DD2332 Bridport Road Enfield (North Middlesex Stage 1)

The North Middlesex University Hospital (NMUH) is a medium-sized hospital, located in Edmonton within the London Borough of Enfield. It is the local acute hospital for the boroughs of Enfield and Haringey, which have a combined population of approximately 590,000, of whom the hospital serves about 300,000.

During 2015/2016, the Trust entered into discussions with the Education & Skills Funding Authority (ESFA) regarding a plot of land in the southeast corner of the site (Map in Appendix 1 to this report) for redevelopment as a free school. The Trust took the decision that it could meet the accommodation needs of the existing services on the site in a different way and took the decision to sell the land in March 2016.

Following a review, the ESFA (later renamed as LocatED) took the decision that given the proximity to the Accident & Emergency department, with over 100 ambulances attending daily, as well as other traffic and transport challenges, it would not progress with the development of the school on the site. It reached agreement with the Trust to permit the hospital services to remain on site by way of a lease, while it resolved what development would progress.

LocatED are required to dispose of unwanted assets within three years of purchase, which expires on 31st March 2019. Similarly, the Trust, who are the beneficiary of an overage clause, are focused on completing the sale before 31st March 2019 so that they have more freedom over how any such overage can be utilised under the existing healthcare ring-fencing requirements.

The CEO of North Middlesex Hospital approached the GLA with a view to GLAP purchasing the site for residential development.

MD2396 approved receipt of Government funding for small sites and delegated authority to the Executive Director of Housing and Land to agree its allocation.

Site acquisition and disposal

It is proposed the GLAP acquires the site on Bridport Road, contained within the grounds of the North Middlesex University Hospital and owned by the Ministry for Housing, Communities & Local Government through its agent, LocatED (an executive non-departmental public body sponsored by the Department of Education). The acquisition will follow a full Red Book Valuation based on the previous site appraisal conducted by Montagu Evans which determined that 206 residential units would likely be viewed favourably by planning - with cost assumptions taking into account the Mayor’s aspirations laid out in the latest draft of the London Plan for the tenure of 50% of homes built on public land being affordable.

Subject to this approval, all parties have agreed to work in earnest to complete the purchase by 29th March 2019. It was also confirmed that whilst this date is everyone’s preference, providing there is evidenced progress and a draft form of agreement in place, failure to meet this date will not result in the cessation of the purchase.

A meeting between the GLA, the Trust and LocatED in January 2019 confirmed that a two-stage development strategy aligned the objectives of all three parties. The first stage would see GLAP acquire the site from LocatED based on a joint valuation exercise and take over the management of the leaseback arrangement (currently in existence between LocatED and the Trust) to the Trust.

The second stage would see the Trust and the GLA explore options for developing a masterplan for the wider hospital site (Map attached as Appendix 2 to this report), incorporating an increased density of housing alongside replacement and additional hospital facilities. The site would then be taken to the London Development Panel 2 once planning had been obtained, with GLAP receiving a capital receipt proportionate to its interest (to be worked through in more detail with the Trust after the initial purchase of Bridport Road has been completed).

By purchasing the site, the Mayor would be able to help facilitate the delivery of enhanced health facilities with increased capacity alongside a substantial number of genuinely affordable homes in an area of critical need, recycling any uplift or financial gain back to helping achieve the Mayor’s housing objectives.

It is anticipated that the Trust will be channelling resources in to improving existing publicly accessible car parking facilities to result in no net loss of useable spaces at the hospital complex.

GLAP will immediately take over the leaseback arrangements already in place to enable the Trust to continue its day to day activities whilst a comprehensive masterplan is developed. Provisions will be contained within the lease to ensure that the Trust conduct this work expeditiously, with rental payments increasing after a suitable period should no planning application have been made. The leaseback will include the relevant clauses to ensure the site is well maintained and returned with vacant possession.

The GLA will ensure it is heavily involved with, or leads on, the development of the a joint masterplan for the wider site or a standalone development on the site purchased by GLAP. The exact details of the arrangements for the masterplanning exercise will be determined once GLAP has ownership of the initial site. However, provisions will be included in the leaseback arrangement to ensure start on site for the residential units is achieved before the expiration of the current affordable housing grant funding programme in March 2022.

The Trust’s estate development ambitions support the execution of its clinical strategy to help deliver the key enablers for the hospital and respond to the significant challenges ahead. In addition, the Trust would like to see key worker housing built on site to help tackle the recruitment and retention challenges it faces as an outer London NHS employer.

