it would improve the arrival to the development and protect or enhance the character of the local area. Routes through the site should strengthen pedestrian connections to Homerton High Street, Link Street, Morning Lane and Ponsford Street. Realign existing routes to enhance connections either visually or physically. Consider the change in levels from the centre of the site to Homerton High Street; there are existing steps which connect Link Street to Homerton High Street.
Scale and Massing • • •
Relate to the scale of the low-rise Victorian properties on Mehetabel Street and listed buildings to the West. Relate to the scale of Ponsford Road and the recent Bridge House development to the East. Consider how the massing and position of new buildings on the site can protect the new environment from the noise of the A102 Road which bounds it to the North and from the Overground railway line to the South.
18 • • • • •
Consider how the form and height of any new buildings fronting Homerton High Street create a street profile with buildings opposite. Create building forms that increase visual connections through the site. Use scale to create a hierarchy of open spaces and routes. Consider the opportunities that densification in a car free development offer in terms of either how compact or tall building types can be. Where compact development is proposed exploit the relationship between building orientations and flat plans to optimise privacy and amenity of occupants. Where taller buildings are proposed consider the impact on the street scene. Carefully consider the contained nature of the site and in particular its harsh edges.
Building Types and Uses • • •
Exploit building form and location to accommodate different unit types. Position building form/uses which most successfully respond to the change in level from Homerton High Street southward. Consider placing commercial/retail uses at ground floor level facing Homerton High Street and in locations where residential units would be better protected if located on upper floors only. Introduce a typology of mixed-use buildings for this site that would attract small to medium sized enterprises to the area. Consider the emerging identity of studios/workshops/retail in the surrounding area, in the railway arches and to the south and west.
7.15. Having appointed Adam Khan Architects to take forward the redesign of Phases 3 and 4 of the Bridge and Marian Scheme, the Council has embarked on a programme of consultation with local residents which commenced in December 2016. Residents will be engaged in all stages of the design as it develops up until the submission of the planning application. 7.16. The Council is targeting the submission of a new planning application for Marian Court Phases 3 and 4 in the autumn of 2017. Thereafter, and subject to the grant of planning permission, the redevelopment of both phases will be delivered and built out as one transformative project. Public Benefits of the Scheme 7.17. As stated within paragraph 5.3, the redevelopment of the Order Land will deliver new residential accommodation (up to 200 new homes on Phases 3 and 4 combined), a new community centre, new retail and commercial floorspace, and an enhanced and improved public realm. It is considered that the redevelopment will give rise to the following public benefits:
19 • • • •
• • • • •
The replacement of units at the end of their useful life with new high quality homes built to current space and sustainability standards; The provision of much needed social housing; A more sustainable and mixed community with a wider range of tenures; An increase in area of affordable housing accommodation over and above both the existing provision and that provided for in the Outline Permission (including shared ownership homes); The improvement of security by creating active frontages at ground floor level; A more ‘legible’ development that is easier to navigate and much better urban design that makes more efficient use of land; Improved landscaped amenity areas and play spaces; A car free environment; and Community benefits through a section 106 planning obligation linked to the grant of planning permission and the inclusion of a new community centre.
Consideration of Alternatives 7.18. The regeneration of the Order Land is the final phase of a comprehensive estate-wide regeneration scheme (the Bridge and Marian Scheme). Phase 1 is completed and the main construction works in relation to Phase 2 will be starting on site in early 2017. The Council has assembled the land required for the delivery of Phase 3 having made and secured the confirmation of a CPO for this land in November 2014 (which also included the land required for the delivery of Phase 2). Phase 4 is the final piece of the jigsaw and is therefore crucial to securing the complete and total transformation of the Bridge and Marian Estate for the benefit of local residents. 7.19. Without the delivery of Phase 4, 1-45 Marian Court will remain as a walled, inward looking block, beyond economic repair, and detrimental to the look and feel of the wider neighbourhood. In comparison, the proposals for the Order Land will open up the site, making it more permeable and connected to the wider city, thereby providing a range of social, economic, and environmental benefits to local residents. It will also deliver high quality new housing, including more affordable housing than was originally on the Estate. The redevelopment will also provide a new and enhanced community facility and potentially new commercial and retail floorspace. Accordingly, the regeneration of 1-45 Marian Court should not be seen in isolation. The compulsory purchase of the Order Land is required so that the comprehensive redevelopment of the Bridge and Marian Estate can be completed and the full
20 range of public benefits to be delivered from this redevelopment can be realised. 7.20. As stated at paragraph 4.22, whilst refurbishment may improve certain elements of the internal standards of the existing residential units, it would not address all of their deficiencies or bring the overall estate up to the modern standards desired by residents. Furthermore the total redevelopment option is considered preferable as it provides the opportunity to create a modern, mixed tenure neighbourhood. 7.21. As stated in paragraphs 4.20 to 4.23, 1-45 Marian Court is considered to have deteriorated beyond repair to such an extent that its refurbishment would not be economically viable.
Consultation with Stakeholders
Extensive community engagement has been a core element of the redevelopment process for whole of the Bridge and Marian Estate. As noted elsewhere in this Statement of Reasons, the designation of the original Review Estates saw the appointment of an ITLA, Source Partnership, to support residents through the process, as well as the creation of the Six Estates Steering Group in October 2005 to help guide the Council’s regeneration strategy. Both the ITLA and the Steering Group remain integral to the process to this day.
Following its establishment, the Six Estates Steering Group met continuously on a monthly basis up until May 2015 when it then became the Bridge and Marian Steering Group, which now meets on a bi-monthly basis. The Steering Group has a detailed constitution and is open to all residents on the Bridge and Marian Estate. Council officers attend the Steering Group to report on progress and to answer any questions from residents.
