Government channels £500m into new schemes

The government renewed its allegiance to social housing PFI last week, in a bid to boost market confidence following the recent problems on the Camden, Ashford and East Derbyshire schemes.

Housing minister Yvette Cooper launched seven schemes worth around £500m. Three schemes in Oldham, Lewisham and Manchester will see 30,000 properties refurbished or replaced.

Another three schemes at Weymouth and Portland, Woking and Guildford will deliver nearly 1,500 new units, while Medway will pilot a new method of delivering extra care housing.

However, ODPM director of housing Neil McDonald conceded that the eight pathfinders, launched in 1998, had taken too long to close. He added that one of the biggest problems to dog the schemes was right to buy. “Asking PFI consortia to accept that customers can buy the main assets on generous terms was, to say the least, challenging.”

Nevertheless he insisted PFI is still a viable option: “Housing PFI can reach parts other approaches can’t reach.”