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EXCLUSIVE: Angus homeless unit empty for 15 YEARS put back on sale by council after bargain basement £110k deal collapses

Queen's Close homeless unit in Montrose is going back on the market. Pic: Kim Cessford/DCT Media.
Queen's Close homeless unit in Montrose is going back on the market. Pic: Kim Cessford/DCT Media.

A white elephant Angus Council homeless unit is going back on the market after not housing a single person for 15 YEARS.

Queen’s Close in Montrose has lain empty since a £355,000 refurbishment following a fatal fire there in 2007.

And it is five years since councillors decided to cut their losses and offload the 11 bedsit block for a bargain £110,000.

Queen's Close Montrose
Queen’s Close in Montrose lies empty. Pic: Kim Cessford/DCT Media.

But we can now reveal the deal has collapsed.

So the council is back to square one and looking for a buyer.

With local elections looming in May, it is a scandal which will stretch across four successive administrations of the cash-strapped authority.

Money pit

Queen’s Close is one of the historic alleyways leading off Montrose High Street.

The four-storey building was the scene of tragedy in 2007 when a man died in a fire at the homeless unit.

Angus Council set about a major refurbishment programme to improve the unit and reduce the number of bedsits to 11.

But the project to upgrade the B-listed building rocketed £100,000 over budget to £355k.

It included:

  • Four communal kitchens
  • Laundry
  • Extra en-suite facilities
  • New heating system
  • £25,000 sprinkler system
  • £21,000 door entry system

The building also has an attic which could be converted into a three-bedroom flat.

And hundreds of thousands of pounds have since been spent on its upkeep since the refurbishment.

Montrose homeless unit
More than £20k was spent on a state-of-the-art door entry system. Pic: Kim Cessford/DCT Media.

What went wrong with Queen’s Close?

Angus Council couldn’t get an HMO (House in Multiple Occupation) licence because changes to the rules meant the property was no longer legal for such a use.

An offer to a housing association to take it on was rejected.

In 2010 the authority said it was close to finalising a deal to lease Queen’s Close so it could re-open to tenants.

“It is important to get this at the right level to ensure we are providing an enhanced service for the residents and for the wider community,” the council said at the time.

But that plan also failed.

Offered for sale

Eight years on from the fatal blaze – and having not been occupied for a single night – the council decided to put Queen’s Close on the market.

A senior official said at the time there had been concerns from neighbours about its return as a homeless hostel following previous experiences of anti-social behaviour.

The communities committee of August 18 2015 was told: “Queen’s Close is a very difficult building for the council to use effectively.

Queen's Close Montrose
The hostel sits up a narrow close off Montrose High Street. Pic: Kim Cessford/DCT Media.

“It is in a very constricted residential and retail area, with a building layout that is both tortuous and unsatisfactory.

“Officers have looked at other options, but no alternative council uses for the building have been identified.”

Offers over £200,000 were invited.

Montrose property a knockdown price

Two years’ later, in November 2017, councillors agreed to offload Queen’s Close for a bargain £110,000.

By that time the cost of upgrading and maintaining the facility had passed the half million pound mark.

Town councillor Bill Duff branded it a “sorry story”.

“When the annals of Angus Council are written, the saga of Montrose homeless unit will not be one of the highlights,” he said.

“This disaster has spread over three administrations.”

Why did the deal collapse?

Despite having to take almost half of what was hoped for, there was relief the council would recoup some cash as it faced the most challenging financial period in its existence.

But when lawyers began finalising the sale process a major hurdle emerged.

The historic nature of Queen’s Close and its buildings meant the title deeds were a can of worms.

Montrose High Street
The narrow close leading to the homeless hostel. Pic: Kim Cessford/DCT Media.

“It is partly to do with the complexity of the asset, which is spread over not just several floors but Queen’s Close itself,” the authority’s housing chief said.

And the pandemic created further issues in sorting out the sale.

Those matters were eventually sorted out.

But the council has now delivered the bombshell news that the buyer has backed out.

A spokesperson said: “Queen’s Close is being marketed for sale as the potential buyer pulled out. The title situation has been resolved.”

What now?

Scottish council elections take place on May 5 so the future of Queen’s Close – if a new buyer emerges – will be decided by the next crop of local elected representatives.

In the meantime, the cost of Queen’s Close to the Angus taxpayer continues to mount.

And The Courier has spoken to the former council support worker who was the last to work there.

On Monday we will reveal their views on the “bloody waste” of the homeless unit which hasn’t been home to anyone for a decade and a half.