Council faces 'difficult decisions' on housing

Councillors at a district council have been warned they need to make "difficult decisions" to ensure the affordability of its housing service.

East Devon District Council requested nearly £12m in extra borrowing last month to help fill a black hole in its housing department's finances.

Catrin Stark, the council's interim director of housing and health, has now told the authority's housing review board a "disposal process" of properties would be among the options put to councillors in the autumn.

"There will not be easy decisions for any member of cabinet," she said.

"There will be difficult decisions about the viability of retaining the stock as a local authority, especially given that other local authorities are stating an average cost of £50,000 being required per property to ensure it meets current requirements and standards."

Officers said about 87% of the council's properties had now been surveyed, which is hoped will show how many properties are in disrepair and the work required to bring them back into service.

The council acknowledged it had a "significant number of long-term voids" - or empty properties - something that represents a problem through lost rent and potentially large repair bills.

It has budgeted £2.5m this year on bringing void properties back into service.

Officers also noted the council had paused any purchases of properties available on the open market.

Before the request for extra borrowing, the council's housing revenue account already had nearly £85m of debt, which costs £2.8m in annual interest payments.

Councillor Christopher Burhop, who sits on the housing review board, said the group needed more timely access to financial information.

"We have to reassure ourselves and rebuild confidence that we, collectively, are in control of this," he said.

"That information should be brought to this board for us to scrutinise, as I know it is available and so it should be part and parcel of these meetings."

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