Housing Monthly Diary Archive

Stock Transfers


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January 1998
Transfer News in Brief

England

February 1998
ERCF Imminent Transfers

A number of further transfers of dwellings from local authorities were imminent, as a result of successful ballots under Rounds 1 and 2 of the Government's Estates Renewal Challenge Fund (ERCF):

February 1998
Transfer News in Brief

England

March 1998
1998/99 Transfer Programme

The Government announced the local authorities that would be allowed to ballot tenants on proposals for large-scale voluntary transfers in the coming year. Twenty-three councils were involved in proposals (subject to tenant ballots) to carry out 28 transfers to registered social landlords, involving over 85,000 dwellings.

Those included in the programme (with maximum numbers of properties transferring given in brackets) were:

Alderdale BC (3,899 and 1,002); Bath & North East Somerset Council (10,200); Birmingham CC (2,643); Bradford CC (598); East Lindsey DC (5,179); Greenwich LBC (1,246); Hackney LBC (1,157, 661 and 1,000); Hammersmith & Fulham LBC (703); Lambeth LBC (681); Liverpool CC (800); Manchester CC (1,272 and 6,900); Rother DC (3,180); St Helens BC (789); South Hams DC (3,212); South Somerset DC (9,133); Tameside MBC (904); Tewkesbury BC (3,105); Tower Hamlets LBC (2,887 and 2,322); West Devon BC (1,439); Wirral MBC (1,108); Wokingham BC (3,101); Worthing BC (2,579); Wrekin DC (13,495).

Seventeen of the transfers would be supported by Estates Renewal Challenge Funding totalling £208 million.

April 1998
ERCF Transfers Update

A number of stock transfers were completed with help from the Estates Renewal Challenge Fund (ERCF) programme. The transfers are shown below with the ERCF amounts given in brackets.

Note: Some of the above transfers were completed towards the end of March but were not reported in the last edition of the Housing Monthly Diary.

April 1998
LSVTs Completing

The following Large Scale Voluntary Transfers (LSVT) were completed recently (without Estates Renewal Challenge Fund support):

Note: Some of the above transfers were completed in March but were not reported in the last edition of the Housing Monthly Diary.

April 1998
Other Transfer News in Brief

England

Scotland

Wales

May 1998
News in Brief

England

Scotland

The Agency's remaining 400 tenants in East Dunbartonshire were to vote on proposals to transfer to the tenant-led East Dunbartonshire Federation Housing Co-operative, subject to proposals to be submitted later in the year.
 
Over 200 of the Agency's tenants in the Garnock Valley area were to vote on a transfer to Cunninghame Housing Association.
 
1,100 tenants in the Arden area of Glasgow were to decide on whether or not to switch to Glen Oaks Housing Association.

June 1998
Transfer News in Brief

England

Scotland

July 1998
News in Brief

England

Scotland

August 1998
Transfer News in Brief

England

Scotland

Edinburgh Council was suggesting transferring all of its 32,000 homes as an option, but only if the Government intervened to solve the problem of the Council's accumulated housing debt - estimated to be £250 million.
 
Glasgow DC was believed to have commissioned a feasibility study into the financial arrangements for the transfer of some 80,000 homes to a housing trust over a 6-year period, with a linked ongoing improvement programme.
 
Increased interest in stock transfer reflected the positive approach of the Government in Scotland, with suggestions that the role of councils should change. In particular, the Government had suggested that those councils that transfer their stock and concentrate on an enabling ethos could take over responsibilities from Scottish Homes for disbursing resources to housing associations and co-operatives.

Wales

September 1998
Transfer News in Brief

England

Scotland

October 1998
Transfer Opt-Out Position Clarified

Following a ballot that resulted in a clear majority of tenants supporting the proposed transfer of East Lindsey DC homes to East Lindsey Partnership Housing, a local campaigning group representing 2,000 tenants opposed to the transfer canvassed the Government on the right to opt out.

A letter from the Organisation of Tenants Opposed to Transfer, written to Deputy Prime Minister John Prescott, argued that the nearly 2,000 voters who recorded no on their ballot slips should be allowed to stay as Council tenants. The letter cited the 1985, 1988 and 1989 Housing Acts, which contain provisions for tenants to remain with the council if they vote against proposals to transfer, irrespective of the outcome of the ballot.

In response, the Department of the Environment, Transport and the Regions clarified the position, in that the Housing Act 1996 superseded older legislation and that the opting-out provisions included in legislation under the previous government were removed in transfer guidelines published earlier this year.

The Housing Act 1988 provided a framework which allowed tenants voting no to transfer proposals to remain with their current council as landlords, but this right had now been removed.

October 1998
Stock Transfer News in Brief

England

Scotland

November 1998
Transfer News in Brief

England

Scotland

Aberdeenshire Council: £65,000.
 
Dundee Council: £145,000.
 
East Dunbartonshire Council: £18,500.
 
