Housing pilot needs private cash

27 Feb 03
A new partnership body set up to boost housing in the Northwest has admitted that it must attract substantial private money because of uncertainty over government funding. Elevate East Lancashire is one of nine market renewal pathfinders that each rec

28 February 2003

A new partnership body set up to boost housing in the Northwest has admitted that it must attract substantial private money because of uncertainty over government funding.

Elevate East Lancashire is one of nine market renewal pathfinders that each received an initial £2.66m from the Office of the Deputy Prime Minister last year. Earlier this month, the government confirmed it was setting up a £500m housing market renewal fund, with the first £60m to be allocated in 2003/04.

But David Riley, pathfinder co-ordinator in East Lancashire, said it was not clear how the money would be distributed. 'We believe it will be through negotiation rather than outright competition.'

In the meantime, the body will have to 'lever in' private finance as well as turning to sources such as English Partnerships. 'Private sector investment is tricky given prevailing market conditions,' said Riley. 'There is not a lot of private investment in older housing, which is why we are aiming to make neighbourhoods more sustainable.'

Elevate East Lancashire, which covers four district councils, was launched last week. It announced a £1m programme of demolition and environmental schemes to start in the next few months. It aims to raise £1bn over 15 years.

The Housing Corporation, meanwhile, has invited housing association tenants in pathfinder areas, all of which are in the Midlands or the North, to bid for grants totalling £2.7m.

The money will fund schemes supporting market renewal and will be paid in tranches of £100,000 for each pathfinder over three years.

PFfeb2003

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