14 June 2002
The rejection of a large-scale voluntary transfer (LSVT) in Birmingham and the concerns felt in other urban authorities mean that it is unlikely 1.4 million council homes will be transferred by the end of the decade as forecast, claimed leaders of the Chartered Institute of Housing.
Research published to coincide with the institute's conference this week shows that, instead of half of Britain's remaining 2.8 million council homes switching to registered social landlords by 2010, the figure is more likely to be in the region of 1.1 million.
This means that the sum required to improve the condition of homes that are not transferred to RSLs is likely to remain at about £1.7bn a year instead of falling back to an annual £1bn towards the end of the decade.
In his speech on June 13, CIH president Richard Kitson called for an extra £1.9bn to be pumped into council housing by 2010. There should also be an immediate increase of £600m for RSLs, extra resources for the creation of more arm's-length management organisations and £500m to boost failed housing markets, he added.
'The government will have to boost direct investment in council housing unless it makes stock transfer more attractive for both councils and tenants,' said Kitson.
According to the CIH study, the government must win 'hearts and minds' and demonstrate that an LSVT is the best option. 'Few London boroughs have opted for wholesale transfer, and many big and medium-sized cities, such as Newcastle, Bristol, Leicester and Nottingham, have yet to be convinced,' says the report.
As delegates gathered in Harrogate on June 11, they learned that Lord Rooker, the new housing and planning minister, would be replaced at the conference by Mavis McDonald, the permanent secretary of the Office of the Deputy Prime Minister, which covers housing. Former housing minister Lord Falconer had been due to speak on June 13.
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