Northampton Borough Council needs to borrow £50 million to assist purchase houses to cut back homelessness and the dependency on pricey non permanent lodging.
Cupboard members are anticipated to approve the plan to amass 30 one-bedroom houses and 6 five-bedroom homes in a number of occupation (HMOs) for present and former tough sleepers tomorrow (Wednesday, August 19).
In September, councillors shall be requested to assist the additional borrowing to spice up the housing income account, which has been used to purchase houses as a part of a pilot since final 12 months.
“This selection is really helpful as a result of it will increase the council’s housing inventory, extends the vary and sort of houses that could be acquired and helps the council to cut back the use and price of non permanent lodging and meet the housing wants of tough sleepers,” a report forward of tomorrow’s assembly says.
Excessive ranges of homelessness and the dearth of appropriate housing accessible has resulted in a rise within the variety of households in non permanent lodging, in line with the report.
However this may be costly – for instance a three-bed residence prices the council an estimated £112 per week, £485 per 30 days and £5,824 a 12 months.
At the moment the native authority has 134 households in a two-bed residence, 53 in a three-bed and 7 in a four-bed, which prices round £17,917 every week, £77,537 a month and £931,164 a 12 months.
Since June 2019, the native authority has been shopping for former council houses to deal with the ‘pressing’ want to cut back the variety of households dwelling in non permanent lodging, in line with director of housing and wellbeing Phil Harris.
The native authority began by buying 24 properties, managed by Northampton Partnership Houses and let to the households which have spent longest in non permanent lodging.
Following the pilot, the council has requested Houses England and the federal government to offer it with ample capital funding to buy the extra houses.
The £50 million borrowing will fund various schemes, together with persevering with to buy extra ex-council houses and larger schemes in the event that they come up, a council spokesman mentioned.
In the meantime, the council forecasts it has overspent by £1.434 million, with £1.767 million in automobile park earnings misplaced due to the coronavirus pandemic however authorities grants are anticipated to offset that.