7.11 We believe the process delivers a wide range of benefits. Stock transfer can:
•
improve the quality of housing by bringing in private investment;•
create a wider range of bodies with high levels of tenant involvement to run housing, improve services and match them more closely to tenants’ needs and preferences; and•
enable local authorities to concentrate on their strategic responsibilities for housing. 7.12 We have taken action to increase public investment in housing. Stock transfer brings inadditional private investment to improve homes that are transferred, based on the present value of the housing and future rental income.
7.13 Tenants should be involved in the process of making decisions about their homes, including proposals for renovation and improvement, and wider plans for the future of their neighbourhood. Moreover, all tenants deserve a high quality housing management service, which is responsive and sensitive to their needs. Because stock transfer is dependent on the consent of tenants, the process ensures their involvement in proposals right from the out-set, building on arrangements for tenant participation negotiated through compacts.
7.14 The case for housing transfer does not rest solely on financial advantage. We also aim to create a more diverse pattern of dynamic and competitive organisations to run social housing. Transfer presents an opportunity to move away from large monopoly providers of social housing to a greater number of smaller bodies that are based in or closer to the communities where the homes are transferred. It may not always be sensible to transfer all of a local authority’s stock to one or more registered social landlords. But the transfer programme does not operate on an “all-or-nothing” basis. Often, the transfer of part of an authority’s stock will be the best option, at least initially, and can help to improve the diversity of housing management.
7.15 Transfer also helps to separate out local authorities’ strategic responsibilities from their landlord functions. We believe that those who are elected to serve their local communities should be concerned with the full range of strategic issues surrounding the housing needs of their communities, rather than focusing more narrowly on the day-to-day management of social housing. Increasingly, across the whole range of housing policy, there is a need for local authorities to play a more strategic role.
7.16 We are pleased with the success of the transfer programme to date and, against this background, we want to expand and modernise the transfer of housing stock.
Evidence of success from stock transfers
Findings from a study of 6 transfers concludes that the new landlords are meeting their business plan targets. They have succeeded in delivering major repair and improvement programmes. They have met tenants’ expectations and have fulfilled the promises made to tenants at the time of transfer. Some key findings are:
• there is clear evidence that transfers are proving successful when judged in terms of tenant satisfaction. 41% of tenants surveyed are very satisfied and 44% fairly satisfied with their landlord. (Comparative national figures for local authority tenants are 33% and 46%)
• 34% of tenants surveyed say that the management of their home has improved since transfer. By comparison only 16% of local authority tenants say that the management of their home has improved over the past five years.
• 77% of tenants surveyed regard their rent as being very good or fairly good value for money. This finding is constant irrespective of whether tenants are pre-transfer and still within the rent guarantee period, or are post-transfer tenants paying higher re-let rents. Housing Benefit also has no effect on satisfaction ratings. In fact, slightly more of those not in receipt of benefit regard their rents as good value for money.
The research concludes that the transfer programme is establishing a new type of dynamic landlord and that they are developing a wider role for themselves than simply delivering housing in a single district. The transfer associations have actively sought out new opportunities in other districts in terms of new-build development and care for elderly people. Many have become actively involved in community development and in local area regeneration, and some transfer associations have been responsible for significant innovation and good practice, particularly in developing tenant involvement at Board level.
7.17 We intend to encourage more local authorities to consider the benefits which transfer can bring to tenants and local communities, both from a housing perspective and in terms of wider regeneration and economic and social gains. If tenants are not convinced of the advantages, they will not vote in favour of transfer in ballots, which we will retain as an essential element in the process.
7.18 We believe that the transfer process can be improved so that it yields advantages for tenants, communities and local authorities, whilst protecting the interests of tax payers and lenders and continuing to attract private investment. Our proposals for improving the process are set out later in this chapter.
7.19 From 2001-02, we will support the transfer of up to 200,000 dwellings each year. If local authorities submit transfer proposals at that level, and if tenants support them, registered social landlords will become the majority providers of social housing from 2004 onwards. If the demand for stock transfer from local authorities and tenants greatly exceeds 200,000 homes each year, we will consider supporting a higher level of transfer.