Borough council to study house building options

WARRINGTON Borough Council is to consider building houses to increase the supply of affordable homes in the borough  – particularly for rent.
Members of the council’s executive board are to be asked to approve a feasibility study on the options for the council to build new homes in the borough.
A report by Cllr Maureen McLaughlin, lead member for public health and wellbeing, states that In November 2010, the council transferred its housing stock to the  new Golden Gates Housing Trust.
Prior to that, the council had built houses for rent, collected the rent and passed it on to the Government who then paid the council a management and maintenance allowance.  But because of a substantial gap between the rent collected and the amount repaid by the government, the council was unable to maintain its housing to the Decent Homes Standard.
However, since 2012, the government has changed the regulations and councils can now keep their rental income, use it for maintenance and management and keep any surplus.
Council chiefs have identified sites  they own where 39-42 houses could be built and believe there are further sites which could accommodate another 200 homes
Officers say the council have several options. They could select registered providers to deliver the new housing – although this may mean the council would have to sell land at below market value or even give it away.
Alternatively, the council could build houses itself and keep the rental income – but tenants would have the right to buy the properties at discounted prices.
Another option would be to set up a local housing company – but this would need to set a rental level that exceeded borrowing costs so the council might have to offer support to reduce costs.
Another possibility is a joint venture between the council and a local housing company.
The council’s executive is to be asked to authorise a feasibility study on the options to be completed by September and approve a pilot scheme for four bungalows, built to  high energy efficiency standards, in Warrington Road, Culcheth.
In addition they will be asked to authorise a study of land owned by the council which has potential for housing development.