South Holland District Council’s Cabinet has backed two separate purchases of new homes.
Through its Welland Homes subsidiary the authority looks set to purchase four properties at Northons Lane in Holbeach and also buy seven homes for its own housing portfolio in Whaplode.
The Cabinet backed both purchases of newly built homes.
Reservation fees have already been paid and a “discounted price” agreed on the four properties off Northons Lane by Welland Homes, which is wholly owned by the council
It currently has 35 market rented homes.
Coun Rodney Grocock, the council’s portfolio holder for assets and planning, said: “The reports sets out a proposal for Welland Homes to deliver a new housing scheme.
“This will continue the good work being done by the company which is generating a positive financial impact for the authority through interest payments, dividends and charitable donations in stock appreciation.
“This will be the company’s fifth housing scheme and first in Holbeach.
“It will purchase four, three-bedroom houses in an area where there’s a demand for this product.
“The scheme will provide a positive financial return both to the company and the shareholder.”
The debate on the purchase of the homes was held behind closed doors on financial grounds after Coun Nick Worth asked if the property is good value for money.
The Cabinet also backed a new business plan for Welland Homes.
The report to the Cabinet accompanying the plan states that Welland Homes is set to earn £308,000 a year for the council by the 2022-23 financial year.
According to its most up-to-date accounts dated March 31, 2020, Welland Homes owed SHDC £3.2m.
* Also on the agenda was the purchase of seven affordable homes for the authority’s Housing Revenue Account (HRA) in Cobgate in Whaplode.
The homes are affordable homes as designated by a Section 106 agreement made with the planning application.
The seven homes comprise four bungalows for affordable rent tenure and three bungalows which will be for shared ownership sale.
Coun Grocock said of the homes: “They’re a mixture or properties to meet the needs of the local community.
“There’s a strong demand for these types of properties on the housing register and from the analysis of the sale of the council site at Small Drove.
“The properties will be purchased for less than the open market value and the financial analysis shows that the scheme will provide a positive return to the authority.”
Coun Christine Lawton added: “The excellent new scheme at Small Drove has shown how popular the shared ownership model is.
“I look forward to this as it’s in a nice area and in demand bungalows that are just what we want.”
Another proposed purchase for the council’s HRA of three homes in Albion Street, Crowland, was withdrawn from the agenda because of “outstanding issues” the council’s leader Lord Gary Porter told the meeting.
