A SOUTH Essex council is preparing to spend £80million on providing new council homes in a bid to tackle the issue of temporary accommodation and the multimillion pound bill of the issue on the authority reports the Local Democracy Reporter.
Basildon Council has agreed to consider putting together a funding pot to acquire and build the homes across the borough to help “vulnerable residents” while “ensuring the council is financially robust and sustainable.”
The council discussed and agreed the plans at a cabinet meeting on October 15. It comes after the council said it was proposing to buy up to 500 homes to cut the temporary housing bill which is around £3 million to the authority.
The minutes of the meeting state: “The approach aimed to continue to support the wider priorities of the council including the regeneration of Basildon town centre, supporting vulnerable residents, and ensuring the council is financially robust and sustainable.
“The chairman of the overview and scrutiny commission agreed that the decision be exempt from call in due to the urgency of being able to progress due diligence but it was agreed that the leader would attend a future meeting of the overview and scrutiny commission to update on the financial aspects of the decision.”
The council meeting agreed that “Cabinet authorise officers to complete further due diligence into current and emerging schemes to support investment in housing accommodation, to be reported to members as appropriate. That it be recommended to full council that the capital programme be increased by £80million to support the investment in housing accommodation.”
Speaking after the meeting, Kerry Smith, Leader of the Independent Group; Cabinet Member for Housing and Property, said: “If we do nothing by the end of this financial year the cost of temporary housing will be £3million, something’s got to give. This plan is a far cheaper investment, bricks and mortar are far cheaper than hotel rooms. It means we own more assets and save the council money and it will offer families decent homes and a good landlord. When the housing situation is over we can liquidate the assets and make money for the council by selling some of the homes perhaps. These measures are being taken to protect and council and its finances. All options are on the table and we are considering a mixture of buying existing homes and building new properties too.”
