Alternative options to do nothing or create housing revenue account were dismissed
Herefordshire Council will consider setting up a council-owned housing development company to address the “critical need” for additional affordable and social housing in the county.
The decision was approved by the authority’s cabinet last week in response to a recommendation by the connected communities scrutiny committee.
The recommendation followed the outcome of a November 2024 report, which reviewed different approaches to delivering affordable and social housing.
The best practice document was created by consultancy Three Dragons on behalf of Herefordshire Council.
The number of households on Herefordshire’s affordable rented housing waiting list is over 2,100, with 156 living in temporary accommodation such as B&Bs and chain hotels.
According to affordable housing needs evidence, the county must deliver 597 affordable homes per year, of which 422 should be for affordable rent and 175 for affordable home ownership.
Alternative options considered by the local authority included doing nothing and creating a housing revenue account (HRA).
>>See also: Barnet Council aims to deliver 44,000 homes by 2036 under new local plan
The proposal of an HRA, where the council directly develops, owns and operates council housing, was dismissed as a previous study identified that “to reach a break-even point on operating and maintaining services, the council would need a stock of circa 1,000 houses,” which would mean “significant revenue cost requirements, and related risk, over a number of years before the council could reach this position.”
The decision will come into force on 13 March if not called in by 12 March.
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