Council to borrow millions to address homelessness crisis
Leicester City Council have agreed on plans to borrow over £40m to buy properties in a desperate attempt to ease the growing housing emergency.
As the cost-of-living continues to bite and interest rates are set to stick at 5.25% for the foreseeable, demands for affordable housing are increasing. Without action, Leicester City Council have said they would face extra costs of £23m in the coming financial year.
Against this backdrop, the local authority are set to borrow £45m so they can purchase more homes. Overall, 225 properties will be bought to use as temporary accommodation and a further 125 will be leased at affordable rent rates.
Previously, this idea was put to councillors in January although it was withdrawn after legal concerns were raised.
City Mayor, Sir Peter Soulsby, said the matter was ‘legally complex’ and the council would be using the time to seek assurances from the government that its proposals were above board. In addition councillors were also concerned that the borrowing costs would come from the general budget rather than a pot of money specifically set aside for housing.
However, this time around councillors have been assured that other authorities have undertaken similarly funded purchases without problems. Although, Patrick Kitterick, a councillor for the Green Party, warned, just because legal action has not yet been taken on cases like this, it doesn’t mean it can be ruled out in future.
The most recent published housing waiting list figures for Leicester display just how much new affordable housing is needed. In January this year, 6,431 people were on the list and more than 5,0000 can expect to wait more than five years for a suitable home.
In addition, the number of people without a permanent place to call home is also increasing. In August 2022, there were 94 households in temporary accommodation across the city and by December 2023 the number had soared to 332.
Image: Jamie Hunt
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