THE purchase of a £1.2m bed and breakfast in Windsor to house the homeless was labelled a “financial mistake” by an opposition leader.

Last month’s decision made by cabinet to put the vacant Cedar Tree House in St Leonards Road on the market either as a family home or three flats were ‘called in’ by councillors after fears of selling the property at a loss without exploring other sale options does not achieve best value.

Senior councillors decided to sell off the property rather than go with officer recommendations to spend an extra £490,000 to convert the former B&B, which was bought at auction for £1.2m in 2021 and was used to house the homeless during Covid-19, into seven studio flats for temporary accommodation.

This is because growing construction costs due to inflation and the chance of planning permission being refused represent a high risk for the council.

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Anti-social behaviour concerns were raised about the scrapped move. At a corporate overview and scrutiny meeting, Cllr Shamsul Shelim (Con: Eton & Castle) said: “It’s [Cedar Tree] in the wrong place. It’s next to a school and children, and residents have been complaining about the issue.”

The Royal Borough will invest £150,000 in refurbishment works to sell it as a family home for £1.15m or convert it into three flats.

Speaking at the meeting on Monday, September 12, Liberal Democrat leader Simon Werner (Pinkneys Green) said the council is now facing the consequences of a “financial mistake,” adding: “Selling it [Cedar Tree] at a loss seems like an insane thing to do.”

Council leader Andrew Johnson (Con: Hurley & Walthams) said he was “clear” at August’s cabinet meeting that the council will explore and consider the option to convert the property into three flats to achieve best value, but his “instinct” tells him it will be a family home.

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He also denied this was a “financial mistake” as it would help bridge the council’s gap in providing temporary accommodation across the borough, but an “explosion in inflation” in build costs has significantly impacted the project.

Cllr Johnson said: “I’m not going to be lambasted for taking a decision contrary to the advice I have received.

“It is my prerogative as an elected member to consider that advice but also take what I believe and what my cabinet believes to be the best decision. We are not here to rubberstamp things. We are here to challenge as well.”

The paper will go back to September’s cabinet for senior councillors to redo their decision and review the sale options for the property.