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Council housing stock valued at £25.5m
Date published: 17 February 2012
Rochdale Council’s housing stock is to be sold to Rochdale Boroughwide Housing for £25.5million.
The borough’s council houses have been valued using a Tenanted Market Valuation (TMV) formula set by the government.
The housing stock is set to be bought by current council house managers RBH, which is being transformed into a co-operative.
The new RBH Co-operative will pay £25.5m for 13,664 homes, 1,606 garages, 83 shops, 8 community centres and around 40 playgrounds.
A report presented at Rochdale Council’s Cabinet meeting last night, read: “The TMV assumes that the housing will continue to be used as social rented housing in the future and is based upon a comparison of income and expenditure associated with the stock over a 30 year period.
“These 30 year financial projections are then discounted to reflect the value of money over time. The valuation of the housing stock is currently £25.5m.
“This will not however provide a useable capital receipt as the transfer price must be used to pay off part of the Council’s £241m housing debt at the date of transfer.
“DCLG (Department for Communities and Local Government) will make arrangements to provide overhanging debt grant to pay off the remaining £215.5m of debt.”
The report that went before the Cabinet will now proceed to the full council.
Comments
So Rochdale Council sells the homes at less than £2k whereas under right to buy it could cost us £20k or in the open market 80k.
I'll put down a counter offer - I'll find a way to cough up the £2k RMBC intend to sell my home for and in return RBH can take a hike!
In return I'll receive watergate eviction protection and the government will save money on paying Housing Benefit etc.
Have Your Say
Perhaps I have missed something here? Over 13,500 houses, plus several other valuable properties are being sold for just £25,500,000? How does this work, because, even being overly generous, other commercial properties aside, this probably gives the houses a value of say £2000 to £3000 a house? Why are these houses not being sold closer to market value and the money used to support the RMBC cuts?
By springy @ 18/02/2012 11:16:56