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Housing PFI Explained

What is Private Finance Initiative (PFI)?
It is a method of providing investment in local authority housing. It aims to improve the standard of Council homes and services to tenants while allowing them to remain local authority tenants. PFI schemes are only suitable for improvements for specific estates.

How does PFI work?
It is a method by which Central Government provides financial support for partnerships between the public (e.g. Councils) and private sector companies. PFI schemes deliver repairs for existing housing and can include provision for services such as estate security or rent collection.

How long do PFI schemes last for?
The local authority will sign a contract with a private sector company, which usually lasts 30 years.

Why has housing PFI proved to be the right solution for Ardwick?

Ian Perry, Chairman of Grove Village and Chief Executive of Harvest Housing Group, says of Grove Village:

“Nothing like this has been achieved before. It is a unique partnership because of the different skills that were needed, but it is working incredibly well.

It would have been very easy to draw a line through the estate and keep the social housing on one side and the private ownership on the other, but we have learned from other regeneration areas and the best way is to spread the mix of housing.

People who live there tell us that they are delighted with their new homes and that is the big test.”