One PFI down, two to go in Leeds refurb campaign

Leeds council is negotiating for a third private finance initiative scheme for housing, just weeks after managing to get its first one signed.

Leeds’ newest PFI housing scheme would refurbish 1800 properties in the Beeston Hill and Holbeck area of the city.

The council applied for this scheme in the fourth round of the government’s housing PFI programme.

A second deal to refurbish 1100 homes in the Little London area has been in negotiation since 2002. This second-round scheme seemed to have stalled after tenants rejected it in a ballot three years ago.

But the council said it would press ahead with the scheme and plans to use the PFI funds for new build as well as refurbishments.

Leeds’ only housing PFI scheme to have been signed to date went through six years of wrangling over costs but was finally signed on 18 March (HT 24 March, page 10).

The project, believed to be worth £200m in private finance, will result in the refurbishment of 1650 homes on its Swarcliffe Estate.

Leeds is only the fourth local authority to sign such a deal.

Leeds council is thought to be the first council to have a dedicated PFI department, which it set up at the end of 2003.

PFI housing is struggling to get established elsewhere in the country.

But Neil Evans, director of the council’s neighbourhoods and housing department, said Leeds local authority wanted to develop its reputation in the PFI. It has also used the PFI for educational buildings and street lighting.

He said: “We have been very willing to use the PFI and as a consequence we have developed expertise in it, which is thin on the ground nationally. We have developed a good reputation with government departments as a body that can deliver.”

Yorkshire Transformations, part of Yorkshire Housing Group, secured a £43m loan to refurbish the Swarcliffe homes. This will be spent on new bathrooms and kitchens, as well as on surrounding areas, including car parks.

Phil Joyce, who heads the project development team for regeneration, said: “There was no other route available to attract that level of borrowing. PFI is the only game in town.”