In May 2016 the Brooklime, Chervil (the names given to the Phase 1 blocks) and Marian Tenants and Residents Association (TRA) was formed. The Bridge and Marian Steering Group played an integral role in helping establish this first TRA on the Estate. The Steering Group will continue to meet on a bimonthly basis to ensure there is still a dedicated forum to discuss and input into the regeneration proposals.
The Council, along with the ITLA, has also held monthly drop-in sessions for tenants and leaseholders on the estate. These drop-in sessions are a forum for residents to ask questions about the regeneration process and to view and comment on the Council’s redevelopment proposals. These sessions have recently been turned into coffee afternoons where residents can drop in for a more informal conversation as well as to discuss any part of the regeneration process and its impact on them. The drop in sessions have been held every month since June 2016.
As part of its advisory role to the Bridge and Marian Steering Group, the ITLA, has prepared housing needs assessments for all residents affected by the regeneration of the Bridge and Marian Estate. These assessments have helped inform the mix of unit sizes and tenures to be delivered by the redevelopment. All of the tenants with a right to return in 1-45 Marian Court have expressed an interested in moving into the new build development at Bridge House (Phase 2) when it is completed in December 2018.
The Bridge and Marian Steering Group has been consulted on the proposal to seek a new planning consent for Marian Court Phases 3 and 4 and there has been keen interest and support from the Group, who are now involved in the early concept stages of the new design.
Representatives of the Brooklime, Chervil and Marian TRA formed part of the panel which selected Adam Khan Architects to design the new scheme for Marian Court Phases 3 and 4. The consultation process for the new scheme began on the 28 November 2016 when the architect team presented their initial thinking to the Steering Group. There will be regular updates via the Steering Group and TRA throughout the design process, as well as special design workshops held for all residents to enable them to positively contribute to the design process. This pre application consultation will take place for approximately 10 months up until the point of submitting a planning application in the autumn of 2017.
With regards to specific CPO engagement, rehousing interviews were held with tenants in February 2016 where tenants were allocated bidding numbers and advised of the decant process. In April 2016 a specific leaseholder event was held which kick-started the process of valuing leaseholder’s properties and entering into negotiations to acquire their properties by agreement.
The Council’s Decant Team are in regular contact with all of the remaining secure tenants and are bidding for other Council properties on their behalf.
8.10. Since June 2016 monthly drop in sessions have been scheduled for all residents across the Bridge and Marian Estate, regardless of tenure. There has also been a specific event held to explain the Request for Information pack sent out in September 2016.
Following the approval of the Programme by the Council’s Cabinet on 18 July 2011, the Council embarked on a series of community based information and consultation sessions whereby every tenant and leaseholder was offered an individual meeting with a team of Council advisers and a representative from the ITLA, Source Partnership. During these sessions tenants and leaseholders were given detailed information about their re-housing options and the process that would be undertaken to find them suitable alternative housing.
Since 2011 there have been regular drop in sessions for tenants and leaseholders to discuss their housing options as the regeneration has progressed. The focus initially was on Bridge House Phase 2 and Marian Court Phase 3, for which a CPO was secured in November 2014.
There have also been regular monthly Six Estate Steering Group meetings since 2005, with rehousing as a standing item on the agenda. The Bridge and Marian Steering Group has met on bi-monthly basis since April 2015 and rehousing has continued to be on the agenda since this change. This has given Council officers an opportunity to provide an update and for residents to ask questions on a regular basis.
In February 2016 tenants from 1-45 Marian Court were made aware that the Council was intending to take steps to start the compulsory purchase process before the end of the year. In February 2016 tenants were invited to attend rehousing interviews where they were assigned bidding numbers. The Council’s Decant Team have supported tenants through the decanting process since this time.
Since June 2016, regular drop in sessions have continued to be held and early conversations with tenants and leaseholders from 1-45 Marian Court have taken place.
In September 2016 the formal CPO process started and letters were sent out to all tenants with a Request for Information Pack. On 21 September 2016 a specific session on the Request for Information pack was held. Persona, who have been appointed to carry out the land referencing on behalf of the Council, talked residents through the packs and the parts they needed to fill in. It was also explained that residents could attend the monthly drop-ins for assistance or contact the ITLA for additional support if required.
A first leaseholder event was held in April 2016. All leaseholders were written to and sent a copy of the “Hackney Regeneration Estates Freeholder and Leaseholder Options Policy” (approved in April 2012). The Council’s surveyor subsequently made contact with all leaseholders to arrange valuations and to start the negotiation process for the acquisition of their respective interests in the Order Land by agreement.
In September 2016 the formal CPO process started and letters were sent out to all leaseholders with a Request for Information Pack. On 21 September 2016 a specific session on the Request for Information pack was held. Persona, who have been appointed to carry out the land referencing on behalf of the Council, talked residents through the packs and the parts they needed to fill in. It was also explained that residents could attend the monthly drop-ins for assistance or contact the ITLA for additional support if required.
In 2012, the Council approved a range of options designed to give leaseholders and freeholders the opportunity to stay living on their estates under a range of home ownership options, recognising that they are a key part of the community. These options formed part of the Estate Regeneration Programme Leaseholder and Freeholder Options Document which was approved by Cabinet in April 2012. In general terms, leaseholders and freeholders are given the opportunity to invest the proceeds from the sale of their existing home into one of the new build homes on a shared equity or shared ownership basis, depending on individual circumstances, that they can move into once the properties have been built. If necessary, they are offered temporary accommodation by the Council if their existing homes are required for redevelopment before the new properties become available.
