Parts of Glasgow’s stock transfer did not represent value for money, according to a review commissioned by the city council.

The review of the final stages of the handover of 84,000 homes to Glasgow Housing Association said some of the terms were overly favourable to the inheriting association.

Two council properties – Wheatley House and Dundasvale Court car park – were transferred to GHA and then leased back to the council.

These transfers “do not appear to represent good value for money for the council”, said the study. “Only very limited documentation was made available to explain the rationale for the terms agreed, the net effect of both transactions being the provision of an annual positive cash flow to the association.”

However, the review also concluded that the transfer had reduced the council’s loan debt, saving it £50m a year on interest payments.

Source

Housing Today