Small housing organisations and more government cash are needed, commission finds
up to One-third of Birmingham's 80,000 council homes will fail to meet the decent homes standard unless they are transferred to registered social landlords – but they will need extra government money.

This was the recommendation of the long-awaited report of the commission set up in April to consider the future of the city's housing after its large-scale transfer bid failed.

Under these recommendations, the stock will be taken over by 35 community-based housing organisations with control of 80% of the management budget and all of the repairs budget. These organisations would be more economical to run and would enable most of the homes the meet the decent homes standard.

However, it conceded that partial transfers were inevitable in areas where the cost of repairs was too high, if the tenants agreed. The report also found the council's landlord service is failing and requires major reform to remain "solvent and viable".

In exchange for this devolution of power to community level, the commission urged the government to help by giving well-performing community housing organisations more borrowing powers, releasing resources through a higher share of capital receipts and offering dowries to aid small, partial transfers.

Without transfer, the report said, the city has little chance of coping with its £1bn housing repairs bill.

Other recommendations include:

  • two pathfinder areas to be set up to pilot community housing organisations, and a network of organisations to be set up within four years, after community consultation
  • nine area offices without budgetary control to be set up to support the organisations
  • housing strategy team to be set up by the council, responsible for strategic planning, resources and housing regeneration.

The report said: "Our recommendations are based on a belief that Birmingham's housing would be better run at neighbourhood level with ring-fenced local budgets, a dedicated local staff team with maximum resident involvement and local autonomy."

The Birmingham "no" vote was a blow to the government's preferred way of meeting the decent homes target. The commission's findings will add to calls for the transfer process to be made more flexible and better subsidised in urban areas, issues expected to be addressed by the Communities Plan, to be released in January.

Birmingham council will formally respond to the report on 14 January.

David Thompson, director of housing, Birmingham City Council

“The city has had months of consultation on the localisation of services and the devolution of governance, and this report will act as a catalyst for the further movement of debate that is yet to fully crystallise.”

Anne Power, chair of the commission and professor of social policy at the London School of Economics

“Birmingham currently spends 50% of its management and maintenance budget on management, when it should be spending 65% on repairs. As a landlord, it is in trouble.”

Tom Murtha, chair of the Birmingham Social Housing Partnership

“This is a radical proposal for the city’s housing and we hope that the council bites the bullet and backs the report. The four-year target to get almost 40 CBHOs up and running is challenging, but deliverable.”

Source

Housing Today