Derbyshire council to spend £1.3million buying new homes to meet housing need

Council chiefs have agreed to buy 12 affordable new build homes from developers at a total cost of more than £1.3million to meet housing need in the area.

By Christina Massey, Local Democracy Reporter
Tuesday, 14th June 2022, 12:40 pm

Members of Bolsover District Council’s Executive approved the purchase of six three-bedroomed houses in Mooracre Lane, Bolsover, and six two-bedroomed properties in Alfreton Road, Pinxton, in a meeting on Monday, June 13.

While admitting the quality of housing from private developers is not generally as high as council-built homes, members agreed they did represent good value for money.

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Council chiefs have agreed to buy 12 affordable new build homes from developers at a total cost of more than £1.3million to meet housing need in the area.

Speaking in reference to the Pinxton homes, member for housing Councillor Sandra Peake commented: “Our houses are better built but it is the opportunity to buy these properties for £552k, which equates to about £92k per property.

“So that’s not too bad really, it’s quite good.”

Executive Director of Strategy and Development Grant Galloway explained: “They’re not inferior in relation to the quality they are built but they are in relation to the size of the rooms and the features that are put into them.”

He continued: “Although they’re not the same – they’re not as expansive, they’re still very letable.”

Councillor Liz Smyth commented: “It’s really really important that we build our own homes, but this is just another way that we can add to our portfolio of affordable houses to rent, which are desperately needed in this area.”

Councillor Mary Dooley questioned why the affordable homes being purchased in Pinxton were all two-bedroomed when she knew a number of people who needed three-bedroomed properties.

Mr Galloway said as part of the planning process the housing department would have looked at the housing need to ensure the affordable properties being delivered were in line with what was required.

The Bolsover homes are being purchased from developer Keepmoat Homes Limited for £770k and the authority estimates if the houses are leased in line with affordable rent, which is 80 per cent of market rate, the scheme will break even after 48 years.

The Pinxton homes are being bought from Gleeson Homes Limited for £552k and with affordable rent are expected to break even after 28 years.

Both purchase sums exclude fees and stamp duty.

Full council will vote on whether the finance for the purchases should come out of the housing revenue account’s capital programme on Wednesday, June 15.