9.10. The Council has updated its Leaseholder and Freeholder Options Document and this was approved by Cabinet in November 2016. The new offer refreshes the existing documents and updates the various options available to existing leaseholders and freeholders. There is also now more information provided on the CPO process as well as further detail that reflects current practice and lessons learned from the Programme to date. The Bridge and Marian Steering Group were consulted on the proposed changes and the revisions to the document went through several iterations until the Steering Group confirmed it was happy with the final proposals which were subsequently approved by Cabinet. 9.11. The updated Leaseholder and Freeholder Options Document improves the offer to leaseholders and freeholders within the Order Land and ensures that any leaseholder or freeholder that wishes to remain living on the estate can do so.
9.12. Improvements have been made to the Options Document to address the affordability of the shared ownership option, with the rental element of the unowned proportion now fixed at 2.5% of the unpurchased equity. For the shared equity option, the minimum equity stake required to be purchased has now been removed, so that every leaseholder that wants to take up this option can, provided that they reinvest the full sales value of their current property plus 100% of their home loss payment. Further improvements to the shared equity option include the introduction of additional succession rights for children as well as the ability to sublet. 9.13. The Council has adopted a similar process with secure tenants, whereby the housing needs of all tenants have been assessed and the Council has sought to offer suitable alternative accommodation. The Council’s Estate Regeneration Team, in conjunction with Decant Officers, officers of the Housing Needs Team, and Source Partnership are providing support, advice and assistance to all secure tenants going through the rehousing process. Secure tenants have also been granted a right to return to new build properties within the Bridge and Marian Estate once constructed. 53 secure tenants across all phases of the Bridge and Marian Estate have been successfully re-housed already, 3 of which have been decanted from the Order Land and have expressed a desire to return. The remaining 5 secure tenants on the Order Land are also all keen to return to live on the Estate once the next phase of regeneration (Phase 2) has been completed. 9.14. Private tenants of leaseholders have also been contacted as part of the process. They are invited to all of the Steering Group meetings and drop in sessions, and have been advised to make an appointment with the Council’s Housing Needs team so that they can be advised of their rehousing options. Additional support work will be carried out where necessary to ensure that private tenants seek the advice they need. 9.15. With regards to the Council’s negotiations with affected parties to date, 3 leasehold properties have been repurchased including 1 leaseholder who has taken up the offer of a Leasehold Swap into a new property in Phase 1 under the Council’s Leaseholder and Freeholder Options Document. There are a further 6 sales agreed and a further 2 agreed in principle. Negotiations in relation to 3 leaseholder properties where a sale is yet to be agreed (whether in principle or otherwise) are ongoing. 9.16. There are 2 absentee leaseholders that the Council have not been able to make contact with, despite best efforts. Several letters and information packs have been sent to the leaseholders and door knocking exercises have been
26 carried out to try to find out details through the private tenants residing in the flats. The Request for Information has however failed to yield any further information. The Council, along with the ITLA, will continue to try to make contact during the CPO process. 9.17. Although some progress is being made as regards acquisition by agreement, in order for the regeneration of the Bridge and Marian Estate (and in particular 1-45 Marian Court) to proceed in accordance with the Council’s delivery programme (see Section 10 below), the Council must seek the authority to use its powers of compulsory purchase to acquire the remaining interests in the Order Land.
Scheme Viability and Delivery Scheme Viability
10.1 As explained in Section 4, the delivery of the development of the Order Land is part of a Borough-wide regeneration programme, known as the Estate Regeneration Programme, being promoted by the Council. The Programme is structured so as to develop certain sites primarily for homes for outright sale. This acts to balance the tenure mix on existing estates and to generate the cross subsidy required to finance the construction of new homes for social rent and shared ownership on other phases and sites within the Programme. The Council’s Cabinet has approved this portfolio approach, with the Programme as a whole considered deliverable based on currently anticipated costs and values. 10.2 This approach also provides the opportunity to combine the development of schemes which have the potential to generate a surplus with those that require a net investment. This portfolio approach to viability is also applicable in respect of the tenure mix on each scheme, whereby planning policy compliance is achieved across the whole Programme rather than on a site by site basis. This means that the Council is able to balance both viability and tenure mix across the whole Programme rather than on a scheme by scheme basis. The Council has committed through a Unilateral Undertaking to completing the programme in full. This provides certainty that overall a planning policy compliant programme in terms of housing provision will be delivered. 10.3 The Programme is being funded through the release of the value of the land on the estates concerned, increasing housing densities and introducing homes for outright sale. The total cost of the Programme will be met through prudential borrowing (supported by rental income) and from capital receipts from outright and shared ownership sales. 10.4 Delivery of the Programme is based on a consolidated business plan, demonstrating the overall financial viability position and expenditure commitments of the Programme. This business plan consists of a number of sub-phases representing each scheme (or scheme phase) within the Programme, each of which has been financially modelled and tested. Current modelling shows that there are no forecast obstacles to delivery in relation to viability or spending approvals.
28 10.5 On appropriate assumptions about values and costs, the Programme is selffunding and generates a long-term return to the Council through a combination of the following: • • • •
Residual land value created through the disposal of for the outright sale homes; Receipts from initial equity tranche sales and the subsequent rental stream from shared ownership homes; Ring-fencing rental receipts at target rents from the new social rent homes; and Mitigating Right to Buy re-purchase costs through the provision of equity swap and shared ownership arrangements for existing leaseholders and freeholders.
