Deputy prime minister John Prescott is set to announce cash for estate transfers and more help for low-value full transfers in his speech today.
The search for cash will be helped by falls in the major repairs allowance, used by councils to make improvements to their stock. The allowance will drop sharply over the next three years: this year's £1.65bn allowance will drop to £1.31bn in 2005/06, reflecting the expected fall in council stock numbers, as well as lower spending need as the housing is improved.

That is a fall of almost 6% each year. Plus the effect of inflation, this means a saving for the government of £500m.

Previous government estimates suggested council stock would fall by about 7% each year through transfers, right to buy and demolitions.

Consultant Graham Moody said: "I would expect the stock to continue to reduce at about 180,000 to 200,000 a year."

National Housing Federation projects manager Nigel Minto said £250m is needed to pump prime estate transfers. "It would provide very real benefits to tenants and assist community regeneration," he said.

Transfers will continue to receive strong backing from the government as it continues to drive for the decent homes standard. Local Government Association programme manager Gwyneth Taylor said: "The government seems very wedded to the transfer rate and it forms a large part of its financial planning. But it will have to come up with more for councils with overhanging debt and other problems if the rate is to be kept up."

Arm's-length management is also set for a boost. Experts estimate that there could be £700m of unmet bids stored up among the 21 arm's-length organisations already established. With a fresh round of bidders waiting in the wings once the requirement for ALMOs to have a three-star rating before they receive funding is lowered, the government would have to find up to £1bn to meet all the demands.

Leeds council, like three others, got only 60% of its two-year bid, leaving £37m outstanding. It could make further bids to meet its £330m gap in reaching the decency standard.

Housing director Eric Bowen said: "We hope we can continue to access cash. Success depends on a flow of money up to 2010."

Source

Housing Today