Housing Corporation director says councils cannot cope with so many HAs in one area
Housing associations will jeopardise their own futures if they do not rationalise their stock holdings, a senior Housing Corporation official has warned.

Max Steinberg, the corporation's investment director (north) criticised the patterns of ownership that mean dozens of associations each own a few homes in small areas. This neither serves the public nor offers value for money, he said.

In a session at the National Housing Federation conference in Birmingham last week, Steinberg said the corporation is holding talks with three councils on delegating statutory services to associations. Street cleaning and security are among the first that could be transferred under neighbourhood management.

But councils increasingly demand a coherent approach to delivering services and cannot work with 40 or more associations within the same area.

He warned: "Local authorities will look for someone else to do it if housing associations don't."

Steinberg heads the corporation's regeneration team represented on the neighbourhood renewal pathfinders, which this week joined forces with the NHF. He has told the corporation and the government that cash may have to be found to cover the costs of rationalisation. Tax breaks to aid neighbourhood renewal should also be explored, he added.

He also announced plans to extend a Manchester pilot project to two other areas of the city.

Birmingham council head of housing strategy Lisa Trickett said it was impossible for the council to work alongside 54 housing associations. In one area 29 associations are operating and 14 have stock in a single street.

The council plans to choose partners for neighbourhood management and future development. Associations that refuse to rationalise will not be chosen so will lose access to funds.