A review of a business plan for Welland Homes Ltd – South Holland District Council’s housing development company – has been undertaken just a few weeks before it makes a major purchase.
South Holland District Council cabinet meeting was told on February 14 that an “urgent” decision was required to enable capitalisation of the company.
Welland Homes director Coun Bryan Alcock (Crowland and Deeping St Nicholas) said it was “disturbing” that the business plan had gone so far down the line before knowing how it would be financed by the council.
He added: “The board entered into a contract to buy some houses and it seems as though we have been struggling to know the finance would be available.”
Welland Homes is committed to buying 15 properties in Green Lane, Spalding, next month.
The council’s draft capital programme for 2017/18 had £1.12million allocated to Welland Homes but that has now been revised to £241,000, followed by £477,000 for the next four years.
It’s estimated that the investment required to deliver the proposed 60 properties (15 at Green Lane, five in Long Sutton by March 2018 and ten per year elsewhere up to 2021/22) will be just over £3m – up £956,000 on the previous figure. Revenue savings of more than £325,000 per year will be achieved as a result of the investment.
Contracts on the Green Lane properties have been exchanged and these will be made available for private rent during the course of 2017/18.
