Council homes deal moves a step closer

THE transfer of Oldham Council’s housing stock to unlock £149 million in investment is set to move a step closer.

The council’s cabinet will consider a report outlining the procedures on switching the ownership and management to First Choice Homes Oldham (FCHO) at a meeting tomorrow.

A tenants’ vote on the plans last month was overwhelmingly in favour of the deal and councillors have been advised to make a formal decision to proceed at the meeting.

The move is set to unlock £149 million in investment in the first five years with the potential of up to £809 million to come over the next 30 years.

The new report advises cabinet that considerable background work remains to be completed before the detailed transfer proposal is submitted to Government for final approval.

It proposes that the transfer could be completed by the end of the year.

The report also informs members of specialist advice received in relation to new consultation proposals that were launched in April by the previous Government.

These were about the reform of housing finance and how to give local authorities more freedom in investment.

The report concludes that if the new coalition Government decided to adopt these proposals then the borough would be better off for housing funds than at present.

However, it adds that Oldham would still be £135 million short in funding for the improvements that would be delivered via the housing stock transfer. Tenants could also lose out on an estimated £358,000 in improvements each year.