Council risks legal challenge to force through controversial youth housing plan

Twm Owen, Local Democracy Reporting Service.

Monmouthshire Council is pressing ahead with plans to buy a home for vulnerable teenagers despite clear legal warnings that the move could trigger a restrictive covenant lawsuit.

The local authority is moving forward with the purchase of a property for supported accommodation, even after independent legal counsel warned of a “credible risk” of breaching restrictive land covenants.

This latest move follows a failed attempt to establish a similar site in Monmouth, which collapsed when the council discovered the chosen property was legally barred from being used for anything other than a private or professional residence. During the search for a replacement, officials found that the new target property—along with five neighbouring homes—is subject to a nearly identical restriction.

Despite this, Monmouthshire County Council’s Labour/Green cabinet has agreed to proceed. Councillor Ian Chandler, responsible for social care, defended the decision, arguing that the benefits for vulnerable young people outweigh the legal risks.

“This is about improving outcomes for some of our most vulnerable young people,” Cllr Chandler said, noting that the council currently lacks sufficient placements. Without this facility, the authority faces the high costs of “spot purchase” placements and the potential relocation of teenagers away from their established support networks, family, and education.

To mitigate the risk of litigation, the council intends to purchase indemnity insurance to cover potential legal fees and enforcement actions. Cabinet reports indicate that property searches are becoming increasingly difficult, as a “significant proportion” of homes in the area are burdened by similar legal constraints, making it nearly impossible to find a completely unencumbered site.

The council has already successfully opened a similar facility in Caldicot, which Cllr Chandler noted has operated without neighbor complaints. The authority plans to engage with local residents in Monmouth to replicate that success.

The project will be funded through a Welsh Government Housing with Care Fund grant, with the council authorised to borrow up to £2 million to cover any shortfall. The site will be managed by an external provider, mirroring the model used in the council’s previous housing initiative.