Council votes against student housing land sale

The matter will now go to full council for a final decision

Exeter City Council has voted against selling off two multimillion-pound sites for student housing.

A report for the council had recommended selling the old Clifton Hill leisure centre site and the Mary Arches multi-storey car park site with unrestricted use - going against council policy.

The report said the city council needed to make the maximum amount of money from the sales so it could pay off a debt of about £9m as a result of the failure of its housing development company, Exeter City Living.

On Tuesday, the council’s executive voted unanimously not to allow purpose-built student accommodation on either site.

Phil Bialyk, leader of Exeter City Council, said he was confident land sales would "satisfy the situation of our outstanding debt"

Council leader Phil Bialyk, Labour and Cooperative, said: “We will continue to work to get the right homes built in the right place, for the right people.

“We will do this even when it is the option that doesn’t give the highest financial return.

"By choosing to invest in the future development of our city in this way we will ensure that our shared vision continues to be delivered.”

Mr Bialyk said figures for the valuation of the sites were confidential but he was confident the sales of both sites would "satisfy the situation of our outstanding debt".

Diana Moore, leader of the Green Party on Exeter City Council, said the authority had turned "assets into liabilities"

Diana Moore, Green Party leader on Exeter City Council, said the Labour-led council had "turned council assets into complete liabilities".

She said: "They are now selling off important sites which should be decent homes, affordable homes for our communities."

Michael Mitchell, Liberal Democrat group leader on Exeter City Council, said the council would still need to find more cash

Exeter City Living was set up as an arms-length company by the council to provide social and affordable housing and bring in extra revenue.

Exeter City Council said the project failed due to a series of issues such as Brexit, Covid-19, the invasion of Ukraine, high inflation rates and repeated interest rate rises.

Michael Mitchell, Liberal Democrat group leader, said there was "about a £9m shortfall" that would need to be found from the sale of the two sites.

He said: "We don't know what the market value of these two sites are, particularly with the restricted use on them."

Mr Mitchell believed the council would still have to find more money to cover its debt.

Conservative group leader Anne Jobson said the council was facing an increasing amount of debt

Anne Jobson, Conservative group leader on Exeter City Council, said council debt was a growing problem.

She said: "There clearly will be a financial implication on a council who has already, I would say, by its own financial poor decision making, in approximately £163m worth of debt."

The matter will now go to full council for a final decision.