COUNCIL bosses are set to foot two thirds of the bill for converting a prominent building into affordable homes in a bid to ensure development can get under way.

South Lakeland District Council had expected to pay 45 per cent of the costs of work to transform Ulverston Town Hall into nine flats for rent.

But the amount required by the authority has now rocketed to 64 per cent of the overall sum because grants from the Homes and Communities Agency are no longer available for housing intended for rent.

RELATED ARTICLE: Ulverston residents urged to have their say over town assets

RELATED ARTICLE: Debate over loos move for Ulverston Town Council

SLDC leader, Councillor Giles Archibald, said: "We are going to be putting money into the development of Ulverston Town Hall to provide affordable flats for rent.

"This represents a significant investment using money that has come in from the sale of social housing through the right to buy scheme.

"We are doing this because we are absolutely committed to providing 1,000 homes for affordable rent in the district in the next 10 years."

Planning permission for the conversion of the town hall was originally granted for 17 homes - nine within the building and eight new build flats next to it.

But the change in the way the project will be funded means council bosses are now planning a phased approach to development of the site.

They will aim to complete work on the town hall and ensure all units are let before assessing whether there is a need for extra homes in the town centre location.

A report to SLDC bosses this week states: "Due to a change in government policy, the HCA is no longer able to provide grant funding for new affordable rent schemes, hence no HCA funding will be available for the town hall scheme.

"South Lakes Housing has also obtained an updated cost estimate for the scheme.

"These factors have resulted in the council’s right to buy grant needing to cover 64 per cent of the scheme costs compared to the original estimate of 45 per cent."

Ulverston Town Council, which was among the organisations based within the building, is to relocate to the former public toilets in Brogden Street, which are set to be converted into a meeting room and offices.