South Cambridgeshire Hall Cambourne Business Park Cambourne Cambridge CB23 6EA T: 08450 450 500 F: 01954 713148 E: [email protected] Do: 729500 Cambridge 15 Mincom: 01480 376743 www.scambs.gov.uk DRAFT GARAGE STRATEGY 2010/112013/14 Linked documents: Asset Management Strategy Income Maximisation Strategy Asbestos Health and Safety Risk Assessment Stock appraisal documents 2008 Housing Service Plan Housing Business Plan CONTENTS Aims and Objectives 1. Garage Stock Overview and Demand 2. Rent 3. Repairs 4. Sales 5. Challenges and Opportunities 6. Approach and Action Plan Appendices Appendix 1 lists the garage sites by village location Appendix 2 identifies those garage sites with the highest percentage of voids, waiting list information indicating the degree of demand, and the asset appraisal 2008. Appendix 3 Garage site evaluation sheet Appendix 4 Action Plan Aim and Objectives The aim of the garage strategy is to ensure that garages and surrounding land are managed effectively and efficiently thereby contributing to the built environment, maximising rental income for the council and providing a valuable resource for the public. Objectives: To income flow to the HRA Contribute to the sustainability of neighbourhoods. Meet ASB objectives in terms of crime and fear of crime. Ensure value for money so customers receive the expected repairs and maintenance at a competitive price. 1. GARAGE STOCK OVERVIEW AND DEMAND 1.1 South Cambridgeshire District Council has 1121 garages, located in 91 sites across the district. The sites are listed in appendix 1. 1.2 There is a waiting list for garages indicating a degree of demand; there are 89 active applications on the Orchard database. Of the 89, 40 are tenants and the remainder are non-tenants. The following villages indicate the highest demand for garages: Village Gamlingay Linton Waterbeach Sawston Whittlesford Willingham Thriplow Little Abington Comberton Number of applicants 8 8 8 7 5 5 5 5 4 Tenant 2 3 3 5 3 2 2 4 0 Non tenant 6 5 5 2 2 3 3 1 4 1.3 Low demand is usually as a result of a combination of poor security, ASB, poor stock condition, and undesirable locations e.g. high incidence of fly tipping. High rents have also been cited recently as a reason. Also there is likely to be sufficient parking in the area. Appendix 2 lists those sites with the highest percentage of voids. 1.4 Out of the current garage stock as of the end of August 2009 there were 361 garages void equating to 32% of the garage stock. Of these 361 void garages, 330 have been void for over a year. In addition there are 93 garages that are void, but not lettable because of outstanding repairs and have effectively been mothballed awaiting a strategic decision regarding their future use. Therefore only 68% of the garages are generating an income for the housing revenue account. 1.6 Where a site has a high number of voids and demand is low, it is usually because the site is a remote location away from prospective tenants’ dwellings, hence there is a convenience factor at play, coupled with a potential fear of crime. However, on occasions it could be that there are some areas with both convenient on and off road parking, and therefore residents do not feel the need to rent a garage. The financial implication of keeping the garages and the garage sites in a decent condition has to be considered in line with income generated from the garages. 1.7 Where there are long term voids and low demand, a marketing campaign should be considered and that will include advertising the vacancies in the South Cambs magazine, any future tenants’ newsletter, local parish or church publications and actively encourage the take up of garages at a new property sign up. More intense marketing would be considered for those sites where the void rate is above 50%, or where the garage has been void for over a year and is of a lettable standard. 