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REPORT TO: Housing Neighbourhood Renewal and Urban
Regeneration Overview and Scrutiny Commission
20th July 2007
BY: Janet Whipps, Acting Chief Executive, Gateway HMR
Pathfinder
Subject: To provide an update on the current progress of the
Gateway the Housing Market Renewal Pathfinder
June 2007
1. Introduction
1.1 This report covers the period January to March 2007, as reported to
the last Gateway Board meeting. This report also provides an updated
response to the issues raised at the Question Time event organised by
this Scrutiny Commission in January 2007.
1.2 The January to March 2007 quarter was very successful for Gateway.
Gateway delivered all of its spend and output targets for 2006/07
despite the very late government announcement of funding for the
financial year in November 2006, when the maximum £33.7m funding
was announced for 2006 - 08.
1.3 The first new homes built under the Gateway programme were
completed and occupied at Ings.
1.4 Key achievements during the quarter to March 2007 were:
Delivery of spend and output targets for 2006/07 despite the late
funding announcement (Nov 2006)
Completion and occupation of the first new dwellings built under
the Gateway programme at Ings
Commencement of refurbishment facelift works at Melrose
Street, NaSA
Procurement of local contractor for the next phase of
refurbishment of 370 dwellings in the Plane Street area, NaSA
Keepmoat plc identified as lead developer partner for NaSA
Positive media coverage of many Gateway activities
Hosting of national launch of Chartered Institute of Housing
good practice guide on community engagement in housing
regeneration in Hull
Publication of positive Audit Commission performance review
January 2007
Clarification by HCC about future intentions for Gateway’s
governance
1
Positive contribution to development of Hull’s Local Area
Agreement and Respect action plan
Leading role in developing sub-regional investment programme
within Humber Housing Partnership
1.5 The main issues to be faced now are ensuring that delivery continues
in line with targets and that we submit a robust and successful scheme
update for 2008 – 11. The government’s Comprehensive Spending
Review 2007 will determine the level of funding for the next period.
2. Programme Delivery
2.1 As can be seen from the table below, at the end of March 2007, 100%
of the overall Gateway Programme for 2006 – 07 had been defrayed.
Actual Budget for Year Remaining
to March 2007
(£s) (£’s) (£’s)
573,386
Revenue* 2,026,614 2,600,000
Capital 14,274,590 13,700,000 -574,590
Programme
TOTALS 16,301,204 £16,300,000 -1204
2.2 Progress on the new programme to March 2007 which commenced
after the funding announcement in November 2006 can be noted:
On NaSA:
168 property valuations had been undertaken and agreements
reached with 127 owners (out of a total of 268 in the first phase).
Agreement reached with residents and landlords in Melrose
Street - at the end of March 104 households out of 123 had
signed up for the scheme;
a consultation event at the KC Stadium for residents and owners
in Plane Street - the next area to be refurbished.
On Preston Road:
30 homes were acquired or transferred from the Council and 26
families relocated (bringing the total now acquired to 34 out of
78 in the current phase).
On Ings:
2
34 homes were acquired or transferred from the Council and 32
families relocated (bringing the total now acquired to 51 out of
93 in the current phase).
This involved moving residents into the first new homes built under the
Pathfinder programme.
3. Housing market Intelligence
3.1 The latest information is attached at Appendix 1. House prices in Hull
continue to rise at a rate above national average but are still well adrift
of the surrounding area, and currently the lowest in England and
Wales. Rising prices in NaSA do however mean increased costs to the
programme with no indication of improved sustainability. Empty homes
in the city centre are now showing at a high level. The planning
pipeline has increased (by permission granted for the Boom east of the
River Hull) re-emphasising the need to manage the release of land for
new housing across the whole strategic area. New household
projections released by CLG in March 2007 show a slight increase for
Hull and East Riding. However even if these come to pass, the current
and planned housing provision in the city would be adequate indicating
that the current managed approach to granting new planning consents
should continue.
