PFI housing is mooted

Contractors could soon be called on to help develop Private Finance Initiative schemes for the housing sector - no matter who forms the next Government.

The development of PFI housing schemes been mooted by key contractors and builders, including Amey and Beazer Homes, as the next step forward for the initiative.

CJ was also told this week by the Construction Industry Research & Innovation Strategy Panel that PFI housing developments were a logical extension of the new moves in public service provision.

The National Housing Federation has called on PFI to be used to help redevelop local authority building stocks, with a spokesman saying: "PFI housing could apply to any housing provided by central or local governments."

The NHF represents non-profit making organisations in social housing. It believes that non-profit making Special Purpose Companies owned by local authorities could be set up to develop PFI housing schemes.

PFI housing developments could cover large numbers of new and refurbished stock, with housing being provided and maintained by SPCs in return for rental income. The model is similar to the provision of PFI infrastructure assets in return for shadow tolls or, in some areas, direct charges.

Industry figures agree that the state of housing stock, the buoyancy of the rental market and the need for affordable housing are converging to bring private sector involvement in low cost housing through PFI. Labour's public-private partnership system could also work.

Amey chairman Neil Ashley welcomed the idea: "I can't see any reason why it would not happen," but added that there were "bigger fish to fry" for PFI in the heavy civils market at present.