Hundreds of new council homes to be built in Exeter

Council-owned company could build and manage homes for sale and rent

Exeter could be getting hundreds of new homes to cope with the housing crisis. The city council plans to develop its own stock of housing - both for sale or rental - and it's setting up a new company to build and manage them.

A report going to a scrutiny committee on Thursday (28 June) says they want to build more and better homes so they can cut the council housing waiting list and improve the lives of people currently in poor quality accommodation.

Over the past few years, house prices have risen by 30 per cent in Exeter, putting home ownership in the open market out of the reach of an increasing number of local people. Private rents have also risen sharply and are predicted to continue rising, meaning many families could be priced out of the city.

They say they want homes to be available for people who've grown up in the city. The council will lend the new company - called Exeter City Group Ltd, which the council will wholly own - £4.35 million in the first year. Any profits will be reinvested in new homes rather than being paid as dividends to private developers.

Council leader Pete Edwards says: “We have a proud record of building council homes and would happily continue this if we were able to - but Government policy prevents us from doing so. Setting up a development company that we own and control, as other authorities have done, is a way on which we can continue to deliver the new homes that people in this city need.” Over the next three years, ECG it expects to build 131 homes across five brownfield sites.

They say they will provide new homes for existing secure tenants let at council rent levels and maximise affordable homes on each project.