4. Communications and consultation
4.1 Following the funding announcement in November 2006, and the
declaration of a Renewal Area in Hawthorn/Dairycoates in December,
the priority in the early part of 2007 was to communicate and engage
with residents, businesses and other stakeholders directly affected by
the next phases of regeneration work.
4.2 Activities undertaken included:
Face-to-face meetings with residents and businesses whose properties
are earmarked for acquisition and demolition.
Consultation events and one-to-one liaison with residents living in
homes earmarked for refurbishment in NaSA.
Continued communication and engagement with community
representatives, stakeholders and partners in all three areas through
the area partnership boards and the NaSA Neighbourhood Renewal
Area Steering Group.
Written communications included letters issued to all residents in the
next phases of demolition in all three areas and regeneration
newsletters issued in Ings and Preston Road highlighting the next
steps.
3
4.3 A number of news releases were issued in the last quarter. All of the
releases received some positive press coverage with particular
prominence given to the first new homes at Ings. TV and radio
coverage was also secured for the Ings new-build story, the Orchard
Park photography book and the NaSA Supporting Communities
through Change projects.
4.4 Appendix 2 provides a briefing note on the Forward Plan item on
procurement of Property Management Services required by the
Commission.
5. Scrutiny Commission Question Time
5.1 Appendix 3 gives an updated report on the issues raised at this event
in January 2007. The information requested from Gateway on
consultancy costs is attached at Appendix 4. It is important to note that
the government insisted that detailed housing market research and
strategy development work was carried out prior to submitting the initial
bid. This is technically specialised work for which all pathfinders used
consultants extensively. Only when they were satisfied with this work
were the government prepared to allocate funding to support
Gateway's plans, and this announcement was made in November 2006
when the maximum £33.7m was allocated to Gateway for 2006 - 08.
5.2 When I took over as Acting Chief Executive at Gateway in 2005, it was
completely staffed by consultants and interim managers because there
had been no capacity in the City Council to take on the work required. I
recruited a permanent team to make sure that we had the right skills
and capacity in house to deliver the programme.
5.3 Therefore, Gateway's use of consultants has reduced dramatically from
the initial period. There will always be a need for ongoing research to
keep our market information up to date, but the proportion of the
budget spent on this type of work will continue to be at a low level
compared to the allocation of funds to physical work on the ground.
5.4 Appendix 5 provides the information requested on details of support
packages for residents who homes are to be demolished.
6. Recommendation
6.1 That this report is noted.
Janet Whipps
Acting Chief Executive
Gateway
27th June 2006
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Appendix 1
KEY HOUSING MARKET INDICATORS
QUARTERLY REPORT – October – December 2006
Section 1 – House Prices
A ~ Average house prices
House prices in Hull continue to rise with an average price of £92,846 across all
property types. The increase across all types in Hull between October-December
2005 and October-December 2006 was 13%. In the East Riding the average increase
was 4.5% and for England and Wales as a whole it was 8.5%.
House prices in Hull have not increased evenly. Terraced housing has seen the
highest increase at 22.5% over the year. This is in line with national trends.
However, the price gained for flats and maisonettes remains depressed with a
reduction in value of 9% over the year. This is at variance with the national trend but
probably owes something to the make-up of the total housing stock in the city.
Land Registry figures show that over all types, Hull had the lowest average house
prices in all of England and Wales at 31st December 2006.
Policy Implications
The major implication of prices rising for Gateway, in common with all HMR
Pathfinders, is that the cost of buying and compensating owners continues to increase
which in turn impacts negatively on the affordability of the programme.
