4 July 2005
Multi-million pound housing plan passes major milestone as transfer forges ahead
Plans that will deliver a multi-million pound investment package which will include up to £46,000 per Council house (over 30 years) as well as a significant new build programme and improved housing services, have this week passed a major milestone with conditional approval by Argyll and Bute Council. The move marks a significant step towards an independent ballot of all tenants expected later in the year.
The plans, entitled Putting Tenants First, have been developed by not-for-profit housing body, Argyll Community Housing Association Limited (ACHA), and set out proposals for the transfer of the whole of the Council’s current housing stock of almost 6000 homes to community ownership. The plans, which are subject to final Council sign-off by the end of July and then approval by the Scottish Executive, give tenants reassurances on guaranteed affordable rents, protected rights and a major multi-million pound investment programme including upgrades and service improvements.
Councillor George Freeman, the Council’s Housing spokesperson, said, “The Council and its advisors have spent a great deal of time scrutinising ACHA’s plans and, whilst there are a couple of matters to finalise, we are confident that they represent a good deal not just for tenants but also for communities throughout Argyll and Bute. The investment that transfer will unlock, investment that is not available to the Council, will provide wider community benefits especially in the construction and associated industries.
“This is an important step in the process but it is by no means the end of the story. As we have stressed from the start, this process is about involving tenants at every step and, following the resolution of outstanding issues, we will be consulting fully with tenants on the proposals. Once the Council, the Scottish Executive and tenants are satisfied, we would then expect to proceed to the independent tenant ballot.”
The Putting Tenants First plans will give tenants a far greater say than ever before in the management of their homes and housing services. Tenants will be at the heart of the decision-making process, sitting on the management committee, ACHA’s main decision-making body.
ACHA Chairman Norman Beaton, commented, “We warmly welcome this positive response from the Council that recognises the far-reaching benefits that ACHA’s plans can deliver. We will continue to work with the Council and with tenants as the transfer plans move forward.
“Putting tenants first is at the heart of what ACHA stands for. All of our services have and will be developed with tenants at the forefront of our thinking. Any surpluses the organisation makes will be ploughed back into housing and tenants will sit on the ACHA Management Committee and play a vital role in the decision-making process. All of this will be delivered without significant rent increases and with all current tenants’ rights, including right to buy, protected.”
Funds made available through transfer will enable the upgrading of existing homes and allow the building of new houses to meet the high level of demand across Argyll and Bute. In the event of transfer the Scottish Executive will clear the Council’s existing housing debt of around £48 million, which will not be passed on to ACHA. In addition the Scottish Executive is expected to contribute £40million towards ACHA’s commitments as well as an additional regeneration package of between £10-£15million for housing in Argyll and Bute. This money will be used, with tenants’ rents, to deliver the substantial improvements housing in Argyll and Bute requires.
Due to the existing loan debts and strict borrowing requirements, the Council is unable to invest the minimum of £169 million that previous studies have indicated is required to upgrade and maintain tenants’ homes over the next 30 years. Currently 40 pence in every £1 of Council rents received goes towards its housing loan repayments. However, by far the lion’s share of tenants’ rent paid to ACHA following transfer would be spent on the goals set out in the business plan such as upgrading homes and running housing services.
Once outstanding issues are resolved, and following approval from the Scottish Executive, a period of formal consultation is expected. Only then would there be a ballot of all tenants and only if the majority of tenants who vote say ‘yes’ would transfer then take place.
EndsIssued on behalf of Aygyll and Bute Council and Argyll Community Housing Association (ACHA) by TNC. For further media information, please contact Ken Newton (ken@tnc.uk.com), Managing Director, or Dan Hughes (dan@tnc.uk.com), Consultant, on 01698 420420, mobile 07951 579332.
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