Decision details

Reasons:
1.This property, due to its location and type would command a higher than average market value (Acquisitions (Right to Buy: Buy Back) and Disposals Policy 2024 item 7.3).
2.The property is in need of major work to remove any Health and Safety rating system hazards or asbestos containing materials that require a high level of ongoing management in conjunction with extensive works to comply with Decent Homes provision i.e. installation of a central heating system, rewiring, new kitchen, bathroom, asbestos removal and major clearance of collapsed structure to the rear gardens to ensure H

1.The property is in need of major works to return the property to a habitable condition
2.The property is in need of major work to remove any Health and Safety rating system hazards or asbestos containing materials that require a high level of ongoing management in conjunction with extensive works to comply with Decent Homes provision i.e. installation of a central heating system, rewiring, asbestos removals new kitchen and bathroom.
3.Properties which due to their age, design and location command a higher than average market value, which due to their age and condition will incur higher than average costs to maintain over the 30 year Business Plan.
4.Properties which due to their original design, location and designation are no longer fit for purpose and have associated level of difficulty re-letting. These criteria may affect more than one property, for example those contained in a Cat 2 sheltered schemes, and therefore would be considered on a scheme by scheme basis rather than individually.
A financial appraisal has been carried out using ARKs Strategic Asset Performance Model (Appendix C) this shows that to re-let the property at social rent following the necessary works would result in a 30 year NPV of £53,849 as detailed in scenario 1, versus a cash receipt of between £250,000- 275.000 for outright sale. (Please note we have two property valuations from different agents as per appendix A) It is therefore recommended to proceed with outright sale.
This property has an estimated valuation of £250,000 - £275,000.
It is a three bedroom semi-detached house. Estimated costs required to bring it up to the lettable standard are £44,187.42, including a new kitchen, new bathroom, rewire, heating and extensive garden works.

Option - 1 To dispose the property on the open market to use the capital receipts to invest in HRA stock
Option - 2
Option - 3