House price trends
250000
200000
Average Price £
150000
100000
50000
0
O-D 98 O-D 99 O-D 00 O-D 01 O-D 02 O-D 03 O-D 04 O-D 05 O-D 06
Hull E Riding E&W
Source: HM Land Registry
5
Average house prices by type
250000
200000
Average Price £
150000
100000
50000
0
O-D 00 O-D 01 O-D 02 O-D 03 O-D 04 O-D 05 O-D 06
detached semi-detached terraced
flat/mais Hull (all) average E&W (all) average
Source: HM Land Registry
6
B ~ Low value house sales
The charts show that the bottom end of the market (lowest 5% of sales) is still
rising whilst average (median) prices overall are flattening out.
Threshold for lowest five per cent of house sales 1996 –October-
December 2006
180,000
160,000
140,000
120,000
100,000
£
80,000
60,000
40,000
20,000
0
96
97
98
99
00
01
02
03
04
05
06
19
19
19
19
20
20
20
20
20
20
20
ENGLAND YORKSHIRE AND THE HUMBER
East Riding of Yorkshire UA Kingston upon Hull, City of UA
Source: HM Land Registry
Median house prices 1996 to October-December 2006
180,000
160,000
140,000
120,000
100,000
£
80,000
60,000
40,000
20,000
0
96
97
98
99
00
01
02
03
04
05
06
19
19
19
19
20
20
20
20
20
20
20
ENGLAND YORKSHIRE AND THE HUMBER
East Riding of Yorkshire UA Kingston upon Hull, City of UA
Source: HM Land Registry
7
C ~ Priority neighbourhoods – Trends
We have quarterly information showing how prices by post code compare to the city
average. Postcode sectors are generally much larger than the priority
neighbourhoods, and therefore include other neighbourhoods. Also the volume of
sales can be small and so these do not necessarily provide reliable evidence of
change or stability.
However, some trends are discernable. Price increases for terraced houses in HU3 5
and HU3 6, which cover much of Newington and St Andrew’s are 47.5% and 26%
respectively over the year. However, it appears that growth was slower to start there
and there was more catching up to do. Despite this increase the price for a terraced
house in HU3 5 is still only £45,548 and in HU3 6 it is £70,911. This compares to
£80,482 as an average price for a terraced house in Hull.
HU8 0 includes the Ings Capons area but is actually much bigger than that. Prices for
terraced housing for the whole of that postcode sector were ahead of city averages
until two years ago but have now converged. However, the number of sales is small
– only 24 in the October to December quarter.
8
NaSA 02 to 06 ~ Terraces
100000
80000
60000
£
40000
20000
0
O-D 2002 O-D 2003 O-D 2004 O-D 2005 O-D 2006
HU3 5 terraces HU3 6 terraces City wide terraces
HU8 0 (Ings) 02 to 06 ~ terraces
100000
80000
60000
£
40000
20000
0
O-D 2002 O-D 2003 O-D 2004 O-D 2005 O-D 2006
HU8 - 0 terraces City wide terraces
Source: HM Land Registry
9
Section 2 - Empty Homes
D ~ All empties (split by tenure)
Concentrations of empty homes are found in the inner city collar, in the city centre
and in some council estates, especially Ings and North Bransholme. The latter are
being picked up by Hull City Council’s policy to tackle all long term empties by 2008.
D1 Empty properties annually from 1998
April April April April April April April April April
1998 1999 2000 2001 2002 2003 2004 2005 2006
Local
Authority 1,336 2,215 3,179 2,998 3,176 2,275 1,927 1,509 1,342
% 3.6 6.0 8.8 8.5 9.3 7.0 6.2 5.0 4.6
RSL 90 76 86 83 187 192 133 101 108
% 1.5 1.2 1.4 1.3 2.8 2.9 1.9 1.5 1.7
Private
Sector 4,549 4,869 4,114 5,185 5,418 5,293 4,408 5,533 5,275
% 6.4 6.8 5.6 7.0 7.3 7.0 5.7 7.1 6.6
TOTAL 6,000 7,160 7,379 8,266 8,781 7,760 6,468 7,143 6,725
% 5.2 6.2 6.4 7.2 7.6 6.7 5.6 6.2 5.8
Location of empty properties at 31st December 2006
Source: HCC Council Tax Records
December 2006
Vacant dwellings
Vacant 6 months or less
Vacant more than 6 months
6.0 134.0 262.0
10
E ~ Empties 6 months plus (split by tenure)
The number of long term empty properties remains high and there are still
concentrations of long term empties in the private sector.
