Date of report 6 th August 2010
HOUSING DEPARTMENT
&
TREASURY AND RESOURCES DEPARTMENT
JERSEY PROPERTY HOLDINGS
Property Transaction for Ministerial Decision –
Ministers for Housing & Treasury and Resources
Proposed Sale of
2 HUNGERFORD VILLAS, VAUXHALL STREET, ST HELIER | |
| |
Background | |
On 17 th July 2007 the States approved P.6/2007 “The Social Housing Property Plan 2007 – 2016”. This provided approval for the sale on the open market of a number of non-core properties which were owned by the Public of the Island and were in the stewardship of the Housing Department, along with a higher number of properties to be sold on a first time buyer basis to States tenants with the option of using a deferred payment scheme.
The States in approving P.6/2007 also agreed that the receipts generated from the sales should in the first instance be put towards the planned programme of property refurbishment and regeneration outlined in the plan.
2 Hungerford Villas, Vauxhall Street, St Helier
This property was not included on the list of properties in P.6/2007 to be sold either on the open market or at first time buyer value to States tenants.
2 Hungerford Villas is a 4 bedroom terraced house, situated on the roadside. There is a large enclosed rear garden but no on site parking. In February this year, the party-owned wall to the East collapsed significantly and given other maintenance issues surrounding the property the existing tenants were moved to alternative accommodation.
The property is now vacant and given its current condition and the lack of on site parking, it has distinct limitations in respect of its use as a family home. The suitability of the property for social housing provision has been assessed against the needs of both existing tenants requiring a transfer and new prospective tenants on the waiting list. No appropriate social housing use has been identified.
It is estimated that costs to repair the party wall will be approximately £8,760. This expenditure is necessary regardless of the future of the property and indeed this repair has now been completed. However, it is also necessary to spend approximately £13,040 to upgrade the condition of the property if it were to continue to be used for social housing.
On 28th June 2010 the property was valued by Buckley & Co in accordance with the Minister’s approved valuation policy (MD-H-2007-0057 refers) and an open market value of £350,000 was set, with no onward sale conditions being imposed. The valuation took into account the costs required to refurbish the property.
It is not deemed appropriate or cost effective to spend the required £13,040 to maintain this property for social housing use and the Department is of the opinion that the property should be placed on the open market for sale.
Current Situation
Preliminary advice from the Conveyancing Section of the Law Officers’ Department has indicated that the contract does not contain any restrictions which would create a barrier to an open market sale.
The Housing Department wishes to see the Public receive the highest possible receipt for the sale of this property and believes that this can only be achieved if it is sold on the open market.
Given that expected sales at the newly built Le Marais Phase 2 and the next Phase of Le Squez will not now take place, the sale of this property on the open market is not deemed to have any effect on the over-all level of social housing available to those on the Waiting list.
Recommendations
That the Minister,
1. Approve the sale of 2 Hungerford Villas, Vauxhall Street, to be on the open market at a price to be arrived at in accordance with Policy HD22 ‘Valuation Policy for Sales’; and
2. Request that the Treasury & Resources Minister agree to the disposal of this property on the open market under Standing Order 168 and subject to the subsequent approval of the individual transactions once offers to purchase have been secured; and
3. Request that the Treasury & Resources Minister agree to the resultant funds from this sale being credited to the Housing Department’s Social Works Programme, HYR000.121010, rather than the Consolidated Fund, under Article 15 (3) of the Public Finances (Jersey) Law 2005 and Financial Direction 6.6.
Report Drafted By: - Dominique Caunce Director of Sales and Lettings ……………………………Date: 2010 | |
Report Checked By: - J C Hamon Finance Director ……..…………………….Date: 2010 | |
Report Approved By:- Ian Gallichan Chief Officer ……………………………..Date: 2010 | |