10.6 Within the Estate Regeneration Programme Update Report that was approved by the Council’s Cabinet on 24 March 2014, it was confirmed that the Programme is expected to begin to produce a positive cash flow from 2031, with a surplus of £247 million at year 40 (2051). The latest financial position as at Q3 2016/17 shows a positive cash flow from 2032, with a surplus of £226m at year 40 year (2051). Up to 2032, the Programme requires funding from the Housing Revenue Account (“HRA”) to cover the difference between costs and revenue and the Council is committed to funding that difference. This commitment was re-confirmed in the update of the HRA Business Plan approved by Cabinet in January 2016. In addition, the costs and viability of the Programme are monitored and reported each quarter to the Housing Development Board. 10.7 The Council is therefore satisfied that the necessary resources are or will be available to acquire the Order Land within the implementation period for the Order and to deliver the regeneration of the Order Land. There are no financial impediments to the scheme. Scheme Delivery 10.8 The redevelopment of 1-45 Marian Court will be delivered by the Council, having procured a developer/contractor to build out the Scheme. The Council’s current delivery programme is as follows: • • • • •
Initial capacity and feasibility study of Marian Court: February 2016 Tenant decant and leasehold acquisitions commenced for Marian Court Phase 4: March 2016 Appointment of Employer’s Agent (“EA”): May 2016 Issue of Invitation to Tender with Architecture Brief for Design Team: July 2016 Appointment of Development Advisor: July 2016
29 • • • • • • • • • • • • • •
Appointment of Design Team: November 2016 Consultation on new design commenced: December 2016 Initial consultation events held with local residents and stakeholders: March/April: 2017 Further consultation events held with local residents and stakeholders: July 2017 Planning application submitted: September 2017 Planning approval: January 2018 Begin procurement for a developer for Marian Court: November 2017 Vacant Possession for Marian Court Phase 3: February 2018 CPO confirmed for Marian Court Phase 4: April 2018 Vacant Possession for Marian Court Phase 4: September 2018 Developer/Contractor appointed: September 2018 Demolition of Marian Court: September 2018 Start on site: February 2019 Practical Completion: December 2020
10.9 Following completion of the Scheme, the Council will remain as freeholder and will take on the management responsibility for the wider Estate.
The Planning Position in Respect of the Order Land
11.1. The redevelopment of the Order Land fully accords with all relevant strands of Government, regional and local planning policy and guidance aimed at promoting sustainable development. Outline planning permission is in place for the development of the Order Land, albeit the Council is promoting a revised and improved scheme for Phases 3 and 4 of the Bridge and Marian Scheme. 11.2. The following part of this Statement of Reasons sets out the national, regional and local policy framework relevant to the development proposals for the Order Land. 11.3. The proposed demolition of existing sub-standard residential properties and redevelopment of the Order Land to provide new housing that meets the Decent Homes Standard is compliant with the hierarchy of planning policy documents: The National Planning Policy Framework, the London Plan (2016) and the London Borough of Hackney’s Core Strategy (2010), DMLP (2015) and SALP (2016). 11.4. The Order Land is located to the east of Hackney Central District Town Centre and the area covered by the Hackney Central Area Action Plan, and to the north of the Homerton Priority Employment Area. The Clapton Square Conservation Area is located to the west of the site. National Planning Policy Framework (“NPPF”) 11.5. The NPPF articulates the Government’s vision for sustainable development. The presumption in favour of sustainable development is central to the policy approach and is characterised by three “roles”: •
An economic role – contributing to building a strong, responsive and competitive economy by ensuring that sufficient land of the right type is available in the right places; A social role – supporting strong, vibrant and healthy communities by providing the supply of housing required to meet the needs of present and future generations, and accessible supporting uses to reflect the community’s needs; and An environmental role – protecting and enhancing the natural, built and historic environment.
11.6. The NPPF states that applications including new housing should “deliver a wide choice of high quality homes, widen opportunities for home ownership and create sustainable, inclusive and mixed communities”. It stipulates that
31 new residential development must be designed to a high quality to help contribute to the surrounding community. The London Plan (2016) 11.7. The London Plan is the strategic development plan for London and forms part of the strategy development plan for Hackney. 11.8. Policy 3.9 ‘Mixed and balanced communities’ of the London Plan states that: “Communities mixed and balanced by tenure and household income should be promoted across London through incremental small scale as well as larger scale developments which foster social diversity, redress social exclusion and strengthen communities’ sense of responsibility for, and identity with, their neighbourhoods. They must be supported by effective and attractive design, adequate infrastructure and an enhanced environment.” 11.9. Policy 3.4 ‘Optimising housing potential’ states that: “development should optimise housing output for different types of location within the relevant density range.” A sustainable residential quality density matrix accompanies the policy, and sets out the appropriate density ranges in relation to the setting in terms of location, existing building form and massing, and the index of public transport accessibility (PTAL). Core Strategy (2010) 11.10. The adopted Policies Map shows Marian Court as an estate renewal area. 11.11. The Core Strategy includes the following statement: “Hackney Council, through Hackney Homes, is operating a phased programme to renew selected social housing estates at Haggerston West and Kingsland Estates (served by ELL Haggerston Station), Kings Crescent, Colville, Alexandra National House, Rendlesham House, Tower Court, Bridge House, Marian Court, Ottway House. The programme will contribute to objectives to deliver decent homes, affordable housing, social inclusion and cohesion with an improved housing environment” (bold text added). 11.12. The policies in the Core Strategy chapter ‘Providing Better Homes’ are preceded by a number of overarching principles: •
Accommodate a growing and changing, diverse community;
• • •
• • • •
The Council must identify adequate spatial capacity within the borough to deliver a range of housing (in terms of tenure, size mix and affordability) and to respond to population growth and a changing community; Embed quality of design and materials into all housing developments and their surroundings; To improve residents’ well-being and the longevity of building life; Provide the right housing options in the right areas to create mixed and diverse communities where everyone has the opportunity to thrive and prosper; The Council must ensure that [its] identified areas for housing growth and development are capable of sustaining its “priority need” requirement for new, additional housing. The Council need to ensure that [its] understanding of affordable housing viability on residential and mixed use schemes (and how this may differ spatially within the borough) is reflected on its affordable housing targets, tenure mixes, size mix requirements and affordability thresholds; Ensure all new housing is fuel efficient and environmentally sustainable; To help fight again climate change, and help tackle issues such as fuel poverty; Ensure that new housing is durable and adaptable so that it can respond to changes in household needs over time; and By ensuring the highest standards of design are met.
