08 August 2003
Stock transfers have received a much-needed boost after tenants in five local authorities voted to switch to housing associations.
The National Housing Federation pointed to 'yes' votes in Bromsgrove, Cherwell, Hartlepool, South Norfolk and Worcester as a sign that large-scale voluntary transfer (LSVT) is still one of the best ways for councils to meet the decent homes standard.
Although each LSVT is relatively small, the transfers should still raise about £266m from private lenders. Nigel Minto, head of projects at the NHF, said 17 of the past 19 ballots had resulted in tenants voting for transfer. 'It's not just tenants who benefit from transfer but the neighbourhood as a whole,' he added.
Following the publication of Whitehall's Sustainable Communities plan, arm's-length management organisations seem to be the most popular option in urban areas. But the 2003 transfer list also showed some urban councils transferring individual estates.
An NHF study has concluded that there is no urgent need to attract more funders into the transfer market, which is dominated by four lenders – Nationwide, Halifax/Bank of Scotland, Royal Bank of Scotland and Abbey National.
The study, funded by the Housing Corporation, said it was important that the market continued to grow with competitive pricing but concluded: 'There is no need for a bespoke programme of work to encourage more funders.'
PFaug2003
