Stoke-on-Trent City Council are to invest £55 million between 2017 and 2020 in the authority’s housing company Fortior Homes.
The company is looking to establish a stock holding of more than 400 homes and generate a regular income for the council from dividend payments, as well as increase its council tax base.
Fortior Homes’s business plan for 2018/19 onwards will go before cabinet members at a meeting on February 27.
Councillors will be asked to recognise the achievements the company has made over the last 14 months, as well as note its plans for future years.
The company has already expanded their portfolio by owning five properties in Bucknall, Hanley and a contractual commitment for 160 additional new properties.
Fortior Homes has also appointed a construction partner on the city centre Smithfield site for 151 apartments and a contractor partner for the redevelopment of the Bridgewater housing zone site for approximately 100 homes.
Councillor Randy Conteh, the city council’s cabinet member for housing, communities and safer city, said: “We are investing heavily in housing in Stoke-on-Trent, making it a place where people want to live, work and visit.
“The creation of Fortior Homes is just one important aspect of that strategy, and its role will play a crucial part in building confidence with private sector developers who are considering other investments in the city.
“Fortior Homes will allow the council to deliver on our objective for significant investment in quality new housing and, additionally, create more local jobs.
“The primary purpose of Fortior Homes is to provide a commercial return for the council through the acquisition and construction of properties for supply as market rented housing.
“Its business plan clearly sets out what it hopes to achieve, and what has already been accomplished.”
By the end of 2018/19, Fortior Homes plans to have another 63 homes in management including properties on the Alexander Gate development on Waterloo Road, generate land receipts of around £1.9 million for the council, hold a property portfolio with an expected value of around £5.6 mollion and to start construction on the Smithfield and Bridgewater developments.