The first application from South Tyneside Council’s own house building company has been officially submitted.
Centaurea Homes Limited aims to identify sites that big-name housebuilders have shunned and transform them by winning planning permission and appointing the contractor.
By cutting out the middle man, it hopes to boost the borough’s housing stock and turn a profit – using the cash to support other income streams.
Now the first application to create 62 new homes on land at Eskdale Drive, in the Lakes Estate, Jarrow, has been lodged with the council’s planning department.
The application states: “The Lakes Estate was constructed in the period following WWII, circa 1946 and 1964. The properties on Eskdale Drive were built using prefabricated building methods and were originally built to meet a short-term housing need.
“Originally constructed to last 15 years, the properties fell into poor condition and were demolished in the summer of 2016. The site is now cleared.”
The council insists that by owning its own company, it has the potential to maximise returns available from the housing development sector.
Previously a spokesman said: “South Tyneside Council has established Centaurea to develop high quality housing for sale within the borough.
“The council believes that by having an option to develop through its own company it will be able to choose from a full range of options for each developable site that it owns and therefore will maximise its returns and potentially secure the development of sites that might not be as attractive to a commercial developer.
“Profit made by Centaurea will either be reinvested in the company to allow for further development or distributed to the council as shareholder.
“Such a dividend will form part of the council’s income and will be used for its purposes within the borough to supplement other income.”
Comments can be made on the plans until April 2 on www.southtyneside.gov.uk.