Cheltenham Council's Housing Strategy Faces Scrutiny Amid Financial Strains
As pressure mounts over speculative investments and asset sales, Cheltenham Tenant Union needs to grow.
Cheltenham Borough Council’s decision to bring its arms-length housing management organisation, Cheltenham Borough Homes, back under direct control has sparked concern among residents and tenant advocates. The move, announced in late 2023, shifts operational oversight of approximately 5,000 social housing properties into the council’s central administration — a development that comes against a backdrop of fiscal constraint and increasing asset disposal.
Council leaders described the change as a response to “evolving regulatory frameworks” and “efficiency requirements.” However, critics suggest the transition may be financially motivated, part of a broader strategy to consolidate control over public assets that could be used to offset mounting liabilities.
A Broader Pattern of Asset Liquidation
The council has in recent years pursued a notable divestment programme. Municipal buildings, car parks, and a portion of the Regency Arcade have been sold. The Swindon Road recycling facility has been closed. These decisions appear consistent with a need to generate capital or reduce operating costs, though no formal admission of financial distress has been made.
Concurrently, Cheltenham Borough Council is servicing debt associated with the Golden Valley Development — a speculative high-tech and cyber park project adjacent to GCHQ. Council records suggest it has committed over £130 million to land acquisitions and infrastructure preparation. Interest payments alone on associated borrowing may amount to £2 million annually, a significant outlay in the context of local government finance.
Tenants Fear Privatisation by Stealth
The consolidation of housing under the council’s direct remit is raising questions among tenant organisations, who fear that control over social housing assets may facilitate future transfers to private or institutional investors.
“There is concern that this could enable securitisation or sale of housing stock to private equity or pension funds,” said a spokesperson for the Cheltenham Tenants Union, a newly-formed advocacy body. “This would fundamentally alter the character of social housing in the borough — turning it from a public service into a yield-generating asset.”
While there is no public policy proposal currently on the table to sell the housing portfolio, tenant leaders argue the absence of a clear pledge against disposal is itself noteworthy. “It would be a simple matter to reassure tenants with a policy commitment,” the spokesperson added. “That has not happened.”
Rents and Affordability Under the Microscope
Tenants have also expressed concern about rising rents and the absence of any council commitment to reduce them. Under current national policy, “affordable rent” can be set at up to 80% of market rate — a threshold that, in the Cheltenham context, places housing costs out of reach for many working households. Many are already paying 40% or more of their income on rent.
In the context of high inflation, wage stagnation, and a regional housing shortage, the pressure on low- and middle-income tenants is acute. The absence of clear local plans to address affordability has led some to call for a more assertive tenant voice in local policymaking.
Building our numbers, building our strength, building tenant power.
The Cheltenham Tenants Union is now inviting residents of council-owned properties to join with tenants in private rented households and complete a survey form, designed to test agreement on key points of concern and to gauge interest in political or organisational engagement. Options include supporting or standing for office, distributing campaign materials, and engaging with council decision-making.
