Let the private sector take risks

I am delighted nine members of B&NES have called in Cllr Richard Samuel’s single-member decision to approve the off-market sale of 117 Newbridge Hill to the councilowned development company, ADL Ltd, for a mere £308,000. That’s quite a bargain for a threestorey 5,300 sq. ft. detached villa with planning permission for conversion to six flats.

Councillor Samuel has been advised by the council’s own independent valuer, Knight Frank, that it is worth £790,000. So why is the council selling it for a whopping 61% discount?

Well, it turns out that B&NES will impose “voluntary conditions” on ADL requiring it to convert the house into six flats and to make those flats available to young professionals and first-time buyers. Not a hint of affordable housing.

The apparent “return” to B&NES will be between £595,000 and £807,000 made up of the purchase price, interest payments and a profit share.

We are in the ludicrous situation where the council will borrow money from the Public Works Loans Board to lend to ADL so that it can purchase the property and will then risk our public money in a speculative property development which the private sector would happily undertake.

If the council is so worried about the house not being converted to six flats it could offer the property to the market with appropriate conditions attached to the sale.

I suspect the real reason the price has been artificially discounted is because ADL cannot

make the scheme profitable without it, probably because its fixed cost base is so high.

By all means own a development company B&NES, but why not use it to deliver the affordable housing this city so desperately needs. Let the private sector do the risk taking; that is why it is there.

David Stubbs