Bottomless Sinkhole Drains Affordable Houses From UK Public/Private Partnerships

Eccles New Road, Ladywell photo by Mikey is licensed under CC BY 2.0
Older public housing in Eccles ward of Salford City, UK

It seems that the bloom is off the rose in the United Kingdom, as local councils confront the loophole built into the nation’s public/private partnership initiative to fund and build affordable housing. The loophole allows private contractors to wriggle off the hook for their contribution to affordable housing development.

And just when can they do it? Developers can invoke the loophole in situations where their profit is not fat enough. Since this loophole was introduced, it would appear that profits are never, or hardly ever, sufficiently chubby. So, if they win a secretive viability hearing. developers can bail out of some of their contracted responsibilities to build affordable housing.

The Salford City Council for one finds itself millions of pounds short, while thousands of affordable houses have disappeared down the loophole. Read more in the Salford Star: SALFORD COUNCIL PLANS TO ‘REVIEW’ ITS DEVELOPER-FRIENDLY POLICIES


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