Leicester councillors have agreed to borrow £45m to buy property to help the city council tackle the local housing crisis.
A total of 225 properties will be purchased to use as temporary accommodation, and a further 125 leased for social housing and for families in unsuitable hotel accommodation.
There were concerns about the legality of using general funds to buy the property rather than the dedicated Housing Revenue Account. However, city barrister Kamal Adatia described the legal risk as ‘low’.
The city council argues that failing to purchase the new properties would result in the council facing extra costs of £23m in the coming financial year.
The plan was supported by all parties except the Liberal Democrats, who abstained.
