THURROCK Council is looking at ways of “kick-starting” house building in the borough, cabinet members were told at Wednesday (8 May) evening’s meeting.
Cllr Val Morris-Cook, portfolio holder for housing, said: “The last year has shown us the housing development market here is at really difficult if not completely broken – we’ve had problems selling our own land and house building has almost stopped.
“Remember the problems we’ve had at Howards Road and selling St Chad’s for example.”
She explained a proposal called “Wholly Owned Housing Company” was – despite its title, “a way for this council to kick-start house-building in Thurrock and that’s got be exciting.”
The plan is, she said, to investigate the proposal more deeply and bring a more detailed report back to cabinet later in the year.
She said: “This is just a first step; a way to get agreement to look carefully at all the possible pros and cons and to pin down with more conviction and detail the risks the council might face, assuring us they are small enough to accept and that the potential up-side is as good as we believe it is.
“Basically, the scheme would be to create a company with a single shareholder – making it a subsidiary of Thurrock Council – that would lead on building the 1,000 new homes we have promised.
“Over the coming months we will dig further into the proposal, we will seek the views of as many interested parties as possible – including overview and scrutiny, members generally and including other housing providers too – before coming back with a firmed up proposal.”
Cllr Morris-Cook added: ““This will not only create affordable homes for rent for part rent-part buy – and possibly for sale – but also be a clear benefit to the regeneration programme as a whole.
“This could provide an alternative route to private sector housing delivery as well as directly support the delivery of 1,000 new homes of mixed tenures over the next five years.”
She said the company would act as an “investment company”, renting the majority of its properties, but selling some to individuals, other housing providers and possibly the council’s own Housing Revenue Account.
“This is an innovative way of overcoming the difficulties of a struggling economy, a lethargic house-building programme and an ever-increasing housing list,” she said.
“At the moment it seems to tick all the boxes – let’s just make sure before we commit ourselves.”
So another year of building nothing then. Other councils already have well established programmes for increasing their housing stock through new builds, renovations, PPP, but Thurrock is doing diddly. Better hurry up Val, you could be out of time come the elections next year.
Looks to me like setting up one of these “investment companies” means, a CEO, CFO and other board members will be required.
Which of course will mean that John Kent, Val Cook-Morris et al will have the perfect job upon their departure to fall into and, fail at.
If Thurrock Council was rated 5 stars, excellent or whatever it is nowadays then, I could understand why they may want to look at diversifying but, Kent and his cronies can’t organise a p*** up in a brewery as it is so, why do they think that they can suddenly build houses.
Ah yes, it’s so, a certain labour councillor can receive a brown envelope stuffed full of used notes from the “investment company” (in the guise of Kent etc) and then share the proceedings back amongst them in order to guarantee planning permission on land that the the “investment company” indirectly owns.
Once again, Labour party wins, taxpayer loses….. Net effect… Zero, Zilch, Nada
This is madness. If the Council owns the land and the Council wants to build houses and gets planning permission then borrow the money build the homes and use the rental income to pay of the debt – simple.
Labour promised to build 200 Council homes every year for 5 years. They promised they would deliver 1000 new Council homes.
Why the hell are the council trying to boost private sector housing delivery by creating a “Wholly owned housing company”?
Labour promised to build 1000 Council homes over 5 years and this has now been changed to building 1000 mixed tenure homes over 5 years.
Is this because Labour’s promise to build 200 Council homes every year was a false and unrealistic promise and they are now having to back track on their original promise?
The only Council homes so far built are the homes initiated under the previous
Conservative administration under Cllr Garry Hague’s Project Enterprise. I admire Cllr Hagues initiative to build new Council homes, he personally came up with the initiative, he found the funding and they started to get built.
Labour promised to continue this initiative and set a target of 200 Council homes per year for 5 years.
But now Cllr Val Morris-Cook wants to create a “Wholly Owned Housing Company” to build homes on council land to sell to the private sector landlords or sold to private buyers!
I agree with truth_not_lies – something very fishy here. I think the real story is Labour can’t deliver on their promise to build the 200 Council homes per year so instead will flog off council land to Housing Associations and developers to build private rented and home ownership properties and instead of 1000 Council homes we will end up with 1000 mixed tenure properties instead – a mix of council owned, housing association, private landlord and owner occupied properties instead.
The taxpayer loses, 1000 council homes don’t get built, Council sell off Council land to developers – that’s would appear to be the real story.
According to the councils HRA business plan they were going to make £6 million a year out of the self financing settlement they received form this Tory government, yes it is a coalition but Labour blame the Tories for the bad stuff. Why aren’t they using this money to build houses on their own land. Why aren’t they receiving any of the grant money available from the government. Are they totally inept at doing their job. Sorry no need to answer that.
NoVoice – indeed – something strange going on here.
Anyone heard about the proposed new 550 housing estate behind the The Greyhound PH Orsett Heath on Green Belt land?
You soon will!
Hoorah more immigrants.
NoVoice is this what you are looking for? 38 Acres of land to be developed at Heath Place Farm?
http://paladincapital.co.uk/portfolios/heath-place-farm-thurrock/
Whoops I meant jmw118! 🙂