Local housing companies
Produced in partnership with Alan Aisbett of Bryan Cave Leighton Paisner LLP
Local housing companies

The following Local Government guidance note Produced in partnership with Alan Aisbett of Bryan Cave Leighton Paisner LLP provides comprehensive and up to date legal information covering:

  • Local housing companies
  • Brexit impact—public procurement
  • Housing delivery
  • Rationale of the LHC
  • Powers of local authorities to form LHCs
  • Financing of LHC through Prudential Borrowing and Capital Receipts
  • Management and governance of LHC
  • Disposals of land
  • EU Procurement and State Aid Rules as applied to the LHCs
  • Joint Ventures

Brexit impact—public procurement

The UK public procurement regime derives from EU public procurement laws, and is therefore impacted by the UK’s withdrawal from the EU. For general updates on the process and preparations for Brexit, see Practice Note: Brexit timeline. For further reading on the impact of Brexit on public procurement, see Practice Note: Brexit—the implications for public procurement.

Housing delivery

Over a number of years the term local housing company (LHC) has had various meanings in the context of housing delivery vehicles. It was first used post Housing Act 1996 in the context of large scale voluntary transfer of urban estates to a company which had equal representation of the local housing authority (LHA), tenant and independent members and often attracted Government subsidy for example, from the then Estates Regeneration Challenge Fund (ERCF). See Practice Note: Housing stock transfer.

The term LHC appeared again in the Housing Green Paper, 'Homes for the future: more affordable, more sustainable', in July 2007. The model on this occasion as envisaged by English Partnerships (subsequently the Homes and Communities Agency and now Homes England), involved a 50:50 long-term corporate joint venture between the LHA and a private sector partner established to develop local authority land.

The term LHC today is used to describe independent arms-length commercial organisations wholly or partly owned by LHAs