Bulk leasing of social homes has no ‘substantial economic benefit’

Eurostat said the practice of leasing social homes, as opposed to buying them outright, has almost completely de-risked development costs and funds “enjoy most of the rewards” of the deals.

13th June, 2021
Bulk leasing of social homes has no ‘substantial economic benefit’
Housing experts have said these bulk social lease deals are having a knock-on effect of distorting land and home prices by turning social housing into a highly lucrative, niche market for funds to target. Picture: Getty

Bulk leasing social homes significantly favours institutional funds and leaves councils with no “substantial economic benefits”, the government was warned by a European Commission agency.

Eurostat said the practice of leasing social homes, as opposed to buying them outright, has almost completely de-risked development costs and funds “enjoy most of the rewards” of the deals. It added councils assume nearly all of the risk in the leases, but ultimately own no asset at...

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