Middlesbrough Council to ‘control and direct’ housebuilding with new property company

Middlesbrough Council is forming a new wholly owned company to drive its housing strategy.

Having secured formal approval for its housebuilding programme, the authority has created a business plan to establish a new company backed by a £10m startup funding package, part equity and part loan.

Sites in Gresham, Beechwood and Hemlington are expected to be brought forward for the first homes under the new delivery vehicle.

According to the council, the move will enable it to positively intervene in the housing market and assume greater control over development.

Middlesbrough Council’s Executive Member for Economic Development and Infrastructure, Cllr Lewis Young, said in a statement on the authority’s website: “The formal approval of this housing delivery project is a significant milestone in the major regeneration plans for Middlesbrough.

“Quality housing is a central part of creating a Middlesbrough with a strong city-level economy where people want to live and work.”

He continued: “We have said it before but it is worth repeating – this is a bold and radical approach by Middlesbrough Council and our company will be driven by people, not profit.

“Alongside our Local Plan, the authority building homes means we can control and direct where new homes are built and what kind of high quality housing we want to meet the needs of local people.”

Middlesbrough is experiencing population growth for the first time, which benefits the economy of the town but puts added strain on housing stock, reducing availability and raising the cost of new homes.