Council Sells Rugeley House to Avoid £60,000 Repair Bill
Cannock Chase District Council has decided to sell a three-bedroom semi-detached house in Rugeley rather than pay for extensive structural repairs estimated to exceed £60,000. The property, located at 63 Hagley Road, is set to be auctioned off after cabinet members approved the sale during a meeting on Thursday, March 5.
Structural Issues Prompt Sale Decision
A report presented to the council cabinet highlighted significant structural cracking in the single-storey rear extension and less severe cracks in the two-storey wing of the 1930s property. Three quotes from specialist contractors were obtained, with the cheapest underpinning work costing £59,966, excluding VAT. The council determined that selling the house in its current condition would avoid these substantial repair costs.
The property is currently vacant and owned by the council as part of its housing stock. According to the report, if the council undertook the repairs, it would take nearly 11 years to recoup the costs based on the annual rent, making the sale a more financially viable option.
Legal and Financial Considerations
The council noted that Section 11 of The Landlord and Tenants Act 1985 requires properties to be fit for human habitation for letting. Untreated structural issues and hazards prevent the property from being lettable, necessitating either repairs or disposal. A valuer recommended selling via public auction due to the ongoing structural problems.
Proceeds from the sale will be allocated to the council's Housing Revenue Account (HRA) Capital Programme, funding future approved projects. This move aligns with the council's strategy to manage its housing assets efficiently while addressing budget constraints.
The decision underscores the challenges local authorities face in maintaining aging housing stock amid rising repair costs. By opting for auction, Cannock Chase Council aims to mitigate financial risks while potentially generating revenue for other housing initiatives.
