ALMOs laud government's splurge on decent homes

The decent homes programme has been given a massive cash boost after the government splashed out £400 million more than expected and gave providers greater spending certainty.

Arm's-length management organisations that had anticipated shifting significant chunks of their programme beyond the original 2010 decent homes deadline were given a reprieve when the figures were announced on Wednesday.

Housing minister Yvette Cooper also announced that there would be a further round of stock transfers, amid speculation that councils with ALMOs that have already improved their stock may take part.

All local authorities would be given the opportunity to transfer stock to a housing association 'to build on the decent homes investment', she said.

ALMOs that agreed to extend some of their spending beyond the original deadline were told how much money they could expect to receive for the next three years. Previous settlements were limited to two years.

In addition, four ALMOs bidding to access the sixth and final tranche of funding, had their places on the programme confirmed.

John Lee, chief executive of Your Homes Newcastle, said the settlement was much better than anticipated.

YHN is now looking to shift just £12 million of its spend - or work on 2,229 homes - beyond 2010/11. It had originally been told that figure could be as high as £50 million.

Mr Lee said he was also happy that the ALMO knew exactly how much it would receive in each of the next three years.

'The funding process itself has been long, complex and drawn-out, but I would like to thank the department for giving us the certainty we need to plan for the future and complete the programme,' he said.

'This provisional offer gives us the green light to press ahead with our successful maintenance programme, making tenants' homes better places to live in.'

Alistair McIntosh, lead officer of the National Federation of ALMOs, said it was very pleased with 'the tone and substance' of the funding announcement.

'There is definitely a positive and flexible future for the ALMOs,' he said.

Homes for Haringey, the first round six ALMO to achieve two stars in an Audit Commission inspection, did not have its place on the programme confirmed.

Stephen Clarke, chief executive of Homes for Haringey, said it was still at the stage of 'talking to them [CLG] about the money'.