COLCHESTER Council has revealed multi-million pound plans to buy 100 former council homes in a bid to help relieve the housing crisis across the borough.

Once purchased, the authority would refurbish the properties ready to let to those on its housing register.

The scheme is expected to cost a total of £22 million, but the council expects to recoup all funds further down the line.

The properties’ ownership would be transferred on leases of at least 80 years to a new limited liability partnership involving the council and a new independent charity it wants to establish - Hollytrees Homes.

Before being transferred to the partnership, the properties would be let on a non-secure basis to homeless households as temporary accommodation.

A report, set to go before the council’s Cabinet on Wednesday, states: “The LLP would fund the lease from the council by borrowing and using rental income from the homes to repay the debt. At the end of the lease the borrowing is fully repaid.

“Rents would be specified under the terms of the lease to ensure the homes are genuinely affordable for Colchester residents.”

Colchester Borough Homes will handle the management of the properties under a separate agreement with landlord the LLP.

At the moment, there are just under 3,000 households on Colchester Council’s housing register.

The 100 properties would be a mix of one and two-bed flats as well as three and four-bedroom houses in a bid to suit different demands.

The report continues: “The 100 homes project would make a significant contribution to meeting the housing needs of Colchester’s residents who need affordable rented, secure and decent homes.”

It is expected to take around 18 months to purchase all 100 homes, with batches being transferred to the LLP at intervals. The council’s Cabinet is being asked to agree to fund the project and assist with setting up the charity.