Controversial Spelthorne set to concentrate on affordable housing

A borough council in Surrey which made national headlines after investing almost £1bn in commercial properties is set to switch its focus to providing affordable housing.

Spelthorne Borough Council’s cabinet is due to meet on Wednesday (February 20) to discuss a new capital strategy, which aims to build more than 600 units over the next five years.

According to the new strategy, the council now has a property portfolio worth around £933m, which generates an annual income of around £10m for the local authority.

The document estimates that ‘about half of our budget’ for 2019/19 will come from property investments.

In September, the council announced the purchase of the Charter Building in Uxbridge, the Porter Building in Slough and Thames Tower in Reading for £285m.

But the new strategy also states the council now wants to switch its focus to building affordable housing.

‘The council’s finances are now more stable,’ the report states. ‘There are still external financial challenges, but we can now concentrate on one of the most pressing problems we face; providing the wide range of housing types that our residents require.’

The document shows the council is also looking at several transport and regeneration schemes, including a new leisure centre in Staines-upon-Thames and a light rail scheme to Heathrow Airport.

‘With the assets already owned by the council and a number of other strategic purchases, we have developed an ambitious building programme which could produce over 600 units over the next five years,’ the report states. ‘This is 20% of the current housing need in our new Local Plan.’

The 2019 State of Local Government Finance Survey by the Local Government Information Unit think tank and the Municipal Journal, which was published last week revealed 55% of councils are considering buying investment properties and using them as a source of income.

Around three quarters (73%) are considering investing in local housing developments and 55% are considering selling off assets to replace income from central government, which has been cut by an average of 40% since 2010.