PFI in housing
This report, from the National Audit Office (HCP 71, session 2010-11, ISBN 9780102965285), looks at PFI in Housing. The use of PFI by local authorities to improve housing, usually in areas with a high need for housing and where the stock condition is particularly poor, has had a measure of success, but risks to value for money of the programme have not been managed. In the context of this programme, PFI has been a flexible and useful funding route for local authorities to improve existing housing and build new stock. However, the majority of projects required significant increases in central funding prior to contract signature and all have suffered delays. Twenty one of the 25 projects which have been signed to date have experienced cost increases, with 12 of these over 100 per cent. All signed projects, for which the NAO was able to obtain data, were delayed, on average by 2 years and 6 months. For early projects this was partly because PFI was new to the housing sector and the Department for Communities and Local Government had to develop its understanding of stock condition issues. Also, the Department's management for early projects was also weak and under-resourced. While the capital cost of PFI housing projects is similar to other developments, the Department's evaluation to date has not taken account of the full costs. Procurement also tends to take more time, which can increase procurement and tender costs for local authorities and bidders.
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allocated Arms Length Management assess Audit Office analysis Beeston Hill benchmarking bids build PFl capital cost central funding compared Comprehensive Spending Review contract signature cost increases cost of PFl council housing projects Decent Homes Programme Decent Homes standard delays deliver Department for Communities Department told Department's develop business early projects ensure evaluation Extra Care Housing Figure Forest Gate funding route guidance Hill & Holbeck housing association projects housing delivery housing sector improve investment options Length Management Organisation Little London local authorities managed the programme March Miles Platting months National Audit Office Newham non-council social housing Non-HRA PFl Scheme North East Derbyshire North Tyneside PFl housing programme PFl housing projects PFl in housing PFl procurement PFl projects planned Private Finance lnitiative private sector procurement routes programme level programme management Properties 2 lslington public sector refurbishment responsibility social housing projects staff Street Properties Swarcliffe transactors value for money