Kennet apologises for selling low cost homes to developer

2:53pm Friday 9th May 2008

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KENNET District Council has admitted that it was a mistake to sell seven low-cost homes on the Le Marchant Barracks site in Devizes to private landlords.

District councillor Laura Mayes said she was horrified when she heard that seven of the 12 flats, set aside as low-cost market (LCM) homes for mainly first-time buyers, were sold to private individuals and are now being offered at commercial rents.

Coun Mayes, who represents Roundway ward on Kennet District Council, said: "These houses were marketed too soon. The contract states that if the homes were not sold to people on the housing register within three months of first being marketed or built, whichever is the sooner, then they could be offered on the open market.

"It should have stipulated three months after the homes were built, as they had not been built by the time they were offered on the open market.

"Lessons have been learned and officers have been asked to ensure that future legal agreements specifically address the buy-to-let issue.

"The council is also actively considering requiring homes which are not sold to people on the housing register to be offered to registered social landlords prior to being made more widely available to people with local connections.

"There are wider implications for housing in the area. Legally no one has done anything wrong, but this kind of thing should not happen."

The matter was first brought to Mrs Mayes' attention by one housing association tenant who had moved into one of the 12 flats and was horrified to learn that many of his neighbours were tenants of private landlords.

A spokesman for Kennet District Council said: "Twelve LCM flats have recently been built within the Le Marchant Barracks by developer Craneview.

"The council nominated five purchasers from its housing register but was unable to identify further interested households.

"The developer then sought permission from the council to offer the remaining seven flats to the market.

"The legal agreement between the developer and the council does allow the developer to sell the properties to people with local connections, in addition to Kennet nominees after a specified period of time has elapsed.

"This is to ensure that properties do not stand empty unnecessarily.

"It was recently brought to the council's attention that some of the remaining seven flats had been bought by private individuals and then rented out.

"Upon reviewing events, it became apparent that the way in which the legal agreement between the council and the developer had been interpreted meant that consent was given to the developer to sell the properties after the required marketing period but prior to the full expiry of the council's nomination period.

"It should be noted, however, that the council had not been able identify any further purchases at the time consent was granted to the developer."