New era ahead for council housing

OLDHAM’S 12,000 council tenants face a brighter future now they have voted for a new landlord, bringing in money to improve their homes, say supporters of the transfer.

But the vote was not all plain sailing as two local MPs stepped in and urged tenants to say no.

Despite Michael Meacher and David Heyes’s advice, tenants voted by an overwhelming majority to have First Choice Homes Oldham as their new landlord when it becomes a housing association this year.

Janice Barker reports on what happens next.



HARRY Burns was clearly delighted with the vote by Oldham’s council-house tenants, who said yes to the stock transfer.

Two thirds of the 12,000 tenants used their vote — and almost 90 per cent of them backed a new landlord and the promise of £148 million of investment over the next five years.

Mr Burns, who is chairman of the First Choice Homes’ (FCHO) main board and also a Barker Street estate council tenant, said: “I had no doubt that we would get it, but I would not have been happy just to win — it was a good majority.

“It showed people have faith in FCHO and making this break is important, it gives us a stability in the way we can work.”

The vote still has to be formally approved by Oldham Council on June 2, and the legal process of turning First Choice Homes from an arms length management company to a registered social landlord, or housing association, will take most of the year.

Hugh Broadbent, FCHO chief executive, explained that once the legal moves are complete, the new association will be able to borrow money against the annual rental income from the 12,000 homes it will own.

That stability will replace less certain funding which depends on Government grants and initiatives, and policies that could change as the politics at local and central government change.

Mr Broadbent added: “From 2011 to 2016 we will invest £86 million in new kitchens, electrics, bathrooms, heating and hot water, security, environmental and structural works.

“The first thing we have to do is decide who comes first, which will be done in close consultation with tenants. ‘Worst first’ will be a critical factor.”

One of the major complaints of Michael Meacher — now standing for re-election as Labour candidate in Oldham West and Royton — was that only 5,000 homes will get new kitchens and bathrooms.

Mr Broadbent says more than 11,000 will get improvements in the next five years — 5,500 will have new kitchens, another 5,500 get bathrooms, and other homes will get heating and electrical improvements.

He added: “We can’t make absolute promises given the volume of work, but it is highly likely that everyone will get something.”

Another major consideration will be who gets the jobs.

Mr Burns is keen for tenants to get involved with picking contractors. He added: “I want tenants to train to be involved to make sure we get the right contractors and make sure they deliver.”

The investment will also mean more work for FCHO’s staff, the majority of them local people. In total, it has 500 employees and already spends around £3.5 million a year in Oldham ranging from vehicle hire and office services to construction and maintenance.

FCHO already has links with respected local companies such as Emmanuel Whittaker, Oldham’s oldest construction company.

Both Mr Broadbent and Mr Burns stress that despite the changes ahead, tenants’ rights remain the same and the new housing association will be answerable to the Tenants’ Services Authority (TSA).

Mr Broadbent said: “Technically they will no longer be council tenants, but have assured tenancies, and their rights are exactly the same.

“There are one or two extras, such as succession — if you want a son or daughter to continue living in your house. All previous successions are written off and a new line is drawn under them.

“Rents will be guaranteed for the first five years and any increase will be to the maximum Government allows — no different to what they would have done had they stayed with the council. Then beyond that they will be controlled by the TSA regulator.

“Housing Benefit remains the same.”

The new housing association also has to deliver £300,000 worth a year of service improvements, including faster repairs, repairs by appointment, more caretakers, support for the Respect our Communities campaign, and money to help families downsize to a smaller house.

Mr Burns is also keen to see new houses built.

Small pockets of new homes are being built, like 32 homes at Byron Green, in Hollinwood, and two pairs of semi-detached homes are planned at Clyde Street, Watersheddings and also in High Crompton.

But currently there are more than 11,000 people on the housing list.

Mr Broadbent added: “We have got further bids in with the Homes and Communities Agency for more in the new financial year, 2010-11.”

And they are looking at ways to make the existing housing stock more environmentally friendly and looking at better ways of building energy efficient new homes.