THE era of councils building new homes for residents is set to make a return in Redditch.
On Tuesday evening the borough’s executive committee gave their approval to a programme of housing acquisition, building and refurbishment in the town.
The move will have two benefits – in the first instance it will help plug a hole in the authority’s housing revenue account (HRA) and secondly it will help tackle the high number of people on the housing waiting list – currently at 1,402, the majority wanting single bedroom accommodation.
The hole in the HRA has been caused by people taking advantage of the government’s ‘right to buy’ scheme and a drop in rental income due to a government driven rent reduction programme to cut the housing benefit it pays out.
The authority already runs a successful ‘buy back’ and mortgage rescue scheme for those in danger of losing their homes but this new initiative will see the council play a great role in acquiring properties.
Now approval has been granted for a £12.5million scheme spread over three years to boost housing stock through commissioning the building of new homes, buying homes from developers using improvement money they themselves pay the authority, buying homes from housing associations and buying properties ‘off-plan’ when they are cheaper.
The authority will also seek to purchase former council properties where appropriate and the price is right.
Council officers see the authority acquiring 109 properties up to 2018/19 and then from 2019/20 at a rate of 13 per year.
The authority estimates that under ‘right to buy’ Redditch is expected to lose nearly £1.26million in income over the next four years.
The new initiative was unanimously backed by all sides of the executive committee, council leader Councillor Bill Hartnett adding: “I am excited by this scheme. It is an excellent business idea and I have great pleasure in moving it for recommendation.”
