Preston council is to become the first council to introduce a form of transfer that puts tenants in charge.
The council has agreed to put into practice an idea called a “community gateway” that would make local people shareholders in a new organisation, allowing them to take control of their neighbourhood.

Preston has 7300 homes, three-quarters of which do not meet the decent homes standard. It plans a transfer as a way to attract investment.

In a community gateway, the council hands its stock to a registered social landlord, as in conventional transfers. But the organisation has already formed a contractual agreement with tenants that commits it to increasing resident empowerment. A strategy with targets would set out the new landlord’s goals.

Residents then take as much control over their local housing as they wish, through management agreements, co-ops or other formal methods.

The model is underpinned by open membership of the central landlord, using £1 shares. The tenant and resident board members will be elected, as will council representatives, from a slate of candidates. Members will ratify the choice of independent board members.

Preston housing director Peter Deacon said: “We have been involved for some time in the preliminary work being carried out. The council has now made a major decision in principle and we will need to develop a wide range of follow-up work over the next 12-18 months.”

The community gateway idea is under theoretical development by the Chartered Institute of Housing and Confederation of Co-op Housing. The two organisations are doing research into a legal framework which will help set the Preston initiative rolling.

CIH policy analyst Mark Lupton added: “We are developing a legal framework that will satisfy the Housing Corporation and lenders. Future transfers will need to change the relationship between landlord and tenant, and focus more on resident empowerment.”