Mid Devon Council wants to take on controversial site for social housing stock

Three Rivers project in Tiverton could provide 39 instant homes for the over 60s

A controversial development in Tiverton could be bought by the district council and turned it into a social housing retirement complex.

Cabinet members of Mid Devon District Council said they had an opportunity to turn bad news about St George’s Court into good. They hope to recoup some of the money lost from  the town centre project by a failing company they set up six years ago and help solve the housing crisis.

They could have 39 units quickly available, but questions have been raised about whether it is the best option, as other buyers might offer a better return for the council.

Next week Mid Devon’s full council is expected to rubber stamp winding up 3Rivers Development Ltd after it suffered substantial losses. The company was set up by the council to build homes whilst generating a profit for the authority, but that didn’t work out.  It has racked up debts of £21 million.

Cabinet members approved the purchase of St George’s Court by the Housing Revenue Account (HRA) which manages the council housing stock and lettings, subject to valuation. They also approved a feasibility study by HRA into the acquisition of another development at Knowle Lane, Cullompton for between 74 and 90  social housing  properties.

A third site at Post Hill, Tiverton, earmarked for 70 new homes, was considered “very expensive” to develop and the cabinet agreed not to progress its proposed tender, instead asking officers to explore alternative options for affordable housing there through another provider.

Councillors heard that in Mid Devon, around 1,000 people  arewaiting for social housing and it plans to address this by providing 500 new council homes over the next five years.

They were told smaller homes in the town centre would free up larger three and four bed homes by residents whose families had grown up. In some parts of the district there were regularly 100 bidders for three-bed homes.

Council leader Luke Taylor (Lib Dem, Bradninch) said: “This council been left in a difficult position. As part of this new administration, we have to take quick decisions, any delay to what we do with St Geoerge’s Court could have bigger financial implications on this council, the security costs alone of maintaining that are astronomical.

“I don’t think anyone wants this development site to cost any more money than it already has to this council. 3Rivers has been talked about for far too long, as has St George’s Court and all the other development sites and we need to positively move on and quickly.”

Cllr Claudette Harrower (Con, Tiverton Westexe) asked the council to exercise caution: “I know the pressure, but we need to do the best we can to recoup the cost of this development and I would ask that we tread with a bit more openness about getting other companies involved.

“Let’s give them time to collect themselves so they might then make an offer. I have a niggle with this site as we didn’t really want it in the first place.“
Cllr Taylor said he didn’t think a knight in shining armour was going to buy the properties. “This is not about a commercial opportunity, that’s not what the community needs at the moment, it is homes they can afford,” he said.

Cllr Rachel Gilmour (Lib Dem, Clare and Shuttern) accused the council of being unimaginative. “You are talking about moving people in their seventies from communities of care to what they would see as a high-rise flat, with scrubland and more steps than the Leaning Tower of Pisa. I think it is beyond ridiculous….We should give the taxpayer fair play for the money they have already invested and lost at St George’s Court.”