{meta} Agenda item - Pendleton Affordable Housing Phase 2/4 Development (see also item 6a)

Agenda item


Salford City Council - Record of Decision



I, Councillor Tracy Kelly, Deputy City Mayor, in exercise of the powers contained within the City Council constitutiondo hereby approve the recommendation from the Pendleton Development Board that the next phases of development identified in the Initial Development Appraisal in the report is brought forward.


The Reasons are that approval of the Initial Development Appraisal will enable the council’s developer partner to bring forward the next stages of mixed tenure development in Pendleton including significant investment into Clarendon Park, greenspace and public realm.  The mixed tenure proposals include 575 new family homes and apartments with 173 new affordable homes and a developing plan for a proposed Extra Care Scheme.  The next stage will be to carry out detailed design and site analysis, gain planning approval to confirm costs and sales values and upon satisfying the Licence conditions in the Development Agreement and submit a Final Development Appraisal for the council to approve prior to the drawdown of the land. 



Assessment of Risk - Medium

The initial land values are indicative of the available information and market understanding at this point of the development.


The partnership continues to manage cost risk in the knowledge that significant land contamination and groundworks were required in early phases and construction inflation is an issue.  Whilst build costs have been based on the latest available knowledge at Phase 3 until further survey and due diligence work is undertaken a true estimate of the cost is difficult to assess, and a contingency fund has been included to manage this risk.   This decision recommends the partnership develop the scheme further providing more certainty on cost, obtain planning approval, etc. 


The partnership continues to manage sales risk in the knowledge that property values can go down.  Whilst it is anticipated that the cost of living crisis, increasing energy prices and other external factors will impact the property market the appraisal uses recent sales values achieved at the Phase 3 development on site and this is considered a reasonable assumption to progress the scheme.  Further monitoring and market intelligence will continue to be carried out and fed into the final development appraisal.


The drawdown of the council land will be subject to a separate decision based on a completion of a detailed Final Development Appraisal.



Legal Advice obtained: Yes - Jon Paramore and Michelle Brice, Principal Solicitors, Property, Shared Legal Service


Financial Advice obtained:  Yes - David Mills, Interim Strategic Finance Manager


Procurement Advice obtained: Not applicable


HR Advice obtained: Not applicable


Climate Change Advice obtained: Not applicable


The following documents have been used to assist the decision process:

Public briefing report submitted to Property and Regeneration Briefing held on 8 August 2022

Contact Officer:  Dylan Vince - Service Manager, Assets and Development           

                Tel No: 0161 793 2476


This decision is not subject to consideration by another lead member or strategic director

The appropriate Scrutiny Committee to call-in the decision is the Growth Prosperity Scrutiny Panel.


Signed: Councillor Tracy Kelly

Deputy City Mayor

Date: Monday 8 August 2022

*           This decision was published on Monday 8 August 2022.

*           This decision will come in force at 4.00 pm on Monday 15 August 2022 unless it is called-in in accordance with the Decision-Making Process Rules.


Supporting documents: