Our Director, Chris Shepherd, talks to Room 151 about the guidance over local authorities borrowing for property investment. He says that further clarification would be needed on the issue if the government’s intention is to prevent councils from borrowing from the PWLB to fund property purchases.
The key will be whether they will define yield bearing asset as a financial instrument or as an asset. The implications of the latter could mean investing in or out-of-borough would be difficult (without an argument for investing for other reasons).
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