More than one million council homes will need to be transferred if the government is to meet its 10-year target to address the repairs backlog, and avoid increases in public spending.
That was the message from the Chartered Institute of Housing this week. Research by Graham Moody Associates, commissioned by the institute, found that if investment were to continue at the levels indicated for 2001/02 and 2003/04 in the last spending review then the government's target can be met.

But in order to achieve this, half of the remaining council-owned housing will need to be transferred to new landlords to raise the cash needed. On this basis just under three million council homes will be improved within 10 years, but half of them would not be in council ownership.

The report shows that £1.1bn worth of council housing investment was made available in 2001/02, and this could rise to £1.5bn in 2003/04. After that it is assumed the government will maintain the same capital allocations for council housing per unit of stock. As the stock level falls from the current 2.8m homes to 1.3m at the end of 2011/12, investment will fall as well.

Describing the findings as "realistic", National Housing Federation deputy chief executive James Tickell said: "We also considered that the government's 10 year target was achievable but it depended on the volume of transfers taking place."

Gwyneth Taylor, acting head of housing at the Local Government Association said: "We would broadly agree with the CIH. We want to see a level playing field for the options of retaining and improving stock, arm's- length companies, PFI and transfer."

The report also calls for adequate provisions for dealing with outstanding debt, including breakage costs for councils transferring low value stock, a review of the financial rule surrounding partial transfers so that councils pursuing mixed strategies can see this as a realistic option and ensuring that urban transfers have adequate funding for wider regeneration.

Although additional funding - up to £250m per year- would be needed to support these options, the costs would be offset by savings in existing DTLR budgets as council stock reduces, the institute said.

Source

Housing Today