Chris Buss: Loadsamoney, reserves and de-risking estate regeneration
0
Although I have a preference for 60s and 70s comedy, showing my age I know, I do have rather a soft spot for Harry Enfield. One of his early characters was the Cockney plasterer Loadsamoney, used by some as a poor taste example of late 80s Thatcherite excess.
Some of you might wonder what this has got to do with developing financial deals in the current market. But bear with me. Wandsworth is in the unusual position of being “flush with cash” in its HRA to the extent that the council, even after paying off its housing subsidy bill in excess of £400m in 2012, still has over £250m left in HRA reserves.
In addition, a further £100m borrowing head room is sufficient to significantly de-risk some very major estate regeneration schemes that will, over the next fifteen years, deliver additional council managed social housing to the borough as well as additional private rented units and housing for sale. Loadsamoney indeed.
The balances, whilst providing good quality responsive and capital improvements to the stock, also enable us to actively engage in land acquisition and site assembly, including leaseholder buy back. They allow the council to have a positive major stake in the developments enabling any surpluses to be ploughed back into future schemes to ensure the council is able to continue meeting aspirations from all parts of the community for a quality housing product covering all tenure types.
The building up of these balances over the years has not been without criticism but their availability now means the council is not totally dependent on the market to provide capital, to take all the risk and thus the reward. Access to cash enables the council to take some of the reward for future reinvestment.
One of our opposition councillors has suggested the council is a property empire with a side line in local government. A possibly harsh comment, and mistaken in my view, as the council is using its cash and property to provide much needed housing without reducing its stock of social housing, or impacting on its high quality of existing housing stock.
The process of major regeneration is still in its infancy as we start the early stages of procurement for development partners on two differing schemes. But the fact that we have, relative to others, “loadsamoney” means that we come to the table more equal than most with the ability to ensure we can strike a good deal without leaving all the benefit with the developers as well as the ability to intervene if required should market conditions change or other reasons dictate.
Although 1980s Loadsamoney was a character of his times with a legacy in laughter, Council Loadsamoney will hopefully provide a much longer lasting legacy to future generations through bricks and mortar and creating places where people both need to and want to live.
Chris Buss is director of finance and deputy chief executive at the London Borough of Wandsworth.
Photo (cropped): Images of Money, Flickr
