Decision details

The report seeks to formalise the Council’s agreement to a request from Cross Keys Homes (a registered provider of social housing) to submit a DPA waiver request in respect of the Land off Malting Lane, Donington. This allows Cross Keys Homes to access affordable housing grant from Homes England, enabling them to provide shared ownership homes on the site.

This action would empower Cross Keys Homes to advertise the properties using Homes England's standard lease terms, effectively removing any restrictive conditions on ‘staircasing’ i.e. homeowners will be able to acquire up to 100% of the property. This is as opposed to staircasing being ‘capped’ at 80%. Applying the DPA waiver removes this cap, whilst also allowing the housing association to access grants to provide the homes.

This decision follows similar requests for DPA waivers to be sought on other sites across the district, in support of affordable housing delivery.

·         There is strong evidence for the need for affordable homes in South Holland, and shared ownership is a tenure that plays a demonstrable role in supporting households into home ownership in the area. Granting the waiver allows Cross Keys Homes to utilize the Homes England grant, which will support investment in South Holland and the delivery of affordable homes.

·         It is rare for owners of shared ownership housing to ‘staircase’ to 100% in Donington (and indeed across the district as a whole). Therefore, there is limited evidence of the need to use regulation to restrict staircasing in Donington, as homes tend to remain in supply as shared ownership housing on subsequent sales.

·         To support and encourage the provision of new affordable home ownership products in the district. The Homes England grant funding can only be utilized on the units if the DPA waiver is granted. The funding will also be reused, at the point of the shared owners purchasing additional shares, to deliver affordable homes in the future.

·         To allow these homes to be sold on the same lease terms as other shared ownership homes in Donington. Given that shared ownership of affordable housing secured through S106 Agreement is highly unlikely to attract grant funding or be included within Homes England’s delivery programme, it would not fall under the limitations of housing in a DPA. Therefore, a waiver is necessary to allow the homes to be sold on the same terms as other shared ownership homes within the site in Donington.

·         Given the ongoing supply of shared ownership housing, it is reasonable to allow purchasers of these homes to acquire them on a standard lease, as this should improve mortgage availability for prospective buyers.

Option One: Take no action, which would result in no application being made to Homes England, preventing Cross Keys Homes from accessing the grant funding to bring the share ownership units forward.

Option two: The council declines the request from Cross Keys and chooses not to seek a waiver from Homes England which would have the same effect as above.

N/A