28 March 2003
Manchester has become the first local authority to sign a contract to improve council housing directly through the Private Finance initiative.
The contract was signed on March 25 – three and a half years after the council was selected as one of eight pathfinder schemes to test whether the PFI could be used effectively in housing.
A second pathfinder, the London Borough of Islington, is due to sign a contract on March 31 while another six have yet to finalise details. Housing PFIs have had difficulties in finding suitable contractors.
Manchester's scheme, worth £90m including a government commitment of £40m, involves a consortium of four organisations. Under the deal, more than 600 flats and houses will be refurbished and up to 500 new homes built to replace about 400 that will be demolished.
In 2000, North East Derbyshire District Council renovated 34 homes through a PFI scheme, but had to transfer them to a local housing association in order to circumvent restrictions in force at that time.
PFmar2003
