Council set to start housing company
Arun District Council’s Cabinet has agreed in principle for the Council to establish its own wholly owned housing company.
On Monday, 17 October the Council’s Cabinet approved a supplementary estimate of up to £130,000 to cover the costs of setting up the Shadow Board and the company which includes legal, financial and necessary due diligence checks.
Work will now begin on developing business plans and carrying out a detailed due diligence programme before reporting back to Cabinet as to whether the company should be set up and operate.
The intention is that the company will develop residential housing (market, affordable, shared ownership for rent and sale) and other appropriate residential schemes to help meet the housing needs of people of the Arun district, and generate additional income for the Council through dividends.
Councillor Mrs Gillian Brown, Leader of Arun District Council and Cabinet Member for Council Strategy, said: “This is a really exciting initiative which is a demonstration of Arun’s ability to intervene in the local housing market to make it work more effectively for those on lower incomes who cannot always afford to pay market rents or purchase values.
“Arun’s intention to set up its own housing company also fits in with central Government’s desire for councils to play a more active role in housing delivery and shaping the local housing market.”
The Council will consider selling land it owns to the company to deliver agreed development opportunities.
Arun will wholly own the company but it will be run independently with its own Board of Directors.