After having to endure massive cuts to local services as a result of the council wasting money on an IT system they were told would fail and cuts to government spending, hard pressed Birmingham residents have now lost another £320 million through the sale of accommodation originally intended to house athletes at the 2022 Commonwealth Games in the city.
While 23,000 local working class families wait for social housing, the council is set to sell 755 homes into private hands. The council have agreed to sell at a loss, increasing the council's debt by up to further £152 million. Residents have already endured massive cuts to local services as the council tries to rectify the debt it already has.
The apartments were built late because of delays caused by lockdown and have stood empty ever since, with the council paying to heat and secure them whilst deriving no revenue.
Brummies have been told that the Games made a profit but this particular development cost £325m, of which £292m was borrowed. Birmingham City Council have proved they’re incompetent at even carrying out capitalist economic management!
The council said they would be homes for local people after the Games finished but now they consider that this sale is the best option! All the council will get is a mere 213 units for social housing.
The council incredibly states that they unable to sell them due to a lack of “market appetite” for one- and two-bedroom apartments in the area. Try telling that to people on the housing waiting list! Additionally the council have tried to sell them for more than mortgage lenders think they’re worth!
Cuts will be made elsewhere to local services to make up for this additional loss.
Ayoub Khan, the independent MP for Perry Barr where the apartments are located has called on the government to provide the funding so that all 968 homes could be kept rather than selling them off where private investors are going to profit.
Socialists would support Ayoub Khan’s call for the government to provide the money for the council to buy the apartments but also demand that they come up with the cash to solve Birmingham’s chronic housing need.
Until July 4 the council could hide behind the fact that the Tory government wouldn’t provide the money. This no longer applies; it’s ‘their’ government in power now.
If the council won’t stand up for the people then they should be challenged by anti-cuts candidates at the 2026 council elections.