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Local authority to become private landlord?
This article is an external press release originally published on the Landlord News website, which has now been migrated to the Just Landlords blog.
A local authority is due to take the unusual step of becoming a private landlord, through the launch of its own private sector landlord company.
Bournemouth councillors will consider proposing for the council to create a company that is to purchase properties, which will then be rented to people to which the council has a mandatory homeless duty.
Proposals also include giving the council the chance to buy more properties directly, as opposed to through the company. This will give them the chance to arrange different tenancies with different rent agreements.
If the proposals prove successful, it is thought that approximately 60 properties could be bought, which would cost around £10m over 3 years.
Local authority to become private landlord?
Cut costs
Councillor Robert Lawton said that the move, ‘will help us to reduce costs, for example, avoiding the use of expensive B&B accommodation. By owning the properties, it would mean that the council would be able to ensure the properties are good quality and well managed.’[1]
‘In the longer term, any income generated and increase in property values would come back to the council to help fund additional services for vulnerable people,’ Lawton continued.[1]
Councillors are set to consider the proposals in a meeting today.
[1] http://www.bbc.co.uk/news/uk-england-dorset-33153747
