Bournemouth housing and homeless shelter needs extra funding

BCP Council had awarded a contract for the Princess Road scheme to Kier to deliver 139 affordable homes and an emergency family homeless hostel The development has, like many other recent council projects, been hit by inflation increases.

A report to cabinet on Wednesday, September 7, says external funding for the build in Westbourne is also under threat.

“The Princess Road scheme is an important mixed tenure scheme including 139 homes of affordable housing, private rent and a large family hostel,” the report says.

“Most of the increase in cost will fall to the housing revenue account rather than the General Fund due to the tenure mix.

“The scheme generates essential financial revenue returns to the Council in the medium and longer term and will provide additional cost avoidance within the general fund from bed and breakfast provision for the council for those who will move into the family hostel.”

CGI of the plans for the site in Princess Road

Councillors are also being asked to increase the budge on the local authority’s ‘street acquisitions budget’ by £20.9million.

This is required to maintain the “momentum” of the programme, to address housing needs and secure available opportunities.

The report says officers are experiencing a “significant increase in demand” and have asked for 10 four bedroom properties and two five-bedroom properties to be acquired for the programme in light of an increased number of families who have presented as homeless to the council.

The proposed programme cost increase from £47.9million to £68.33million would see the rental income return over five years go from 16.83 per cent to 17.25 per cent.

The recommendation in relation to the ‘street acquisitions budget’ would see the programme’s unit types are expanded from existing street properties to include individual newbuild acquisitions and ‘block’ purchases.

The report provides an update on the “significant progress” the council newbuild housing and acquisition strategy has made in its first year.

Around 37 projects are currently being “worked on” in the development pipeline by the council’s housing deliver team outside the ‘street acquistions’.

One of these sites has been completed, in Mountbatten Gardens, while construction is underway on Cynthia, Herbert, Templeman, Moorside, Northbourne, Wilkinson and Craven schemes.

Four sites – Turlin, Constitution, Alma Road and Beauford Park – are listed “on hold/Future Places delivery (the council’s urban regeneration company).

The report says: “At present, there is excellent progress with 588 homes in the development pipeline (on 24 sites), excluding street acquisitions, and a potential 420 plus homes on nine specialist sites.”

The raft of recommendations will go to full council later this month following the cabinet meeting.