The closure of the house building company run by Liverpool Council that once promised to build 10,000 new homes has been confirmed.
A little more than four years after launching Liverpool Foundation Homes, to “radically reshape” the city’s housing market, the local authority has confirmed it will move the company into voluntary liquidation. A decision was taken by the council’s cabinet this morning to wind down the operation that developed just 18 properties.
In a major launch back in 2018, then Mayor Joe Anderson said the new 'Foundations' company would deliver 10,000 properties across the city, fuelled by an estimated £500m investment programme. There would be a focus on building homes for foster families, the elderly, people with disabilities and the homeless as part of an 'ethical' housing company.
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It had been described by then Mayor Anderson as the most exciting policy of his time in office. This morning, in the West Reception room of Liverpool Town Hall, Deputy Mayor Cllr Jane Corbett said the company was “no longer a viable proposition”.
Cllr Corbett said: “During the review of Foundations, it was very clear that the people involved with the company were focused on how they could provide good quality, affordable housing in the city. For various reasons, it is clear this didn’t work out as planned, but I would like to thank those people involved for their hard work and commitment throughout the life of the company.”
The cabinet granted authority to Dan Fenwick, city solicitor, for the City Council’s legal charges over the properties owned by Foundations to be discharged to facilitate their disposal. Ian Duncan, interim director of finance and resources, has been tasked with writing off any outstanding amounts owed to the council by Foundations as well as authorising any valuation costs of the company’s assets conditional on the winding up costs being within the £1.5m reserve.
All Foundations employees left the organisation or returned to the council by April last year. The 18 homes it did bring about will be passed from the council to a registered provider, who can take over the rent to buy arrangements.
Cllr Corbett told cabinet this morning closing Foundations would “reduce the burden it places on the city council in terms of costs and administration, allowing officers to dedicate their time towards delivering a housing strategy which enables housing development in the city.” Once in liquidation, the process will begin to formally dissolve the company entirely.
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