Tenants given more control

Tenants could play a key role in choosing and managing their landlord in whole stock transfers after housing associations were given the go-ahead to bid against local housing companies.

Guidance for next year's transfer round says councils should give tenants more say in making key decisions and that existing housing associations should be allowed to compete for whole stock transfers.

Underlining the need for more tenant involvement, the guidance, out this week, says tenants should be involved in the process from the outset. "Authorities will be expected to show how the tenants were involved and the benefits to tenants of each of the options."

It also says tenant-controlled whole stock transfer RSLs should be allowed "in certain circumstances".

On competition, the guidance argues: "Councils should consider holding a competition and invite existing RSLs to bid for the stock as well as setting up a new council sponsored landlord.

Introducing an element of competition...can increase the size of the capital receipt, improved service delivery, and terms of transfer."

National Housing Federation finance director Stephen Duckworth said that competition between existing RSLs for estate transfers was established but would be a "big new innovation" for whole stock deals.

But he warned that existing RSLs "may take on extra risk to be more attractive to the local authority".

A Department of the Environment, Transport and the Regions spokesman said councils should think "long and hard" about involving tenants in choosing a landlord in the new round.

Tenant Participation Advisory Service policy officer Paul Schofield said moves to give tenants more say in choosing their landlord would be "hugely welcome".

He said: "In the past the local authority has chosen its partner and effectively given tenants a take-it-or-leave-it choice."

Schofield added that tenant involvement at an earlier stage could help to win ballots.

Defend Council Housing spokesman Alan Walter said the threat of competition from RSLs could pressurise councils into being more proactive about working up transfer plans.

He said: "I wonder how councils would feel if they were cold-called by RSLs with glossy brochures saying "we could do this better than you"."

Tenants' representatives who have fought to increase the role of tenants on boards were upbeat about the concession allowing tenant majorities.

Tenants and Residents Organisation of England secretary Cora Carter said: "You need the right mix of skills and experience on boards. Usually tenants have that so why shouldn't they be in the majority?"