Meacher’s concern at council house plans

Reporter: by JANICE BARKER
Date online: 09 December 2008

A former Government minister says now is not the time for Oldham’s 12,500 council houses to get a new landlord.

Oldham West and Royton MP Michael Meacher is concerned about plans to convert its arm’s-length management organisation, First Choice Homes Oldham, into a housing association.

FCHO carried out improvements with Decent Homes money to each council house, but that Government grant has now come to an end.

Councillors want a change to secure FCHO’s financial future. But Mr Meacher reckons the whole idea should still be under discussion, and no transfer should happen without a tenants’ ballot.

Mr Meacher agrees that the council’s housing is seriously under-funded. He said if it was funded for actual need, there would be £14.7 million more, or an extra £1,163 per tenant.

He added: “Oldham tenants must not be bounced into this without a full public debate, making each and every one of them fully aware of the background and what the options now are.

“There are significant drawbacks with housing associations. They are private companies in law, which borrow directly from the private market, and are behaving increasingly like private sector organisations, managing stock as an asset to maximise returns.

“As a result of their becoming increasingly dependent on private lenders, the risks for housing associations have grown with the current credit crunch and recession.

“Evidence from across the country shows that those who have transferred now face broken promises, rising rents and cutbacks on maintenance because the lenders to housing associations are in financial trouble.

“And if things go wrong, there is no return to the council.”