Winckworth Sherwood

UK 200 2014 position: 81

The challenges for local authority and housing association joint ventures

There is increasing interest by local authorities in joining with housing associations and developers in joint ventures to develop new private rental sector housing and social housing throughout a geographic area of influence.

Since changes were made in the Localism Act 2011 it is now easier for local authorities to invest in joint ventures with housing associations, developers, house builders and even private investors. The challenge is to develop a tax efficient model which does not rely on a REIT structure to deliver new housing in a limited liability, off-balance sheet structure while maintaining the tax exempt status of housing associations and local authorities for each development scheme.

Unfortunately, the Localism Act 2011 section 4(2) provides that if a local authority undertakes a commercial activity in exercise of its general power it must only do so through a limited company. This requirement can restrict the types of vehicles that other tax exempt organisations (such as housing associations or foreign investors) may wish to utilise when structuring housing development joint ventures…

If you are registered and logged in to the site, click on the link below to read the rest of the Winckworth Sherwood briefing. If not, please register or sign in with your details below.


Sign in or Register to continue reading this article

Sign in


It's quick, easy and free!

It takes just 5 minutes to register. Answer a few simple questions and once completed you’ll have instant access.

Register now

Why register to The Lawyer


Industry insight

In-depth, expert analysis into the stories behind the headlines from our leading team of journalists.


Market intelligence

Identify the major players and business opportunities within a particular region through our series of free, special reports.


Email newsletters

Receive your pick of The Lawyer's daily and weekly email newsletters, tailored by practice area, region and job function.

More relevant to you

To continue providing the best analysis, insight and news across the legal market we are collecting some information about who you are, what you do and where you work to improve The Lawyer and make it more relevant to you.


Minerva House
5 Montague Close

Turnover (£m): 30.48
No. of lawyers: 117