Contract for the Design Build and Operation of Extra-Care Housing at Dunsbury Way, Havant

The procurement contact named on the official notice.

The submission route named on the official notice.

Hampshire County Council has published 7 Real Estate Services notices, about every 8 months. On that rhythm the next one is expected around May 2027.

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Hampshire’s older persons’ population is projected to increase by 56% between 2020 and 2035, from 153,000 to 239,000.

Within Havant, the numbers are forecast to increase by 53% during the same period, with the over-75 population increasing from 15,000 to 23,000.

Havant is one of the few remaining Hampshire boroughs without provision for older people’s Extra Care Housing and is identified as a priority area in the Extra Care Older Adults’ Brochure 2023.1.

The Havant borough area also has the second highest number of residents referred to Residential Care homes across Hampshire, with the County Council purchasing circa 150 new placements per year in Havant.

It is predicted that the delivery and build of an affordable Extra Care Housing scheme will divert many residents from high-cost Residential Care placements into Extra Care Housing.

In January 2024, the Council commissioned an independent organisation to understand the demand for affordable Extra Care Housing across Hampshire over the next 20 years.

This analysis indicates that 154 units of affordable Extra Care Housing will be required in the Havant Borough area over this period.

The above-mentioned population increase will continue to build further pressure on existing provision as the increasing needs and demands on services for older people continue to rise.

The proposal is to procure a provider to design, build, and operate a circa 70-bed Extra Care facility on the Dunsbury Way site in Havant.

The provider will be responsible for the operation of the facility, including the rental and maintenance of the building.

To support the scheme's sustainability and accessibility, and to support the provider's ability to secure additional funding, Hampshire County Council will be offering a void guarantee as part of this procurement.

The site will be leased to the provider on a 250-year lease, with an approximated value of £1,100,000.

The provider will be responsible for developing the design, obtaining planning permission, and letting the units at an affordable rent within Hampshire’s Extra Care letting arrangements.

The successful service provider will be required to operate the scheme for a minimum of 20 years, after which they will be able to sell the scheme for continued operation as an Extra Care Housing site.

The provider or consortium will need to include a Registered Housing Provider.

As Hampshire County Council requires the units to be let at Affordable Rent tenure only, as defined in the National Planning Policy Framework, the Provider will need to secure both Homes England funding and its own capital contribution to develop and deliver the scheme.

The maximum contract value of £2,971,233 includes the land at Dunsbury Way in Havant, which has an estimated value of £1,100,000 on a 250-year lease at a peppercorn rent, and a maximum value of £1,871,233 over the initial 20 years from the site becoming operational.

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