Land in Hattersley is to be sold to a housing association for just one pound in order to unlock 161 homes, council bosses have agreed.

Tameside’s cabinet has signed off on plans to transfer the freehold for two sites in Hattersley to Onward Homes, to pave the way for a £28 million residential scheme.

The council owns around 1.5 acres of land across two sites off Hattersley Road East, including the former Hattersley Community Centre.

According to an independent valuation, the land is valued at £361k – significantly more than £1.

However the sale is also subject to an overage agreement which would see the council be able to claw back up to £350,000 if certain houses in the new development are sold.

Onward Homes already owns five sites in the area around Hattersley Road East, but needs the portions of council-owned land to progress.

It currently is planning an extra care unit of 91 flats on the Hattersley Community Centre site, which would be made up of 60 one bed and 31 two bedroom apartments.

The rest of the site of the former Hattersley District Centre would be redeveloped with 70 homes.

The plans for supported living in Hattersley. Credit: Triangle Architects. 

Councillor Oliver Ryan, cabinet member for economic growth said: “This is fantastic news and it’s something that we should all welcome.

“We’re enabling this work and this is another example of this council spurring investment and innovation in our town centres for what will be, not only a good development to provide much needed housing in Hattersley, but also an extra care scheme as well and greater and wider community benefit.”

The project is being part funded through a £2.8m contribution from the Brownfield Homes Fund and an £8.2m housing subsidy from Homes England.

Council officers say it is expected that the developments could lead to council tax revenue of £172k a year, and the extra care element would save service costs of up to £122k a year.

However they acknowledged that the £1 sale would be ‘less than best consideration’.

Paul Smith, assistant director for strategic property said: “There is an element of undervalue because there is a potential for up to £361k if we were to sell an area of the land separately which is subject to other ground investigations which haven’t been done yet which would probably mitigate most of that.

“However the council has put in place an overage agreement so that if any of certain identified houses are sold on, the council would get a share of that up to £350k in future.

“This is a major development covering an area that’s been cleared for quite a few years now, bringing a major investment and homes and housing and extra care developments to the council.”

Coun Eleanor Wills, cabinet member for adult social care added there was ‘a need’ for extra care facilities across the borough.

If approved, the Hattersley extra care flats will be one of four schemes in Tameside coming forward to support current and future demand.

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