11.13. Policy 19 ‘Housing Growth’ is relevant to the proposals for the Order Land. It states that: “Hackney will seek to ensure that proposals for new residential development and residential conversions including changes of use, incorporate a mix of dwelling types and sizes that reflect and respond to Hackney’s current and future housing needs, and taken together with residential extensions, positively contribute to the creation of mixed, sustainable communities and neighbourhoods. The Council’s approach will be informed by up to date assessments of local housing need and demand. Hackney will seek to resist the loss of family accommodation and promote the provision of new family accommodation (3 bed or larger) of all tenures as well as seeking to provide a mix of housing to meet the identified needs of different types of households within the borough and to create cohesive, tenure diverse communities. Planning permission will not be granted for any development which results in a net loss of residential units, unless acceptable plans are in place for replacement development at an equivalent or higher density.” 11.14. Policy 20 ‘Affordable Housing’ states that affordable homes funded through the current National Affordable Housing Programme must be built to or
33 exceed the Homes and Communities Agency’s new Design and Quality Standard. Development Management Local Plan (DMLP) and Site Allocations Local Plan (SALP) 11.15. The Hybrid Permission for the Bridge and Marian Scheme (Ref: 2012/1731) was approved by the Council prior to the adoption of the DMLP and the SALP. However, the approved development is still in accordance with the most recent adopted policy. Development Management Local Plan (DMLP) 2015 11.16. The Council adopted its DMLP in July 2015. The DMLP is part of the statutory development plan for the borough. It sets out detailed, generally criteriabased, planning policies which the Council use to assess planning applications. 11.17. The scheme complies with the DMLP policy DM19 ‘General Approach to new Housing Development’ which sets out a general presumption in favour of housing, particularly affordable housing, to meet identified need in the Borough. Site Allocations Local Plan (SALP) 2016 11.18. The SALP was adopted in July 2016 and is part of the statutory development plan for the borough. The SALP supports the delivery of the Core Strategy by identifying specific sites for development. 11.19. Table 1 ‘Revised Indicative Capacity for each site’ of the SALP shows that the Marian Court site (Phases 3 and 4 combined) is forecast to contribute 116 homes. 11.20. Marian Court is allocated as site 9 in the SALP. The SALP allocates the CPO Order land for: “Redevelopment and refurbishment of the Estate to re-provide and construct additional dwellings which should include a mix of sizes and tenure and supporting uses [retail, employment and community facilities].” The SALP sets out the following development principles for the site: •
There is capacity within the Estate to intensify residential density to assist in meeting housing need, and redevelopment will allow the opportunity to upgrade and improve the environment of the Estate.
34 Planning Permission for the Scheme 11.21. As previously set out, planning permission has already been secured for the redevelopment of the Order Land. So while it is the case that the Council is intending to apply for a new planning permission for what it considers to be an improved Scheme, it should be noted that the redevelopment of the Order Land could still be delivered under the extant permission, regardless of the outcome of that application. Therefore, there would be no impediment to the Scheme’s delivery in accordance with the DCLG Guidance on Compulsory Purchase Orders 2015. Sustainable Community Strategy 11.22. The Council’s Sustainable Communities Strategy 2008-2018 sets out the Council’s shared 10 year vision. The priorities set out in it are a framework for local public services and partners from business, community and voluntary sectors to guide our work over the next decade to improve the quality of life in the borough. 11.23. The proposals for the Order Land contribute to the achievement of the Council’s Sustainable Community Strategy, in particular Priority 5, which is to ‘promote mixed communities in well-designed neighbourhoods, where people can access high quality affordable housing’ and Outcome 7 to ‘promote and maintain mixed sustainable communities in all our neighbourhoods by securing a tenure and dwelling mix, including affordable homes and homes adaptable for people’s changing needs’.
Purpose and Justification for the Use of Compulsory Purchase Powers
12.1. Paragraph 76 of Section 1, Tier 2 of the CPO Guidance sets out the factors the Secretary of State can be expected to consider in deciding whether or not to confirm an order under the provisions of Section 226(1)(a) of the 1990 Act as follows: •
Whether the purpose for which the land is being acquired fits in with the adopted planning framework for the area;
The extent to which the purpose for which the land is being acquired with contribute to the promotion or improvement of the economic, social or environmental well-being of the area; and
Whether the purpose for which the Acquiring Authority is proposing to acquire the land could be achieved by any other means.
12.2. The redevelopment proposals for the Order Land draw support from the planning framework, as noted in Section 11. In particular, the proposed Scheme demonstrates broad compliance with relevant policies contained in the National Planning Policy Framework, the London Plan (2016), the London Borough of Hackney’s Core Strategy (2010), DMLP (2015) and SALP (2016), all referred to in Section 11. There are no planning impediments to the delivery of the proposed scheme. 12.3. The Council considers that, in line with the requirements of the enabling power, the land proposed to be compulsorily acquired will facilitate the redevelopment of the Order Land in a manner which will positively contribute to the improvement of the economic, social and environmental wellbeing of the locality and the wider Borough. This can be evidenced by considering the current status of the Order Land as described in Section 4 and the benefits that the Scheme will deliver for the area, as explained in Section 7. 12.4. In economic terms, the proposed redevelopment will deliver a sustainable mix of high quality new properties for social rent, shared ownership and outright sale. The existing properties are very costly to maintain and offer no opportunities for shared ownership. The existing buildings within the Order Land were constructed in the 1960s and key elements in the buildings are reaching the end of their design life. This, coupled with the form of construction of the blocks (solid walls) and the layout of the residential units, means that it would be uneconomic to attempt to renovate them in order to create homes which meet the Decent Homes Standard.
36 12.5. The new development proposed for 1-45 Marian Court will be significantly less expensive for the Council to maintain and for occupiers to heat. The shared ownership opportunities offered should enable existing and local residents to become homeowners for the first time. The revised Scheme also proposes an increase in commercial and retail floorspace, which will deliver additional jobs and opportunities. The construction of the redevelopment will offer a number of local employment benefits from apprenticeships to work experience placements. The local employment targets will be embedded in the construction contract to ensure the contractor/developer provides these much needed local employment and training opportunities. 12.6. In social terms, the new development will be of vastly improved design compared to the existing Estate and will deliver a truly mixed and sustainable community. The detailed building designs for the new development will incorporate the knowledge and understanding gained in urban design over the last 30 years to deliver much better housing, which is safe and secure, and which recognises the need for privacy and defensible space. Buildings will be integrated into the streetscape and safer, more accessible open areas, incorporating play and amenity space for all age groups, will be provided. 12.7. The increased density of the revised scheme offers the opportunity to deliver more affordable housing alongside other tenures. 12.8. All of the new homes to be provided as part of the scheme will be constructed to the standards set out in the London Housing Design Guide and will meet Lifetime Homes Standards. There will be an emphasis on family accommodation and a range of household sizes will be catered for. 12.9. In environmental terms, the Scheme will provide a much more effective use of the Order Land than is currently the case. Given its proximity to the City of London, the new development will see the Order Land become more appropriately used by a larger population. The Scheme will deliver high quality, sustainable new housing, using sustainably sourced materials and with a carefully designed public realm, which will replace the existing, poor quality homes. Whilst the new Scheme will be of a higher density than at present, it provides an opportunity to improve the quality of the estate environment through tree planting and improved landscaping that will increase the biodiversity of the Estate, creating environmental improvements alongside the social and economic benefits described above. The project is a car free development which will provide substantial cycle parking. 12.10. The Council has a long and established reputation for large-scale, estatebased regeneration. Over the last two decades it has successfully
37 transformed a number of large, deprived, mono-tenure estates into thriving mixed tenure communities. Successes include the redeveloped, Nightingale, Holly Street, Haggerston West and Kingsland estates. 12.11. The freehold of the entire Order Land is in the ownership of the Council. However, through the Right-to-Buy process a number of former Council properties have been acquired on a leasehold basis at various locations across the Order Land. In order to achieve the full benefits of redevelopment and to meet the sustainability and quality requirements required by the Council, the Mayor of London’s Housing Design Guide, and (for example) the Lifetime Homes Standard, it is essential that all of the existing buildings are demolished and the whole site is made available for new development. 12.12. The Council has given careful consideration to the need for the Order Land the new rights over it. All of the land and new rights included within the Order are required to deliver or facilitate the construction of the Scheme. The Council is satisfied that the redevelopment of the Order Land will result in an improvement to the economic, social and environmental well being of this area. 12.13. Of the 16 leasehold properties acquired through the Right-to-Buy legislation at 1-45 Marian Court, three have been successfully purchased by the Council to date by negotiation. Therefore, 13 leasehold interests remain to be acquired. It may not be possible to acquire all of these interests by private agreement within a reasonable timescale, which could result in significant delays to so as not to delay and hinder the delivery of the regeneration proposals. Therefore, the Council has made the Order to acquire the land and new rights to enable the implementation of the Scheme in a timely fashion. However, negotiations will continue with the relevant parties in a bid to acquire the necessary interests by agreement, wherever possible. 12.14. It is important that the redevelopment is delivered in line with the programme set out in Paragraph 10.8 in order to respond to the increasing demand for housing in Hackney. Compulsory purchase will enable the redevelopment to take place in accordance with a managed programme of decanting, demolition and construction. This will enable the Council's regeneration objectives for the Order Land and the Borough to be achieved. The use of compulsory purchase powers is therefore considered by the Council to be necessary and justifiable in the public interest. 12.15. As stated in paragraph 1.1, the Council’s Cabinet approved the making of the Order on 23 January 2017.
13.1. The CPO Guidance advises that “a Compulsory Purchase Order should only be made where there is a compelling case in the public interest. An AA [acquiring authority] should be sure that the purposes for which the compulsory purchase order is made justify interfering with the human rights of those with an interest in the land affected. Particular consideration should be given to the provisions of Article 1 of the First Protocol to the European Convention on Human Rights, and in the case of a dwelling, Article 8 of the Convention.” 13.2. The following articles of the European Convention on Human Rights (“the Convention”) are engaged in the process of making a CPO: •
Article 1 of Protocol 1 provides – “every natural or legal person is entitled to the peaceful enjoyment of his possessions. No one should be deprived of his possessions except in the public interest and subject to the conditions provided for by law and by the general principles of international law. The preceding provisions shall not, however, in any way impair the right of a state to enforce such laws as it deems necessary to control the use of property in accordance with the general interest or to secure the payment of taxes or other contributions or penalties”.