Glasgow Council: £1 million.
 
Western Isles Council: £56,000.
 
By far the biggest potential transfer was Glasgow Council, which has about 100,000 homes in management. Dundee Council has the second largest stock, with 21,000 homes.

December 1998
Debt Relief for Transferring Councils

In a significant change in policy, the Scottish Office pledged new housing partnership cash to service the debts of councils successful in future stock transfer bids, where sales did not completely clear any deficit involved. Central Government cash would also be made available to meet breakage costs incurred for early repayment of loans. Funding conditions imposed were that receipts from transfers must be maximised and used to repay part of any outstanding debt.

This long-awaited solution to Scotland's crippling housing debt problem was welcomed by professionals. It cleared the way for a number of authorities to progress transfer plans. Glasgow Council, whose housing debt was estimated at £1.3 billion and its repair backlog at £1.7 billion, entered a provisional bid to transfer its 100,000 homes, which might now be possible following this new policy directive from central Government.

Housing debt across Scotland is estimated at £4.2 billion. However, the estimated proceeds from the sale of all council stock in Scotland is set at less than 50% of the housing debt.

December 1998
Stock Transfer News in Brief

England

Scotland

January 1999
Transfer News in Brief

February 1999
Stock Transfers in Brief

England

Scotland

March 1999
Transfer Programme 1999/2000

Housing Minister Hilary Armstrong announced the details of the 1999/2000 stock transfer programme, which gave approval to 25 local authorities to transfer all or part of their housing stock to registered social landlords (RSLs) - subject to support in tenants' ballots. In total, the programme affects more than 140,000 dwellings in 31 proposed large-scale voluntary transfers, generating capital receipts of over £822 million.

Two of the authorities included in the transfer were above the Government's size limit for transfer to one landlord - Coventry CC (20,349 dwellings) and Tameside MBC (16,959 dwellings). In both cases, agreement wes given to transfer the stock to new group structure landlords involving two asset owning RSLs.

Two authorities included in the programme - Coventry CC and Burnley BC - expected to have housing debt remaining on their Housing Revenue Account (HRA) after transfer of the stock. Transfer depended on the successful resolution of this issue. The Government intended to publish a consultation paper on how to tackle overhanging debt in the near future.

The programme includes over £130 million of Estates Renewal Challenge Fund (ERCF) grant, which has been made available to 6 local authorities (Hackney LBC, Islington LBC, Lambeth LBC, Liverpool CC, Preston BC and Tower Hamlets LBC), affecting over 13,000 homes.

Details of the programme are given below. Figures in brackets represent the maximum number of dwellings that could be included in the transfer. The name of the RSL(s) to receive the transferred dwellings is given where known:

March 1999
Transfer News in Brief

England

Scotland

April 1999
Transfer News in Brief

727 homes to Impact HA, generating £4 million from the Estates Renewal Challenge Fund and a similar amount from the Association; and
 
the remaining 3,700 homes to Derwent and Solway Housing (part of the Harvest Group), which raised £42 million.

May 1999
Transfer News in Brief

England

It was understood that some 15 organisations had expressed an interest in the transfer.

Scotland

June 1999
Transfer News in Brief

England

Scotland

July 1999
Transfer News in Brief

England

Scotland

August 1999
Consultation on Overhanging Housing Debt

Housing Minister, Nick Raynsford, issued a consultation paper on the options for local authorities to tackle the problem of overhanging housing debt, following Large Scale Voluntary Transfers (LSVTs).

Overhanging debt arises when the sale price a local authority receives for the transfer of its housing stock is less than the debt attributed to the stock. It is Government policy to support housing transfers where the local authority concerned believes it is the best option and the proposal has the support of tenants affected. However, for many local authorities, housing transfer has not been a realistic option because of the complex problems associated with overhanging debt.

Where a local authority with overhanging debt transfers its housing to a registered social landlord, there would be no rental income to service the debt. However, the authority would be entitled to HRA subsidy on the outstanding debt charges falling on the Housing Revenue Account. The objective of the consultation paper is to put forward proposals for redeeming the debt on transfer, as an alternative to continuing to service the debt.

The key issues discussed in the paper, on which responses are invited, are:

Information Notes

The LSVT levy, referred to above, was introduced by Section 136 of the Leasehold Reform, Housing and Urban Development Act 1993. The aim was to compensate the sum of the public expenditure costs of housing transfers and the levy is paid into the Consolidated Fund. It is payable on receipts arising from disposals of 500 or more council properties to a RSL over a five-year period, where those receipts exceed the outstanding housing debt attributable to the properties.

Copies of the paper are available from the Housing Support Unit, DETR, 2/B3 Eland House, Bressenden Place, London, SW1E 5DU.

The consultation paper is also available on the DETR website http://www/detr.gov.uk/.

Source: Housing Transfers in England - Dealing with Overhanging Debt and Altering the LSVT Levy, Department of the Environment, Transport and the Regions (DETR).

