Following on from Full Council last night (15 July), a question was raised to the Portfolio Holder for Corporate and Finance regarding an update to a property the council owns.
Mansfield District Council purchased in January 2017 a mixed-use building which contains a commercial unit and 40 residential apartments at 50-52 Bedford Road in Clapham, London.
Following an independent assessment of the building in 2018, the council took immediate action to address several fire safety concerns and keep tenants and residents safe in their homes. There are three phases of work to the building and the works required are substantial but necessary for the long term safety of the building. The project requires a detailed design and tender process which the council is continuing to progress. The costs for such works are included within the council’s approved capital programme, and it is exploring all avenues regarding recovery of these costs.
The Portfolio Holder, Councillor Craig Whitby, responded to the question with the below response regarding costs and next steps for the project.
Thank you for your question, Councillor Moxon.
Let me start by acknowledging that the situation at Bedford Road – or the so-called "London Flats" – has been a difficult one, and it's a problem this administration inherited. We’ve been working hard to resolve the legacy issues and put the scheme back on a stable footing.
On securing vacant possession, our officers are currently working with external legal advisers to finalise licence agreements with leaseholders. These agreements will allow residents to temporarily vacate their homes so that internal works can proceed safely and effectively.
In terms of the external works, the council is in the final stages of negotiating a two-stage contract with Willmott Dixon. The first stage, which is now underway, focuses on design and enabling works. Once that’s complete and the design is finalised, we’ll be in a position to agree the final contract price and move into construction.
The current budget estimate for the external works is £8.7 million. This figure includes a range of works, not all of which relate directly to fire safety. Some positive news on this front though, is that Homes England has approved funding for the fire safety-related elements, and I want to thank both Homes England for their support and our officers for securing this backing. It’s a complex funding arrangement, and the final amount we’re able to recover will depend on how the detailed scope of work aligns with the grant criteria.
Internal works are budgeted at £7.1 million, and we’ve also allocated around £2 million to manage the decant process while works are carried out. These costs will be met through the council’s capital programme. As with the external works, the final figures will become clearer once the design stage is complete, and contractors are fully appointed.
We know that this has been an incredibly difficult and frustrating experience for the leaseholders who live in these properties. They’ve been left in limbo for far too long, through no fault of their own, and they deserve clarity, safety, and progress. While the road hasn’t been straightforward, I want to reassure members that this administration is committed to delivering the project, addressing the issues we inherited, and doing so with care and financial responsibility — not only to make the building safe and compliant, but to restore it to the standard that residents rightly expect and that the council originally intended.
The monetary grant from Homes England reduces the council's borrowing requirement for this project which is good news for our overall budget position.