St Edmundsbury Council is to transfer ownership and management of its 6022 tenanted homes to landlord Havebury Housing Partnership this week.
Havebury is paying £45.1m for the stock.
The council will use this money to fund the construction of 180 affordable homes in the borough.
This is one of the first transfers to make use of new VAT rules where a landlord pays more, including an estimate of the stock's value after improvements are carried out. The VAT incurred from repairs and improvements is then recovered.
In St Edmundsbury, around one third of the VAT saving has been used to guarantee the £45.1m receipt against the effects of the right to buy prior to transfer.
The remainder will be used to bolster the new housing association's business plan.
Source
Housing Today
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