Leicester City Council acquires converted factory for affordble housing project

Renovation has started to restructure and equip 58 flats and bedsits to meet Leicester’s ‘pressing needs’ for more affordable housing.

Leicester City Council has finalised the acquisition of the ZIP Building, situated on Rydal Street near the city centre, aligning with plans announced last year.

The purchase cost the council £5.55m, with £2.4m from proceeds through the Government’s Right to Buy scheme, which is the maximum under the current rules.

The rest is financed via permitted prudential borrowing and allowable debt, customary for these council investments.

The three-story former factory building will deliver 58 affordable flats and bedsits and the majority of units will consist of one-bed flats and bedsits.

The remaining units will encompass a mix of two-bed flats, including two wheelchair-accessible properties, and three to four-bed cluster flats, some tailored to support independent living.

Renovation is currently in progress, with the initial council tenants expected to move in by March 2024.

Cllr Elly Cutkelvin, assistant city mayor for housing said: “The acquisition of the Zip Building will help meet the increasing demand for one and two-bedroom council housing. But we still face a desperate need for more affordable housing in the city.

“The Right to Buy scheme has hit the supply of council housing hard. We’re losing homes much faster than they are being built and it’s time the Right to Buy scheme was abandoned. We have been forced to sell thousands of council houses over the past 30 years.

“That makes it vital that we invest our Right to Buy cash receipts into schemes like this, which help address the critical need for more affordable homes.”