Barking & Dagenham Council has won an award for its groundbreaking sale-and-leaseback special purpose vehicle (SPV) providing new rented housing in the borough.
The scheme, which will deliver 477 new homes for rent split between the William Street Quarter and the eastern end of Thames View, won the 'innovative finance' category at the recent Municipal Journal awards.
The Barking and Dagenham Reside SPV sees institutional investor Long Harbour fund the homes, with the council guaranteeing the rent payments and retaining control of the properties until they eventually revert to its ownership.
Deputy council leader Rocky Gill said the programme was an original approach to delivering new homes at a time of tight public sector finances.
"The team developed a genuinely innovative financing model to get the bricks and mortar in place while making sure that the council has full control over management, allocation and maintenance,” he said.
"It’s never been tried in this form before - it’s truly pioneering, so I am proud our borough has delivered it."
Around three quarters of the Barking and Dagenham Reside homes will be rented out at 80 per cent of market rent, with a few at 65 per cent, all targeted at local people in employment.
The remaining homes will be let at 50 per cent of market rates, allocated in the same way as council housing.
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