New build PFI social housing deals launched

A groundbreaking scheme to use private finance to fund a major social housing programme has been launched by the government.

The programme will see new build social housing schemes funded, built and maintained by the private sector and managed by registered social landlords (RSLs).

The programme was kick-started this week with the announcement of the first tranche of new build social housing schemes, worth £60m.

The schemes are in: Birmingham; Brent; Slough; Warrington; and Harrow. The five authorities were chosen from more than 20 councils that submitted expressions of interest in providing new housing through PFI last year. The five local authorities chosen will now complete a business plan.

These are the first housing PFI schemes that specify new and additional social housing.

Unlike existing PFI social housing schemes currently being bid for, the RSLs, formerly known as housing associations, must build or acquire additional social housing, rather than just providing refurbishment, management and maintenance.

Nor will the properties be owned by the council, instead the RSLs will be contracted to provide the housing for tenants on the council's housing list and the council will set the performance targets.