Who owns Foxhall Homes Ltd?
Foxhall Homes Ltd is a company owned by Luton Council who are the sole shareholder.
Foxhall Homes Ltd is a separate business to the Council, the operational and financial decisions are made by Foxhall’s board of directors.
Who Runs Foxhall Homes Ltd?
Corporate decisions are made by a board of directors who are also Councillors and Senior Officers from the authority. The shareholders are Senior Officers from the authority and an elected member. The company is registered with Companies House and the company number is 10624129.
Why did Luton Council set up Foxhall Homes?
The government introduced changes to the 2011 Localism Act which lifted some restrictions imposed on local authorities, giving councils the opportunity to set up private companies and borrow more cheaply. This gave the council the opportunity to set up Foxhall Homes in response to the housing shortage in Luton, there is a real need for new homes, especially rented.
As a landowner, the council has a number of redundant and surplus pieces of land in the town in need of regeneration. Foxhall operates as a for-profit company building homes for sale and rent. By establishing Foxhall as an independent development company, the council can keep the full value of development growth within the borough in the form of additional affordable housing, improvements in local areas or as a dividend return the council to fund council services.
How is Foxhall Funded?
Foxhall borrows money from the council the sole shareholder. Foxhall has to present a business case, showing that the scheme is financially viable, similar to borrowing from a bank. Foxhall pays market rates of interest on these loans. The interest we pay on borrowing provides an additional revenue source to the Council which can also be used to fund frontline services. Loans are repaid to the Council (along with all accrued interest) once individual developments are completed and the homes are sold and rented.
Does Foxhall make a profit on the development it builds?
The developments do make a profit as we sell and rent new homes, this creates a dividend which is returned to the council as the sole shareholder. This keeps 100% of the development growth in the town.
Does Foxhall get special treatment from the council?
The short answer is no, Foxhall operates as an independent business, the land owned by the Council is purchased by Foxhall at market value, an independent land valuation is obtained and the final decision to sell the land to Foxhall is made by the Council’s Executive. The sale creates a capital receipt for the council which is used to reinvest in Luton.
How does planning work?
Foxhall makes a planning application in the same way as any other housebuilder, we are subject to the same planning policy, we seek pre-application advice which is a paid service from the planning department, and our planning applications are either determined by delegated authority or by the planning committee. Planning does not favour Foxhall developments we have and do face challenges with our planning application, and development have been referred to the secretary of state and could be subjected to judicial review.
Who builds the homes?
Once we have planning permission we enter a formal tendering process and contractors bid to do the work. The tender is awarded to the winning contractor who has met the requirements of the tender process. We continue to manage the developments once the contractor is appointed, our involvement is from inception to completion.
How many affordable homes do you build?
Our policy is to build 30% affordable homes on sites with over 10 units where possible, local planning policy is to provide 20% affordable homes.
Do you pay section 106 contributions?
Foxhall does pay S.106 contributions and details can be viewed on the planning portal.
What makes Foxhall different?
The difference between Foxhall and other developers in the town is that we reinvest 100% back into Luton. Our commitment is to our customers and our town and we believe that everyone deserves the right to a good quality home now and in the future.