Due to financial challenges, the house-building project advocated by the Camden Town Hall could be forced to make deals with private developers if it wants to meet its targets.
The Community Investment Programme (CIP) takes the market value of property owned by the Camden Council and uses it to lever in money for residences and public schools.
Council heads have referred to its property holdings as ‘North Sea oil’, which can be dipped into thanks to London’s skyrocketing property market.
Six years into the scheme, however, an upcoming report warns that an approach change is necessary to overcome certain risk and challenges as well as accomplish the target of completing over 3,000 homes.
According to Councillor Phil Jones, Labour head of regeneration, the programme has encountered problems such as construction delays, rising individual scheme costs, running up against the borrowing limit set by the government, and limited internal resources.
The success of the project relies on the capital receipts resulting from new house sales, but many of these proposed homes have not yet been built.
As a result, concerns have arisen over the ‘significant financial risk’ being assumed by the council as it waits to be paid. The report is also raising the point that potential fluctuations in the property market could have serious repercussions.