£1m Peterborough council bail out for city homes scheme
Peterborough City Council is to bail out an affordable homes scheme to the tune of £1 million after promised grant funding did not materialise.
The authority will spend £1 million on an already completed Medesham Homes development in Midland Road, West Town, for 29 affordable homes.
The money was meant to be issued by the Cambridgeshire and Peterborough Combined Authority. However, the county’s mayoral body said it had been “inadvertently overlooked” that devolved money for affordable housing cannot be spent on affordable rent housing.
Therefore, the city council has had to paid the money instead.
A spokesperson for the combined authority said new legislation has now come into place to rectify the situation and that it will continue to “identify other affordable homes schemes” in Peterborough.
Council leader Cllr John Holdich said the £1 million will come from developers’ contributions which have to be spent towards affordable housing. He added: “The money the combined authority was due to spend will simply be spent elsewhere in the city instead.
“It will still come to Peterborough, indeed, a grant funding application for Belle Vue in Stanground is being considered by the combined authority at the end of May.”
Medesham Homes is a joint housing venture between the council and housing association Cross Keys Homes