Challenges Faced by Local Authorities
Local authorities face rising temporary accommodation costs, limited capital for new builds, and ageing housing stock, all amid growing waiting lists and a widening housing shortfall. Retrofit demands to meet net-zero targets add further pressure. With government funding unable to cover the gap alone, innovative and collaborative solutions are increasingly being backed to tackle the crisis.
Ulo’s Response:
Offer access to funding for retrofit and stock improvement to meet net-zero targets
Provide quality homes (EPC C minimum) quickly and at scale through refinance, acquisition or new build
Offer mixed tenure options for social and affordable homes, delivered at up to 40% discount to LHA rate
*Key Benefits
Provides control and flexibility tailored to council needs through nominations and management rights
Offers immediate savings with no upfront costs, cashflow positive from day one and more cost effective than PWLB or market solutions
Protects councils from Right to Buy erosion and offers ownership of assets with a balance-sheet neutral treatment
Risk Mitigation, Technical, Accounting And Legal
Financial Flexibility: Break clauses, buy-back options, and capped rent reviews provide Councils with exit routes and budget certainty while requiring no upfront investment
Balance Sheet Friendly: Structure avoids IFRS 16 implications and MRP requirements, off balance sheet and tax treatment confirmed by independent audits from Grant Thornton, EY, and KPMG
Regulatory Compliance: Model operates outside the scope of public procurement regulations, subsidy control rules, and state aid considerations