Thanet council is aiming to buy its third temporary accommodation site as well as more properties to serve as council homes.
Cabinet members will be discussing plans to spend £1.2m for six temporary accommodation flats in Margate Road, Ramsgate,
It will be funded using £1,309,250 of the council’s General Fund capital budget, meaning there are no borrowing costs. Assumed costs for Stamp Duty Land Tax are £97,250 and there are £12,000 assumed associated legal costs.
The flats, being built by local developer GPML construction, will be added to Thanet council’s in-house temporary accommodation with sites currently at Foy House in Margate and the former Glendevon hotel in Ramsgate.
Plans are also in progress to purchase a fourth site.
In Margate Road four flats are one-bedroom properties and two are two-beds. A report to councillors says: “Currently, the council has around 300 households in temporary accommodation, so if it is able to own more such homes without having to use nightly-paid providers, this will assist greatly in reducing the General Fund bill on using third-party provided temporary accommodation.
“Indeed, there are currently 166 households in temporary accommodation using 1-bedroom properties and 61 households using 2-bedroom properties, hence the acquisition at Margate Road.”
At the end of 2023/24 the council’s net spending (after grant monies) on homelessness services was £2.5m, which was an £1.2m overspend compared to the approved budget.
New council homes
Cabinet members will also discuss buying four, 4-bed townhouses in King Street, Ramsgate, which are also being constructed by GPML.
These will be council homes, meaning the rents will not exceed the Local Housing Allowance rates, with two going to people on the housing list and two for those moving out of temporary accommodation.
The cost of the King Street homes, at £1.33m, will be met through borrowing and Homes England grant of £80,000 per property.
The report to councillors says: “The housing register shows 105 households having a requirement for a 4-bedroom property. Larger homes are the hardest to come by, and so it is important to acquire homes of this nature to assist those with larger families.”
Thanet council has 1,500 households on its housing register with further applicants waiting for the applications to be assessed, as well as the 300 households in temporary accommodation.
Additional 30 homes
Councillors will also discuss the purchase of 30 properties, on the Haine Road site being constructed by Guildcrest for a cost of £8.35m – equalling £276,666 per property.
These will be made up of 3 x 2-bedroom homes and 27 x 3-bedroom homes and the purchase will be funded with £2.5m Homes England grant, £5.5m of borrowing and £300,000 from s106 agreement funds. £50,000 has been allocated for associated legal costs.
The original Guildcrest application for the St Stephen’s Park site was for 115 homes, of which 12 were allocated as First Homes.
The report to councillors says: “The developer has subsequently approached the council to offer the opportunity to deliver more affordable homes on the site. It is important to state that these homes will be managed and maintained by the council and will be managed closely through its tenant and leaseholder service.”
The report adds: “There is a significant need for properties containing 2-bedrooms and 3-bedrooms. The housing register shows 232 households having a requirement for a 2-bedroom property and 357 households requiring a 3-bedroom property.”
As with the King Street houses, 50% of the Guildcrest homes will be let to priority applicants from the council’s Housing Register and 50% will be let to people moving out of temporary accommodation.
An accelerated affordable housing programme with a target of buying 400 new affordable homes for those in need over four years was agreed by Full Council in July 2023. With the latest properties, and a further purchase due to be discussed later this month, Thanet council will have reached 361 homes in just over one year.
Reports to councillors say developers are now keen to work with TDC as the authority is seen to ‘tackle the shortfall in affordable housing head-on.’
Properties have previously been agreed for purchase at developments such as Spitfire Green, Reading Street, Tothill Street and Northwood Road. There are also plans to build council homes at sites including the former Dane Valley Arms and Tomlin Drive in Margate and Staner Court and Clements Road in Ramsgate, constituting Phase 4 of the council’s affordable housing build project.
Deputy council leader and Cabinet Member for Housing, Cllr Helen Whitehead, said: “The growth of our in-house temporary accommodation is absolutely essential for the wellbeing of families in our area.
“Ensuring that residents stay close to their jobs, schools and support networks is vital to health and wellbeing, and producing this in-house allows us to support residents the way that we want to, and also support those with pets.
“The growth of our in-house temporary accommodation also has to be matched by growth in our general portfolio, so that residents also have access to secure and genuinely affordable tenancies.
“I am extraordinarily proud of those working so hard in Housing to meet our targets and support residents and am incredibly pleased that we are so close to meeting and exceeding the initial total set for housing acquisitions across Labour’s first term.
“This is a long term project and seeing each development come to term and residents housed is incredibly exciting, and each completion brings greater security to those housed.”
The Cabinet meeting will take place on August 24.
