31 January 2003
Housing minister Tony McNulty proposed this week that capital regulations should be changed so that land covered by the housing revenue account may be included in a private finance transaction.
So far, councils have only been able to set up PFI schemes for repairs, which have not generated much interest among private bidders.
'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,' said McNulty on January 29.
But anti-privatisation pressure group Defend Council Housing claimed that the PFI remained the most expensive way of funding.
'The government is desperately trying to find a way of avoiding the cheapest and most obvious option, which is direct investment in council housing,' said spokesman Alan Walter.
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