Outsourcing Model to Fund New Build

A new repairs outsourcing model has been developed that could increase the borrowing power of councils and finance new house building projects.  If successfully implemented, it could create hundreds of millions of pounds of additional ‘headroom’ underneath councils’ government-imposed borrowing caps following reform of the housing revenue account system. The new model works by delivering a minimum 10 per cent saving on major works by using private sector partners.  The savings would be used to make regular payments to a private sector company, which it could use to borrow against and return the capital funding for investment.  According to proposals from housing consultancy Is4, councils faced with limited borrowing capacity as a result of self-financing rules would be able to fund new house building programmes by outsourcing major repairs work.  Read more on Inside Housing.