2 RENT 2.1 Garages rents have historically remained low compared to other local authority neighbours, but they have increased recently with increases ranging from 8.6% to 4.4% over the past few years. The increase in year 2009/10 was 5.5%, and the following table shows how we compare with neighboring landlords. Since 2006/07 rents have increased by 14.5%. Over the same period the retail price index has moved from 4% to –1.3%. Therefore it would be fair to assume that garage rents may appear expensive to consumers. Provider South Cambridgeshire District Council tenants South Cambridgeshire District Council private customers Luminous residents* Luminous private customers* Cambridge City residents Cambridge City private customers 2008/2009 2009/2010 rent rent 6.64 7.00 9.17+ VAT 9.67 + VAT 8.84 8.84 + VAT £8.40 £15 plus £40 deposit * Luminous charge a flat rate to tenants and non tenants, however they charge a differential rate for storage 2.2 Rent arrears at the year end in March 2009 were £2688, on a debit of £320,822, equating to 0.84% of the debit. 2.3 The annual rent loss to housing revenue account as a result of garages being in too poor a condition to let was £41,000 in 2008/09 and anticipated to be £50,000 in 2009/10. The rent loss on all void garages was £145,000 in 2008/09 and anticipated to be £175,000 in 2009/2010. 3. REPAIRS 3.1 Repairs spending to date on all garages is as follows: Financial Year 2007-2008 2008-2009 2009-to date 2010-11 budget Garage repair costs £42,736 £17,211 £13,668 £20,000 3.2 Garage sites with a high numbers of repairs will be reviewed as part of part of this strategy in line with improvement and redevelopment considerations. 3.3 A number of sites have received improvements works and all sites are included in the cyclical external painting programme and as a result are surveyed. 3.4 Those garages with asbestos concrete roofs will need to be included in any future asbestos risk register. 4. SALES 4.1 Garages are not sold when tenants exercise their right to buy unless they are within the curtlage of the property. If a garage is included in the tenancy, it is not included in the right to buy, and the new owner is clearly informed that the garage does not form part of the sale and after one year the rents increases to the owner occupier higher rate. As a result there are no ownership issues within garage sites and the Council retains control of the all the sites. 5. CHALLENGES AND OPPORTUNITIES 5.1 In producing this garage strategy a number of key challenges and priorities have been identified and they will ensure that our garage stock maximises rent in the future, provides value for money, sustains local communities and provides development opportunities for affordable housing. 5.2 As an example of what can be achieved - during the last five years a garage site has been developed at Rivey Close, Linton to provide a four bedroom house adapted for the disabled. Planning permission has been obtained to provide a three bedroom bungalow and a four bedroom house both adapted for the disabled at the garage site at Evans Way, Sawston. A similar application has also been submitted for the site at Queens Close, Over. The Council is working closely with Papworth Trust to bring these schemes forward which are designed specifically to meet the needs of disabled people. 5.3 The main options for action are as follows: Do nothing – take rent from those garages that people are willing to let and spend no money on those that are vacant Identify those garages that have a strong demand and ensure that investment in the fabric of those garages is sufficient to maximise the percentage let and maximises the rental charges that the Council can levy. This option may lead to investment in some garages that are currently vacant on the basis that an income stream will be created that would more than pay back that investment. Identify those sites that can be sold as potential development sites to raise money and/or to enable affordable homes to be built Identify those sites that are adjacent to existing Council homes that together may be useful as a development site that would assist with the development of new affordable homes through