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Council underspend to buy more council houses in Somerset

MORE council houses are set to be bought in Somerset – to provide social housing for residents seeking temporary accommodation.

The move – to use an underspend of around £3.3 million in the authority’s Housing Revenue Account – was approved by the Executive Committee.

It comes as a result of the underspend in the HRA – a legally-required, ring-fenced account within the council’s finances for income and expenditure relating to its housing landlord services, held separately from other general council services.

The boost – resulting from an underspend during the 2024/25 financial year as well as a predicted underspend in the coming year – will increase the number of homes under the council’s ownership by around 15, while supporting the General Fund with temporary placement cost control.

More housing is required amid an increasing demand for temporary accommodation for those at risk of homelessness across the county, the council said.

READ MORE: Property news from your Somerset Leveller

In the short term, the new properties would be used to house residents who would otherwise require emergency accommodation, providing a better option for them and also saving the taxpayer money.

In the medium term, these would be made available to those bidding for a property through Homefinder Somerset, where there is currently a long waiting list for suitable homes due to a national shortage.

Cllr Federica Smith-Roberts, lead member for communities, Housing Revenue Account, culture, equalities and diversity, said: “Re-directing funding from our HRA reserves in this way is a hugely positive step for Somerset residents and in particular those who are awaiting temporary accommodation placements.

“The decision is very much a win-win, working to address the increasing numbers of those at risk of homelessness in the short-term, while benefitting our longer-term social housing needs in the medium/longer term.

“By purchasing additional new properties in this way, the council maintains greater control over property suitability, quality and cost compared with temporary placements through B&Bs, hotels or Airbnb accommodation.”

It is anticipated that in the region of 15 properties will be purchased to meet demand, the council added, dependent on property availability and size.

Locations of the new properties will be determined in the coming months based on the areas of highest demand.

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