Double trouble for stock transfer programme

This year's programme, scheduled to be the biggest ever, was dealt further blows this week as tenants in Lewisham rejected plans to transfer 7,000 homes and New Forest district council confirmed it had shelved its transfer plans.

The ballot result in Lewisham comes on top of a vote against transfer by tenants of Fenland district council (Housing Today, issue 146) and concerns that large transfers at Burnley and Coventry may need to be delayed (Housing Today issue 145).

In Lewisham, 55 per cent of tenants who voted opposed transfer to Hillgreen Homes, after a fierce 'no' campaign.

The authority said it was disappointed, but respected tenants' decision, while the Federation of Lewisham Tenants and Residents Associations hailed the result as a great victory for tenants and leasholders.

Nick Strauss of Defend Council Housing said the result, on top of earlier 'no' votes this year, showed there was now a trend against transfer. He said: "That's very positive and we are very happy about it."

Chapman Hendy director Peter Chapman insisted the transfer programme was still "broadly on track". But he said: "What is interesting is that one would have thought after 10 years of transfer, providing the offer to tenants was good, that 'no' votes would be increasingly unlikely. But in fact as we have seen, particularly where there are strong anti campaigns, the ballot process is very fragile."

New Forest district council said this week it had pulled out of the programme because a combination of issues had "conspired against it financially". Key problems included falling interest rates, which meant redeeming loans taken out at higher fixed interest would be more expensive and the implications of the single capital pot leaving it with no ringfenced cash for private sector renewal.

New Forest, Boston, Burnley, Tameside and Restormel have been lobbying government on the obstacles they face.

New Forest's assistant director of housing Steve Benson said: "It appears to us to be in tenants" best interests for transfer to take place, but all the issues are around the financial impact on the authority. We can't get into the situation where it affects other services."

Meanwhile, one transfer ballot has gone in favour, it was announced this week. At Elmbridge district council, just over two-thirds of those who voted backed the transfer of 4,688 homes to Elmbridge housing trust.