Bournemouth council accused of ‘casino capitalism’ over beach hut sale

theguardian.com:

The multicoloured wooden beach huts lining the golden sands of Bournemouth and Poole were in full use once again this weekend as adults basked in deckchairs and children built sandcastles.

These simple structures on this famous stretch of the Dorset coastline are highly sought-after, with typical waiting times for a long-term rental ranging from five to 20 years. However, some users are now worried about plans by council bosses to cash in on the huts by selling them to a “special purpose vehicle” (SPV) to boost their budget with a £54m windfall.

The financial scheme proposed by the Conservative-led Bournemouth, Christchurch and Poole (BCP) council involves selling the huts to a company controlled by the authority. It will generate a large capital receipt for the council for new investment.

The proposed arrangements face mounting scrutiny, with questions raised in parliament over the scheme and a local backlash.

Mike Cox, a local Liberal Democrat councillor, said: “This is the worst kind of casino capitalism and people are appalled by it.” He described it as the type of scheme which would be devised by Gordon Gekko, the anti-hero in the 1987 film Wall Street.

The value of many of Britain’s beach huts has climbed steeply in recent years. The council has already built 131 larger “super huts” over the last decade which have sold for about £40,000 each, raising more than £5m.

Some of the UK’s most expensive beach huts are located at Mudeford Sandbank in Christchurch. The Observer has been told one of them recently sold for more than £500,000. It is about 20 minutes walk from the road, with a fitted kitchen, a seating area which can be converted into two double beds, and a mezzanine level.

Lizzie Manetta, 60, who pays £2,700 a year