16 June 2006
Broxtowe is one of more than 100 councils that have rejected the government's three funding options for meeting the decent homes standard. Next week sees the official launch of their own organisation, Arch. Neil Merrick reports on a growing movement
Just over a year ago, Peter Sadler was on the verge of quitting his council flat in Stapleford, a small town on the outskirts of Nottingham. But when he looked into renting a private flat a few miles away, he discovered that it would cost £75 per week – almost double the rent he pays Broxtowe Borough Council.
One year later, Sadler is glad that he stayed put. Not only has the council spent about £6,000 on a new kitchen and bathroom, but further work is imminent to improve heat insulation. 'It's been a wonderful transformation,' he says, admiring the new work surfaces in his kitchen. 'The bathroom is beautiful, especially for a council property.'
Sadler, along with other tenants, is benefiting as Broxtowe moves tantalisingly close to the decent homes standard in each of its 4,700 properties.
Four years ago, the council estimated that about one quarter were below standard, but work has continued apace. By the time it achieves the standard in 2008 – two years ahead of the government's target date – it will have spent £11.5m. And the work will not stop there.
Under a further five-year programme, Broxtowe plans to spend £7m on double glazing, central heating and other improvements in homes that – while meeting minimum standards – are still considered unfit for the twenty-first century.
Such extensive refurbishments would be impressive if they were carried out by a housing association following a stock transfer, or by an arm's-length management organisation, with the extra government money Almos receive.
But when Broxtowe was asked to submit plans to achieve the decent homes target last year, it told ministers there was no need for a change in management. Furthermore, it was not alone in spurning one of the government's three main options – stock transfer, an Almo or the Private Finance Initiative.
About 100 local authorities have told the Department for Communities and Local Government that they have the funds to bring their homes up to standard and, from this month, will be making a stronger case for traditional local authority housing. They have formed their own organisation, the Association of Retained Council Housing (Arch), which will be officially launched next week at the Chartered Institute of Housing conference in Harrogate. So far 44 councils have agreed to join while others are biding their time to see if it is worth paying £1,000 for an annual membership.
Arch chair Milan Radulovic is the leader of Broxtowe council. He says the association will argue for fair treatment for local authorities that are funded through the housing revenue account (HRA) system and do not enjoy the financial perks of Almos.
'We are not asking for any favours,' he says. 'We are simply arguing that tenants who have voted to stay with the council should not be treated any differently. Everything should be fair and transparent.'
In an ideal world, says Radulovic, there should not be a need for Arch, but he is disillusioned with the government. 'There is a lack of understanding about social housing among ministers and civil servants,' he adds. 'They do not treat it with any great interest or urgency.'
Broxtowe is divided in two by the M1 and most motorists probably drive through it without acknowledging its existence. One of the council's few claims to fame is that literary giant DH Lawrence was born in Eastwood, in the north of the district. But most council tenants live south in towns such as Beeston and Stapleford, which are almost suburbs of Nottingham and are joined by a main road called Brian Clough Way.
Two years ago, 90% of tenants voted in favour of the council retaining its stock with the sort of vehemence associated with the late football manager.
'Housing is the council's number one priority,' says Ted Czerniak, Broxtowe's director of housing, health and leisure. 'It's a matter of choice. Local democracy has prevailed.'
The council can afford to bring its homes up to standard through careful housekeeping and the relatively generous major repairs allowance that it receives each year from the DCLG. It started improving its properties in the late 1990s, slightly before Labour dreamt up the decent homes standard, and has so far spent £6.6m.
Last year, the council received £2.57m through the MRA system. Although this is intended for ongoing repairs, Broxtowe sets some money aside for long-term improvements. In spite of falling council house sales, it raised £542,000 in right to buy receipts in 2005/06, which was also used for decent homes work. 'The government gave us restrictive options and didn't want us to follow the one that we are taking,' he says.
The council raised a further £1.5m last year through prudential borrowing. While Czerniak sees this funding method as more valuable for other services, it gave the housing department extra flexibility and means it will achieve the decent homes target in 2008, rather than 2010.
'The timing was beautiful,' he adds.
According to the DCLG, 106 local authorities plan to achieve the target without any change in management. A further 69 councils have set up Almos, or plan to do so, while 183 opted for the stock transfer. Seven are using a mixture of solutions, while two have still to have their plans approved by ministers.
Like Broxtowe, Norwich City Council found that an overwhelming majority of tenants wanted to remain with the local authority. A recent restructuring of its housing department freed some funds, allowing the council to spend £15m per year on decent homes work until the end of the decade.
Lynda Peacock, Norwich's acting director of housing, says the council would like to do more if it had the same money as Almos or housing associations. But tenants seem to like its new neighbourhood focus. 'We have changed the nature of the service,' she says. 'We have a tenant call centre and neighbourhood officers working out on estates. It's more flexible.'
Peacock sees Arch as a means of sharing best practice among councils and wants it to press for changes to the HRA system. 'We should lobby the government to change the funding regime and help councils that retain their stock,' she adds. 'There must be equity in terms of how housing funds are distributed.'
Oxford City Council, which pays about £7m into the housing subsidy system each year, also sees funding as a top priority. Graham Stratford, Oxford's business manager for housing, says that councils without Almos are the only part of public sector housing without a unified voice. 'There is a real need for an organisation to make the case for 1 million tenants,' he says. 'We are not looking to take money from anyone else, but we're looking for sustainable funding for the future.'
Communities and Local Government Secretary Ruth Kelly announced last week that six local authorities are to be invited to leave the HRA system on a trial basis. However, any long-term changes still seem a long way off.
Gwyneth Taylor, policy officer at the National Federation of Almos, agrees with Arch that the subsidy system needs to be overhauled. 'They keep talking about a level playing field but we are asking for that too,' she says.
Taylor points out that Almos were required to achieve higher management standards before they gained any extra money, and that many are in urban areas where the decent homes bill is far larger. But she expects the NFA and Arch to enjoy a good relationship. 'Once they get themselves organised, there are quite a few areas where we have a mutual interest.'
Czerniak and Radulovic agree. 'We have no particular axe to grind with Almos,' says Radulovic. 'We simply want to know why the government is treating part of the housing sector differently from the rest.'
Had Broxtowe gone down the Almo route, Czerniak believes the 'cream' of the housing department would have ended up working outside the local authority in the same way as after a stock transfer. The council would no longer enjoy the same economies of scale and would be unable to tackle problems such as antisocial behaviour in a co-ordinated way. 'We have seen what happens where a council is left with a strategic rump of housing services,' he says. 'There is a cross-party consensus here in favour of retention.'
Councils of all political persuasions are playing a leading role in Arch, including the Tory-controlled London Borough of Wandsworth, which holds the vice-chair's position during the first year. 'We will work across the political spectrum to get the best deal that we can for our tenants,' adds Radulovic. 'I'm delighted that housing has risen up the political agenda, but it's nice to be in control of your own destiny.'
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