Kentish Gazette Canterbury & District
Council plans its own commercial property business
Firm would complement statuory housing services Exclusive ‘The main driver for this is the significant reduction in government funding in recent years’
Canterbury City Council is set to form its own property company in a move that could help it tackle the district’s chronic housing shortage.
With more than 2,200 names on the council’s housing waiting list, the authority is hoping the new firm would find homes for people who need them and generate revenue at a time when it is facing government funding cuts.
If approved, the company will operate as a commercial enterprise able to buy and sell properties on the open market for profit.
Members of the council’s policy and resources committee heard last week that the firm would exist alongside the statutory housing services it provides.
Larissa Reed, the council’s assistant director of direct services, said: “A trading company would provide the council with a flexible, market-oriented response to residential and commercial property opportunities.
“It embraces the corporate plan’s principles to manage council assets to maximise their ben- efit to the council and the community, provide good value for money and take a commercial approach wherever appropriate.
“It would aim to be self-financing and make the most of our ability to attract additional funding and investment.”
Cllr Reed added: “The main driver for this course of action is the significant reduction in government funding in recent years, which has encouraged councils to develop radical approaches to service delivery.”
Five senior officers, including chief executive Colin Carmichael, would be required to become the company’s initial directors, overseeing a £2 million budget, 75% of which would come from a loan.
A budget of £35,000 would be needed to launch the company.
Lib Dem group leader Mike Dixey said: “I strongly support this idea and think this is exactly the way to balance the books.
“But can we look at having some independent business experts involved? It will make it much more successful.”
Conservative Jenny Samper added: “This idea would be very much welcome – especially if this company could help alleviate some of the housing problems we have.”
The policy and resources committee agreed to support a recommendation to create the company, and have passed the final decision to a meeting of the full council on January 5.