16:15 PM, 22nd July 2011, About 11 years ago 2
The plan is for Newham Council, East London, to buy and let the homes to improve housing standards – and to make a killing on capital appreciation as well.
The council is banking on cheap borrowing rates offered to local councils to underpin the scheme, but throw the deal open to private and institutional investors.
The scheme depends on the outcome of financial negotiations with the government ministers. No details of how the scheme would work and how much investment would be needed to refurbish and manage property are not finalised.
Blackpool Council had a similar scheme on a smaller scale that recently failed. The council bought property worth £2.7 million with the intention of renovating and letting them as homes only to run out of money – the portfolio was sold to a housing association for £3.
The council area that has benefitted from investment billions generated by the new London Olympic 2012 stadiums and infrastructure.
Newham has an estimated 35,000 buy to let and houses in multiple occupation (HMOs) and the council claims tenant turnover rates are 60% compared with just 5% for social housing.
Councillors are formulating a social lettings allocation policy that pushes employed people ahead of those on benefits in queues for social housing.
Sir Robin Wales, Newham’s directly elected mayor, told Inside Housing magazine: “It is clear to us that we have to stabilise the private sector or we will just become a transit camp. That’s why we want to invest – there is a logic driving us.
“We want to purchase property in the private sector and run our own private rented sector. That way we can have longer tenure. That is a big issue for me.”
Sir Robin added that buying private properties would increase the council’s options for housing people on benefits.
Please Log-In OR Become a member to reply to comments or subscribe to new comment notifications.
Previous ArticleLandlord pays £40,000 for letting death trap flats
|“Account”||means an account required to access and/or use certain areas and features of Our Site;|
|“Cookie”||means a small text file placed on your computer or device by Our Site when you visit certain parts of Our Site and/or when you use certain features of Our Site. Details of the Cookies used by Our Site are set out in section 13, below;|
|“Cookie Law”||means the relevant parts of the Privacy and Electronic Communications (EC Directive) Regulations 2003;|
|“personal data”||means any and all data that relates to an identifiable person who can be directly or indirectly identified from that data. In this case, it means personal data that you give to Us via Our Site. This definition shall, where applicable, incorporate the definitions provided in the EU Regulation 2016/679 – the General Data Protection Regulation (“GDPR”); and|
|“We/Us/Our”||Means Property118 Ltd , a limited company registered in England under company number 10295964, whose registered address is 1st Floor, Woburn House, 84 St Benedicts Street, Norwich, NR2 4AB.|
|Name of Cookie||Purpose||Strictly Necessary|
|JSESSIONID||Used only to collect performance data, with any identifiable data obfuscated||No|
|__cfduid||This cookie is strictly necessary for Cloudflare's security features and cannot be turned off.||Yes|
|Name of Cookie||First / Third Party||Provider||Purpose|
|__utma, __utmb, __utmc, __utmt, __utmz||First||Helps to understand how their visitors engage with our website|
|_fbp||First||Helps to understand how their visitors engage with our website|