Council to invest in housing and commercial property
Telford & Wrekin Council is poised to set up a company to oversee a major housing and commercial building programme aimed at stimulating economic growth and regeneration.
The council will use rental income from the private housing and retail developments to protect essential frontline services as it strives to offset the effects of government grant cuts.
The programme will see 425 homes and apartments built at a range of brownfield sites across the borough. These will then be rented to private tenants at market rent to generate income for the council with 20 per cent of the homes being affordable rent
In addition, the programme will see the delivery of commercial units for shops, bars and restaurants in Southwater and Madeley, building on the recent successful regeneration of these areas.
At a meeting on July 24, the council’s cabinet is being asked to recommend to Full Council the investment of council-owned land valued at £6.775m to carry out the construction of both housing and commercial units.
Cabinet is also being asked to approve the establishment of a company to assist in the delivery of the council’s housing development and regeneration objectives.
The company will borrow £45.7m from the council to construct the housing, which it will repay at a commercial rate of interest. In addition, the council will also invest £6.1m to construct the commercial developments.
The company will essentially act as a residential landlord overseeing the homes that are built and managing them going forward. The commercial properties will be incorporated into the Council’s already established Property Investment Portfolio, adding to the 600 properties already held there.
The housing and investment programme will regenerate sites which are owned by the council. It will also create a number of jobs during the construction and operational phase.
The report going to the council’s cabinet is a follow up to a decision taken in April 2013 to commence a full feasibility assessment into the delivery of a major housing programme.
Councillor Bill McClements, Telford & Wrekin Council’s cabinet member for Finance and Enterprise, said: “This scheme will deliver quality private rental and affordable rental homes in response to the borough’s projected housing needs.
“It is a major programme that will deliver jobs in retail and construction and generate income to boost the borough’s economy.
“This is a very forward thinking approach to income generation and economic regeneration and demonstrates that we are committed in a big way to innovative commercial activities.”
Councillor Shaun Davies, cabinet member for Employment and Skills, said: “This is about job creation and growth as much as it is about regeneration and responding to housing needs.
“I am delighted that we are in a position to combine both and create employment through the development of previously redundant council sites.
“We are committed to encouraging as many people into new and better employment as possible and this is a clear demonstration of that.”
