Plans to acquire new build homes for council housing

Preston City Council is making the first steps in progressing plans to acquire new build housing stock from a private developer, for council-owned, social rented, affordable homes in the future.

Officers have been exploring the possibility of the acquisition of 19 affordable homes in North Preston and Members at January Council gave approval for officers to submit a conditional offer.

The proposed acquisition comprises a mix of family homes and apartments to be newly built and of standard construction.

Councillor Matthew Brown, leader of Preston City Council said: “It has been over a generation since the council last held and managed its own housing stock, and it is a long-held ambition to own quality affordable housing again in the city, and another way to help tackle the shortage of quality, social rented, affordable homes available to Preston residents.”

Demand for social and affordable rented homes remains high, with long waiting lists and pressure from households in poorer quality, private rented accommodation.

As seen across the country, the council’s reliance on temporary accommodation has also increased over recent years.

Following council approval in February 2024, officers have been working with expert consultants, to explore the most practical and cost-effective way to deliver this ambition.

Subject to an offer being accepted, officers will carry out technical due diligence and draft all the necessary legal agreements, before seeking final approval by full council later this year.

The council will also need to apply to the Regulator of Social Housing to become a registered provider and approve the commencement of a procurement process to appoint a registered provider management partner to provide housing management, repairs, statutory compliance and regulatory support services.

Registered providers are currently the only providers of social and affordable accommodation since the council transferred its housing stock to Community Gateway Association about 20 years ago.

Direct ownership enables the council to increase the supply of social rented homes and improve outcomes for priority households.

Cllr Wise, cabinet member for community wealth building, said: “We have delivered the highest numbers of affordable homes in Lancashire over recent years (2,600 since 2015 and approx. 1700 of these delivered in the last five years), either through registered providers acquiring land and building new homes, or registered providers acquiring affordable housing stock built by private developers who were required to build them through our planning policy.

“However, registered providers do not have the capacity to deliver all the homes that are needed, so the council will now be in a position to increase the numbers even further.

"In addition, whilst the majority of affordable homes have been provided at affordable rents (80 per cent of market rents), we now have evidence that more social rented homes are needed (with a larger percentage discount in rents).

This is what the council will deliver. 

Construction of the houses is underway in line with the housebuilder’s construction programme with a phased delivery of practical completion between November 2026 and April 2028.

The development is however at an early stage in the construction phase and therefore these dates are subject to change.