Four social housing schemes go-ahead

by Carol Millett

Another four private finance initiative social housing pathfinder schemes have been given the go-ahead by the Treasury's project review group.

The four schemes in Reading, Camden, Newham (£30m), and Islington (£20m), are part of a vanguard of eight PFI social housing projects which will be closely monitored by the Treasury. If they are successful, a host of other PFI social housing schemes are expected to follow.

The schemes follow four other pathfinder projects which won approval last autumn in Manchester, Leeds, Sandwell and north-east Derbyshire, worth £144m (CJ 10 November, page 3).

The pilot schemes involve long-term refurbishment and maintenance contracts on inner- city housing estates. Some contracts will include stringent security, employment and energy targets.

Speaking at the Chartered Institute of Public Finance and Accountancy conference in London, local government minister Hilary Armstrong said that the PFI housing pathfinders demonstrated: "The contribution PFI can make to improving housing stock, while allowing it to remain in local authority ownership. I am convinced that the PFI approach will prove a valuable strategy for boosting investment in social housing."