City of London considers outside investment for housing projects
The City of London is considering bringing in outside investors to help fund housing projects in the Square Mile.
A partnership would be the first time the Square Mile has brought in outside investment for housing in the Corporation’s nearly 1000-year history.
The Corporation, which manages 1,800 social rented homes as well as 900 leasehold properties across London, has said it needs £205m to address the disrepair across its estates and ensure some buildings now comply with fire and electrical regulations.
Upgrades for the Grade II/Grade II*-listed Golden Lane estate, for example, have been delayed for years and will cost over £100m.
It faces a funding gap of £84m for its housing projects, many of which fall below industry standards and are in need of repair and maintenance, according to the FT.
The percentage of the City of London Corporation’s homes classed as ‘non-decent’ has almost doubled in the last 12 months, from 9.6 per cent to 17.6 per cent.
The Corporation has claimed this is primarily due to delays to major refurbishment projects, for which plans are progressing.
Outside investment a ‘long-term solution’
The City’s policy chair, Chris Hayward, has reportedly considered bringing in outside investment as a long-term solution to the issue of below-standard homes after improvements to some properties have made the assets more attractive, according to the FT.
Outside investment would only be considered for future housing schemes and redevelopment programmes, rather than changes to existing stock.
The salmon pink broadsheet has reported that the City of London could partner with a developer or considering long leases of some of its land for redevelopment.
In a statement the corporation told the FT it was “already investing over £110m in our 12 housing estates” and “delivering wide-ranging improvements including new windows, kitchens . . . [and] and electrical enhancements”.
“We will provide further substantial investment through our housing improvement plan, which is currently being developed,” it added.
“In common with all social housing providers, we have to ensure we have viable, long-term solutions to allow us to continue to invest in our housing and provide affordable homes and that requires us to carefully consider the viability of all options for investment. This includes potential partnerships with developers and investors.”
City AM has contacted the City of London for comment.
