Warnings over a return to failed Tory transfer policy

Government plans to give tenants the power to trigger stock transfers have provoked claims that it is attempting to revive a failed Conservative Party policy.

A Communities and Local Government paper this week says that the department is 'considering whether to legislate... to allow tenants to pursue estate-based transfers'.

The move 'should increase the number of transfers going forward', the action plan for community empowerment paper adds.

A spokesperson for the CLG said it was 'still considering' whether tenants should be balloted over such transfers.

Housing professionals have warned that the idea appears similar to the Conservatives' tenants' choice policy, which was abolished in 1996 (see box).

Tony Bird, a consultant at the Tenant Participation Advisory Service England, said the proposals pointed to the tenants' choice policy, which proved to be a 'monumental failure'.

'It's utterly naive to think that tenants want to transfer to housing associations unless there is a very significant bribe and that's not going to happen.'

Catherine Hand, a partner at law firm Trowers & Hamlins, said the proposals sounded very much like tenants' choice. 'The problem was that it required a complex procedure to go through and it was expensive, which put people off. It was very underused so it was later abolished.'

Jamie Carswell, executive member for housing at London Councils, cautiously welcomed the idea. 'We welcome greater tenant engagement. However, we also maintain that the final decision over a stock transfer should be made by a positive decision from both tenants and the council.'

The report also suggests changing the management structure of arm's-length management organisations to allow tenants to become majority shareholders in their organisations.

The move would allow ALMOs to borrow money like a housing association, according to Gwyneth Taylor, policy officer at the National Federation of ALMOs.