Council approves business case for housing company

A new housing company will be set up by Shropshire Council as it aims to solve the needs of local residents.

The full council approved the business case for setting up the new firm at its meeting on Thursday.

Councillors said they hope it will provide the right type of homes in the right places.

It could be up and running as early as this summer.

The company plans to build smaller homes for first time buyers and elderly people.

A report that went before full council revealed only 50 per cent of the Shropshire population can accord private rental values and just 32 per cent can afford to buy an entry level property.

The report, by director of place Mark Barrow, said: “A report called ‘Meeting Housing Need in Shropshire’ went to cabinet in November, providing analysis of the failure of the market to address the county’s housing needs.

“In short, many residents simply cannot afford to own or rent a property and developers are not building the right homes in the right places and  appear to concentrate on building the most marketable house archetypes.

“Given the scale of the housing challenges across Shropshire, there is a need to implement these proposals as soon as possible to begin to assist in addressing the county’s unmet housing need.

“Two initial sites have been identified for development and a potential five further sites for future consideration.

“Potential development sites on council-owned land in the south of the county have also been identified, but it is recognised and agreed that
these are comparatively low in number and the Local Housing Company will need to acquire land to ensure it is able to meet local housing need.

“This will be achieved, as in all areas, by utilising local knowledge from working with members, parish councils, farmers/landowners and estate
agents.

“Where they exist, town and parish council housing need assessments will inform this process.

“The company infrastructure and staffing will be minimal to begin with and will grow and evolve as required, based upon a successful programme of housing delivery.

“The company requires an initial revenue budget of £250,000 to cover directors’ costs, management and administration costs and professional fees to establish these proposals, site and financial appraisals and development master-planning work.”

Councillor Dean Carroll said: “This has been a great idea and success with hard work from numerous people in this chamber, both members and officers.

“It is the chance for us to work together as a council to provide a good service for people.”

And Councillor Roger Evans added: “Shropshire needs this and I think it is something we can work on cross party together and make a great success.”