Council to borrow £45m to help ease housing crisis in Leicester

Leicester City Council members have approved plans to borrow £45m to purchase property aimed at easing Leicester’s growing housing crisis.

This involves purchasing 225 properties for temporary accommodation and leasing an additional 125 to ease demand for social housing and relocate families from unsuitable bed and breakfast and hotel arrangements.

As demand for housing rises due to an increase in homelessness and sped-up asylum decisions by the government, Leicester City Council anticipates additional costs of £23m in the upcoming financial year if no action is taken.

Initially scheduled for discussion in January, the proposal was withdrawn amid concerns over its legality, particularly regarding the use of general funds instead of the designated Housing Revenue Account.

City barrister Kamal Adatia assessed the legal risk as “low,” addressing some councillors’ apprehensions.

The plan had support from all parties except the Liberal Democrats, who abstained from voting.