Sunderland Conservatives question cost of affordable new homes scheme

Sunderland City Council has contracted North East construction partner Tolent to build five two-bedroomed bungalows for people aged 55 and over in Stanley Terrace, Shiney Row, for £900,000.

The opposition Conservative group on the council, however, now wants “clarification and explanation” on the £180,000 average cost of developing each property.

In response, the authority’s dynamic city portfolio holder, Labour councillor Rebecca Atkinson, insists the scheme “met the council’s stringent requirements” and provides added value “in terms of the benefit it would bring to the local community and economy”.

The scheme, which is aimed at creating affordable rented properties, is backed by £195,000 of funding from public body Homes England and is part of a £59million council-led series of housing improvements across the city.

But the housing spokesman for the city’s Conservative councillors, Cllr Michael Dixon, said: “Having spent 40 years working in the industry, I have been covering housing for the Conservative group of councillors for many years and my first reaction to this announcement was the vast amount of money being spent for so few properties.

"I think it is very much in the public interest for the current portfolio holder, Cllr Atkinson, to give full details of the cost here as the bold figures state five bungalows are going to be built for £900,000.”

Cllr Dixon added: ”As a political group we are able to support the construction of council-built bungalows, especially with the support of Homes England the housing arm of the Government.

"But the sums for this project, £180,000 per property, requires clarification and explanation, not only for councillors such as myself, but also for the people in the City concerned how Council money is being spent.”

Cllr Atkinson said: “As in all its endeavours, Sunderland City Council seeks the best possible value for every pound spent.

"This is not just about securing the lowest priced supplier, but is also based on the added value we can secure in terms of local economic benefit and job creation.

"This scheme, like all others, was awarded based on the value for money it represented and the benefit it would bring to the local community and economy.

“As Cllr Dixon will know from his time in industry, brownfield sites such as this can be problematic and costly to develop.

"The topography of this particular site, the required retaining features and constrained size of the site all contributed to additional development costs.

"However, the development still met the council’s stringent requirements in respect of the net present value and the pay-back period.”

She added that a similar scheme in Southwick supported more than 50 local businesses – “a huge boost to the economy during a time of challenge”.

Chris Price, regional director for Tolent, said earlier after construction work started: "Our successful partnership with the council is delivering more than 30 new homes in the city, all of which are creating high quality housing for a variety of needs, including these much needed bungalows for older people in Shiney Row.

"As a considerate contractor, we're also providing local employment opportunities, supporting apprenticeships and introducing a number of staff wellbeing initiatives over the course of the five-month build programme."

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