Council to Compulsory Purchase homes?
The council is attempting to acquire 1.031 hectares of land and assemble a vacant site for redevelopment
Toms Close currently consists of 16 semi-detached 3-bedroom houses on 1.031 hectares of land. 11 properties are now (Feb 2014) in council ownership
If negotiations with the five private residents are not 100% successful, compulsory purchase may be necessary to acquire the whole site.
The acquisition of the site is to be funded by the HRA Capital Programme
Council to spend over £1 million (close to £1.5 with contingency) to acquire the site
About £730k will be used to get the five still in private ownership
The council is assuming a market value of £115k per dwelling and to take account of the fact that property owners have other statutory rights (Home Loss payment of 10% of the market value) and some room to negotiate around the discretionary disturbance allowance (about £10k or above), my current understanding is that over £146k per dwelling is a close working amount per dwelling?
There is a risk that if negotiations with the five private residents are not 100% successful, compulsory purchase may be necessary to acquire the whole site.