Trend
Empty properties 1998-2006
10000
9000
8000
7000
6000
5000
4000
3000
2000
1000
0
1998 1999 2000 2001 2002 2003 2004 2005 2006
Council properties Private sector properties
Council properties 6mths+ Private sector properties 6 mths +
All empty properties
Source: Hull City Council Housing Strategy Statistical Appendices
Long term vacant dwellings (6 months +) by tenure as at 31st December 2006
Total Council RSL* Private
All dwellings 115,502 28,725 6,438 80,339
Vacant 6,339 1,156 108 5,075
Long-term vacant 3,503 838 8 2,657
Percent
Vacant 5.5 4.0 1.7 6.3
Long-term vacant 3.0 2.9 0.1 3.3
* No new figures available for RSLs so April figures used
11
Section 3 – Dwelling stock change
Completions, conversions and demolitions by tenure 1st October to 31st December 06
Private sector RSL Local Authority All
House building
completions 203 0 0 203
Conversions leading
to additional units 4 0 0 4
Change of use to 19
dwellings 19 0 0
Total net additions
226 0 0 226
Demolitions 12 0 16 28
Conversions leading
to fewer units 5 0 0 5
Change of use from
dwellings to non- 5 0 1 6
dwellings
Total net reduction
22 0 17 39
Change to dwelling
stock 204 0 -17 187
Source: Hull City Council
Planning Pipeline - Hull
Proposed number of Remaining capacity with Number coming
units planning permission through in the next 5
years
Position as at
31/12/05 8491 7828 3227
Position as at 31st
March 2006 8834 8103 3998
Position as at 30th
June 2006 8850 7894 3504
Position as at
30thSeptember 8730 7989 3938
2006
Position as at 31st
December 2006 9264 8393 4392
Source: Hull City Council
There are 4392 dwellings with planning permission which are likely to be built in the
next 5 years. This works out at 878 per year.
This represents an increase of 454 dwellings in the pipeline compared withy the last
quarter. This is due to 663 additional planning permissions being granted during the
quarter and 209 dwellings being completed and coming out of the pipeline. 600 of
the additional permissions granted this quarter are for Tower Street on the east bank
of the river Hull which is the proposed development known as “the Boom”.
The planning pipeline for the outer strategic area in the East Riding of Yorkshire will
be incorporated with this data from 2007/08.
12
Section 4 - 2004 Based Household Projections
The 2004 based population projections were released by Communities and Local
Government in March 2007. These are based on the 2004 population projections
covered in the April – June 2006 quarterly report.
The key points are:
The projections show what would happen to the number of households in the
City up to 2029 on the basis of the 2004 population projections and assumptions
about household formation. They do not constitute a forecast of what will
actually happen as future population change and household formation will be
impacted upon by a number of national and local factors and policy – such as
economic change, unanticipated changes in migration and the impact of
regeneration – which cannot be built into the projections.
The number of households in Hull is projected to rise from an estimated 109,000
in 2004, to 114,000 in 2011 and 125,000 by 2029, with the most rapid growth
from 2006 to 2016.
Rapid growth is also anticipated in the number of households in the East Riding
of Yorkshire
The chart below compares the 2003 and 2004 projections for both areas.
2003 and 2004 Based Household Projections
250
200
000s Households
150
100
50
0
2006 2011 2016 2021 2026 2029
Hull 2003 projection Hull 2004 projection East Riding 2003 projection East Riding 2004 projection
13
A key reason for the rapid increase in the number of households is the anticipated
growth of one person households. Nationally 70% of the projected household growth
is due to this factor and one third of these are projected to be in age groups over 65.
