An SPV is a mechanism by which a council can acquire a loan for building projects.
It is effectively setting up a subsidiary company which creates an ‘arms length’ organisation for the council. How these companies then relate to the future management of the estates is unknown.
Because the estates will not be owned directly by the council, the tenants will no longer be council tenants, so this is effectively a stock transfer.
For stock transfers, council tenants have to vote in a ballot as to whether they want to be transferred. However, for the purposes of ‘regeneration’ the stock transfer via SPV does note require a ballot.
It has been suggested that – given that this is one of very few means by which a Local Authority is allowed to borrow money – this is simply a means for the LA to acquire money to pay off some of its debts, and not fundamentally as a means to provide more housing.