Partial transfer is likely to be made easier by the government after one of the largest transfers so far was derailed before it even went to a ballot.
Officials have confirmed they are looking at pro-rata payments to cover the overhanging debt of urban councils considering partial transfer amid signs of political opposition to large urban transfers.

London’s largest council landlord Southwark has announced it is to shelve plans to transfer all of its 50,000 homes because of tenant opposition.

The council has a housing repairs backlog of £900m and overhanging debts totalling £740m.

But council leader Stephanie Elsy said the authority would consider partial transfer if pro-rata payments to pay off overhanging debts could be arranged.

She said: "If tenants want us to explore this possibility then we will do that. The feedback we received was that tenants did not want a total transfer of stock. We are happy to act on their wishes."

A DETR spokesman said the pro-rata proposal would be "new ground" for the government but confirmed talks had taken place.

News of the move is sure to spark interest at other urban authorities such as Sheffield where support for LSVT among tenants is not high.

Hacas Chapman Hendy director Jeff Zitron welcomed the idea "The DETR is looking at paying overhanging debts on partial transfers and they are also looking at apportioning debt to individual properties rather than taking an average figure," he said.

"In some cases partial transfer works but in a lot of cases it can have a detrimental effect on council revenue accounts. If debt is apportioned there will be far more cases where a partial transfer can go through without hurting the remaining tenants."

Southwark Group of Tenants Organisations welcomed the council’s decision and called on government to fund repairs on the council’s estates.

SGTO chairman Gary Glover said: "Tenants and residents across the borough now want Southwark to put in place procedures that will make Southwark housing one of the best performers in London."

And Defend Council Housing national committee member Piers Corbyn, who is also an SGTO member, said:"There was so much opposition from tenants they [the council] realised it was a no-goer.", he said: "It would have been political suicide. It’s a very significant victory and should have implications elsewhere."

Source

Housing Today