RBKC - Specialist Financial Advice (Housing Company Issues and Valuation of Property Services)

1.2.1 This project is requesting financial advice relating to the operation of its Holding Company and the valuation of properties being acquired by the Housing Revenue Account as part of the New Homes Programme.

1.2.2 RBKC is embarking on a housing development programme, looking to build 600 new homes of which at least 300 will be let at a social rent. This is to be achieved through a cross subsidy arising from a number of properties being let at a market rent.

1.2.3 The programme shall be funded by HRA borrowing, GLA grant and cross subsidy from market rent. The Council is leading the schemes, using a direct delivery approach through appointment of contractors. The objective of this programme is to maximise the number of social rented homes and / or create a financial benefit to the HRA.

1.2.4 During the construction of these properties, the properties will be held in the General Fund. Once the construction phase is complete it is intended that some properties will be acquired by the HRA, then made available for social rent.

1.2.5 The properties that are to be used for market rent or intermediate rent are to be held in a new company, with the Council being the sole shareholder. The intent is that this company is not a development company but will be an entity for holding the properties post construction.

1.2.6 Legal advice has already been sought regarding the establishment of the holding company.

Additional information: Please find the Capital-Esourcing Link for this project below;