Flats Worth Rs 6.6 Crore Sold For Rs 100 To Ensure Affordable Housing In UK

The Cornwall Council in the United Kingdom has made the decision to sell Grade II listed flats valued at 640,000 pounds (equivalent to Rs 6,61,64745) for a nominal sum of 1 pound (approximately Rs 103). This move is aimed at ensuring the availability of affordable housing options in the center of a Cornish town, according to The BBC.

On September 13, the council's cabinet granted approval for a recommendation to transfer ownership of the 11 Coastguard Flats in Looe to a community land trust for a nominal fee. This decision was made due to the high maintenance costs associated with the building, which the council found unsustainable. The Looe flats were transferred to the Three Seas Community Land Trust following their commitment to undertake a 1 million-pound refurbishment project funded through grants.

The news portal reported that the councilors said the deal meant it would remain affordable housing. Second home ownership and holiday rentals are blamed for the shortage of affordable housing in the county.

"This will retain much-needed affordable housing provision in Looe," Councillor David Harris, Cornwall Council's deputy leader, told the BBC.

He said an open market sale would likely have resulted in "the loss of affordable housing provision in Looe", impacting negatively on the housing service by "increasing demand for temporary accommodation".

He added, "A community-led redevelopment scheme would ensure the flats would still be used for affordable housing provision."

The housing crisis in the UK is a pressing issue, with a pronounced shortage of homes, especially in regions like London and the South East. In these areas, both property prices and rental costs have surged, posing substantial challenges for individuals trying to purchase or rent a house. As per the findings from the Centre for Cities, the UK currently faces a significant backlog of 4.3 million homes that are urgently needed to adequately accommodate its growing population.