Unison has warned that stock transfers are a poor way of reaching the decent homes standard.
Research by the local government union found that transfers were not helping meet the government target of improving the worst housing first.

The study was prepared in support of a rally by anti-transfer group Defend Council Housing at the House of Commons yesterday.

Unison analysed stock transfers against the government's indices of deprivation.

It found that most transfers to date have taken place in relatively well-off districts, which it said does not square with the government aim to make a priority of improvements "in the most deprived local authority areas".

Unison found that of 55 full transfers since 1997, 38 were in the least deprived areas. In 2001/2, of the seven full transfers that occurred, all were in relatively well-off districts.

Only nine transfers were in the 100 most deprived council areas. These included some of the largest stock numbers, however: Sunderland transferred 36,000 homes and Coventry 26,000.

Unison also called for a radical rethink on investment for decent homes.

The union said the government should provide an annual subsidy to councils, which would meet the Treasury's rules for borrowing money "prudentially".

This could raise £14bn towards the £19bn repairs backlog, it said. With existing investment, that would be enough to bridge the gap.

The investment allowance would start at £150m, rising to £1bn by 2009/10. It would come from savings on housing benefit from not transferring homes to associations with higher rents. This amounts to £834m, Unison claims.

The union added that, since 1997, the government has allowed £600m less spending than it could have. The extra money has been set aside from receipts and could be released. Other funds will become available when housing benefit is switched to the general fund in April 2003, the union said.

Unison national officer Colin Meech said: "All the evidence suggests that if investment is available through other means, tenants will vote against stock transfer. Only by denying tenants that choice have transfers progressed."

The National Housing Federation insisted that transfers were vital to reaching the decent homes standard. A spokesman said: "It is key because it brings investment that is otherwise not available."