Dover creates residential property company
0Dover District Council has voted to create a local property company to buy open market housing and make a commercial return from rental income.
The council’s cabinet this week voted to approve a start-up loan to the company, using PWLB borrowing lent at a commercial rate. The company would spend £2m a year on investment properties within its district at an average price of £150,000, according to the company’s business plan.
The council hopes to make at least 6% return from annual rents, and said that it owns a number of sites that could be developed out by the company in future.
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