(A local breakdown is not available.) However, a number of factors will influence the
ability and propensity of one person households to form in this way and to secure
individual dwellings – for example the employment and earnings capacity of working
households and house prices and rents (where there is already evidence that young
people are leaving home later and of one person households sharing accommodation
and costs).
Nationally a third of all household growth is attributable to net international
migration into England. As noted in our earlier report migration is subject to the
influence of economic factors and in particular to differences in demand for labour
between places. That influence extends beyond the city, the region and the UK and
into the European Union as witnessed by the arrival of Eastern European migrant
workers from April 2004 and onwards.
Policy Implications
Due to the uncertainty of the factors set out above, the ‘plan, monitor and manage’
approach to population change set out in our Scheme Update is still the most
appropriate approach. For example:
There are around 115,500 dwellings in Hull in December 2006. If the
planning pipeline of 4,392 is added to this there would be 119, 892 dwellings
in the City. If the household projection of 114,000 by 2011 were to be
realised these would need 118,000 homes at a vacancy rate of 3.5%.
Therefore even if demolition activity rose to nearly 2,000 (which is excess of
that likely) over this period the new household figures do not give immediate
cause for concern.
This however highlights that unless significant household growth does occur,
the vacancy rate is not likely to reduce dramatically, given the extent of the
planning pipeline. Based on the 2003 household projections a vacancy rate of
around 8% would be achieved (without any demolition) based on the existing
stock and planning pipeline.
This plan, monitor and manage approach means concentrating interventions in the
early years to consolidate and strengthen the city’s urban form and function and
improve its overall economic and quality of life offer, whilst monitoring the impact of
these interventions and external change. Programmes can then be adjusted to
reflect the direction of change as part of future Scheme Updates.
14
Appendix 2
Briefing note to Housing, Neighbourhood Renewal & Urban
Regeneration Commission in relation to the Procurement of Property
Management Services for Gateway Housing Market Renewal Pathfinder
Introduction
With the announcement of the successful bid to receive £33.7 million grant for
Gateway Pathfinder, work can now be stepped up to purchase properties
which have been identified for demolition within the Gateway intervention
areas of Newington and St Andrew’s (NaSA) to the west of the city and Ings
Estate and Preston Road to the east of the city, and properties adjacent to
these areas that can be used to assist in the re-housing of those residents
displaced as a consequence of this action.
As a consequence Gateway requires consultants for the following types of
work:
To provide property valuation and negotiation services and advice
To negotiate and agree terms for the acquisition of land and property
required for regeneration by Gateway Pathfinder
To provide assistance and advice to displaced commercial users in the
search for alternative premises.
As the value of the works requires the contract to be published in the Official
Journal of the European Union (OJEU), Gateway commenced the process in
August, 2006 with the publication of a Prior Information Notice (PIN). A two
stage restricted tender has been entered into in accordance with the OJEU
procedures. The aim of the tendering process is to select and appoint a team
of surveyors to help deliver Gateway’s ambitious programme helping to
radically restructure the city’s housing market. There is insufficient capacity in
the Council’s Property Service to carryout this work.
The following services are the subject of this tender.
1. Provision of valuations for land, residential and commercial
property.
2. Negotiation and agreement of terms for the acquisition of all
interests in land and property by Agreement and under the
Statutory Code.
3. In relation to commercial properties, to negotiate and agree all
compensation and fees arising out of the acquisition, including
Basic Loss and Business Disturbance claims and, in relation to
residential properties, (owner occupied and tenanted), the
verification of Disturbance claims, working in close liaison with the
West and East Hull Renewals Teams.
4. Provision of assistance and advice to displaced commercial users
in the search for alternative premises.
15
5. Monitoring of costs and provision of updates to feed into budget
estimates.
6. Attendance and presentation as required to
Public/Council/Gateway meetings and forums.
7. Negotiation and agreement of terms for the disposal of
redevelopment sites, provision of valuations and negotiations as
required.
