A new ethical housing company could be set up by Liverpool City Council with an aim to build 10,000 homes across the city.
The venture is expected to create 2,000 new jobs as it delivers a range of properties including homes for the homeless, foster carers, large families, the elderly and people with disabilities.
Cabinet members are recommended to give the new company, which would be named ‘Foundations’, the go-ahead during a meeting next Friday (15 December) to help shake up Liverpool’s housing market and accelerate the rent to buy sector.
Fuelled by an estimated £500 million investment programme, the plan would help the local authority to meet housing needs and bring varied supply to city’s stock dominated by small terraced housing which is said to skew council tax revenues.
The council is also looking to ‘future proof the housing market for an aging population’, with homes that people can live in independently for longer and intermediary accommodation to help keep people out of long term hospital stays.
Mayor of Liverpool Joe Anderson says: “This will be a win-win for everyone as the council will be able to increase Council Tax, influence the quality of the housing and support people who want to buy by turning rent into a deposit. This company has more than just a social value, its business model also stacks up as a serious investment in the future of the city.
“As we’ve shown through the purchase of the Cunard Building, which now generates £2m a year for the council, our invest to earn strategy works and profits from this new company will also be reinvested into council services to offset the damaging cuts this city has experienced these past seven years.”
If approved by cabinet, the new housing company is due to be ratified at the next full council meeting in January.