Published on 20 September 2017
Archived on 20 October 2017
Stratford-on-Avon District Council has received a windfall payment thanks to the legal agreement surrounding the transfer of housing stock.
This extra cash has come for Orbit Homes, from the 50 per cent share of the proceeds from the sale of derelict garage sites across the District under the terms of the Large Scale Voluntary Transfer Agreement (LSVT) between the Council and South Warwickshire Housing Association (now Orbit Homes) that took place in 1996.
Under the terms of the LSVT Agreement the District Council is entitled to receive a proportion of Right To Buy receipts from Housing and 50% of the net income from assets such as the sale of garages.
The District Council is looking to invest this extra cash into affordable housing by ring-fencing the money whilst the Affordable Housing Working Group (AHWG) work up a strategic options report to decide where it can have the most benefit for residents.
Cllr Peter Richards, Housing and Infrastructure Portfolio says: "This is excellent news; the Council had not budgeted for this income and it is great that the District Council is still benefiting from a former legal agreement. We won't be rushed into blindly spending this extra money immediately; however, we are keen for this to be used for housing purposes, which supports the work that has already been undertaken over the last 12 to 18 months.
"The normal practice would be for the Council to consider this alongside the production of the next version of the Capital Programme. However given the scale of the receipt and the importance of the housing related issues this is an opportunity to consider the current options.
"The Affordable Housing Working Group will now look at where the money could be best utilised for the benefit of local people. It's not often you get such a bonus as this, but it can make a real difference and help us tackle current housing problems and support many more residents and families."
The Council has received payments from the auction of 475 garages across the District and this is expected to be a one-off.
The garages were auctioned due to their poor and dangerous condition.
Orbit will be using their proportion of the sale receipts to reinvest in the remaining garage stock across the District. T
The Council will continue to receive proceeds from Right To Buy sales until 2021.
Stratford-on-Avon District Council
Elizabeth House, Church Street,
Tel: 01789 267575