8. Other Valuation Services:
(i) Undertake other valuations for the Council/Gateway for a
variety of purposes including, insurance valuations,
leases, road closure and feasibility purposes.
(ii) The Council/Gateway may wish to engage the services of
the contractor on an hourly or daily rate for these and
other services, alternatively arrangements may be made
to engage the contractor on a fixed fee basis which would
be negotiated at the start of each instruction.
The management of properties acquired by Gateway, if not undertaken in-
house will be subject to a separate tender.
Stage 0ne
A briefing pack was issued to consultants or service providers who had
responded to the entry in the Official Journal of the European Union as placed
by the Council/Gateway who had expressed interest in participating in
Gateway Housing Market Renewal Pathfinder’s physical regeneration
programme by providing a valuation service.
In addition a Pre–Qualification Questionnaire, as produced by the Centre of
Excellence for Yorkshire and the Humber, which included questions relating to
company, financial and insurance information, technical capacity and
resources, health and safety, equal opportunities, and environmental policy,
was also sent to all prospective applicants along with clear details of the
tendering process.
Only five companies responded, and as a consequence it was decided to put
forward all the applicants to stage two of the procurement process.
Stage Two
The Stage Two documentation was prepared in consultation with Property
Services and sent to all five applicants on 14th May, 2007.
Tenders have now been returned and are being evaluated.
Evaluation Criteria
16
The Evaluation Criteria include capability (quality), capacity (resources), price,
references and financial viability. It also provides details of the measure to be
applied, method of measure and the weighting out of 100. The weightings will
be used to aggregate and compare each tenderer’s evaluated ability to meet
the criteria.
Conclusion
Whilst the evaluation process is still being undertaken (currently awaiting
references) it is evident that the successful tender price will be under £200k
and therefore does not exceed the £500k threshold for accepting tenders via
Chief Officer Decision Record, so will not be submitted to Contracts
Committee.
17
Appendix 3
Updated response in relation to issues raised at Scrutiny
Commission Question Time 31st January 2007
ISSUE RESPONSE
1. Results of Gateway survey of Completed March 07– Janet Whipps
householder preferences to be
publicised through website
(KWest)
2. Cost of consultants employed by See attached Appendix 4 to this report
Gateway to be submitted to
Scrutiny Commission
3. Details of results of consultation Completed February 07 – Janet Whipps
on Gateway’s plans to be
submitted to Scrutiny Commission
4. Work to identify future Mark Jones to identify appropriate
development needs and delivery timescale
for district centres
5. Details of support packages for To be done by May 07 – Janet Whipps
individuals whose homes are to be Include in next report to Scrutiny
demolished to be submitted to Commission – attached at appendix 5
Scrutiny Commission
6. Report back on how to improve Report to be submitted to October
engagement of local labour, meeting of Scrutiny Commission in
suppliers and social enterprises accordance with agreed workplan – led
by Elaine James
7. Details of the amount of private To be done by May 07 – Janet Whipps
finance generated through the £4.1m from Chevin Schemes in East Hull.
Gateway programme to date to be Lead Developer Partners identified for
submitted to Scrutiny Commission NaSA and East Hull who will bring
significant private investment.
8. Report on impact of Gateway John Hocking to identify appropriate
programme on Homesearch to be timescale
submitted to Scrutiny Commission
9. Letter to be sent to all residents of Completed February 2007 – Janet Whipps
Phase 1 demolition area at Preston
road outlining rehousing options
18
Appendix 4
Gateway expenditure on consultants 2003 – 07
Year 2003 – 05 2005 – 06 2006 – 07
£m £m £m
Expenditure on consultants 2.49 1.62 0.52
Total expenditure 2.66 8.70 16.30
Consultants spend as % total 93% 19% 3%
1. The types of work for which consultants have been used include interim
staff, housing market intelligence and research, bid submission and
area development planning frameworks.
