Melton Council buys eight new homes to rent out to tenants

The two-bedroom properties, which are on the development at Marquis Gardens, are valued at £235,000 each but would be available to the authority at a discounted rate.

They are built using modern methods of construction for energy efficiency and will include air source heat pumps and mechanical ventilation systems.

It is hoped they will help the current shortage of affordable housing in the borough.

The council’s housing strategy for the period 2021-26 has identified a need for 70 new affordable homes to be built each year.

Melton Council has a stock of 1,782 homes but there is a shortage of homes to rent with 840 applicants currently on the authority’s housing register.

The purchase of the eight properties will be financed with a combination of ‘Right To Buy’ (RTB) receipts and reserves from the Housing Revenue Account.

The council has to spend £1,950,000 on delivering new affordable housing by the end of the financial year 2025/26 in order to meet RTB spend targets.

The investment in the eight new homes in Old Dalby will help to meet this requirement.

A report which went before the cabinet stated: “Expenditure on new council homes is an investment that will bring in additional income via new rents.

"This addition to revenue can eventually pay for the cost of delivery.

“A financial appraisal was completed and confirms that the scheme will pay back its cost in approximately 25 years.”

The Old Dalby development is located off Marquis Road and consists of 39 new houses, including 16 affordable properties.