Tunbridge Wells Borough Council's £2.5million property cash-in bid

EMPTY shops and houses on the market could soon be snapped up by Tunbridge Wells Borough Council as it looks to take advantage of the economic downturn.

The council has set aside £2.5million from matured investments and unallocated reserves to spend on property in a bid to profit when the economy bounces back.

In a report to cabinet, members were informed the downturn had seen the number of empty properties in the borough rise, which presented the council with an opportunity to invest.

Portfolio holder for corporate services Cllr Len Horwood told the Kent and Sussex Courier the council was not yet "actively looking" to buy property.

"At the moment it is just a provision. The £2.5million is there. It has gone through council and has been agreed. It gives us an opportunity if it arose.

"The economic downturn and the falling prices of property is the reason why we decided to do it now. When the economy does turn the value of the property will be far higher than we bought it for.

"It is too early to say what we would do with the property. It is very much dependent on the location, size and what type."

The report to cabinet, by the council's director of change and business support William Benson, said the money could be spent on securing sites to support the Tunbridge Wells Regeneration Company, a partnership between the council and developer John Laing, which has a 10-year vision to regenerate the town.

It also stated property could be rented out or used for affordable housing.

Cllr Horwood said; "There are a number of options open to the council. It might be possible some of the housing or shops in Crescent Road became available – if this was the case then we may look to buy these."

Tunbridge Wells-based estate agent Batcheller Thacker said it was not a high-risk gamble and it was a good time to invest in the property market.

Partner in the firm Mark Haffenden said: "If they are not getting a return on other investments then bricks and mortar is a good way to go. If they buy-to-let and get a steady return from that, then you would think if prices came back up it would be a sound investment."