You are viewing 1 of your 1 free articles
Council plans to set up company to manage properties leased for homeless households
Havering Council is planning to set up a wholly-owned company to manage 150 properties it has leased to house homeless families.
A report, going before cabinet on 14 June, said the move will save the council £500,000 by the end of 2025-26 and up to £13m over 10 years.
In June 2023, the council’s cabinet approved the acquisition of 150 properties on 10-year leases from Urban Impact Plumpton, a real estate investment trust established by Chalkhill Partners.
The main aim was to move homeless families from B&B and hostel accommodation into self-contained temporary accommodation.
READ MORE
The council initially planned to have its wholly-owned development company manage the leases, but this fell through.
According to the council report: “The acquisition programme is about to commence as the council has entered into the portfolio agreement with the fund under which it will accept leases from the fund of properties which satisfy specified criteria.
“This will increase the supply of affordable housing in the borough.
“The cabinet report in July 2023 recommended that, once the council had taken the lease from the fund, then an underlease would be signed with Mercury Land Holdings (MLH), the council’s wholly owned management company.
“They would be able to let the properties on an assured shorthold tenancy, which is financially advantageous compared to the council letting the properties on a licence.”
However, “following lengthy negotiations with MLH, they have not felt able to agree to take on leases and therefore this report recommends establishing another company to take on the underleases for the stock”.
A spokesperson for Havering Council said: “The council is committed to delivering good-quality affordable homes for families in need in the borough.
“Cabinet agreed in June 2023 to acquire 150 properties on 10-year leases from Urban Impact and agreed that once the council had taken the lease from the fund, then an underlease would be signed with a wholly-owned management company.
“The management company will be able to let the property on an assured short-hold tenancy, which is financially advantageous compared to the council letting the property directly on non-secure tenancies.
“The council is legally restricted from issuing an assured short-hold tenancy and establishing the management company will mean they can let the homes, on affordable rents, to local families.”
Earlier this month it emerged that Waltham Forest Council is set to enter a joint venture with Mears to procure 400 homes to provide settled accommodation for homeless households living in temporary accommodation.
Sign up for our Council Focus newsletter
Already have an account? Click here to manage your newsletters
