Private Finance Initiative (Housing PFI)

The Housing Private Finance Initiative is intended to be an alternative to direct procurement, stock transfer or social housing grant for providing investment in social housing. It can be used on stock both inside and outside of the Housing Revenue Account (HRA).

A good PFI deal should achieve a transfer from the public sector of risks that can be better dealt with by the private sector, whilst maintaining good value for money. Projects which benefit most from this method of procurement tend to have a capital intensive element and a service provision element, both of which are paid for by the Local Authority across a long term contract (typically 25-30 years). These payments are performance related.

PFI credits are available from central government to support the capital element of projects.

Further information is available in the Publications about Housing PFI .