Birmingham Council has approved plans to loan its own wholly-owned development company, In Reach, £60m on commercial terms over a 35-year period to help its acquisition and development strategy.
The property acquisition programme will see In-Reach buy up 230 properties for temporary accommodation and social housing where “it makes financial sense”.
The council also approved plans to release £2m from its reserves to help pay for a higher development rate of affordable homes. The combined £62m is designed to relieve pressure on its budgets by moving people out of what it dubbed “expensive” B&Bs and other accommodation.
Figures presented to the local authority show that by the 2024/2025 financial year, the council could save up to £5.9m per year in costs from B&Bs and other private accommodation.
The council also agreed to a £1m investment fund to refurbish an existing property to enable its use as an alternative to a B&B and £2.5m to set up a dedicated transformation team to increase the supply of homes and to improve its housing service.
Birmingham Council has also been allocated £680,000 via the West Midlands Combined Authority under the government’s Rough Sleepers Accommodation Programme.