It’s your choice

Council housing transfer: the big decision

FOR the past five years First Choice Homes Oldham has looked after the council’s 12,000-strong housing stock.

A two-star rating led to FCHO receiving government money to bring every property up to the Decent Homes Standard.

Tenants now want more to be done — such as new, more modern kitchens and bathrooms, central heating and security systems — but the cash-strapped council can’t afford to make these improvements.

In an attempt to provide the best possible standard of life without astronomical rent raises or changes in tenants rights, the council is consulting with all residents on transferring the housing stock to FCHO.

This would make FCHO a housing association and allow it to borrow the money needed to make the changes tenants want.

Reporter DAWN ECKERSLEY takes a closer look at what the housing transfer would mean for tenants.
OVER the next few months the council will consult with FCHO tenants to make sure they have all the facts available to them about what the housing transfer would mean.

Since 1988 there have been around 200 housing transfers, including Tameside, Trafford and Manchester, across the country involving one million homes and £14 billion of investment

If the proposal goes ahead in Oldham, it would transfer the ownership of the council’s homes to FCHO making FCHO a registered provider of social housing or a housing association. FCHO would become the new landlord but it would not mean that anyone has to move house.

At the end of the consultation period tenants will receive an Offer Document outlining the proposal in full and they will then have to vote yes or no.

If a majority yes vote is returned, FCHO will take over as landlord and improvement work will start right away.

If the majority of tenants say no the council will remain in charge and the situation with improvements will stay the same.

During the consultation period there will be roadshows, question and answer sessions and various meetings to make sure everyone has all the information they need to vote the way they want to.

Any information sent out to tenants must adhere to strict government guidelines to make sure it is fair and balanced.

The council proposed the housing transfer in a bid to allow the good work carried out so far under the Decent Homes Standard programme to continue.

If the proposal goes ahead, FCHO would be a new, not-for-profit organisation and it would be registered with the Tenant Services Authority — the Government’s regulators of registered providers. It would continue to be run by a local management board, made up of tenants, council nominees and independent members.

Staff who currently provide the housing management and repairs services would continue to work for FCHO.

If the proposals go ahead, money borrowed by FCHO would be spent on areas identified as being part of the Oldham Standard such as security, heating, kitchens and bathrooms as well as environmental issues such as fencing.

The repairs process would also be speeded up to make sure that improvements stay in top condition.

Government policy — which councils and housing associations must comply with — would ensure any rent increases are carefully controlled.

If the policy goes ahead, tenants would still be able to buy their property, sublet and pass on their home and their entitlement to claim housing benefit would also not be affected.

If the vote is a no, the council continue to be landlord with FCHO managing the homes.

The council would not be able to deliver the levels of improvements to homes and estates and it is likely that cuts would have to be made in the level of services which tenants currently get.

It is expected that the consultation period will run until autumn when tenants will receive their Detailed Offer document and be asked to take part in a postal vote.






MYTH BUSTING



THERE are many myths and misunderstandings surrounding the transfer of homes. Here, Councillor John McCann, cabinet member for housing, puts the record straight



Myth: Tenants would be worse off.

Reality: Not true. Rents would stay affordable and be set in line with government rent rules - the same rules FCHO follows now. Tenants would actually get more for their money as FCHO would be able to provide improvements and better services.

Myth: Evictions would increase because of housing transfer.

Reality: Although tenants would receive a new assured tenancy agreement (rather than the secure tenancy agreement they currently have) their key rights would be protected. Under the current agreement the council can change key rights after general consultation but under the new, proposed agreement key rights can only be changed after written consent from the tenant.

Myth: Housing transfers are a failure.

Reality: Not true. More than 1.3 million homes have transferred to housing associations in the past 20 years. An independent survey published by the Joseph Rowntree Foundation found that:

Ballot commitments had been kept and exceeded in most cases.

Tenants involvement in organisational decision making had been stimulated.

Housing associations have implemented upgrades to standards appreciably higher than the Decent Homes Standard.

Housing associations have played a key role in neighbourhood regeneration and developing community facilities.

Myth: A housing transfer would mean privatisation

Reality: FCHO would be a not for profit local housing provider run by a voluntary board with no shares or shareholders. Any surplus money would be ploughed back into improving homes and services.

For more information on housing transfer, visit www.oldham.gov.uk