Wednesday, 20 August 2014

Guidance spurs five councils to transfer stock

Long-awaited government guidance on stock transfer rules published on Monday has paved the way for a new wave of stock transfers.

Five councils have been in discussions with the Treasury and the Communities and Local Government department about carrying out stock transfers - all of which must be completed by March 2015.

These include Gloucester, Northampton, Salford, Durham and Lewisham. Gloucester’s arm’s-length management organisation, 4,800-home Gloucester City Homes, had previously planned to become the first community and council-owned organisation, but the idea was quashed by the Treasury.

Lewisham and Gloucester are still working through their stock options which include the possibility of transfer. However, negotiations with others including 12,000-home Northampton Councils, and Durham Council which has two ALMOs - East Durham and Dale and Valley - as well as its retained stock, are more progressed.

Salford Council has begun a competitive process with other landlords to decide the fate of the 10,500 homes currently managed by its ALMO Salix Homes, which is considering transferring.

Experts said the government guidance made it more ‘challenging’ for authorities to make the business case to justify a transfer.

Considering a transfer

  • Northamption
  • Salford
  • Durham
  • Lewisham
  • Gloucester

Readers' comments (3)

  • In order to maintain Security of Tenure and avoid mandatory eviction powers under Ground 8 of the Housing Act tenants are best advised to remain as council tenants. Housing Association rents are historically higher than council rents despite the recently jettisoned attempt at "convergence". Housing Associations are highly leveraged (borrowing) against the value of the tenants homes i.e. high risk. Furthermore there is the risk that any local small housing association is swallowed up by the bigger fish. What is needed is a mechanism to allow previously transferred council housing tenants to have the right to call a ballot to transfer back where the housing association is failing to deliver on its promises.

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  • "What is needed is a mechanism to allow previously transferred council housing tenants to have the right to call a ballot to transfer back where the housing association is failing to deliver on its promises."

    The Offer Document soon gets forgotten does it not? Surely, councils have a duty to their former tenants to ensure any subsequent transfer adhers to the original Offer!

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  • @ Poppy: out of sight, out of mind is the usual philsophy employed by councils and the new landlords..complerely agree with M8PB and in particulat Ground 8 where most council tenants are. Ignorant

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