13 January 2006
Council-owned housing companies are urging ministers to hurry up and decide whether they should be given new borrowing powers.
They are still waiting for the results of an Office of the Deputy Prime Minister review into arm's-length management organisations that began almost 18 months ago.
In the ODPM's response to the Barker review on housing, it said it would consult on whether Almos should take on a development role in its drive to build more social housing. Hounslow Homes has already received the go-ahead to build a mixture of homes for rent and private sale under a pilot scheme drawn up with its council in west London.
But Gwyneth Taylor, policy officer at the National Federation of Almos, said the NFA had told housing minister Yvette Cooper that most Almos cannot commit themselves to build homes until their long-term future is agreed.
The Council of Mortgage Lenders supports the principle of Almos borrowing privately in the same way as housing associations. The issue was certain to be raised at a meeting between the federation and ODPM officials on January 13.
The NFA is also angry that ministers have taken so long to announce details of round six of the Almo programme. Some councils have begun setting up Almos even though they cannot submit bids for government funds.
Taylor says the ODPM is waiting for all councils to complete stock option appraisals after some missed last July's deadline. 'They know which ones want to set up Almos and which don't,' she said.
An ODPM spokesman said it was still considering whether Almos should become self-financing, along with other issues arising from the review.
PFjan2006
