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DWA Housing Digests (One Of A Series)

 
HOUSING STOCK TRANSFER
   
 

This is where a Council sells some, or all, of its housing to a Registered Social Landlord (RSL), such as a housing association or housing trust.

If a Council plans to transfer more than 499 homes The Secretary of State must approve the transfer and the Council must obtain a place on the Government’s transfer list.

 The Government insists tenants give their approval before a transfer takes place - usually in a formal, secret ballot of all tenants. The Secretary of State will not allow a transfer if the majority who vote, vote no. There have been over 188 “Yes” votes involving over 800,000 homes in England. Transfer brings in more money to invest in homes and communities but tenants need to be sure it is the right move. Once homes are transferred the Council cannot later take them back.

 Registered Social Landlords are not-for-profit organisations. 

Transfers can be to existing RSLs or to brand-new ones set up for the transfer. Any profits made by an RSL must be ploughed back into the business and into improving services. They are not commercial Landlords. Some RSLs are also Charities. 

The RSL’s Board of Management sets the policies and employs the staff. Usually 4 or 5 tenants sit on the Board of a transfer Registered Social Landlord. Usually Council staff transfer too. 

RSLs are monitored by the Government’s Housing Corporation, which is answerable to Parliament and inspected by the Audit Commission.  

After transfer Council tenants sign a new Tenancy Agreement and become tenants of a housing association or trust. They would have an Assured Tenancy.  Assured tenancies are different from a Council Secure Tenancy, although in a transfer most (but not all) existing rights can be preserved. In particular the Right to Buy and the Discount are usually preserved.

Importantly, tenants keep their Security of Tenure – their right to stay in their home.  If anyone breaks their new tenancy agreement only a Judge, in court, can order them to be evicted. 

Tenants should check the proposed new Tenancy Agreement carefully when deciding how to vote over a Council’s stock transfer plans.