Housing Stock Transfers (Hansard, 11 March 1999)

§ Ms Armstrong

I am today announcing the names of the 25 local authorities which will be able to proceed, on a voluntary basis and subject to the approval of their tenants, with proposals to carry out 31 transfers of all or part of their housing stock to Registered Social Landlords (RSLs) in 1999–2000. The programme will involve over 140,000 dwellings in large-scale voluntary transfers, generating capital receipts of over £822 million. Nine of the transfers will be supported by Estates Renewal Challenge Funding.

Transfers can offer significant benefits for tenants. The new landlord must plan for proper maintenance and future repairs. Increased investment means that any backlog of repairs can be carried out more quickly than if the properties had remained in local authority ownership. Rent increases are normally limited by a guarantee that rents will not rise by more than 1 per cent. above inflation for the first five years. In addition, RSLs are regulated 353W by the Housing Corporation, a government body which requires RSLs to adhere to performance standards in areas such as housing management, tenant consultation, and rents.

But housing transfers are voluntary and may take place only if tenants are in favour. The consent of the Secretary of State is also required before a transfer can proceed and will not be granted if it appears that a majority of tenants do not wish the transfer to proceed.

The 1999–2000 programme reflects the Government's commitment to support a continuing programme of transfers as a means of generating private finance to repair and improve the condition of social housing.

Both Coventry (20,349) and Tameside (16,959) are above the Department's size limit for transfers to one landlord. I am agreeing to proposals to transfer their stock to new group structure landlords involving, in each case, two asset owning RSLs.

Two of the authorities on the 1999–2000 programme—Coventry City Council and Burnley Borough Council—expect to have housing debt remaining in their Housing Revenue Account (HRA) after their stock is transferred. This is because the capital receipt will not be sufficient to clear all of the debt in their HRA. Transfer will depend on the successful resolution of this issue. We plan to issue a consultation paper on how to tackle overhanging debt in the near future. Our objective is to enable as wide a range of authorities to consider transfer as possible.

The authorities who have successfully gained a place on the programme, together with the intended recipient RSL are as follows:

(a) a disposal by Boston Borough Council of not more than 5,114 dwelling-houses to Boston Mayflower;
(b) a disposal by Burnley Borough Council of not more than 5,354 dwelling-houses to Burnley and Padiham Community Housing;
(c) disposals by Coventry City Council of not more than 20,349 dwelling-houses to registered social landlords;
(d) a disposal by Elmbridge Borough Council of not more than 5,022 dwelling-houses to a registered social landlord;
(e) a disposal by Fenland District Council of not more than 4,445 dwelling-houses to a registered social landlord;
(f) disposals by London Borough of Hackney of not more than 1,263 dwelling-houses on the Pembury estate to the Peabody Trust, and not more than 1,131 dwelling-houses on the Stamford Hill estate to the Stamford Hill Trust;
(g) a disposal by Huntingdonshire District Council of not more than 7,134 dwelling-houses to a registered social landlord;
(h) disposals by London Borough of Islington of not more than 646 dwelling-houses on the Barnsbury estate to Newlon Housing Group, and not more than 739 dwelling-houses on the Ten Estates to the Peabody Trust;
(i) disposals by London Borough of Lambeth of not more than 2,576 dwelling-houses on the Central Stockwell estate to Hyde Southbank Homes, and not more than 1,282 dwelling-houses on the St. Martins estate to South London Family Housing Association, Metropolitan Housing Trust and Presentation Housing Association;
(j) a disposal by London Borough of Lewisham of not more than 7,213 dwelling-houses to a registered social landlord;
(k) a disposal by Liverpool City Council of not more than 4,685 dwelling-houses to South Liverpool Housing;
(l) disposals by Manchester City Council of not more than 646 dwelling-houses on the Colshaw Farm estate to Riverside Housing Association, and not more than 1,036 dwelling-houses on the Whitefield estate to a registered social landlord;
(m) a disposal by Newcastle-under-Lyme Borough Council of not more than 10,042 dwelling-houses to a registered social landlord;
(n) a disposal by New Forest District Council of not more than 5,883 dwelling-houses to a registered social landlord;
(o) a disposal by North Devon District Council of not more than 3,462 dwelling-houses to North Devon Homes;
(p) a disposal by Preston Borough Council of not more than 1,123 dwelling-houses on the Avenham estate to Collingwood Housing Association;
(q) a disposal by Restormel District Council of not more than 3,781 dwelling-houses to a registered social landlord;
(r) a disposal by London Borough of Richmond of not more than 8,780 dwelling-houses to a registered social landlord;
(s) disposals by Tameside Metropolitan Borough Council of not more than 16,959 dwelling-houses to registered social landlords;
(t) a disposal by Test Valley Borough Council of not more than 5,789 dwelling-houses to Testway Housing Ltd.;
(u) a disposal by London Borough of Tower Hamlets of not more than 1,780 dwelling-houses in Poplar to Poplar HARCA;
(v) a disposal by Tynedale Council of not more than 3,731 dwelling-houses to Tynedale Housing Ltd.;
(w) a disposal by West Lindsey District Council of not more than 3,919 dwelling-houses to West Links Housing Ltd.;
(x) a disposal by Weymouth and Portland Council of not more than 3,526 dwelling-houses to a registered social landlord;
(y) a disposal by Wyre Forest District Council of not more than 6,440 dwelling-houses to Wyre Forest Community Housing.