Council tenants' fresh dilemma (From Gazette Series)

Council tenants' fresh dilemma

TENANTS and members of Stroud District Council have been told by the government that there will be no "fourth option" added to the Decent Homes programme.

It had been hoped a parliamentary proposal, backed by around 70 MPs, would be passed to reverse the trend of financial cuts and allow councils to continue to run their housing stock.

However, Housing Minister Keith Hill made it clear there were only three routes for authorities needing extra resources to improve their homes.

The options are: Setting up an Arms Length Management Organisation, agreeing a Private Finance Initiative contract or transferring some or all of their stock to a Registered Social Landlord.

The Minister was in Stroud at the invitation of the council after last year's "no" vote by tenants.

Leader of the council Cllr Chas Fellows (Con, Chalford) said: "That vote put us in a very difficult position as the government wants us to begin the whole process again next year.

"We thought it would be useful if tenant representatives and councillors could meet with the Minister to clarify some issues."

Mr Hill emphasised the Government's commitment to bringing rented homes up to the Decent Homes Standard, which would give tenants the opportunity for their homes to be better maintained.

He also emphasised that this could not be done without the ability to borrow money, which for councils is very limited.

The government requires councils continually to evaluate the way in which housing services are provided and Mr Hill urged the council and its tenants to fully consider all options under the Decent Homes programme.

Councillors must go through a second Housing Options Appraisal by July, 2005, and all stakeholders must be involved and an agreement on which is the best way forward for the future needs to be reached.

Mr Hill went on to private meetings with tenant representatives, councillors and senior officials.

He said: "This was a very worthwhile visit. Some very useful points were made and I welcomed the opportunity to emphasise the government's commitment to raising standards in public sector housing and how this should be done.

"In 1997 we faced a £19 billion backlog in repairs and maintenance to council housing - leaving 2.1 million homes in poor condition.

"Although we have increased resources considerably, to ensure all social tenants' homes are improved we need to lever in funding from the private sector as well as from the public purse.

"The government has made it very clear that councils must work closely with their tenants to determine the best option and I am confident Stroud will do so as part of the Options Appraisal process."

Cllr Fellows thanked the Minister for taking the time to visit Stroud, saying: "We particularly appreciated his straightforward answers to some difficult questions."

Last year tenants voted against transferring the housing stock to an association, despite the council warning that the level of service would be difficult to maintain.