Article 6 provides that in determining their civil rights and obligations everyone is entitled to a fair and public hearing within a reasonable time by an independent and impartial tribunal established by law.
Article 8 protects private and family life home and correspondence. No public authority can interfere with the exercise of this right except such as is in accordance with the law and is necessary in a democratic society in the interest of national security, public safety or the economic well-being of the country, for the prevention of disorder or crime, for the protection of health or morals, or for the protection of the rights and freedoms of others.
13.3. These provisions have been enacted directly into UK law under the Human Rights Act 1998, and that Act also places direct obligations on public bodies (such as the Council) to demonstrate that the use of compulsory purchase powers is in the public interest, and that the use of such powers is proportionate to the ends being pursued. 13.4. In this case, any interference with Convention rights is considered to be both justifiably in the public interest and proportionate in order to secure the regeneration of the Order Land.
39 13.5. If the Secretary of State agrees with the Council that there is a compelling case in the public interest, they may confirm the Order. If the Order is confirmed, compensation may be claimed by persons whose interests in land have been acquired or whose possession of land has been disturbed, in order to compensate them for losses that they incur as a result of the acquisition. 13.6. In the circumstances, if the Order is confirmed, it is considered that the compulsory acquisition of the Order Land will not conflict with Article 1 of the First Protocol or Article 8 of the Convention as any interference with those rights will be in accordance with the law justified, and proportionate. 13.7. As set out in Section 9, the leaseholders and secure tenants who will be impacted by the regeneration of the Order Land have been offered a range of options as regards their relocation/re-housing in accordance with the Hackney Regeneration Estates Freeholder and Leaseholder Options Document and the Local Lettings Policy for Estates Approved for a Regeneration Programme. Working with the Council, its surveyor, and the Estate Regeneration Team, all affected parties are being given the opportunity to return to the Bridge and Marian Estate and to remain resident within the community following the completion of the new build redevelopment. 13.8. In respect of Article 6, any owner, lessee or occupier of land included in the Order will be notified and will have the opportunity to make representations to the Secretary of State and to be heard at a Public Inquiry before a decision is made whether or not to confirm the Order, and would in any event have legal rights under the Acquisition of Land Act 1981 to challenge any Order made on the relevant statutory grounds. 13.9. The Council is of the view that there is a compelling case in the public interest for the compulsory purchase of the Order Land, because without the use of these powers, the regeneration and other substantial public benefits associated with the redevelopment of the Order Land will not be delivered. Accordingly, the Order is needed to assemble the Order Land with clean title in accordance with the public interest. Furthermore, the Council is satisfied that the use of its powers of compulsory purchase is proportionate as without them, there is no real possibility of all the land necessary to deliver the Scheme being made available, and the benefits of the Scheme, which are in the public interest, will not be realised.
14.1. In making the CPO for the Order Land the Council must make its decision in line with its Public Sector Equality Duty (“PSED”) as laid out in the Equalities Act 2010. The PSED requires in that in the exercise of its functions the Council must have regard to eliminating unlawful discrimination, harassment and victimisation; to advance equality of opportunity between those with protected characteristics and those who do not; and to foster good relations between those groups. The protected characteristics covered by the act are: • • • • • • • • •
Age; Disability; Gender reassignment; Pregnancy and maternity; Race; Religion or belief; Sex; Sexual orientation; and Marriage and civil partnership (applicable only to the need to eliminate unlawful discrimination).
14.2. In order to ensure that the Council complies with its duty, the CPO is subject to an Equality Impact Assessment (“EqIA”). This investigates the impacts of the CPO on the different groups affected (leaseholders, private tenants and secure tenants) and assesses whether the CPO could produce disadvantage or enhance opportunity for any of the groups or anyone with a protected characteristic. The EqIA then sets out recommendations for how to remove or reduce disadvantage for those affected and outlines all the relevant mitigation strategies. The EqIA looks at both the effects of the CPO and the resultant new development, as well as engagement with the process itself in making the CPO. 14.3. Throughout the regeneration process for Marian Court, the Council has engaged comprehensively with affected leaseholders, private tenants and secure tenants. This engagement began as part of the Six Estates Programme originally approved in 2006. Consultation continued during the masterplanning phase and up to the submission of an outline planning application for Bridge House and Marian Court in November 2012. The Council has sought to engage all residents during the regeneration process; first through the Six Estates Steering Group and latterly through the Bridge and Marian Steering Group which has a detailed constitution and is open to all members of the community.
14.4. Engagement of all leaseholders, private tenants and secure tenants has also been carried out through direct face-to-face interviews which the Council’s Estate Regeneration and Housing Needs teams have arranged on an individual basis. This process has been demonstrably open and accessible to all, providing a high level of consultation and engagement. Housing needs assessments have also been carried out to assess the most suitable methods and options for re-housing and dealing with residents with protected characteristics, such as those with disabilities. This approach is designed to ensure minimal disruption is caused to those with protected characteristics and to ensure that the maximum amount of information is available to them, in order to avoid in any way impeding their ability to engage in the process fairly. Where appropriate, elderly and vulnerable residents have been referred to the Council’s Resident Sustainment Team for additional advice and support, and the private tenants of leaseholders who may face particular difficulties have been given access to additional support via the Council’s Housing Needs team, who can provide advice and assistance on securing alternative housing in the local area. 14.5. The Council has followed a course of action which ensures that groups with protected characteristics have been fully involved in the process which has led up to the making of the CPO, especially through the work with the Steering Group. The rehousing options offered by the Council to both tenants and leaseholders ensure that those affected by the CPO are receiving appropriate levels of support, as set out in the Leaseholder and Freeholder Options Document and the Local Lettings Policy for Estates Approved for a Regeneration Programme. These options are designed to mitigate the impact of residents’ potential displacement from their local community and other local services, which are the main potential direct negative impacts of the CPO. The Council will ensure that the actions set out in the EqIA are undertaken to ensure that in using its compulsory purchase powers, it does so in a way which maximises opportunities for and minimises the impacts on those with protected characteristics who may be affected by this CPO.
