Croydon in affordable homes ‘income strip’ deal
0Insurer Legal & General has announced an affordable housing income strip deal with London Borough of Croydon.
The fund will buy 167 homes in Croydon and neighbouring boroughs for £44.6m and lease them back to the council over 40 years.
The homes will be managed by Croydon Affordable Tenures, part of Croydon Affordable Homes, a local housing charity set up by the council.
At the end of the lease period, ownership will transfer to the council for a peppercorn sum.
Councillor Alison Butler, the council’s cabinet member for homes and gateway services, said: “The council set up Croydon Affordable Homes so hundreds of local families can get good-quality homes with secure tenancies, and Legal & General’s investment will save us around £20m in loan costs that means we can assist even more families in the long term. “]
“At a time when the Government is squeezing how much it funds local authorities, this innovative partnership offers us better value for money than more traditional loans available to councils, and I hope this encourages other councils and financial institutions to follow suit.”
