Housing heads in two areas where stock transfer schemes recently stalled have thrown their weight behind calls for the Scottish Executive to rethink its housing investment policy.
Shetland council's head of housing services and local authority Scottish Borders' director of housing both endorsed a report published by the Chartered Institute of Housing in Scotland.

The report argued that councils should be able to retain their stock by using new funding options. Its proposals included introducing a prudential borrowing regime, for councils to have the power to retain capital receipts, and for housing revenue account funding to be paid as a subsidy.

Chris Medley, Shetland council's head of housing services, said: "By and large I have to agree with the report. If stock transfer is not going to work, we are going to be left with a problem. In that case, it will be necessary to explore other ideas in tandem with the Scottish Executive."

Shetland's plans for stock transfer fell through this summer when the Scottish Executive declared that the proposed stock purchase price of £7000, only £3 a home, did not meet its value-for-money criteria. The council's stock was independently valued at between £2m and £4m.

Last week, a transfer of Scottish Borders' stock was delayed for similar reasons. The stock valuation was raised just weeks before the anticipated handover.

Councils are being asked to deal with a limited number of options

Hamish Blacklaws, Scottish Borders

Hamish Blacklaws, Scottish Borders director of housing, insisted that transfer is still the best option for local tenants, given the council's high housing debt.

But he acknowledged that local authorities generally face a shortage of choices.

He said: "Councils are being asked to deal with a limited number of options at present. Unlike Scottish Borders, not every local authority is in a position to proceed with stock transfer."

A spokesperson for the Scottish Executive denied there was any need for a policy rethink.

Source

Housing Today