Council ‘mothballs’ its housing company despite £600,000 investment

Council ‘mothballs’ its housing company despite £600,000 investment

0:05 AM, 3rd September 2024, About 3 months ago 4

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Another council has ‘mothballed’ its housing company, despite investing £600,000 of public money, according to Private Eye.

Central Bedfordshire council set up New Vista Homes in 2020 to address a shortfall in affordable housing in the area by building 250 homes over the next three to five years.

At the time, the council hailed the move to create a council-owned and run development company as a ‘plan to build the homes local people need’.

Using council-owned land for development, it would deliver homes to rent, accessible homes and homes for older people, alongside market housing for sale.

The move follows an announcement by Reading Borough Council to close its wholly-owned housing company, Homes for Reading.

Previously, Nottingham City council closed its NCH Enterprises and was forced to evict tenants to sell properties and repay debts – to the council.

‘High levels of demand’

When launched, Councillor Eugene Ghent, Central Bedfordshire’s executive member for assets and housing delivery, said: “There are high levels of demand for these types of homes from our residents, but private developers are not supplying enough of them.

“We already have experience of delivering homes like the large independent living schemes at Priory View in Dunstable and All Saints View in Houghton Regis.

“This new company will work alongside us and will deliver more of the types of housing we need, where and when we need them.”

Owned by Central Bedfordshire council

New Vista Homes is owned by The Central Bedfordshire Group which is a company wholly-owned by Central Bedfordshire council.

In the budget statement for 2023-24, Central Bedfordshire council put aside up to £26 million in loans and land value to New Vista Homes.

A spokesperson for Central Bedfordshire council told Property118: “New Vista Homes was a proactive initiative by the council to ensure our residents have a choice of new homes, suiting a variety of needs which the housing market was not delivering.

“Since 2020, when the company was set up, housing market conditions have changed, and this is affecting the whole industry.

“New Vista is currently building new homes in Haynes, however, once this site is complete, the council has agreed not to progress any further development sites through the company at this stage, to reduce the cost to the council.”


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Cider Drinker

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8:31 AM, 3rd September 2024, About 3 months ago

It must have come as a huge surprise when the housing market changed. Who could possibly have foreseen a change?

“𝐍𝐞𝐰 𝐕𝐢𝐬𝐭𝐚 𝐇𝐨𝐦𝐞𝐬 𝐰𝐚𝐬 𝐚 𝐩𝐫𝐨𝐚𝐜𝐭𝐢𝐯𝐞 𝐢𝐧𝐢𝐭𝐢𝐚𝐭𝐢𝐯𝐞 𝐛𝐲 𝐭𝐡𝐞 𝐜𝐨𝐮𝐧𝐜𝐢𝐥 𝐭𝐨 𝐞𝐧𝐬𝐮𝐫𝐞 𝐨𝐮𝐫 𝐫𝐞𝐬𝐢𝐝𝐞𝐧𝐭𝐬 𝐡𝐚𝐯𝐞 𝐚 𝐜𝐡𝐨𝐢𝐜𝐞 𝐨𝐟 𝐧𝐞𝐰 𝐡𝐨𝐦𝐞𝐬, 𝐬𝐮𝐢𝐭𝐢𝐧𝐠 𝐚 𝐯𝐚𝐫𝐢𝐞𝐭𝐲 𝐨𝐟 𝐧𝐞𝐞𝐝𝐬 𝐰𝐡𝐢𝐜𝐡 𝐭𝐡𝐞 𝐡𝐨𝐮𝐬𝐢𝐧𝐠 𝐦𝐚𝐫𝐤𝐞𝐭 𝐰𝐚𝐬 𝐧𝐨𝐭 𝐝𝐞𝐥𝐢𝐯𝐞𝐫𝐢𝐧𝐠.

“𝐒𝐢𝐧𝐜𝐞 𝟐𝟎𝟐𝟎, 𝐰𝐡𝐞𝐧 𝐭𝐡𝐞 𝐜𝐨𝐦𝐩𝐚𝐧𝐲 𝐰𝐚𝐬 𝐬𝐞𝐭 𝐮𝐩, 𝐡𝐨𝐮𝐬𝐢𝐧𝐠 𝐦𝐚𝐫𝐤𝐞𝐭 𝐜𝐨𝐧𝐝𝐢𝐭𝐢𝐨𝐧𝐬 𝐡𝐚𝐯𝐞 𝐜𝐡𝐚𝐧𝐠𝐞𝐝, 𝐚𝐧𝐝 𝐭𝐡𝐢𝐬 𝐢𝐬 𝐚𝐟𝐟𝐞𝐜𝐭𝐢𝐧𝐠 𝐭𝐡𝐞 𝐰𝐡𝐨𝐥𝐞 𝐢𝐧𝐝𝐮𝐬𝐭𝐫𝐲.

So, what has changed that triggered such a U-turn? Please tell.

As private landlords, we have seen the changes. Some of us planned for them, others did not. There is no excuse for public servants failing to plan. Wasting public money through incompetence deserves to be punished with job losses.

There are more changes to come. The Renters Rights Bill will make sure that the cost of providing temporary accommodation will continue to grow.

If Council’s budgets can’t break even with rental properties, what chance the average Joe?

If government wants to make property more affordable, start by removing the barriers to investment and closing the doors to mass migration.

Reluctant Landlord

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11:20 AM, 3rd September 2024, About 3 months ago

hahahahahaha!
That bad the lunatics can't even run the asylum.

Chris Mills

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15:38 PM, 3rd September 2024, About 3 months ago

Yet Angela expects private enterprise to build 1.5m homes under the same conditions.
More chance of the Starship Enterprise sharing its hologram deck.

Reluctant Landlord

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17:49 PM, 3rd September 2024, About 3 months ago

so they planned 250 homes in Central Beds area, presumably off the back of the 'successful development' planned in Haynes?

A quick search on the Haynes plan...

A total of 27 homes planned (as was in 2022). 60% of the homes will be for sale in the open market, 10% of plots will be reserved for self-build and 30% will be sold to the Council as affordable housing. The affordable housing will include both housing for affordable rent and shared ownership.

so at best, 8 properties at 'affordable' rent levels (which the LHA cannot meet)

Laughable.

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