Reading council to spend near £30 million to build 211 homes

Recently, the council approved a £29.6 million spend to deliver a mix of one to four bedroom homes at sites it owns across the borough.

However, approximately 99 of the planned council houses haven’t even been approved yet.

The report for the council housing project states that around 63 of the homes would be built on the old Central Pool site in Battle Street.

A plan for that development has only recently been submitted.

The report also states the council aims to build around 36 homes in Hexham Road.

Although no plan has been submitted yet, the council does have a plan to demolish The Willows  in Hexham Road.

It is understood The Willows would be replaced with council housing.

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Of the 112 remaining homes, 31 would be one bed flats, 29 would be two bed flats and houses, 28 would be three bed flats and houses, and three would be four bedroom homes.

The council hopes to deliver all 211 homes by 2025.

During a debate of the council’s plans, councillor Doug Creswell (Green, Katesgrove) questioned the size of the new homes the council is seeking to build.

Cllr Creswell said: “I know lots of thought would have gone into this, but we have a clear need for, as well as one and two bedroom dwellings, three and four bedroom dwellings, we have lots of residents who are struggling to keep their families in small dwellings.

“Could you tell us a bit about how we decide how large the dwellings we should build are?”

Strategic housing services manager Sarah Tapliss replied that not all sites the council aims to build on lend themselves to houses, with the land being better used as flats.

She added that there are high numbers of people who need one and two bed properties, as well as those who are looking to downsize.

The Willows 2 Hexham Road Reading, which is set to be demolished. Credit: Hampshire County Council / Reading Borough Council

The £29.6 million the council will invest is made up of £12.8 million from Section 106 developer contributions to affordable housing, £10.5 million of housing revenue acount (HRA) borrowing and £6.3 million from Right to Buy (RTB) receipts.

RTB allows tenants to buy and own the council home they live in, which was introduced in the Housing Act 1980.

Councils receive a proportion of the money a former tenant spends to buy their home.

However, councils can only use 40 per cent of the money generated from the sale towards development or acquisition costs for new housing.

This restriction was lamented by councillors.

Cllr Glenn Dennis (Labour, Katesgrove) commented: “I’ve got a little bug bear about the RTB receipts.

“We desperately need new homes in the country, so it frustrates me as to why this government ties up the RTB receipts in so much red tape?

“Why can’t those councils that are able to build use 100 per cent of the RTB receipts to build new houses for rent?”

The council housebuilding project was unanimously agreed at a housing, neighbourhoods and communities committee meeting on Wednesday, November 9.