Housing PFI
In housing private finance initiative (PFI) schemes local authorities contract with private sector firms to build, improve, manage and maintain social housing.
While management of the housing stock becomes the responsibility of the private sector contractor, the local authority continues to own the housing and retains its tenants. Good PFI deals transfer risks from the public sector to the private sector, whilst maintaining good value for money.
The projects that benefit most from PFI tend to have a capital-intensive element and a service provision element. The local authority pays for both elements over the course of a long-term contract, typically 25-30 years, on a performance-related basis.
The PFI approach offers an alternative to direct procurement, stock transfer and social housing grants, and the scheme can be applied to stock that is accounted for within or outside of the local authority’s housing revenue account. PFI credits are available from central government to support the capital element of projects.
PFI projects
Details of PFI schemes are available. The sixth bidding round, which was announced in July 2009, was the last for the Comprehensive Spending Review 2007 period. There are no plans for further bidding rounds in 2010.
Our role
The HCA is responsible for delivering the housing PFI programme. We provide support to local authorities running PFI projects and make recommendations to Communities and Local Government on the allocation of PFI credits.
Contact details
Steve Trueman
steve.trueman@hca.gsx.gov.uk
Last updated: 5 March 2010