A defunct £22m stock transfer plan to transform a council estate in Edinburgh was "almost certainly doomed to fail", according to the chief executive of one of the housing associations that was to have taken over the 670 homes.

Edinburgh council announced last month that it considered the plans to be unviable. Responding to the announcement, John Mulloy, chief executive of Hillcrest Housing Association, said the "unique" levels of home ownership on the Dumbiedykes estate meant the proposals were too risky despite the high levels of subsidy involved.

He added that Hillcrest, which made a successful joint bid to renovate the estate with Old Town Housing Association, had reservations about the proposals because contributions for communal repairs from owner-occupiers would have been too high.

The fact that the estate's two tower blocks required extensive renovation had added to the expense, Mulloy said.

The transfer was to have attracted funding of £18m from the Scottish Executive, and a further £4m in private finance.

Funds for renovation will instead come from the council's capital investment programme.

Source

Housing Today