Housing - sale and leaseback
Case reference FOI2023/00420
Published 30 March 2023
Request
Q1. We are looking to find out if the council has done either of the models below for housing.
• Sale and Leaseback - Leaseback, short for "sale-and-leaseback", is a financial transaction in which one sells an asset and leases it back for the long term; therefore, one continues to be able to use the asset but no longer owns it.
• Income Strip - At its simplest, an income strip investment combines a strong tenant covenant, with a long-term lease and a forward funding arrangement to give an investor a stable and secure income stream. The strong tenant covenant frequently comes from the public sector such as local councils, and the long-term lease often runs between 30 and 50 years.
Q2. Can you advise of weekly rents paid for the following?
1. Temporary accommodation for homeless relief.
2. Extra care housing (not including any service charge elements, just the core rent)
3. Housing / Beds for adults with complex needs
Q3. Does the council own any land or disused buildings that they would be prepared to sell and or re purpose?
Response
Q1. We are looking to find out if the council has done either of the models below for housing.
• Sale and Leaseback - Leaseback, short for "sale-and-leaseback", is a financial transaction in which one sells an asset and leases it back for the long term; therefore, one continues to be able to use the asset but no longer owns it.
• Income Strip - At its simplest, an income strip investment combines a strong tenant covenant, with a long-term lease and a forward funding arrangement to give an investor a stable and secure income stream. The strong tenant covenant frequently comes from the public sector such as local councils, and the long-term lease often runs between 30 and 50 years.
No, Herefordshire Council has not done either of these models.
Q2. Can you advise of weekly rents paid for the following?
1. Temporary accommodation for homeless relief.
Self-contained rents for Temporary accommodation are set at 90% LHA (Local Housing Allowance) 2011.
1 bed £86.19
2 bed £109.04
3 bed £129.81
4 bed £155.77
2. Extra care housing (not including any service charge elements, just the core rent)
There are three extra care schemes in the county. The core rents are as follows:
The Rose Garden, Ledbury Road, Hereford: £101.09 per week
Leadon Bank, Ledbury (1 bedroom accommodation): £195.44 per week
Leadon Bank, Ledbury (2 bedroom accommodation): £244.65 per week
Henffordd Gardens: £101.95 per week
The below link provides information on care providers and housing options.
https://www.herefordshire.gov.uk/social-care-support/care-providers-housing-options/3
3. Housing / Beds for adults with complex needs
We do not hold any information regarding beds. If it is housing for adults with complex needs, we would need to know what the definition is as this isn't a specific term we use in Housing Benefit so cannot identify the accommodation.
Q3. Does the council own any land or disused buildings that they would be prepared to sell and or re purpose?
Not at present, if we did they would be sold at auction.
Documents
This is Herefordshire Council's response to a freedom of information (FOI) or environmental information regulations (EIR) request.
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