Uncertainty over how to proceed with options appraisal as spectre of review looms

Councils have expressed confusion over the future of their housing stock options after deputy prime minister John Prescott announced the system was up for review at last week鈥檚 Labour party conference in Brighton.

The Local Government Association has led calls for Prescott to clarify what he meant and how this affects the timetable of completing a stock options appraisal by July 2005.

The temperature has been raised further this week by a letter to English councils from anti-stock transfer MP Austin Mitchell urging them to 鈥渇reeze鈥� their stock options appraisals.

Speaking after losing a vote by Labour delegates in Brighton on whether or not to allow councils a fourth option 鈥� in addition to stock transfer, arm鈥檚-length management or the Private Finance Initiative 鈥� Prescott said: 鈥淧ublic financing of housing does not treat local authorities on a level playing field and I want that changed,鈥� (HT 1 October, page 7).

These comments have led councils to question whether or not they should press ahead with plans to decide how to meet the decent homes target. An LGA spokeswoman said: 鈥淭he LGA will be seeking a meeting with John Prescott. We need a clear message on what options are open to authorities.鈥� Nick Murphy, executive director of housing at Southampton council, added: 鈥淲e need a clear line from the ODPM. However, until we hear any differently we will assume we are still working towards the July 2005 deadline.鈥�

Murphy added that he had received Mitchell鈥檚 letter and that he would raise the matter of 鈥渇reezing鈥� the stock options appraisal at the next meeting of the steering committee that oversees the process.

Of Southampton鈥檚 17,685 homes, 10,000 don鈥檛 meet the decent homes target. It has yet to decide on an option to access extra funding.

Jack Hazelgrove, chair of Brighton council鈥檚 housing committee, confirmed that Brighton would be requesting clarification of what the deputy prime minister had said.

An ODPM spokeswoman said: 鈥淭here is no review of housing finance. The date for the July 2005 options appraisal still stands.鈥�

Source

Housing Today