Bridgend Council’s Cabinet is set to approve an expansion to the council’s own House of Multiple Occupation (HMO) portfolio (pdf).
After income from rent and grants are considered, BCBC expects to spend £3.2million on temporary accommodation in the 2024-25 financial year. This compares to a net spend of just £135,000 in 2019-20.
During the previous financial year, council officers concluded that it’s more cost-effective (up to 70% cheaper per day) for the council to provide temporary accommodation in HMOs directly than relying on third parties or private landlords.
In March 2024, the Cabinet approved the purchase of three HMO properties. Two properties have since been bought – with a third in negotiation – for an average price of £300,000. The three properties will deliver 16 places in total.
Cabinet members are now being asked to approve the purchase of three “family-style” properties. These would be purchased using Section 106 funding (funding from developers as part of planning applications).
While the report states that scaling up in this way would deliver further budget savings, fluctuations in the housing market and the ongoing maintenance costs present risks.
