Council Arm for New Homes

A council is setting up a wholly-owned subsidiary in an attempt to kick-start house building in the face of a weak development market. Labour-led Thurrock Council will be the sole shareholder of the new special purpose company, using tens of millions of pounds of borrowing from its general fund to build homes on council-owned land.  The move, which could deliver 1,000 homes by 2018, aims to stimulate the flagging housing market in the area. Thurrock plans to wind the company up and sell the homes to private companies when market conditions improve.  A cabinet paper said the model allows the authority to do this easily as there are currently no joint venture partners to consult with. Read more on Inside Housing.