remodelling or would allow for the replacement of obsolete stock. Identify sites where the garages could be demolished and the site remodelled as a parking site. 5.2 Marketing - Where there are a high percentage of void garages on an estate and where there is no possibility of re-development, these garage sites are to be marketed within the local community. Various methods of marketing need to be used, such as: Mail shots to properties within the locality Advertising through the local press Advertise in community publications Advertising in South Cambs magazine Advertising in Home-Link Advertising on the Internet Village voice/parish magazines When letting a property place information on available garages within the letting pack Refer to ‘selling’ points e.g. close to transport infrastructure Advertise ‘commercial lettings’. 5.3 Improve demand by commercial letting - Use different tenancy agreements for storage to individuals, and commercial organisations and charge the appropriate commercial rate. The garages would need to be fit for purpose in storage. 5.4 Minimise risk through an effective improvement programme - If there has been a stock condition survey the garage sites a detailed improvement programme based on condition and remaining life span of components needs to be prepared. The improvement programme needs to be in the asset management strategy and the business plan with identifiable budgetary resources. The current 5 Year Housing Maintenance Plan projects spending of £20,000 per annum for revenue expenditure. There is no allocated capital expenditure allowance. 5.5 Highlighting redevelopment possibilities - It is important to consider the re-development of garage sites where there are high void levels, where the garage site requires a high investment to improve the area or where there is genuine re-development possibility and that there is an established need within that locality for additional homes. 5.6 Resident and community involvement - Resident and community involvement is essential to deliver this strategy and the following need to be involved and consulted with: Tenants Local residents Involved residents and tenants Community groups Parish councillors Ward councillors Village voices 5.7 Involvement through consultation with local residents living close to garage sites, tenants renting the garages, also the local resident associations, parish councils, area forums, tenant working parties, and Tenant Participation Group. 6. APPROACH AND ACTION PLAN 6.1 The Action Plan attached as Appendix 4 is based on the following principles: The strategy is closely linked to the asset management strategy. Prioritise houses over garages so that priority will given to developing the site for social housing rather than to retain the garages Develop a cost benefit analysis model based on future income and expenditure over the long term. Any site not demonstrating value for money as above will be subjected to a thorough and detailed appraisal. The appraisal will embrace issues of community sustainability, demand, void rates, ASB and vandalism and parking availability. The housing management team to review demand for the sites by identifying waiting list and application trends, specifically the use of high demand sites by non-tenants. Review the garage tenancy agreement to remove restrictions and all their use as a storage facility notwithstanding health and safety issues. Review the current rent levels; consider a realistic market level for commercial and non-tenants, and a low cost option for tenants. Ensure appropriate consultation with local residents, local community groups, parish councils and elected members. Appendix 1 Garage Sites by Village Address Line 1 Address Line 2 Address Line 3 MAGNA CLOSE GREAT ABINGTON CAMBRIDGE CHURCH CLOSE LITTLE ABINGTON CAMBRIDGE CLIFDEN CLOSE ARRINGTON ROYSTON MAYS AVENUE BALSHAM CAMBRIDGE PRINCES CLOSE BALSHAM CAMBRIDGE ROBIN CLOSE BAR HILL CAMBRIDGE MALTHOUSE WAY BARRINGTON CAMBRIDGE THE FILLANCE BASSINGBOURN ROYSTON KNUTSFORD ROAD BASSINGBOURN