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Ealing Building 500 Council Homes

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By setting up a 'development COCO' will be able breach debt caps

Ealing Council last week approved plans to become the first council to set up a council-owned company known as a COCO in order to develop 500 homes over the next five years as part of the regeneration of the Copley Close estate in Hanwell. This is different to a council-owned community-owned organisation, also known as a COCO.

http://www.insidehou...6529377.article

No Right To Buy:

The affordable rent and market rent properties would be developed by the COCO. The council would be the only shareholder, and the company would have no staff.Ealing believes the model will cut the 'financial risk' of new 'affordable rent' homes being bought by tenants under the government's revitalised right to buy - which gives London tenants a £100,000 discount.
Edited by aSecureTenant

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Is that similar to this: http://www.plymouthherald.co.uk/Plymouth-housing-boom-planned-50million-cash/story-20016973-detail/story.html

Plymouth City Council is planning to set up a fund to help developers to beat the credit crunch and get started on building 1,000 new houses a year.

The city will borrow the money cheaply and lend it to housing associations and housing cooperatives at an interest rate of just 3per cent, far below the market rate.

Read more: http://www.plymouthherald.co.uk/Plymouth-housing-boom-planned-50million-cash/story-20016973-detail/story.html#ixzz2k3EYwcwZ

Is this setting up a fund the same as setting up a council-owned company. Finally councils have managed to find a way of keeping debt off balance sheet so that they can build homes for people?

Council sets up fund/shell company.

Shell company/fund borrows money from council and or investory

Company builds homes and either sells or rents them.

It's a win-win and the council gets 500 or 1,000 new council tax payers!

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Is that similar to this: http://www.plymouthh...tail/story.html

Is this setting up a fund the same as setting up a council-owned company. Finally councils have managed to find a way of keeping debt off balance sheet so that they can build homes for people?

Council sets up fund/shell company.

Shell company/fund borrows money from council and or investory

Company builds homes and either sells or rents them.

It's a win-win and the council gets 500 or 1,000 new council tax payers!

Not sure, but they get to keep any housing benefit too, rather than it lining the pockets of BTL.

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I am sure the government will shut this down soon. We cant have councils building homes for people, devaluing existing homeowners properties and transferring wealth from older homeowners. <_<

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There'll be no Right to Buy until the government passes an Act to allow it at taxpayers' expense - again.

Building extra housing is a good idea but is it just being circumvented by extra people imports.

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"I think I'll choose 'affordable' please......" dry.gif

If enough homes are built then you will have the choice of expensive city center living or cheaper suburban living.

For example here there is such an oversupply of housing relative to population that I could rent a huse 10 miles away for €400pcm or similar in the city for €1200.

Having an under supply means that everyone is overpaying! Oh and the net recipients are the ones getting million pound bonuses and their rent collectors.

Welcome to the UK!

> Rent a currency

> Rent a property

> Rent a car

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I wonder what the number of social/new houses in a particular area is enough to disrupt the balance of power against landlords? For example, if Ealing builds 500 new houses that is 500 less potential tenants for the PRS (or small landlords). It would be interesting to find out how many potential new social homes in each area would severely reduce rents and increase competition. I reckon it wouldn't actually be that much.

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Any new building is going to help and I would much rather see this kind of project than taxpayer money going to the banks. I hope that other councils follow suit as the housing shortage is affecting every part of our lives and economy. Councils bypassing the house builders like this also makes hording land inaffective (if done on a large enough scale) so perhaps they will start buildingh more too.

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Is that similar to this: http://www.plymouthherald.co.uk/Plymouth-housing-boom-planned-50million-cash/story-20016973-detail/story.html

Is this setting up a fund the same as setting up a council-owned company. Finally councils have managed to find a way of keeping debt off balance sheet so that they can build homes for people?

Council sets up fund/shell company.

Shell company/fund borrows money from council and or investory

Company builds homes and either sells or rents them.

It's a win-win and the council gets 500 or 1,000 new council tax payers!

Or, more likely. 500 or 1000 new council tax benefit (or whatever its replacement is) claimants!

Seems futile to me until we have some kind of zero net immigration policy, one in one out or something. Whatever new housing supply this creates directly or indirectly will be filled by new immigrants.

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