Politics & Council · Swindon
Swindon Council moves forward with housing plans for four underused sites
By Swindon Now Editorial Team · Published
Swindon Borough Council has approved up to £6 million in loan funding to prepare four underutilised sites for residential development through its housing company.
Swindon Borough Council has taken a further step towards tackling its housing company's debt by approving a fresh allocation of funding for residential projects. The cabinet has cleared the way for up to £6 million to be issued to the Swindon Housing Company (SHC), a wholly owned subsidiary of the local authority, to advance development plans for four pieces of land.
The funding is part of an existing £15 million loan facility established during the 2016-17 financial year. By preparing these sites for housing, the council aims to create land trading opportunities that will generate financial returns, which in turn are intended to offset the housing company's outstanding debt. Under the current proposals, these sites are expected to be transferred into the ownership of the SHC.
The identification of these four sites follows an extensive review process as outlined in the Swindon Housing Company Interim Business Plan 2025-29. Several other locations previously considered for development were ruled out during initial planning stages. Specifically, land at Eldene Drive and St Michaels Avenue was deemed unsuitable for housing, while Whitehill Farm and the Marlborough Road site were found to be unviable for residential use. A separate site, the County Road Probation office, has been earmarked for an alternative purpose.
Beyond the potential for new homes, the local authority believes the strategy offers secondary benefits. The report presented to the cabinet highlighted that transferring the assets to the housing company would reduce the council’s own carbon footprint by removing the requirement for ongoing maintenance and security measures at the unused locations. Financial projections suggest that if the developments are profitable, funds could be returned to the council in the form of a dividend, although the authority must navigate corporation tax implications for any profits exceeding £250,000.
The cabinet has now granted delegated authority to the director of finance and audit to finalise the loan drawdown on a case-by-case basis as detailed business plans are completed. All future land transfers are set to be supported by independent valuations to ensure the council meets its statutory obligations to achieve the best reasonable consideration for its assets.
Meanwhile, the status of the former Stratton Education Centre remains a point of focus. Although the site has already been transferred to the housing company and holds detailed planning permission, the council is currently weighing its options. These include selling the scheme to a third party or transferring the site back to the council for use through the Housing Revenue Account, with terms currently remaining under discussion.
The approval of the funding remains subject to a standard scrutiny call-in period, following which formal legal documentation will be completed to authorise the transfer of funds and land.
Source: Swindon Advertiser - Politics · View original