14 April 2006
Lenders have urged housing associations not to put themselves at risk by allowing too many tenants to join their boards.
Responding to a commission on tenant involvement established by the National Housing Federation, the Council of Mortgage Lenders warns of the danger of tenants joining boards without proper training.
'The primary purpose of a board is not to represent constituencies or interests, but to ensure good governance,' says the CML's submission. 'Being a tenant does not automatically imply an interest or competence in housing management.'
The government is pushing for greater tenant involvement in the running of registered social landlords. This year, the Housing Corporation expects to pay £2.6m in training grants for tenants hoping to take on management roles.
Andrew Heywood, deputy head of policy at the CML, said lenders were not opposed to tenants joining RSL boards, provided they had the right skills. But there was a danger that such board members could face a conflict of interest over issues such as repairs and lettings.
PFapr2006
