Dollis Valley redevelopment delayed yet again after Barnet Council loses out on £58 million Greater London housing grant

Barnet Council has had to abandon an immediate go ahead for the final stage of the Dollis Valley redevelopment following the sudden withdrawal of a £58.85 million grant from the Greater London Authority for building new affordable homes.

A council cabinet decision two weeks ago to proceed with the construction of 208 new homes – despite protests from some of the residents – has been called in for further discussion.

As a result, the council has failed to meet the GLA’s deadline of July 31 for approving the project.

Conservative councillors demanded that the cabinet’s decision should be called in – and therefore postponed – because of their concerns about the financial viability of the scheme and the lack of adequate consultation with residents.

Council officials will now have to draw up fresh proposals for the completion of what has become the Brook Valley Gardens estate.

Vacant blocks of flats and maisonettes – see above – have been awaiting demolition for the last three years and this fresh postponement is only the latest setback in a long, drawn-out saga.

A group of Brook Valley Gardens residents – where 60 per cent of the 400 homes are privately owned – have fought a sustained campaign against the council’s decision to finish off the estate with 208 affordable homes.

They say this would result in the estate having 60 per cent of homes for social rent which they argue is a breach of the undertakings they were given when they bought their homes and were told it would be 60 per cent privately owned.

Under the scheme approved by the cabinet on July 21 the council said it had reached an agreement with developers Vistry to construct 208 affordable homes which would be managed for the council by Barnet Homes.

To qualify for access to £58.85 million of GLA affordable housing grant the scheme had to be approved by July 31.

In confirming the funding was no longer available, the GLA said there was no longer “sufficient certainty” the grant conditions could be met and there were other schemes around London which could qualify.   

Demolition of the block of flats and maisonettes deemed unfit for occupation and a start on the construction of the new homes was due to begin in September.  

When approving this plan two weeks ago, the cabinet meeting acknowledged the “potential guilt” felt by some councillors for letting down the private owners.

What cabinet members and council officials had not taken into account was the determination of the private residents’ group to press for the decision to be called in.

Once this action was taken by Conservative councillors, council officials were no longer in a position to give the guarantees which were needed by the GLA over access to the £58.85 million grant.

A full report on the setback is to be considered by the council’s call-in sub-committee on Tuesday 4 August.

Residents who have been consulted by the Dollis Valley Partnership Board have welcomed the news that the grant is “no longer available” and say it has strengthened their argument for the council to start again and undertake meaningful discussions with them.

Among the financial issues facing the call-in sub-committee will be the demand for more information about the council’s contribution to finishing off the Dollis Valley estate – said to be another £40 million.

Unless the deal with Vistry can be renegotiated, the council might be left with no other option but to demolish the vacant blocks and clear the site with the hope that conditions in the housing market might improve or that the site can be sold to a private developer.