Setting up Chichester council's own housing company not supported

Chichester District Council has neither the land, money nor expertise needed to set up a local housing company, councillors will be advised.
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During an overview and scrutiny meeting on Tuesday (September 20) members will receive a report from a Task & Finish Group which was set up in 2020 to explore the idea.

Two years on, and having looked into the experience of other councils, the group did not support the idea.

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A report to the committee said: “The group concluded that the council did not have the land and finance available to support a housing company and that the risks particularly on the taxation, subsidy control and accounting issues significantly outweighed the benefits of a company.”

New housebuilding  (Photo by Matt Cardy/Getty Images)New housebuilding  (Photo by Matt Cardy/Getty Images)
New housebuilding (Photo by Matt Cardy/Getty Images)

The group, chaired by Tracie Bangert (Lib Dem, Southbourne), also had concerns about the impact future changes to the Right To Buy scheme may have on housing companies.

The report added: “The group also agreed that the council did not have the skills, knowledge or capacity to set up and run a company and that the existing mechanisms provided a much more effective and efficient method to deliver new homes so that a company vehicle would not be appropriate.”

The recommendations of both the Task & Finish Group and the overview & scrutiny committee will eventually be considered by the cabinet.

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They include considering a review of the housing register, the banding arrangements, and the allocations scheme.

According to government figures, Chichester has delivered 761 affordable homes since 2016/17 – between 135 and 179 each year.

This year registered providers are expected to build another 216 affordable homes in the Chichester district.