I am really pleased to see that the new administration of the Council is proceeding with an idea commissioned and started by my Cabinet team a year ago. As the Council transferred its housing stock to an RSL in the first Council of B&NES it needed to find another solution. This creates that vehicle and as the press release says will bring in a good revenue stream.

Bath & North East Somerset Council has agreed to proceed with plans to set up a new property company.

The new company will allow the Council to operate as a commercial landlord and rent flats above Council-owned shops. In future, it will also be able to look at potential housing developments on land it owns across the area.

This is one of a number of innovative initiatives the Council is working on as a way of generating income, as set out in its four-year financial plan. The plan aims to protect frontline services as far as possible by increasing efficiency, growing income and finding new and innovative ways of delivering vital local services.

At its meeting on Wednesday December 2, the Council’s Cabinet heard that the new company has the potential to generate £600,000 per annum by 2019, and over £1.5 million within 10 years, which will be used for Council services. It will also improve supply, quality and quantity of private rented housing and support the Council’s ambition to help create an ongoing supply of modern, energy-efficient and sustainable homes,

The Council owns around 68 residential properties, mainly flats above existing commercial estate properties. Many of these properties were leased to Curo and will be transferred back to the Council only when they become vacant and leases have ended. Approximately 20 properties have already been returned to the Council and these will be modernised and the first to go out to the rental market.

The proposals have been drawn up with support experts including other local authorities who have, or are in the process of, establishing similar companies. A Board of directors will be put in place to oversee and manage the Company in accordance with the objectives set by the Council, and projects will be developed locally in partnership with the private sector.