It says it only has half the £470m needed to upgrade the homes over the next five years.
This is the latest blow to the DTLR's attempts to hit its decency target. Ministers had promised all council homes would be of a decent standard by 2010, but a series of council blunders and the rejection of stock transfer by tenants in Birmingham last month mean the target is virtually unattainable.
Newcastle tenants' priorities for improvement were windows, soundproofing and kitchens according to a council survey. Nine in 10 homes have single glazing – replacement would cost £56m.
Of the non-decent homes, 20% could be put right for under £2000. But some require £10,000 or more spent on them.
Those that fail the standard on more than one element would cost £116m worth of investment. Extensive work on rewiring, roofs and central heating is also required. Demolition is expected to reduce the stock by 4000 over 20 years.
The council has so far refused to say how it will bridge the funding gap. It has £55m to spend on repairs and improvements this year but admits resources are expected to dwindle. A report in 2000 gave the stock a negative value of £121m.
Newcastle is to start a huge "Talking with Tenants" consultation exercise to discuss the future of its housing stock. It said: "All options are being investigated, including continued ownership and management by the council."
The DTLR has admitted a quarter of councils could fail to meet the target date (Housing Today, 14 March). Hopes that the numbers of non-decent homes would be relatively low have been dashed by Birmingham's failed transfer and by survey results emerging elsewhere.
It is thought up to 90% of Hull's 35,000 homes fail the standard. The council is under threat of government intervention in its housing service.
But the DTLR rules out any possibility of dropping the target. It was created at the insistence of the Treasury which wanted to see concrete progress in return for extra housing investment.
The department is expected to rely heavily on the proposed market renewal fund to dispose of obsolete council stock and private sector homes.
Sources suggest it will wait for results on the interim 2004 decency target before deciding whether a "plan B" is needed to reach the long-term goal.
Inching towards decent homes
July 2000:government pledges to ensure “all social housing meets standards of decency by 2010”; interim target to reduce the number of people not living in decent housing a third by 2004
August 2000:
Experts say the only way to hit target is through large-scale stock transfer. Wrangling over definition of “decent” begins
January 2001:
Decent homes standard one of several “floor” targets announced in the national strategy for neighbourhood renewal
March 2001:
Sector complains the decent homes definition is set so low that councils will have little choice but to transfer
May 2001:
Fuel poverty body NEA warns that the heating element of the target is unachievable through bricks and mortar changes alone
November 2001:
Implementation plan introduced. Chartered Institute of Housing claims more than 1 million council homes must transfer if the target is to be met
April 2002:
Council tenants in Birmingham reject transfer. DTLR official admits more than 200,000 homes will miss the target
May 2002:
Audit Commission recommends government intervention in Hull council’s housing service. Newcastle survey finds majority of its 35,000 homes will miss the 2010 deadline
Source
Housing Today
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