Many councils are working with tenants and leaseholders to take another look at the options for the future of council housing in their areas.

These ‘new’ housing options appraisals are designed to find the best way to keep services up to scratch, modernise and improve homes up to and beyond the Decent Homes Standard, keep homes well maintained over 30 years, build new homes and improve local areas.

To view "The 4 Options Explained" click here

In a housing options appraisal councils need to assess how many homes fail the Government’s Decent Homes Standard (or any other higher standard that may have been agreed with local tenants) and how much it will cost to bring those homes up to standard. The department for Communities and Local Government defines the Decent Homes Standard as ‘homes that are ‘fit’ to live in, are in a reasonable state of repair, have reasonably modern facilities and services and provide a reasonable degree of thermal comfort’. However, many councils are setting higher standards after talking to tenants and leaseholders.

Councils are also keen to work out how much money will be needed over 30 years to keep homes well maintained as well as to improve repairs, maintenance and housing services.

These councils are also looking at the local housing market to decide whether any new homes need to be built or whether any homes need to be demolished.

The Government says there are 4 options for the future. Councils need to assess which ones are open to them to bring more investment into council housing. At present the 4 options are:

Stock Retention, Arms Length Management Organisation (ALMO), Private Finance Initiative (PFI) or Stock Transfer. The Government is also reviewing how council housing finance works. It is likely to announce the results of that review some time in 2009.

When carrying out a review of the options councils must involve tenants and leaseholders as early as possible and give them a clear role in deciding the future for their homes and communities. Councils must explain the options to as many people as possible and explain why certain options are not chosen. As far as possible councils, after working closely with their tenants and leaseholders, should try to find local solutions to local problems.

For more details on the Government’s plans for housing and the Decent Homes Standard visit:

http://www.communities.gov.uk

Some councils are still looking at the options for the future of council housing – how best to keep services up to scratch and homes modernised and well maintained over 30 years, as well as how to build new homes and improve local areas.

The Government says councils may look at 4 options for the future. But it’s not a level playing field and not all options work for all councils. The 4 options are:

Stock Retention

The council continues to own and manage homes using existing funds. This means finding the money needed to repair and modernise homes, provide good quality services, build new homes and (in some cases) improve local areas without any extra Government help. Many councils also have to pay into the Government’s national ‘housing pot’. The Government is reviewing council housing finance across the country but it’s unclear at this stage what the result will be.

Arms Length Management Organisation (ALMO)

This involves setting up a council-owned company to manage homes on behalf of the council. The Government no longer offers extra financial help to new ALMO’s so, although councils may still set up an ALMO to manage homes, it would attract no extra money.

Private Finance Initiative (PFI)

This is where a council sets up a contract with a private sector partner to manage and maintain some council homes – this is not seen as a ‘whole stock’ solution. The Government may provide extra financial help to do this. Housing PFI schemes have been slow and expensive to set up. 

Stock Transfer

This is where the ownership and management of some, or all, council homes transfer to a not-for-profit Registered Social Landlord (such as a Housing Association or Trust). Stock transfer is controlled by strict Government rules and can only happen if the majority of tenants have voted in favour of it in a formal, secret ballot. Registered Social Landlords do not pay into the national housing pot and so keep all rent money. They also have more freedom to borrow money to invest in improvements and building new homes. Tenants become Assured Tenants of the new landlord but keep their Security of Tenure and all major rights.

For more details on the Government’s plans for housing and the Decent Homes Standard visit:

http://www.communities.gov.uk