Council Plans £100m Commercial Housing Arm

South Cambridgeshire District Council is considering a huge expansion of its commercial housing arm in an attempt to offset government funding cuts and could invest £100 million to purchase properties over five years, raising its rentals portfolio to 500 homes. The authority set up Ermine Street Housing in 2014 and invested £7 million in property to rent as an “ethical commercial landlord”. The company now owns 34 properties worth a total of £6,837,970 providing homes for people who cannot get an affordable housing tenancy, but have found it difficult to rent in the private sector. The expanded company would remain entirely owned by the council and generate a predicted £600,000 a year for the council by the end of year two, according to a council report set to be considered by cabinet members on November 12. Read more on the South Cambs Council website.

Demands to Know Why Housing Cash Was Diverted From Poorest

Boris Johnson is under pressure to reveal why he is using money intended to help house the capital's poorest families to fund new homes for wealthier residents.  Johnson, who caused controversy with his comments over welfare reform when he said there would be "no Kosovo-style social cleansing" of the city's low income households on his watch, has diverted £93.3 million from affordable housing programmes to the Mayor's Housing Covenant, which aims to help middle income earners into homeownership.  Now the chair of the London Assembly's housing committee, Darren Johnson AM, has written to the Mayor demanding to know why. While social and affordable tenants earn on average less than £13,000 per annum the covenant will deliver affordable home ownership option for households earning up to £74,000. Read more on the Housing Excellence website.