To receive a verbal update from the Housing Development Manager.

The Chairman welcomed Andrew Sweeney, Housing Development Manager who was in attendance to provide Members with an update on the Council’s Development Company.

Members received a presentation ‘Invest East Lindsey Limited – Housing Development Programme’, a copy is attached at Appendix A to the Minutes.

The key areas were highlighted as follows:

·       Key Housing Drivers

·       Targeted Activities

·       Council Assets and Constraints Identified

·       Other land

·       Current Development Activity, including sales, challenges along the way, successful outcomes and potential pipeline.

Members were invited to put their comments and questions forward.

·       A Member commented that it was reassuring to see a 16% profit had been achieved during difficult times and the social benefit of bringing forward stalled sites was encouraging.

·       A Member asked whether the calculation for 16% profit could be explained.  The Housing Development Manager explained that the figure was based on capital outlay and the sales income generated that took into account land cost, fees, construction costs and any sundry costs in comparison with the sales income and this was a gross profit.  The net profit would be approximately 13% to 14% if corporation tax had to be paid, however this would depend on the trading figures for the caravan activities that was part of the company.  Currently there were no trading accounts within the company available at present.  It was further highlighted that Invest East Lindsey (IEL) can make a much lower percentage in profit than a traditional developer due to the constraints that IEL worked within.

·       A Member queried whether the development company insisted on solar panels being installed on new properties.  The Housing Development Manager confirmed that on the current scheme it had not as it was the first project and he was conscious of the expenditure and the need to generate a profit, however for future schemes it was likely to be mandatory in terms of the renewables on properties.

·       The Chairman stated that during a discussion, the subject of ‘lifetime homes’ which were pre-engineered to be easily adaptable had been highlighted and queried whether this type of build was being incorporated in future development.  In response, the Housing Development Manager advised Members that these homes were originally designed in the early 2000s or earlier, and a Section 73 application was submitted whereby some modifications were made within that to bring the properties up to a more contemporary design.  It was highlighted that the space standards in those properties was quite generous, however nowadays the lifetime home standards were adopted as part of the building regulations so would have to comply with most of the requirements.  It was highlighted that the properties were not for wheelchair standard design houses, but they would be lifetime homes.

·       At the discretion of the Chairman, Councillor David Hall queried the biodiversity net gain on these sites, particularly in relation to the Council’s commitment to zero carbon.

In response, the Housing Development Manager informed Members that because of the historic nature of the site, this had not been calculated for these properties, however it was likely something that would have to be done on future schemes, for example the Tetney site if that was developed by Invest East Lindsey.

The Planning Policy and Research Service Manager added that biodiversity net gain was a very new concept and was only becoming mandatory from 12 February 2024 on major developments and confirmed that the site referred being such a legacy permission it would not have been part of the original permission or a need for it.  After April 2024 it would then be factored into minor developments as well.

Members were further advised that the Council was setting up land banks in conjunction with the Local Wildlife Trust which were specified projects that could be funded or be bought into to provide an element of biodiversity or net gain if this could not, as a starting point be achieved on the development site.  Furthermore, the government had set up a mechanism whereby biodiversity and net gain credits could be bought, however on a sliding scale of costs the cheapest option would be to make the biodiversity net gain happen in the location where the site was with the most expensive option being the credits.

There were no further comments or questions received.

The Chairman thanked the Housing Development Manager for the informative update.

N.B.  Andrew Sweeney, Housing Development Manager left the Meeting at 5.26pm.