ROYSTON HALL CLOSE BOURN CAMBRIDGE WALLERS CLOSE GREAT & LITTLE CHISHILL ROYSTON BAKERS CLOSE COMBERTON CAMBRIDGE BUSH CLOSE COMBERTON CAMBRIDGE HARBOUR AVENUE COMBERTON CAMBRIDGE SILVERDALE AVENUE COTON CAMBRIDGE COOLIDGE GARDENS COTTENHAM CAMBRIDGE HILL VIEW DRY DRAYTON CAMBRIDGE BLAKELAND HILL DUXFORD CAMBRIDGE LACEYS WAY DUXFORD CAMBRIDGE RECTORY ROAD DUXFORD CAMBRIDGE FRANKLINS CLOSE ELSWORTH CAMBRIDGE GREENFIELDS ELTISLEY ST. NEOTS THE ORCHARD FEN DRAYTON CAMBRIDGE DOVE HOUSE CLOSE FOWLMERE ROYSTON ST VIGORS ROAD FULBOURN CAMBRIDGE GRAYS ROAD GAMLINGAY SANDY MURFITT WAY GAMLINGAY SANDY ST VINCENTS CLOSE GIRTON CAMBRIDGE CROMEDITCH CLOSE GRANTCHESTER CAMBRIDGE NUTTERS CLOSE GRANTCHESTER CAMBRIDGE SLADWELL CLOSE GRANTCHESTER CAMBRIDGE STULPFIELD ROAD GRANTCHESTER CAMBRIDGE WIDNALL CLOSE GRANTCHESTER CAMBRIDGE MEADOW WAY HARSTON CAMBRIDGE QUEENS CLOSE HARSTON CAMBRIDGE CHESTNUT CLOSE HASLINGFIELD CAMBRIDGE MEADOWLANDS HILDERSHAM CAMBRIDGE DUXFORD ROAD HINXTON SAFFRON WALDEN ST AUDREYS CLOSE HISTON CAMBRIDGE AUDLEY WAY HORSEHEATH CAMBRIDGE HEREWARD CLOSE IMPINGTON CAMBRIDGE ST ANDREWS WAY IMPINGTON CAMBRIDGE CHALKLANDS LINTON CAMBRIDGE PALMERS CLOSE LINTON CAMBRIDGE RIVEY CLOSE LINTON CAMBRIDGE TOWER VIEW LINTON CAMBRIDGE NEW CLOSE LITLINGTON ROYSTON HADDOWS CLOSE LONGSTANTON CAMBRIDGE FORDHAM WAY MELBOURN ROYSTON HIGH STREET MELBOURN ROYSTON MEDCALFE WAY MELBOURN ROYSTON ELIN WAY MELDRETH ROYSTON HOWARD ROAD MELDRETH ROYSTON CANNONS CLOSE GUILDEN MORDEN ROYSTON HURDLEDITCH ROAD ORWELL ROYSTON MEADOWCROFT WAY ORWELL ROYSTON GLEBE CRESCENT PAMPISFORD CAMBRIDGE EVANS WAY SAWSTON CAMBRIDGE FALKNER ROAD SAWSTON CAMBRIDGE THE GREEN ROAD SAWSTON CAMBRIDGE HAYFIELD AVENUE SAWSTON CAMBRIDGE HUNTINGDON ROAD SAWSTON CAMBRIDGE LYNTON WAY SAWSTON CAMBRIDGE ORCHARD ROAD SAWSTON CAMBRIDGE PLANTATION ROAD SAWSTON CAMBRIDGE SAFFRON ROAD SAWSTON CAMBRIDGE DAVEY CRESCENT GREAT SHELFORD CAMBRIDGE MACAULAY AVENUE GREAT SHELFORD CAMBRIDGE BEECH CLOSE LITTLE SHELFORD CAMBRIDGE BARRONS GREEN SHEPRETH ROYSTON GOG MAGOG WAY STAPLEFORD CAMBRIDGE HERRINGS CLOSE STOW-CUM-QUY CAMBRIDGE WHITTON CLOSE SWAVESEY CAMBRIDGE CHERRY HINTON ROAD TEVERSHAM CAMBRIDGE MARSHALLS CLOSE TEVERSHAM CAMBRIDGE SHERALDS CROFT LANE THRIPLOW ROYSTON SCHOOL LANE TOFT CAMBRIDGE HARTLEY CLOSE WATERBEACH CAMBRIDGE HORSESHOE LANE WESTON COLVILLE CAMBRIDGE RIDGEWAY CLOSE WHADDON ROYSTON THE LAWN WHITTLESFORD CAMBRIDGE ORCHARD TERRACE WHITTLESFORD CAMBRIDGE BRICKHILLS WILLINGHAM CAMBRIDGE WILFORD FURLONG WILLINGHAM CAMBRIDGE WILES CLOSE WATERBEACH CAMBRIDGE WHITTON CLOSE SWAVESEY CAMBRIDGE BUSH CLOSE COMBERTON CAMBRIDGE ELIN WAY MELDRETH ROYSTON Appendix 2 Garage Sites with Highest Void Levels Garage Site Hurdleditch Road Orwell Total Void %tage 3 3 100.00% Unlettable Number on list HSO 0 Uzma Asset Appraisal 2008 Waiting List Comments no one on the waiting list majority empty meeting with development on Tuesday numbers 1,2,4,6,7,8,9,12,14,16,19 and 15th Sept 21in disrepair, no one on the waiting list Haddows Close Longstanston 21 18 85.71% 12 0 Gail Fordham Way Melbourn 14 12 85.71% 4 3 Uzma not in the plans 4,7,8,9 unlettable, 3 people on the waiting list not in the plans 17,19,20,22,23,24 17,19,20,22,23,24 unlettable, one person could be demolished on the waiting list poor condition Elin Way Meldreth 8 6 75.00% 6 1 Uzma High Street Melbourn 14 10 71.43% 9 2 Uzma Meadowcroft Way Orwell 13 9 69.23% 3 0 Uzma majority empty poor and vacant not in the 2,4,5,6,7,9,11,13,14 unlettable, two could be demolished plans people on the waiting list poor and vacant parking spaces have been provided on the estate making the garage site obsolete, the site has development potential but numbers 3, 8 and 23 in disrepair, no one no planning on the waiting list poor condition Huntingdon Road Sawston 38 26 68.42% Magna Close Great Abington 15 10 66.67% 14 Lynne 3,10,14,18,21,23,24,25,27,28,29,34,37,38 unlettable, two people on the waiting list 1 person on the waiting list. A huge area of land surrounds the site, and development potential. majority