A first step on the road to Preston City Council delivering council-owned housing for the first time in nearly two decades is being taken this week.
Councillors are due to hear a report about signing an agreement with Onward Homes Limited.
This would pave the way for the city council to explore ‘the delivery of council-owned affordable social housing’.
Submitted by Chris Hayward, director of development and housing, there’s a request for £60,000 to be allocated for setting up a partnership with Onward where the city council buys or develops affordable housing directly.
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No new council housing has been built or acquired by the city council since the provision of council housing was handed over to Community Gateway Association in November 2005. Gateway have built their own new housing developments since then.
The report, to the city council’s full council meeting on Thursday (29 February) states: “Prior to any purchase of houses a full detailed business case will need to be presented to Members. This will need to set out the full financial implications of a proposed Council owned housing scheme including the full lifetime costs of owning the properties.
“These costs will include annual management costs, internal support costs, insurance costs, lifetime capital and maintenance costs. It will need to set out how the scheme is being financed for example affordable housing developer contributions, external grant or via borrowing. If via borrowing it will need to set out how the annual costs are being financed, the costs of seeking external treasury advice and take into consideration the overall impact on the Council’s borrowing requirement and the timing of the borrowing.”
The council report states there were 400 affordable homes built in Preston last year with the majority being through registered providers such as Onward, Gateway and other social housing landlords – or by developers in private developments.
Council officers go on to say: “Despite over 400 affordable homes being built in Preston in the last year, the highest in Lancashire and for many years, there still remains a need for more. Housing need exceeds supply and there are long waiting lists. In addition, there has been an increasing reliance on private rented housing, many of which are in poorer condition and less energy efficient, resulting in fuel poverty for many. It is therefore considered that the Council can assist in meeting local housing needs for good quality affordable homes through direct investment and ownership.”
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A full business case is being developed for how the city council can secure capital funding to acquire houses, or potentially build them, in conjunction with the memorandum of understanding being signed with Onward.
The report indicates homes built by Onward as part of its Horrocks Mill scheme off Church Street could be some of the first properties involved in the partnership with the city council with 20 properties initially targeted.
Any decision over actually purchasing or taking on properties would need to go to a full council meeting for approval.
The full report to the city council’s council comes under the portfolio of community wealth building held by councillor Valerie Wise.
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The move by the city council comes as over the border in South Ribble the borough council built new council-owned homes at the former McKenzie Arms site in Bamber Bridge – working in partnership with Progress Housing.
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