Thursday, 02 September 2010

Mayor: ‘ALMOs will get £150m’

London mayor Boris Johnson has vowed to reinstate the money ‘raided’ from London’s decent homes budget to pay for Gordon Brown’s £1.5 billion housing pledge.

Mr Johnson has clashed with central government over its plans to defer £150 million of decent homes funding for arm’s-length management organisations until after 2011, to provide extra funds for house building. Seven of the affected ALMOs are in London.

And in a letter to housing minister John Healey this week Mr Johnson wrote: ‘I intend to make good those promises to Londoners… and will be instructing the London Homes and Communities Agency to ensure that funding is available in this year and 2010/11 for ALMOs that meet the two-star standard from the additional [affordable housing] resources you announced.’

Mr Johnson’s director of housing Richard Blakeway estimated this would cost the affordable housing programme between £60 million and £75 million, although he admitted that if all seven ALMOs in London achieved a two-star rating it would be more than £100 million.

The gesture raises fresh questions about whether the mayor can meet his election promise to deliver 50,000 new affordable homes by 2011.

ondon HCA director David Lunts warned recently that at current grant rates the agency did not have enough cash left to meet the target.

At the time Mr Blakeway insisted it was still possible, if London received a 42 per cent share of the extra £750 million affordable housing funding unveiled in the government’s housing pledge. But London received less than 28 per cent of the funds, and now plans to spend a chunk of cash on refurbishment of existing homes.

Readers' comments (1)

  • In all the Decent Homes debate the place of the leaseholder has been noticeable
    only by it's absence.
    Ealing Homes an ALMO managing housing stock in the London Borough of Ealing sent out Section 20 notices regarding upcoming works to some 120 leaseholders on the Village Park Estate in Ealing in May 2009 the estimated costs to leaseholders vary from £4k to £16K an increase of over 100% on estimates sent out in Feb 2008.
    The financial strain on leaseholders at this time of economic stress appears not to interest the ALMO or the Council concerned and legal advice appears to vary depending on which lawyer you speak to.
    Can anyone with expertise tell us, succinctly, what our options are as we have finally got a meeting with the ALMO and council representatives set for 25th August. We are desparate as works are due to commence in September and time is running out.

    Unsuitable or offensive? Report this comment

Have your say

You must sign in to make a comment

sign in register

Related

Articles

  • The fight to be heard

    18/09/2009

    Four politicians, one mission - to win your vote and be the next housing minister. Next month the first Inside Housing hustings brings them together to answer your questions. The countdown to a general election starts here: so what would you ask?

  • Damage limitation

    04/09/2009

    When it announced in July that £150 million of decent homes funding was to be ‘deferred’ until 2011/12, the government effectively pulled the rug from under 11 of the 16 ALMOs in round six of the programme.

  • Only as good as his tools

    04/09/2009

    Two-star status no longer guarantees immediate decent homes funding. So can round six ALMOs keep their refurbishment promises? Isabel Hardman reports.

  • ALMO wins reprieve on decent homes cash

    8 October 2009

    An arm’s-length management organisation has managed to secure decent homes money from the government despite funding cuts.

  • ALMOs take legal action over decent homes cut

    19 October 2009

    Arm’s-length management organisations have applied for a judicial review of the government’s raid on their decent homes funding.

Resources

  • Learning at arm’s-length

    26/03/2010

    Can the remit of ALMOs be extended to projects such as building schools? Paul Butterworth, head of social housing at TLT, explains.

  • In the balance

    7 May 2010

    In recent weeks the leaders of the three main political parties have all been interviewed by Inside Housing. With the make-up of the next UK government still in doubt, here is what the various options could mean for the housing sector.

  • Levy with an escape route

    26/02/2010

    Developers face a new tax, but local authorities are not obliged to charge it, explains Neil Cohen

  • A whole new rule book

    14/05/2010

    ALMOs are now subject to the Tenant Services Authority’s regulations. Gareth Hall, partner at Devonshires, explains.

  • Behind closed doors

    13 August 2010

    On the outside they look like ordinary guesthouses but inside, rogue landlords are using Blackpool’s former hotels to house dozens of people in unsanitary conditions. Marie-Claire Kidd reports on how the council is fighting back

Latest Jobs