Easements, Rights etc.
15.1. It is intended that a General Vesting Declaration (“GVD”) or a number of GVDs will be made by the Council in respect of the Order Land in the event that the Order is confirmed by the Secretary of State. It is also the intention of the Council that all easements, covenants, rights and other interests in the land included in such GVD or GVDs shall be acquired and/or overridden and compensation paid to those who formerly held the benefit of such easements, rights, etc. 15.2. Any mortgages or rent charges are to be dealt with in accordance with Sections 14-17 and Section 18 of the Compulsory Purchase Act 1965.
Any Special Considerations Affecting the Order Land
16.1. The Order Land includes land in which statutory undertakers have an interest, details of which are set out in the Schedule to the Order.
Compulsory Purchase by Non-Ministerial (Inquiries Procedure) Rules 2007
17.1. This Statement is not a statement under Rule 7 of the Compulsory Purchase by Non-Ministerial Acquiring Authorities (Inquiries Procedure) Rules 2007 and the Council reserves the right to alter or expand it as necessary for the purposes of Rule 7.
Other Consents Required
18.1. No additional consents or related orders are required.
19.1. The Council believes its proposals for the redevelopment of the Order Land comply with the Development Plan for the area. In view of this, the grant of outline planning permission for development of the Order Land, and the relevant policy framework, the Council believes that there is no planning impediment to the implementation of the redevelopment proposals that underlie the Order. There are no financial or other impediments. The proposed scheme will deliver substantial economic, social and environmental benefits. There are no alternative proposals that will achieve the objectives of the CPO. Negotiations with leaseholders and occupiers have already started and will continue so that reasonable steps are taken to acquire the required interests by agreement and to relocate residents. There is a compelling case in the public interest that supports the compulsory acquisition of the Order Land.
Contact Information and Deposit of Documents
20.1. A copy of the Order and of the accompanying Map may be seen between the hours of 9am and 5pm Monday to Friday at Christopher Addison House, 72 Wilton Way, Hackney E8 1BJ. An additional copy of these documents will be available for viewing at the Homerton Library, Homerton High Street, Hackney E9 6AS between the hours of 10am and 8pm Monday, Tuesday, Thursday; 1pm and 6pm Wednesday; 10am and 6pm Friday; and 10am and 5pm Saturday. The documents in support of the Order are also available to view online at: https://www.hackney.gov.uk/marian-court. 20.2. Individuals seeking advice regarding the Order should in the first instance contact the person listed below: Claire Lindsay Project Officer Estate Regeneration Team [email protected]
0208 356 1166
Relevant Documents for the Inquiry
21.1. The Council intends to refer to, or put in evidence, the documents (or relevant extracts from those documents) which are listed below and which are referred to in this Statement of Reasons. 21.2. Should it be necessary to hold a Public Inquiry regarding the confirmation of the Order, the Council may refer to or put in evidence the following documents. It should be noted however that the Council reserve the right to add or to amend the list as necessary.
National Planning Policy Framework The London Plan London Borough of Hackney Core Strategy (2010) London Borough of Hackney Development Management Local Plan (2015) Hackney Site Allocations Local Plan (2016) Hackney Sustainable Community Strategy (2008-2018) Hackney Regeneration Estates Leaseholder and Freeholder Options Policy, November 2016 Local Lettings Policy for Estates Approved for a Regeneration Programme (2011) Strategic Housing Market Assessment (2014) Equalities Impact Assessment for Marian Court (2016) Hackney Central Area Action Plan Council Cabinet Report, 25 July 2005 – Review Estates (Review Estates Strategy) Council Cabinet Report, 26 March 2007 – Selection Registered Social Landlords Council Cabinet Report, 27 July 2009 – Housing Renewal Programme – New Development Strategy Council Cabinet Report, 18 July 2011 – Estate Regeneration Programme 2011/2019 Council Cabinet Report, 23 April 2012 – Proposed amendments to the Council’s leaseholder policy forward plan Council Cabinet Report, 30 September 2013 – Making of the Compulsory Purchase Order (Bridge House (Phase 2) and Marian Court (Phase 3)) Council Cabinet Report, 24 March 2014, Estate Regeneration Programme Update Council Cabinet Report, 19 October 2015, Estate Regeneration Programme Update Council Cabinet Report, 25 January 2016, HRA Business Plan Update
49 Council Cabinet Report, 28 November 2016, Leaseholder & Freeholder Options Document Refresh Key Decision No.NH K26 Council Cabinet Report, 23 January 2017, Making of the Compulsory Purchase Order (1-45 Marian Court (Phase 4)), Key Decision Historic Outline Permission reference 2012/1731 Officer’s Report on Planning Application reference 2012/1731 to 7 November 2012 Planning Sub-Committee Unilateral Undertaking – December 2016 Marian Court Design Brief