Existing housing associations will have to be considered by councils undergoing stock transfer, even if the tenants want a new landlord, the government said this week.
As housing minister Lord Falconer hinted at last month's National Housing Federation conference in Birmingham, the DTLR's transfer guidance for the 2002 programme focuses on increased competition. For the first time, existing RSLs are to be included during bidding.

The guidance suggests councils "bear in mind that it can be easier to implement and fund transfers, especially smaller ones, to large, existing and well-capitalised RSLs".

The government will now expect to see evidence that all options for changed control of the stock have been explored with tenants, even where the consensus is for a new landlord.

"Even where tenants have initially indicated they would prefer to transfer to a new RSL, the authority should consider working with tenants to explore whether there is merit in holding a competition and inviting RSLs to submit proposals to become the 'RSL partner'," the guidance states.

Local Government Association policy officer Ruth Lucas said councils would have to examine all scenarios before deciding upon the "best option for tenants, the authority and local RSLs".

Increased choice is likely to offer a larger capital receipt, it adds. That view has split lenders as to whether competition will generate higher prices, or simply delay the process. A "beauty contest" between local RSLs could protract the process and dilute support among tenants, Sector Treasury Services head of housing and specialist finance Vic Bradford has warned (Housing Today, 27 September).

Chartered Institute of Housing policy director John Perry said increased competition had been expected, and called for more emphasis on the strategic role of housing authorities.

The guidance includes specific advice on the involvement of black and minority ethnic communities and more emphasis on tenant participation.

Source

Housing Today