How housing is delivered and managed

There are a number of ways that local authorities can deliver housing.

Direct build 

Where local authorities have access to land that is suitable for housing development, social and affordable homes can be built directly on this land which will be owned and managed by the local authority.

Plans will be drawn up for the development, and there is usually a period of public consultation where members of the public can share their views on the plans. The final design will be put out to market, and private developers can compete in a tender process for the contract to build the development. 

Part V 

Part V is part of planning legislation that gives local authorities an entitlement to acquire a percentage of housing development land on which planning permission has been granted. Currently, local authorities can acquire 20% of this land at the existing value and use it to deliver homes.

Local authorities also have the option of acquiring finished units in the development or in another development that matches the value of the land, instead of acquiring the land itself. 

Developer arrangements / Turnkey arrangements

When private developers have plans to introduce new housing developments in areas where there is a need for social and affordable housing, the local authority can make advance purchase arrangements with the developer to secure a certain percentage of units for social and affordable housing. This means the local authority makes an arrangement with the developer to purchase a certain number of units before construction has commenced. 

AHB partnership 

Approved Housing Bodies (AHBs) also provide housing for those in need of accommodation. They are not-for-profit organisations or private companies who provide affordable rented housing to people who can’t afford private rented accommodation or to buy their own home. To be housed by an AHB, you must be on your local authority’s social housing list. 

Although local authorities are the main providers of social housing for people who cannot afford to buy a home or rent accommodation, local authorities enter partnership arrangements with AHBs where people from the local authority’s housing list can be given accommodation through the AHB.

Public-private partnership 

A public-private partnership (PPP) is an arrangement between the local authority and a private partner to deliver social housing projects under a long-term contract. The private partner will deliver the project, usually taking on the up-front costs and construction, and when completed the development will be handed over to the local authority for public use. The local authority will pay for the development over an extended period of time, after which the development will be solely in the ownership of the local authority.