August 1999
New Guide on Managing Stock Transfer

The Housing Corporation published a new guide intended to help people who are leading, or who are involved in, the management of a stock transfer process.

The guide is particularly directed at informing:

The guide focuses on the human and organisational aspects of stock transfer. It identifies the importance of looking beyond the immediate objective - being achieving the transfer itself - to the longer term critical aim of building an organisation which can operate effectively after the transfer. It emphasises that action to achieve longer term objectives need to be planned from the beginning of a transfer process and not left until the transfer actually takes place.

The guide also shows how participants in the transfer process can be affected by the experience. Managers and staff, whether they transfer or remain with the disposing authority, Board members, councillors and residents can feel enthusiastically committed to making the new RSL a success, or they can feel battered and bruised by the process. It emphasises that those managing the transfer process need to ensure that time and resources are made available to support those involved.

Hitting the Ground Running- the Human and Organisational Dimensions of Stock Transfer, available from the Housing Corporation.

August 1999
Transfer News in Brief

England

The size limit on transfers has been 12,000 homes, so a single transfer of 93,000 homes would exceed the total programme of transfers for 1998, which was 65,000.
Developments in Birmingham, along with those in other major cities including Glasgow - which is also considering the option of large-scale voluntary transfer, will represent clear indicators of wider implications for the future of the local authority sector.

Scotland

Proposals include the demolition of a number of unpopular tenement properties, where there has been a history of crime and high turnover.
 
The transfer of the Association’s assets follows Scottish Homes' Board's consideration of a report into a statutory inquiry into its affairs.

September 1999
Transfer News in Brief

England

Scotland

Cumbernauld Housing Partnership, a new, non-profit-making housing organisation, was set up to bid for ownership of Scottish Homes' houses throughout Cumbernauld. The partnership involves North Lanarkshire Council, Scottish Homes' tenants and the wider community in Cumbernauld.

Wales

October 1999
Transfer News in Brief

England

Scotland

Wales

November 1999
Transfer News in Brief

England

Scotland

December 1999
Transfer News in Brief

England

Scotland

Wales

January 2000
Big Bang Transfer

The Department of Environment, Transport and the Regions (DETR) announced that 23 local authorities were bidding to transfer some 270,000 council homes during 2000/2001. If the current trend continues over the next decade, councils will be left with only a minute proportion of the 3 million homes that they currently own.

Three of the bids alone - by Birmingham, Sunderland and Walsall - total 161,000 homes - which is more than the total stock transferred in 1999.

Despite Government enthusiasm, opposition to the scale of the transfer programme has come from several quarters. It was reported that the Tenants’ and Residents’ Organisations of England (TAROE) was generally not in favour of the programme and some of its member associations were considering the option of mounting legal challenges to the consultation process. Key to such a challenge would be the inequality between resources available to local authorities supporting transfer options and to those groups which oppose them.

Opposition to the enlarged programme also came from Defend Council Housing, who launched a new national campaign aimed at opposing privatisation in any form. The pressure group argues that the £22 billion needed to clear the backlog of repairs to council property is already available. The councils successful in bidding for inclusion in the 2000/2001 programme are reported in March 2000 below.

January 2000
Transfer News in Brief

England

Scotland

February 2000
Transfer News in Brief

England

Scotland

March 2000
Housing Transfer Programme 2000/01

Housing Minister Nick Raynsford announced that 22 local authorities have been given the go-ahead to transfer all or part of their housing stock during 2000/01, which could lead to 160,000 council tenants benefiting from repairs and improvements to their homes.

The programme, which is subject to the approval of tenants involved, makes proposals to carry out twenty-three transfers of all or part of council housing stock to Registered Social Landlords (RSLs) in 2000/01, generating capital receipts of over £940 million. In most cases, transfer will guarantee that rents will not rise by more than 1% above inflation for the first five years.

The authorities who successfully gained a place on the programme (maximum dwellings involved are shown in brackets), together with the intended recipient RSL (where known) are as follows:

Four of the authorities on the 2000/01 programme - Blackburn with Darwen BC, Calderdale MBC, Coventry CC and Walsall MBC expected to have housing debt remaining in their Housing Revenue Account (HRA) after their stock is transferred.

Sunderland CC and Birmingham CC have applied for a place on the programme but are being given them more time to develop their transfer proposals. They are both placed on the 2001/2002 programme.

March 2000
Transfer News in Brief

England

Scotland

April 2000
Transfer News in Brief

England

Scotland

East Ayrshire Housing Partnership made an offer of £8 million to take over ownership and running of the 925 houses in Kilmarnock, Stewarton, Galston and Crosshouse and keep them available for social renting. East Ayrshire Housing Partnership is a newly-established, not-for-profit organisation. It comprises council members, tenant and community representatives and business people with an interest in East Ayrshire. In addition to management board representation from each of these groups, two Scottish Homes tenants’ representatives are also on the board as directors.

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