East Herts Council ponders best way to sell Northgate End flats and offices

East Herts Council (EHC) is ready to sell off 15 vacant flats and commercial space in Bishop’s Stortford as a job lot for a quick sale.

A “credible offer in writing” has been made for the freehold of the whole block at Northgate End.

The homes and business premises were built alongside the £20m multi-storey car park, which opened in June 2022. They cost the authority £100,000 a year to manage.

The ground floor of the four-storey building is occupied by HRGO Recruitment and Launchpad, the council’s co-working, office and meeting space which moved from Charringtons House to make way for the Old River Lane development. But the flats have been unoccupied for more than two-and-a-half years.

At a meeting on Tuesday (February 11), Cllr Carl Brittain, EHC’s executive member for financial sustainability, will recommend that “the entire freehold be sold to a sole purchaser”. An officer will ensure the deal represents “best consideration”.

As well as saving management costs, the cash-strapped council needs to sell the property – 1 to 15 Limekiln Lane and 1 Link Road – to avoid borrowing to buy bin lorries as it begins a new waste contract.

The executive will consider three options for the site. Some discussions about financial modelling will take place in private because of commercial sensitivities.

The multi-storey was built to free up the Causeway car park for development by Cityheart as part of the Old River Lane project for shops, offices and housing on the site.

Cllr Brittain will tell his Green and Liberal Democrat colleagues that in May 2022, the Old River Lane Board wanted to sell six “affordable flats” to a housing association. The only offer was declined because of “conditions which were not achievable or acceptable”.

At the same time, it hoped to offload nine private flats individually and dispose of the commercial property on the ground floor separately through an external agent, but with no success.

The deal on the table would require the council to gain planning permission to replace the on-site affordable housing with a “commuted sum”. This could be used elsewhere to “substantially” reduce the rent of more than 20 properties to levels well under 60% of the market rate.

Cllr Brittain’s report says: “This approach, among others, could arguably have a more far-reaching benefit than the three affordable rent and three shared ownership flats currently required onsite.”

He recommends this scenario as the best opportunity for the council to dispose of the asset in a timely way.

The executive will also consider continuing to market the private flats and the commercial space while seeking a purchaser for the affordable units.

Additionally, members will discuss seeking planning approval to remove the requirement for on-site affordable housing and then selling all 15 flats on the private market, marketing the commercial space separately.

Cllr Brittain’s report makes clear that the preferred deal could be completed in six months with the other options taking up to 30, wiping out any benefit of a higher sale price overall.

At the same meeting, he will recommend the freehold disposal of Layston Court Gardens to Buntingford Town Council and land at West Street, Hertford, to the existing leaseholder.

The Indie has asked the council what will happen to Launchpad if the Northgate End sale proceeds.