Stock transfer seems to be undergoing a bit of a revival, and it is causing the same arguments as ever.
The most notable row at the moment features Wycombe District Council, where campaign group Defend Council Housing is threatening legal action to block the move despite a ballot showing strong support from tenants.
The campaigners argue the information given to tenants in the run up to the ballot, which took place in April, was misleading. The council makes a strong case that the transfer has been led by tenants from the outset, and will be to a community-led organisation headed up by a council tenant.
At the moment a final decision on the transfer is with Grant Shapps, but if the housing minister gives the go ahead then the transfer is scheduled for the 12 December.
DCH is planning to make a final decision on whether to push for a judicial review this week. The campaigners feel there is growing local opposition to the move and they could make a strong case, but timing is now very tight.
Regardless of who is in the right on this one, an interesting figure has emerged from the discussions. Wycombe will avoid taking on £202.36 million of debt through the reform of the housing revenue account subsidy system if the transfer goes ahead.
That wasn’t the original motivation for the Wycombe transfer – which was set in motion by tenants several years ago – but it is something the council clearly sees as a benefit.
In recent months there has been an upsurge in councils seeking to transfer stock. Perhaps some councils are concluding that the cost of debt outweighs the freedoms that comes with self financing, and stock transfer offers a way out.
Have your say
You must sign in to make a comment
From House work
Examining the latest news on allocations, evictions, rents, anti-social behaviour, and a host of other day to day housing management issues
Readers' comments (1)
F451 | 05/12/2011 3:29 pm
So the debt just gets shared out to the remaining stock holding councils - doesn't that just show that this is not housing related debt, but just a lump of debt the Treasury wants to offload onto the ever shrinking supply of Council tenants.
If the debt belongs to the properties let the debt transfer with them, or at least remain with the State as the representaive of the beneficiary of the spending.
What is being created is a position of where your wealthier neighbour exercises their right to buy the share of their home debt and the cost of their discount gets added to your rent.
Unsuitable or offensive? Report this comment