empty poor condition 2 Simon 1 poor condition Murfitt Way Gamlingay 12 8 66.67% 8 4 Uzma field to the east of village 4 people on the waiting list, all garages in has potential a state of disrepair Falkner Road Sawston 18 12 66.67% 6 2 Simon 43,45,51,53,55,57 unlettable, 2 people on the waiting list poor and vacant Barrons Green Shepreth 6 4 66.67% 1 Uzma 1 person on the list, poor condition demolish/development poor condition 43 5 26 3 60.47% 60.00% 0 1 Lynne Gail 22,23,24,25,26,27,33 in poor condition no one on the waiting list 1 person waiting Macaulay Ave Great Shelford Silverdene Avenue Coton 7 Blakeland Hill Duxford 30 18 60.00% 5 1 The Fillance Bassingbourn 21 12 57.14% 0 Sladwell Close Grantchester 17 9 52.94% 2 one or two garage blocks could be replaced by development. And additional parking Simon provided. 2,5,12,16,30 unlettable 1 person waiting North of The Fillance has potential for development, the garage site could form part of 106 Uzma agreement no one on the waiting list Gail 2 people on the waiting list majority empty Princes Close Balsham 8 4 50.00% 0 Lynne no one on the waiting list Rectory Road Duxford 22 10 45.45% 3 1 Ward recommending no Simon development Medcalfe Way Melbourn 32 14 43.75% 3 3 Uzma 13,28,29 unlettable, 3 people waiting Wilford furlong Willingham 14 6 42.86% 4 1 Gail 3,4,22,28 unlettable, 1 person waiting poor and vacant no one on the waiting list majority empty Malthouse Way Barrington Additional sites: majority vacant majority vacant 17 371 7 227 Coolidge Gardens Tower View 41.18% 61.19% 0 Cottenham Linton possible future development to southern end of Malthouse, but considered to be marginally in the flood plain. Also some way from the Uzma garage site. Block 29-42 Block 1-5 7,14,17 unlettable 1 person waiting Asset Management Strategy Appendix 3 Garage Site Evaluation Form AFFORDABLE HOMES GARAGE SITE EVALUATION Village Site Planning Constraints Asset management strategy Cyclical maintenance and costs Asbestos and health and safety risk Potential annual rental income Housing management Issues Marketing options Page 13 of 16 Asset Management Strategy Evaluation Parish Council considerations Recommendation Assessed by and date Page 14 of 16 Asset Management Strategy Appendix 4 Action Plan ref Objective Actions Officer G1 Review demand for all garages Refresh Appendix 2 – list of highest void areas Laura Rawlings Feb 2011 G2 Review rent levels Survey of neighbouring districts Laura Rawlings Feb 2011 G3 Produce a cost benefit analysis model with Develop tool which to undertake the review. David Purnell March 2011 G4 Explore options for commercial letting and Survey of national examples. storage. Identify barriers to overcome e.g. limitations posed by current garage tenancy agreement Laura Rawlings March 2011 G5 Initiate stock condition survey of garages to identify future spend needs. Commission survey and produce analysis of spending profiles David Purnell July 2011 G6 Ensure that all garages with asbestos are included within Asbestos register. Add to register following survey David Purnell Sep 2011 Page 15 of 16 Deadline Asset Management Strategy G7 Undertake a programme to evaluate future Cost benefit analysis to be viability of the highest void sites identified undertaken using tool developed in G1. in G3 Laura Rawllings Sep 2011 G8 Identification of potential sites for redevelopment or sale Laura Rawllings, Schulyer Newstead Nov 2011 G9 Take forward sites for sale G10 Take forward sites for redevelopment Analysis of demand and cost benefit work and site visits Standard sale process Using Council’s protocol Jenny Clarke Jan 2012 Steve Annetts, Schuyler Newstead Jan 2012 G11 Develop marketing strategy to improve uptake of garages and to target particular sites where necessary. Work closely with Communications Anita Goddard team G12 Review progress, Update action plan and identify Laura Rawlings & next cohort of garages to be taken HSMT through full review Page 16 of 16 May 2011 March 2012
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