North Devon Council to become social landlord for first time in 25 years

North Devon Council is set to become a registered housing provider and have its own social homes for the first time in 25 years.

The move represents ‘a fundamental change’ for the authority, which transferred all its housing stock to North Devon Homes in 2000.

It has the backing of 84 per cent of people who took part in a recent housing strategy consultation who said they wanted the council to own more social housing.

Councillors have scrapped the idea to set up a local housing company which was favoured a few years ago  – this would be wholly owned by the council but a separate, commercial entity, offering a range of housing options including open market homes to rent and providing a return for the council.

North Devon Council’s strategy and resources committee was told on Monday (May 12) that some local authority housing companies like this had ‘gone well but some less well’.

Mid Devon District Council ended up having to write off millions of pounds before shutting down its 3 Rivers development company last year which was hit by challenging trading conditions during Covid.

The committee was told there was a desire now to go in a different direction, both by the community and councillors in North Devon, with an in-house service where the council was responsible for the construction, maintenance and tenancy of the properties.

It could also draw down government funds for social housing, as much as £1.2 million on a 10 homes scheme at Boutport Street in Barnstaple, finance chief Jon Triggs told coucnillors.

“The level of rental income would halve but our net revenue costs would reduce and we would be providing social and more affordable housing to people of North Devon,” he said.

“We have moved a long way since 2021, of where we want to go, back then it was about getting a market rent and return, now it’s about doing the right thing socially and reducing financial risk by attracting capital grant.”

The council currently owns 25 properties which are managed by its property team and has £2 million of government funding to provide ‘healthy homes’ in Ilfracombe, in one of the most deprived areas of Devon, after acquiring properties in Oxford Grove and the old Royal Mail building.

Committee members heard that re-registering as a local authority housing provider for social housing would mean new governance arrangements, an appropriate level of resources, member training, housing development and management policies and procedures.

And the council was told the financial implications needed to be fully understood as well as possible right to buy options.

Cllr Ricky Knight said it was “a significant decision.”

Chief executive Ken Miles said it would not be a case of registering and then suddenly becoming the owners of 300 properties.

He said: “This sets direction and enables us to go forward. Members will have control of how we go forward and extent of our involvement and there will be further reports on projects to assess the risk of each one. This is a tried and tested route, other authorities have done this including Teignbridge District Council.”

Cllr Graham Bell said the availability of social housing had stalled and the council needed to do something about it whilst providing “gold standard” accommodation which addressed environmental concerns.

Leader of the council Cllr David Clayton said there were exciting times ahead.

Members agreed to proceed with direct delivery of housing.