< Back to overview of local delivery vehicles
Depending on land ownership in the area of the new Garden City, a local delivery vehicle might be established by either local authorities or by private developers as a wholly owned special purpose vehicle. Where land is held by government agencies including Homes England, they might also have a part to play in the governance of such a vehicle, for example through a collaboration agreement. The governance arrangements between the host authority or private company and the wholly owned vehicle will be for them to determine – the primary aims of such an approach are to limit risk and to provide legal freedoms in the case of a publicly owned vehicle. Options assessment such as that conducted for Tewksbury Garden Community will be important for guiding members through the process of decision making on these issues.
Over the past 10 years, many such vehicles have been established by local authorities for all kinds of housing delivery including small sites, not just new Garden Cities, partly due to financial freedoms, and partly to avoid the statutory provisions of Right to Buy on new build homes developed directly by authorities. Such vehicles have also been established to pursue other business activities not related to housing development. The diagram below sets out some of the considerations for local authorities in considering their own role in the development of a new Garden City – from a full landownership stake, to a less involved role including their minimum statutory role as local authority (except where a development corporation is involved). However, publicly owned delivery vehicles have not been used frequently for new Garden Cities due to the financial risk and liabilities associated with bringing forward a new place.
Scope of local authority involvement in large scheme delivery – Credit: © TCPA
Example: Otterpool Park LLP, Folkestone and Hythe District Council
On example of a local delivery vehicle that is wholly owned by a local authority is Folkestone & Hythe District Council, the cabinet of which formally approved the establishment of Otterpool Park LLP (Limited Liability Partnership) in May 2020. The wholly council-owned entity was created to serve as the master developer for the new garden town project, taking responsibility for coordinating development, infrastructure, and future land acquisitions. Homes England owns c10% of the land for the scheme. Folkestone & Hythe District Council owns or has options on the remaining 90% of the land. You can find more information about the project in this Local Government Association Case Study.
For more details on the collaboration agreement with Homes England see here
Otterpool Park Governance Arrangements – Image credit: Folkestone and Hythe District Council – For more details on Otterpool Park LLP’s governance arrangements see here.
