Social housing set for LIFT-style deals

A new way of delivering privately- financed social housing schemes, based on the NHS LIFT model, could be launched by the end of the year.

The model is awaiting ministerial approval at the Office of the Deputy Prime Minister (ODPM). If it gets the go-ahead, pilot schemes could be launched in December. Local authorities are already positioning themselves to deliver the first pathfinder schemes.

Brian Johns, chief executive of Partnerships for Health, outlined plans for a LIFT-style social housing model at Contract Journal’s NHS LIFT conference last week. He said the new model could see local authorities and private sector consortia forming local housing partnerships (LHPs) to deliver social housing schemes.

Each LHP would take the form of a joint venture, similar to NHS LIFTCos, with the local authority taking a percentage share in the venture.

An ODPM spokeswoman confirmed that ODPM ministers are considering the LHP model. She added: "It is at ministerial level, with the secretary of state." She said that if the model gets ministerial approval it could be launched "at the next PFI bidding round in December".

Jane Evans, corporate finance director at KPMG, is discussing the development of the model informally with the Treasury and ODPM. She told CJ: "We are looking at a model based on a number of different structures in which KPMG has been involved, including LIFT, with phased schemes that could include a broad mix of social, key worker and affordable housing along with student accommodation and market housing.

"Private sector innovation is also key. We do not want to go out with a rigid prescriptive deal, and we want to widen the pool of bidders to include property developers and registered social landlords as well as contractors."

Richard Weston, managing director of Equion, which has six NHS LIFT schemes and two PFI housing deals, commented: "We are totally supportive of this kind of approach to social housing because it reduces procurement time and costs, delivering far greater efficiencies in terms of expenditure on housing units, lower administrative costs and a partnership approach to neighbourhood regeneration."

Stuart White, business strategy director at Accent, formerly the Bradford and Northern Housing Association which has two NHS LIFT schemes and 1,800 homes, said he had met ODPM officials to discuss the model. "We believe it would be quite easy to adapt LIFT to a social housing model. There is clearly a need for another form of funding for social housing schemes."