Temp To Perm

As a Local Authority, you will be looking for the best value, temporary-to-permanent housing funding solutions; this is something that we can provide, in conjunction with financial institutions, as well as excellent housing and management services.

What is “Temp to Perm”?

This is an innovative funding solution that Orchard & Shipman have jointly developed with lenders, which we call ‘Temporary to Permanent’ (T2P). It enables local authorities and their Registered Social Landlord (RSL) partners to capture Housing Benefit (HB) subsidies to finance borrowing to purchase temporary accommodation. The key benefit to the housing sector provided by this new funding solution is that HB subsidy levels can be put towards purchasing properties over a 10 year period, redirecting funds that would normally go to private landlords.

How the T2P model works

The T2P model is highly flexible, designed to be tailored to a local authority's particular requirements and work with authorities' existing or preferred partners or bring in a new expertise where needed.

At the end of the lease purchase (typically 10-15 years) local authorities will have built up a capital fund which will allow them or their preferred partner to purchase the properties. These can then revert to an RSL or Arms Length Management Organisation (ALMO) as permanent accommodation.

Typically, local authorities will wish to appoint a managing agent to acquire and manage the portfolio. It will be important that the appointed managing agent has experience of running private sector leasing contracts.

For further information please contact:

Andrew Morrison
Director - Policy & Business Development
E: andrew.morrison@orchard-shipman.com
T: 0131 553 0052