2. The first allocation of funding for actual physical work was in 2005 – 06,
the first allocation of £2.66m in 2003 – 05 was only available for
scheme preparation.
3. The allocation in 2005 – 06 also required us, as a condition, to re-work
the evidence base and strategy for housing market renewal in Hull to
enable us to access further funding for subsequent years, which was
successfully achieved with the funding announcement of the maximum
£33.7m for 2006 – 08 in November 2006.
19
Appendix 5
SUPPORT AND ASSISTANCE FOR PEOPLE WHO ARE
RELOCATED AS PART OF THE GATEWAY PROGRAMME
All residents - support, advice and practical help to move
Gateway and Hull City Council are committed to supporting people who are
affected by our plans to improve housing quality and create thriving
communities in the city.
This commitment is underpinned by our residents’ charter, which is a set
customer promises about the way people will be informed, consulted and
supported throughout the regeneration process. Importantly, the Charter
makes Gateway’s commitment to supporting existing communities and
making opportunities available for residents to remain within their community if
that is what they want.
One of the ways we aim to deliver the promises made in the charter is by
providing assistance and advice through our local regeneration teams. Based
in Ings, Hawthorn Dairycoates and Preston Road, the teams have been set up
to provide advice, information and practical help to enable people who need to
find a new home and ensure their move goes as smoothly as possible.
Wherever possible, people being asked to move will have one point of contact
from the team - from the initial visit to assess their housing needs through to
moving into a new home.
The range of housing options currently on offer is as follows:
West Hull - Newington and St. Andrew’s
1. Buying an existing or brand new property on the open market
2. Renting a council property
3. Renting from a private landlord
4. Renting from a housing association
5. Renting a property within Newington and St. Andrew’s, which
has been refurbished as part Gateway’s regeneration plans.
East Hull - Preston Road and Ings
1. Buying an existing or brand new property on the open market
2. Buying (including part ownership) or renting one of the new
homes being built under the Gateway programme for East Hull
3. Renting a council property
4. Renting from a private landlord
5. Renting from a housing association
6. Renting or part-owning a refurbished property in the East Hull
area
20
The teams also provide information on the regeneration of the area to the
wider community and work in partnership with Gateway and the Area teams to
deliver a co-ordinated programme capacity building, consultation and
engagement linked to regeneration and neighbourhood management issues.
Financial Support:
Homeowners - compensation and financial assistance
A compensation and equity mortgage package is fully funded by Gateway.
Operated on our behalf by Hull City Council, the scheme is designed to help
people make up the difference between the value of their existing home and
the one they want to buy. Depending on individual circumstances, the
package includes:
The value of their existing home as agreed by an independent
surveyor and a surveyor appointed by the Council
+
Home loss compensation (owners get 10% of the agreed value
of your home or £4,000 - whichever is the greater)
+
Equity loan of up to £50,000 - with no monthly or annual
repayments
+
£250 towards the cost of independent financial advice
+
Independent survey and reasonable moving costs paid in full
Relocation grants may also be available in some circumstances.
The maximum amount of compensation (value of existing home + home
loss + equity loan/relocation grant) that can be offered is £100,000.
The equity loan is placed as a legal charge on the new property.
Homeowners are not expected to make any repayments until they sell the
house or there is a change in ownership.
If they do not sell the house in their lifetime, the charge is paid back when
the house is sold as part of their estate.
Alternatively, the charge can be transferred to a family member on the
death of the last homeowner.
Interest will only be paid when the house is eventually sold. At that point
the Council will require an interest repayment of 5% or a share in the
increase of the value of the new house, whichever is the lower.
Tenants - compensation
Tenants whose homes have been agreed for demolition under Gateway’s
regeneration programme are entitled to:
21
a home loss payment of £4,000;
A disturbance payment to compensate them for the reasonable costs of
moving home. This generally includes furniture removal costs,
reconnection of telephones, TV aerials (including Sky dishes) and
electrical appliances, and the cost of refitting carpets.
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