10 September 2004
Arm's-length management organisations could be given control of local authority homes in a move that could lead to full privatisation of council housing stock.
This is one of a range of options to be considered in a review by the Office of the Deputy Prime Minister, due to start later this month. Other proposals include winding up Almos and returning their management powers to councils.
At present, Almos are responsible only for managing homes, which are still owned by the council. Any transfer of ownership would be bound to anger Defend Council Housing, which campaigns against Almos and stock transfers.
Spokesman Alan Walters said the proposal proved that DCH had been right to argue that Almos were the first part of a two-stage privatisation.
But Alistair MacIntosh, spokesman for the National Federation of Almos, said no firm proposal was on the table. 'We are looking forward to a blue skies debate,' he said.
By the end of 2005/06, the first eight Almos should each have achieved the decent homes target. The review will look at options for when the target is met. It will also consider measures to ensure Almos still have an incentive to improve their performance once funding no longer depends on gaining two inspection stars.
The review group is to be chaired by Neil McDonald, director of housing at the Office of the Deputy Prime Minister, and will include three Almo chief executives along with local authority representatives.
John Perry, policy adviser at the Chartered Institute of Housing, said the review could effectively lead to council-owned housing associations registered with the Housing Corporation.
The ODPM insisted tenants' rights would not be affected and that homes would remain in the local authority sector.
This will make it harder for the government to grant top-performing Almos extra borrowing freedoms, as spending will continue to count as part of the public sector borrowing requirement.
PFsep2004
