Bath & North East Somerset Council has agreed to proceed with plans to set up a new property company, which will see it operate as a commercial landlord and rent flats above Council-owned shops.
In future, it will also be able to look at potential housing developments on land it owns across the area.
This is one of a number of innovative initiatives the Council is working on as a way of generating income, as set out in its four-year financial plan.
The plan aims to protect frontline services as far as possible by increasing efficiency, growing income and finding new and innovative ways of delivering vital local services.
At its meeting on Wednesday 2nd December, the Council’s Cabinet heard that the new company has the potential to generate £600,000 per annum by 2019, and over £1.5 million within 10 years, which will be used for Council services.
It will also improve supply, quality and quantity of private rented housing and support the Council’s ambition to help create an ongoing supply of modern, energy-efficient and sustainable homes.
Leader of the Council, Cllr Tim Warren (Conservative, Mendip), said: “These plans are about finding creative ways to bring in new income for the Council, and meet with two of the Cabinet’s top six priorities: creating new homes and jobs, and increasing efficiency so that we can better protect vital services.
“This innovative idea is at a very early stage and we expect more opportunities to be identified over the coming months.
“Throughout the process we will be making use of private sector skills and expertise.”
The Council owns around 68 residential properties, mainly flats above existing commercial estate properties.
Many of these properties were leased to Curo and will be transferred back to the Council only when they become vacant and leases have ended.
Approximately 20 properties have already been returned to the Council and these will be modernised and the first to go out to the rental market.
The proposals have been drawn up with support experts including other local authorities who have, or are in the process of, establishing similar companies.
A Board of directors will be put in place to oversee and manage the Company in accordance with the objectives set by the Council, and projects will be developed locally in partnership with the private sector.
