Posted: Friday 14th July 2017
Hertfordshire County Council’s cabinet have this week approved plans for the creation of a new property company which will deliver over 6000 new homes for Hertfordshire over the next 15 years.
The new company, Propco, will be responsible for the development and delivery of the new homes, in addition to assisted living accommodation, and will help the council to increase the financial returns on land it no longer uses. The initial pilot will include 500 homes on 12 sites that have already been identified for development, with the potential for a further 5500 homes across 40 sites and two major redevelopment sites.
Propco will establish a joint venture partnership with a private sector partner that will bring property development expertise. Traditionally, unused sites have been sold on to property developers with planning permission granted, allowing a change of use, so that the property developer builds new housing and reaps the rewards. This new joint venture model will ensure that the council is able to take a share of the developer profits by either selling or renting the properties in the future.
David Williams, Cabinet Member for Resources, Property and the Economy, said:
“This new joint venture approach will ensure that the county council and ultimately Hertfordshire’s taxpayers will see an increase in financial returns for the surplus land and buildings we currently own. Such returns will be re-invested to ensure we continue to deliver key services across Hertfordshire. The plans also highlight our commitment to delivering new, high quality, sustainable homes that will help the county to meet the needs of its growing population, reduce the housing shortage and provide much needed assisted living accommodation for our communities.”