The cabinet member responsible for Sefton Council’s housing company has taken issue with it being described as “luxury.”
Discussing an update report about the company, Sandway homes, which was set up in 2018 and has been building homes in areas like Ainsdale and Crossens for sale mainly at market value, Cllr Trish Hardy said it had been “targeted with the title of luxury.”
The cabinet member for housing and regeneration told a meeting of Sefton Council’s cabinet this morning that it was something she “feels very strongly” about as the properties built “meet the standards of a local authority” but are “not mansions for executive people.”
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The comments came after a report giving an update on the progress of the company was presented by executive director of corporate resources and customer services Stephan Van Arendsen.
Mr Van Arendsen said the report sets out a “revised timescale” for the three projects that make up the first phase of building.
With delays of at least 12 months for completion of some of the homes, the report spoke of the likelihood of delays in the council recouping money it has spent to date on the company.
Mr Van Arendsen said the delays in completing the developments “reflects frankly the economic conditions that the country finds itself in” with implications for paying out money due to Sefton Council.
The report reduces the amount of the dividend likely to be paid out to the council and states there could also be delays in paying £2.2m for land sold to it by the Sefton council – as well as delays in making repayments on the £8.3m loan facility the council extended to Sandway Homes.
Sandway Homes was set up by Sefton Council in 2018, with the aim of building thousands of homes across the borough that would then be sold to bring much needed funds back into the local authority.
The company was initially given £1.3m to set up and permission to lend up to £5 million from the council. Last year that loan facility was increased to £8.3m amid delays put down in large part to covid.
The latest update report says the company may need to ask the council for a further extension to its loan facility. The report also notes the company currently owes £3m in debts and has paid out £13m so far.
Mr Van Arendsen spoke about the difficult economic conditions stating that the “landscape for housing and development has been disrupted over the last few months.”
He added that the situation at the company would need “careful monitoring” with any variations of the plan to be brought to cabinet.
Cllr Hardy said she welcomed the “well thought out” report which she said “reflects the hard work that goes into the management of Sandways.”
She added that far from “a failing company” she would characterise it as “successful” adding: “It has already demonstrated this in the market, we’ve seen a number of sales go through and satisfaction levels with these properties is really high.”
While the majority of homes are at market rate, making this a rather different form of “council housing” than many would be used to, Cllr Hardy pointed to the provision of “affordable housing” as part of the offering.
She said: “We’ve been able to deliver not just purchased homes but affordable homes too.
“It’s seen that sometimes it’s described as a luxury housing company. It’s not. It’s a company set up to deliver housing products that meet the needs of our communities.
“It’s not just a baseline entry of affordable housing and we hope it will address social housing too. It meets the standards of a local authority, it’s just a shame other developers wouldn’t do that.”
The cabinet member added: “Then we wouldn’t be targeted with the title of being luxury. I feel very strongly and upset about that.”
Cllr Hardly concluded: “Thank god that Sefton Council continues to intervene in its own housing market and put high quality affordable housing on the scene.”
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