'Ethical' Housing Company to
build homes for homeless, foster carers, large families, disabled and the
LIVERPOOL City Council is to set up a
ground breaking, ethical housing company to deliver 10,000 new homes across the
City, including bespoke properties for the homeless, foster carers, large
families, the elderly and people with a disability.
A report to the Council's Cabinet, to be held on Friday, 15 December 2017, is recommending the
authority create the company, to be called:- 'Foundations,' in a bid to dramatically
shake up the City's housing market and accelerate the rent to buy sector over
the coming decade by offering packages that take a percentage from rent towards
The Mayor of Liverpool is proposing the radical plan as the City needs 27,000
new homes by 2030 with surveys showing housing supply dominated by small
terraced houses, which skews the City's Council Tax revenues.
Fuelled by an estimated ₤500m investment programme
'Foundations' will also enable
the Council to future proof the housing market for an ageing population,
ensuring people can live independently for longer and provide intermediary
accommodation that help keeps people out of long term Hospital stays.
Foundations, which is predicted to also create 2,000 new jobs, is 1 of the
main pledges by Mayor Joe Anderson who wants to revolutionise the Council's
housing role to bolster home ownership and for the local authority to act as a:-
"high quality, ethical landlord" to help build sustainable neighbourhoods and
offer tenants security of tenure.
The new properties would include:-
► Bespoke new housing for people who want to downsize, releasing larger homes
► Filling a significant gap in the City for larger homes, especially for
families who want to become foster parents, reducing the pressure on the City's
caring provision for children.
► New homes in supported environments for the homeless, rough sleepers and those
with addiction problems.
► Affordable rents, which help people save for their deposit to buy the house
they are living in.
► Adaptable housing which suits those with disabilities or changing needs due to
their age; or can be easily converted in the future, saving the Council in
social care costs.
By establishing 'Foundations,' the Council's intervention will also help reduce
properties becoming void and reduce the chances of properties being converted
into inappropriate Houses in Multiple Occupation.
Mayor Anderson said:- "Liverpool is a growing City and we need to create
an exciting housing sector which meets the needs of our people. We need a wider
range of properties to suit a growing range of scenarios, but crucially also
help people own their home. That's why we are going to offer rent packages which
help people save for their deposit then buy their home. But we also need
properties that help us face the future. For example, we want more of our looked
after children to live with foster parents rather than in children's homes, but
we also have a shortage of large homes. Foundations will help us build those
special homes, and others which will help us save money and improve the City.
This new housing company will radically reshape Liverpool's housing market and
is called Foundations because that is precisely what it will provide for
generations of people. Foundations will also help the Council benefit from the
additional Council Tax we collect from increased housing, like we have already
with the 8,000 homes I created in my last mayoral term. With a lack of
government support Foundations is the only logical step. We have stock that can
be refurbished and we have land that can be built so once the company is
established we can hit the ground running. This will be a win win for everyone
as the Council will be able to increase Council Tax, influence the quality of
the housing and support people who want to buy by turning rent into a deposit.
This company has more than just a social value, its business model also stacks
up as a serious investment in the future of the City. As we've shown
through the purchase of the Cunard Building, which now generates ₤2m a year for
the Council, our invest to earn strategy works and profits from this new company
will also be reinvested into Council Services to offset the damaging cuts this
City has experienced these past 7 years."
A major advantage for the Council would be that profits of both house sales and
rentals will be returned to the Council, as the only shareholder in the company,
with a percentage reinvested in new stock.
This latest development takes forward an award winning approach that has already
created 1,500 new properties for sale with Liverpool Mutual Homes and Redrow,
via the Liverpool Housing Partnership, using the profits to create 100
The new housing company, which is to be ratified at the next full Council
meeting in January 2018, will also underpin the Council's other major strategic
housing goals such as the renewal of older neighbourhoods and increasing the
levels of home ownership in the City by offering tenants rental products that
will enable residents to move from rental to home ownership.
Through the new company the City Council will also be considering other property
development and property rental opportunities which may be commercially viable eg:- shop, office or other business premises.
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