New affordable homes initiative looking at extra funding for Leeds empty properties

More empty properties could be brought back into use in Leeds if a new way of financing affordable homes gets the go-ahead from senior councillors.

A meeting of Leeds City Council’s executive board on Wednesday (5th September) is going to be looking at a proposed new investment programme that could see 325 new affordable homes made available in the city, including some 150 empty properties brought back into use.

The funding for the programme would come from a variety of sources – the New Homes Bonus, the Housing Revenue Account (HRA) and receipts from the council’s Right to Buy programme.

As part of the suggested programme £492,000 would be used on empty homes: £250,00 on refurbishment and “complex cases” such as those requiring compulsory purchase orders, and £242,000 to take on new staff.

“(The) additional resources would enable proactive enforcement work on an area basis. It is proposed that increasing capacity within existing teams would be self funding in that it will accelerate the number of properties which can be brought back into use”, a report prepared for the meeting says.

New-builds, loans and investment with housing associations

The programme envisages using funds from the HRA to finance 105 new build affordable homes – 54 of them for “social rent” and 51 for “affordable rent”. A further 49 new homes could be built by hooking up revenue from the council’s Right to Buy scheme to match funding from housing associations.

The remaining 21 affordable homes would be financed through the council providing buyers of new build properties with equity loans that would help bridge the gap between the cost of the property and the mortgage the buyer could secure.

No final decision on the investment programme is expected from Wednesday’s meeting. The council’s executive board is being asked to give the go-ahead to further work to develop the detail.

It is being asked, however, to agree that £2.3m of funds from the New Homes Bonus and Right To Buy receipts – the funding that it’s suggested be spent on empty properties, equity loans and the joint new-builds with housing associations – be transferred to the council’s capital programme.

“There are opportunities, in the form of new financial freedoms, including the New Homes Bonus, Housing Revenue Account reform and the ability to utilise Right to Buy receipts,” the report says.

“These provide a route for new investment through which the Council, with the support of its partners, can take a lead role in stimulating the supply of new housing. This report proposes an investment approach which provides new housing in the city in an innovative and cost effective way, ” it adds.


About the leeds citizen

contributions to this blog welcome
This entry was posted in News and tagged , , , , . Bookmark the permalink.

6 Responses to New affordable homes initiative looking at extra funding for Leeds empty properties

  1. Simon Cooke says:

    Presumably LCC will start with its own stock of empty properties before it starts browbeating private owners?

    • I think they say they haven’t got many left, but i can’t find the figures. And given that some of the suggested cash would be for compulsory purchase orders, private owners are the most likely target.

  2. freedomnow66 says:

    Here’s an idea, how about making it a “rule” for all house developers who want to build on the green belt,that they must redevelop homes either from council stock or private or build houses one for one on brown field sites around Leeds. OK it’s a pretty rough idea,and am sure there are issues. But can’t smarter people work out the wrinkles?? I mean as an idea, we all want empty houses redeveloped and brown field
    sites built on and possibly less green belt land would be needed for new homes!!

  3. Don’t think council has the power to make “rules” of that kind. What they are increasingly looking at is using the cash they levy from developers for new estates (section 106 money) to do stuff like bringing empty properties back into use in an area nearby.

  4. freedomnow66 says:

    That’s definitely a start, let’s hope the money levied isn’t wasted and more goes on development and less on bureaucracy!!! It’s a pity there can’t be more linkage between green field development and brown .Im not saying developers should be out of pocket, but perhaps maybe encouraged to look at brown field more seriously!!

  5. Alison says:

    Lets hope the senior council gives the go ahead. Big cities like Leeds are always in need of affordable homes for people who wish to get on the property ladder and buy their first home.
    Affordable Homes

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s