Haringey Development Vehicle
- What is the Haringey Development Vehicle (HDV)?
- The approach
- Why we can’t do this alone?
- Affected council properties
- HDV Timeline
- What are the next steps?
- More information
- Our vision for Haringey is based on the principle that growth – in new homes, and new jobs – is essential to the future of our borough. Our residents need new homes to tackle the rising cost of housing and increased homelessness, and new jobs to improve their incomes and prospects
- We own a significant amount of land that can – and must – contribute to this growth. But lack the finance and skills to bring forward homes and jobs on that land at the scale, pace and quality that is needed. Therefore, we have considered a range of options for bringing in finance and skills from a private sector partner, and have chosen an approach that achieves this goal while retaining a share of control – and a share of the proceeds – for the council
- The HDV will be a 50:50 partnership between Haringey Council and a private partner, Lendlease, a leading property group which has been chosen following a lengthy selection process. The way the partnership will work is that Haringey provides some of its council land to be developed and Lendlease matches this with cash and its development expertise
- Each partner taking an equal 50% stake is crucial as it means that we will need to approve every decision, keeping us in control. It also means the partners share the returns and we can ensure that our share of profits goes back into other regeneration initiatives, affordable housing and funding the services we provide to residents
- The HDV will be an essential tool for us to deliver on our promise to residents to put new homes and new jobs at the centre of our ambition for the borough. These plans are not new, and we have been talking to residents about them since 2013. As well as detailed engagement with residents and businesses in affected estates and other council-owned property, we have carried out major consultation exercises on the Area Action Plan for Tottenham - which agreed Northumberland Park (external link) as a regeneration area - and are about to start the latest round of consultation on the future of Wood Green
- As with all local authorities, our budgets have been cut substantially. Since 2010 we have lost funding of around £160m with more cuts to come - by 2020 the council will be around half the size it was just a decade earlier
- Yet residents and businesses from around the borough have told us they want new homes, jobs and opportunities. Only by securing private investment and expertise can we hope to redevelop some council-owned land at the scale and pace needed
- We’re determined to find the right way to secure that investment, while recognising that not all projects and sites are the same. This means considering different options to find the right delivery partners in each case, and secure long- term investment and prosperity for all areas of the borough. Where the council is the major landowner, the joint venture HDV approach means the council retains a share of control and we get a share of the future proceeds
- Our funding has been cut and Government grants to support public sector house building are at an all-time low
- The cost of building new estates would run into billions of pounds, but Government rules only allow us to borrow another £50m for housing
- We simply do not have the money, and cannot sustainably borrow it, to realise our ambitious plans for Haringey on our own
- Other London councils are in the same position – Greater London Authority figures show that in 2015-16, 26 of the 33 London councils did not start building a single home
- However, like many councils, Haringey owns a lot of land – much of which is unused or underused, such as office buildings too big for current staff numbers. We can use some of this to create the homes, jobs and opportunities residents tell us they need
- Councils are also not as well equipped as the private sector when it comes to development projects on this scale
- The partnership does not affect all council-owned land. The development projects proposed for the first phase of the Haringey Development Vehicle are the former Cranwood care home in Muswell Hill, the council’s Civic Centre, Station Road offices and Library in Wood Green, and the Northumberland Park regeneration area
- It is also proposed that our commercial property portfolio will transfer to the Haringey Development Vehicle
- In all cases, the Council’s Cabinet must approve a detailed business plan for the use of the property before the transfer can take place
- Over time, we may decide that other council owned land could be developed in the same way
- This is planned to be a long-term partnership which will last for at least 15-20 years with the first phase of sites listed above which would see a planned 5,000 new homes built, a new town centre in Wood Green and thousands more jobs created
- By creating a partnership that lasts for this length of time, our partner knows that the success of their investment depends on the long-term quality and reputation of the places and buildings they are creating
- The decision to appoint Lendlease was approved at Haringey’s 14 February Cabinet meeting, and we will now enter into final discussions with them on how the joint venture would be established and managed
- A final decision on whether to establish the Haringey Development Vehicle, and on proposals for the first phase of sites, is expected to be made by Haringey Council’s Cabinet in the summer of 2017
- November 2015 - Haringey’s development partnership – a new approach to regeneration
- March 2016 - Haringey Council one step closer to delivering £2bn regeneration programme
- July 2016 - Haringey announces shortlist for £2 billion regeneration programme
- December 2016 - 5,000 new homes, new Wood Green town centre and thousands more jobs for Haringey
- February 2017 - Lendlease to be recommended as partner for Haringey’s ambitious regeneration plans
Page Last Updated:
20 February 2017
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