30 January 2004
Government efforts to promote the Private Finance Initiative in housing have received a boost after 19 local authorities bid to join the third round of the programme.
Fifteen bids included proposals for new properties – the first time that councils have had the prospect of building new homes for 15 years. The successful applicants will be announced in March.
The PFI has struggled to get off the ground in housing although two councils finally signed contracts last year and have started to refurbish homes. Round three, for which £650m is available in credits, is the first where authorities can include new building in their bids. Six involve a mix of refurbishment and new development.
Housing minister Keith Hill said he was delighted at the increased level of interest and repeated a government pledge to speed up contractual procedures. 'The proposed schemes go well beyond just delivering decent homes,' he said. 'They also demonstrate how embracing innovation can improve people's lives.'
But at least one of the third round bids looks unlikely to get much further even if it gains government go-ahead. The London Borough of Camden's plans to refurbish its Maiden Lane estate using PFI money will be put to tenants in a ballot shortly.
Earlier this month, tenants in the borough rejected an arm's-length management organisation following a strong campaign by Defend Council Housing.
Neil Litherland, Camden's director of housing, doubted whether the PFI proposals would fare any better. 'There is little support for the PFI,' he said. 'It has little to do with Defend Council Housing and more to do with what people think of the PFI. In two months, we will probably have a dead scheme.'
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