Report sets out issues as Telford & Wrekin Council mulls 'historic' housing decision

An official report sets out the opportunities and risks of a proposed historic return to the direct provision of council housing in Telford and Wrekin.

The borough's housing stock was transferred to Wrekin Housing Trust - now Housing Plus Group - in 1999 but now council officers have set out plans to invest £53.65 million over the next three years in finding 300 new council-owned homes.

If the proposal is approved by the council's cabinet next week it will mark the first time in 27 years that the authority has directly managed its own housing stock.

The council does own a housing company, NuPlace, with nearly 1,000 homes in its growing private rented portfolio that includes a number of ‘affordable' homes.

But under the council's plans it will soon be able to create a new set of homes with 'social rent'.

Unlike 'affordable' homes, 'social' homes provide a much cheaper rent.

Social rent is designed for people with low incomes or specific housing needs. It is the most affordable type of social housing available in the UK.

According to the housing charity Shelter the national average weekly rent for a genuine social home is around £106, compared to £320 for private renters.

A report to Thursday's cabinet meeting (November 12) said social housing is in short supply across the borough even as demand increases.

It noted that the programme will maximise the delivery of social rented properties in a range of sizes and locations.

It also includes specialist and supported housing targeted to need.

The report said the "new council housing programme will also be managed in house”.

"With the addition of the new programme we will provide further, much-needed intervention with the council returning to direct social housing stock holding, at scale."

It added: "We are driving change locally but we know there is more to do with still significant levels of deprivation and inequality in some of our communities, a growing number of older and vulnerable individuals and families needing accessible and adaptable homes, and some residents facing financial difficulties at a time when the cost of living is rising making housing choices unaffordable."

The report noted that some 36,500 people in the borough report a long-term health problem or disability.

A £53.65m programme to deliver 300 new council homes over the next three years will allow it to target investment to unlock opportunities to “address these challenges”.

Officials did warn: "Sustained high interest rates, or any further increases, present a material risk to delivery of the programme.”

The council's advisors forecast a fall in interest rates later in 2027.

"Higher borrowing costs will place direct pressure on scheme budgets and may result in individual business cases being financially unviable.

"This could require schemes to be reduced in scope, deferred or not progressed, with a consequential impact on delivery of the council’s housing ambitions."

The £53m is set to come from grants, Section 106 developer funding and the council's own “prudential” borrowing.

Officials said they will aim to maximise external funding to reduce the level of borrowing and ensure that the overall programme remains affordable.

"Schemes will only proceed where they demonstrate financial viability, value for money and sufficient provision for identified risks and contingencies.

"The net ongoing revenue implications of each scheme will need to be met from existing budgets or other identified funding stream."

Officials stated that not taking action would leave it "entirely with the market to deliver affordable homes for local people”.

"Based on the data we are already short of the social and affordable homes local residents need and with rising cost of living pressures this shortfall is only anticipated to grow.

"Failing to intervene and invest in areas of housing need risks an increase in homelessness and residents including families and young people living in unsuitable accommodation."

Council leader Lee Carter (Arleston and College) said: "We plan to build a new generation of council homes, the first for general housing need in 27 years, giving families the security they deserve and creating opportunities for the next generation to stay and thrive in our borough.

“This is an exciting new chapter that responds to today's affordability challenges and invests in local people."

Councillors, including those of the opposition Conservative and Liberal Democrat groups, will get the opportunity to scrutinise the plans.