Kingston council creates trading arm to run privately rented homes

Kingston council has set up a company to manage a new development of private rented homes it’s proposing to build with finance giant Legal & General.

The Liberal Democrat-run council said its new wholly-owned trading company would manage the 79 new homes currently being built on Hampden Road in the south west London borough, near the Kingstonian football club ground, home to AFC Wimbledon of Football League One.

The residential development is expected to complete in the autumn of next year and will comprise one- to four-bedroom homes, plus a police office, residents’ workspace, plus parking for 47 cars and nearly 200 bicycles.

Leased by the council for a 40-year period, the freehold of the privately rented homes will revert to Kingston once that has elapsed for a nominal sum of £1.

Liz Green, leader of the local authority, said: “As a landlord, the council can ensure that the tenants of both affordable homes and now market rent ones are treated fairly and given better service than they might find elsewhere in the private market.”

However L&G said talks were ongoing and a decision to green-light the development had yet to be confirmed by its investment committee.

Noting it was in talks with local authorities across the UK, L&G said: “Conversations with Kingston council have been encouraging but are at a very early stage and as such no details can be confirmed on this partnership.

“However, we would be delighted to work closely with them to bring forward more housing in the borough.”

The development is also subject to the approval of Kingston’s full council, which will vote on thbe scheme on 22 April.

Earlier this week L&G announced it was ploughing £275m into its affordable housing activities, using long-term debt from its pension fund pot and borrowings from a consortium of external investors.