Funding acquisition of the site and its subsequent disposal via the London Development Panel 2

In addition to the necessary budget to acquire the site itself, GLAP will need to bring on board expert legal and other external advice, initially to acquire the site. Upon purchase of the site GLAP will require funds to cover the cost, or contribution towards the cost, of developing a masterplan and the subsequent costs associated with drawing up the necessary documentation, running a procurement exercise through LDP2 and finally disposing of the land.

Funding acquisitions of additional plots within the wider hospital site

Whilst the immediate priority is the acquisition of the Bridport Road site, future approval will be sought to utilise the Land Fund, subject to successful negotiations with the Trust, to purchase additional plots within the North Middlesex Hospital site should it enhance delivery of the GLA’s housing objectives.

LocatED will relinquish ownership of a site they cannot develop. The Trust will deliver enhanced health services with increased capacity. The GLA will deliver a minimum of 50% affordable housing at the optimum level of density. The comprehensive regeneration of a large proportion of the hospital site will bring many benefits to the local communities of Enfield and Haringey and increase much needed housing supply in London.

Under section 149 of the Equality Act 2010 (the “Equality Act”), as a public authority, the GLA must have ‘due regard’ to the need to eliminate unlawful discrimination, harassment and victimisation, and to advance equality of opportunity and foster good relations between people who share a protected characteristic and those who do not. Protected characteristics under the Equality Act comprise age, disability, gender re-assignment, pregnancy and maternity, race, religion or belief, sex, sexual orientation and marriage or civil partnership status.

When considering the needs of the existing community and those that will be affected by the proposed development (both currently and in the future development scheme), any development activity will look to minimise disadvantages to all protected characteristic groups within society. This decision is therefore expected to have positive impacts on persons with a protected characteristic under the Equality Act, as increasing the supply of housing in London will help to address problems such as overcrowding and homelessness, which evidence indicates disproportionately affect specific groups, including Black and Minority Ethnic groups and women.

The delivery of high-quality housing will also promote improved health and wellbeing, given evidence of an association between poor housing conditions and poor health.

Risks and other issues

Six assurances for healthcare sites

The Mayor has stated that in order to gain his support for changes to NHS services in London the Government must provide six key assurances for the relevant sustainability and transformation plan (STP). These are:

• Patient and public engagement;
• Clinical Support;

• Impact on health inequality;
• Impact on social care;
• Hospital capacity; and
• Sufficient investment.

​​​​​​​Whilst technically the land is no longer healthcare land (as it was disposed to LocatED as surplus land by the Trust in 2016), the GLA are committed to working with the Trust to deliver improved healthcare facilities alongside additional affordable housing. This will be through a joint masterplanning exercise aiming to optimise healthcare and housing delivery across the land GLAP will acquire and adjacent hospital owned land by considering the land as one developable site.

Delivering the Mayors Housing Strategy

​​​​​​​The acquisition of this site and a future disposal for residential development for a minimum of 50% affordable housing will help to deliver the ambitions of the Mayors Housing Strategy (adopted 2018).

​​​​​​​​​​​​​​Particularly, the delivery of high-quality affordable housing on this site will ensure the continued implement the following key areas of the Strategy:

• Building more homes for Londoners;
• Delivering genuinely affordable homes;
• High-quality homes and inclusive neighbourhoods.

The decision is seeking approval for GLAP to purchase the Bridport Road site in Enfield and take over the management of the leaseback arrangement by March 2019 for residential development. The site is contained within the grounds of the North Middlesex University Hospital and owned by MHCLG through its agent, LocatED (an operational agency for the Department of Education).

The purchase will be funded from the Land Assembly Fund Budget and includes the cost of subsequent preparatory work to facilitate future disposal via the GLA’s London Development Panel.

There are further financial comments in Part 2, including tax comments.

Section 30 of the Greater London Authority Act 1999 (as amended) (GLA Act) gives the Mayor a general power to do anything which he considers will further one or more of the principal purposes of the GLA as set out in section 30(2) which are:

• Promoting economic development and wealth creation in Greater London;
• Promoting social development in Greater London; and
• Promoting the improvement of the environment in Greater London;

and, in formulating the proposals in respect of which a decision is sought, officers confirm they have complied with the GLA’s related statutory duties to:

• Pay due regard to the principle that there should be equality of opportunity for all people;
• Consider how the proposals will promote the improvement of health of persons in Greater London, promote the reduction of health inequalities between persons living in Greater London, contribute towards the achievement of sustainable development in the United Kingdom and contribute towards the mitigation of or adaptation to climate change in the United Kingdom; and
• Consult with appropriate bodies.

Sections 1 - 3 of this report indicate that the decision requested of the Director falls within the GLA’s statutory powers.