Anger as last two years of awards are subject to review
Landlords hit out over decent homes cash
Landlords awarded large chunks of the £2.1 billion decent homes programme have hit out at the government’s decision to hold back an average 40 per cent of the budget.
Southwark Council described its £77 million allocation as a ‘bitter disappointment’. The award was the fifth highest of 46 allocations made last week to landlords yet to upgrade their stock, but just over half the cash the council applied for. Just 15 per cent of that amount is guaranteed because the final two years of the 2011/15 awards are subject to review.
Arm’s-length management organisation Nottingham City Homes was also disappointed, despite receiving the largest funding slice outside of the capital. More than half of the £1.6 billion awarded to local authority landlords retaining their homes was distributed in London.
Chris Langstaff, chief executive of NCH, said that £46 million of its £86 million pledge had been made on a ‘provisional basis’.
Phil Goodwin, vice chair of Homes for Haringey, said he was devastated by its £36 million allocation - the seventh highest amount. The ALMO had secured a pledge for £85.6 million in 2008 but agreed to defer the payment.
A total of £379 million - 23 per cent of the £1.6 billion allocated last week by the Homes and Communities Agency - has gone to councils without ALMOs. The previous government only allowed allocations to authorities with arm’s-length bodies. The agency also announced the allocation of £464 million funding to 28 stock transfer organisations. Twenty-four of all 70 bidders which applied for decent homes funding were turned down.
Michael Clegg, head of existing stock at the Homes and Communities Agency, said: ‘It’s right that given the large amount of public money being invested, we should check delivery and value before confirming the second two years of funding,’ he said.