Council poised to form housing development company

Herefordshire Council is poised to set up its own housing development company because of "a critical need for additional housing in the county".

A report has set out the options for cabinet, with a decision expected on or after 27 February.

Last November, a list of sites that could be developed went before a council scrutiny committee.

Sites included the Burghill Hospital Farm estate, Merton Meadow in Hereford, Bridge Street Sport Centre in Leominster, the Essex Arms site in Hereford and the County Bus Station.

Merton Meadow had seen £2m secured to address flood risks there and a flood-reducing public wetland was also earmarked for the Essex Arms site.

Smaller sites included Kington livestock market, the former Holme Lacy primary school, Westfield special school in Leominster and the Arrow Building which is currently a homeless shelter in Symonds Street, Hereford.

The report listed three models the council could take, which were overseeing building and management directly, setting up an "arms-length" housing provider, or forming a joint venture with an independent company.

Papers said the council was unusual in not having any such mechanism currently, but "all require significant effort and resources, and take time to deliver".

Case studies looked at in other areas included development companies set up by other West Midlands councils.

They included Nuplace in Telford & Wrekin where the council had control over appointment of directors and Cornovii Homes in Shropshire where the council monitored operations and company performance.

WV Living in Wolverhampton had also been established with the aim of providing choice and offering local people the opportunity to buy high-quality, good value homes.

Herefordshire's cabinet is expected to back the idea later this month.

This news was gathered by the Local Democracy Reporting Service, which covers councils and other public service organisations.

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