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Green paper leaves question marks over council housing companies

Councils are seeking clarification over the government’s stance on town hall housing companies after the Social Housing Green Paper hinted at plans to curb the use of subsidiary landlords to dodge Right to Buy sales.

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Green paper leaves councils uncertain on housing companies #ukhousing

A number of councils intend to press Whitehall officials to explain the government’s position on local authority-owned housing companies as they review how the green paper could affect enterprises they have set up.

The document, published two weeks ago, said “local authorities should deliver new affordable housing through their Housing Revenue Account (HRA)” unless they have transferred their stock or the HRA cannot sustain new development.

It added that where housing companies are delivering and retaining affordable housing, ministers “would expect them to offer an opportunity for tenants to become homeowners”.

In cases where housing company schemes need government consent, such as if the plans involve transferring homes from the HRA to the company, “local authorities should explain how they plan to make a homeownership offer to tenants of any new affordable homes”, the document stated.


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Several councils are currently using wholly-owned housing companies to let homes at affordable rent tenures.

Housing delivered through a company is not currently subject to the Right to Buy, unlike HRA homes.

Inside Housing research in February found that local authorities in England had set up at least 58 new housing companies in the previous five years.

A spokesperson for Birmingham City Council, which is the biggest local authority developer in the country with multiple housing companies, said: “We are considering all implications from the government’s Social Housing Green Paper. However, we will need to await for further clarification around a number of issues concerning the HRA before further comment can be provided.

“Fundamentally, the priority for Birmingham hasn’t changed. We will continue to work to deliver modern and affordable housing through all means available to us.”

Barking & Dagenham Council currently develops homes through its regeneration company Be First and lets them at affordable rents through another company, Reside.

Cameron Geddes, cabinet member for social housing and regeneration at Barking & Dagenham Council, said: “The council is doing all it can to try and provide homes and, through Reside, offer affordable alternatives to private renting.

“While the green paper appears to be a small step in the right direction, we will have to wait for more detail to emerge before we know what it means for the council and our regeneration and housing companies.”

Cambridge City Council said it would consider the implications of the green paper for its own housing company during a review in the autumn.

However, Lambeth Council, which plans to carry out three extensive estate regeneration schemes using a housing company called Homes for Lambeth (HfL), said: “There does not appear to be any issues or implications within the government’s green paper relating to the establishment of HfL.”

The authority said HfL will be given long leases of land to develop housing so no homes will be disposed to the company.

A spokesperson for the Ministry of Housing, Communities and Local Government said: “Our

green paper offers a landmark opportunity for major reform to improve fairness, quality and safety to residents living in social housing across the country.

“We are putting in place processes to support the building of more social housing and we are looking at reforms to help people build up equity in their homes.”

The Social Housing Green Paper is out for consultation until 6 November.

Social Housing Green Paper: full coverage

Social Housing Green Paper: full coverage

All our Social Housing Green Paper coverage in one place:

Green paper measures are not enough to create May’s ‘new generation’ of council homes Green paper proposals are welcome but much more is needed to support councils to build, writes John Bibby

Green paper shows ministers now see associations as trusted partners Focusing on the failure of the green paper to address supply misses the point, writes Boris Worrall

Government should focus on building on what is already strong Philippa Jones considers the Social Housing Green Paper through a slightly different lens

We need more than a week of delayed announcements bundled together Jules Birch reflects on the government’s ‘Housing Week’ announcements

The regulator should monitor how associations assist homeless people Government announcements this week are positive, but any enhanced role for the English regulator should include looking at homelessness prevention work, argues David Bogle

The regulator’s role should be limited to dealing with systemic failures Julian Ashby suggests the Housing Ombudsman Service should deal with all complaints

The green paper shows ministers are in listening mode Despite some glaring omissions, the government appears to be in listening mode and it is important the sector takes advantage, argues Emma Maier

A short history of social housing league tables Attempts to create league tables for housing associations are nothing new. Mervyn Jones looks at how they have worked in the past

League tables could prove blunt and counter-productive, sector warns Housing figures criticise government proposals to measure social landlords against performance indicators

Government ‘must decide how proactive regulator should be’ on consumer standards Ministers now face a dilemma over the regulator’s focus, sector figures say

The Green Paper: a golden opportunity missed? Melanie Rees assesses the Social Housing Green Paper against recommendations drawn up by the Chartered Institute of Housing and finds the government comes up short

Longer strategic partnerships and guranteed debt to boost social housebuilding The Social Housing Green Paper outlines key ways of boosting supply

The green paper is remarkable progress but it is still not enough The green paper suggests the government appears to be re-writing much of its policy since 2010, but more needs to be done, writes Jules Birch

Green paper marks a ‘milestone’ on resident involvement The government’s recognition residents need clear information is to be welcomed, now it up to the sector to embrace tenant involvement, writes Paul Hackett

Ministers consider stock transfer programme to community-led associations The stock transfer programme could be revived under proposals in the housing green paper

Access to housing grant could be tied to new league tables Grant could be awarded according to how well landlords meet performance indicators, the paper suggests

Ofsted-style regulation of tenant services proposed The government is considering expanding the Regulator for Social Housing’s remit to intervene over tenant services and give it a more “proactive approach to enforcement”

Government proposes dropping one-for-one Right to Buy replacement commitment A consultation paper published alongside the green paper proposes a broader measurement to replace the one-for-one pledge

A list of recent housing policy U-turns The green paper confirms yet more housing policy U-turns from the government, which has spent the past two years dropping policy ideas developed under the David Cameron government. Here is a rundown of the major changes in policy direction

Sector welcomes green paper but calls for more ‘ambitious investment’ Reaction to the proposals, from the National Housing Federation, Chartered Institute of Housing and more

Morning Briefing: reaction to green paper announcements how the media reported the proposals trailed by the government overnight

Government drops plans to force councils to sell higher-value stock The government drops plans to force councils to sell higher value homes

League tables and ‘sharper teeth’ for regulator in social housing green paper Ministers reveal some of the things in the paper ahead of its publication

Grenfell survivors: green paper does not go far enough survivors of the Grenfell Tower fire have said the measures published in the Social Housing Green Paper do not do enough to rectify issues in the social housing sector

 

KEY PROPOSALS IN THE SOCIAL HOUSING GREEN PAPER

  • New 'league tables' of housing providers based on key performance indicators, surrounding services such as repairs and neighbourhood management. This could be linked to housing grant.
  • Consideration to scrapping of the current 'serious detriment' test, to allow 'Ofsted-style' tougher consumer regulation
  • New home ownership options such as allowing tenants to buy as little as 1% of their property each year through shared ownership. This would only apply to new shared ownership purchases.
  • Ditching of plans to force social landlords to offer fixed term tenancies rather than lifetime tenancies in social housing
  • Ditching of plans to force councils to sell off their most valuable social housing when it becomes vacant
  • The potential introduction a new stock transfer programme from councils to 'community-led' housing associations
  • The return of guaranteed debt funding to help the development of affordable homes, and longer term 'strategic partnerships' for developing housing associations
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