The consultation is
seeking the views of councils, registered social landlords, housing
associations and private sector consultants. The consultation period
is for four weeks, ending 26 February 2003.
Copies
of the consultation paper |
Local housing authorities will
be able to build new social housing under the Private Finance
Initiative following proposals issued for consultation.
The proposed changes to legislation will enable council's financial
freedom to build new social housing through Housing Revenue
Account (HRA) PFI schemes.
Under the current Capital Finance Regulation 16, HRA land is
excluded from the definition of a private finance transaction.
Housing Minister, Tony McNulty, said the proposals would offer
local housing authorities greater flexibility in reaching the
Decent Homes target by 2010 and in how PFI in social housing
can be used.
"By changing legislation to allow the building of new social
housing through PFI, we are giving local authorities the opportunity
to rebuild some of their worst condition stock, providing this
proves value for money and they can demonstrate long term demand
in the area".
Legislation will be amended by means of Statutory Instrument.
The Private Finance Initiative for local authority housing (HRA
PFI) uses private sector funding to refurbish council houses
and thereafter to provide housing serves. Tenants remain tenants
of the local authority. Eight authorities were chosen in 1999
to pioneer the HRA PFI scheme as pathfinders. Further information
is available at: www.housing.odpm.gov.uk/information/hra/index.htm
ODPM
Housing Policy Web page
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