Moray Council pauses its house building plans
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Concerns have been raised over Moray Council’s ability to build the number of local authority houses it has pledged.
In February last year it was agreed that 50 council homes should be constructed annually.
But current economic conditions including high interest rates and inflation, coupled with labour shortages, are impacting progress.
As part of a housing budget review the local authority has now paused its efforts to find new sites for council homes.
However, Edward Thomas, the council's chief housing officer, is keen for current building targets to be maintained, given the benefits extra rent gives to the local authority
The issues were discussed at a meeting of the housing committee yesterday.
Councillor Donald Gatt (Keith and Cullen, Conservative) asked if the local authority could meet construction targets.
He said: "Are we saying we’re not going to be able to build 50 houses a year under the current economic climate?
"I believe we have building inflation somewhere over 20%."
Mr Thomas told the meeting he wanted to see levels maintained.
He said: "Where developments are significantly progressing – for example Bilbohall has gone to a particular point of maturity – we are continuing to work on those.
"But any future developments, we are taking a pause to enable us to refresh the business plan."
That plan will go to full council in March for consideration as part of the overall budget setting process.
Mr Thomas added: "At that stage we will indicate the extent to which future building can and should continue at existing volumes."
Last year the local authority withdrew plans to build at the former Spynie Hospital site in Elgin because of rising costs.
There have been delays at the Bilbohall development in Elgin and Speyview in Aberlour.
There could also be delays at the Banff Road development in Keith because of rising borrowing costs.
