The Local Government Association is to press harder for all councils to gain extra borrowing powers in the wake of last week鈥檚 local government white paper
This comes amid the increasing realisation that the status quo is no longer an option for council housing. The association claims the government will be forced to offer wider choices on the future of urban housing stock if it is to reach its decent homes standard.

Some within the DTLR would like housing authorities with only two-star inspectorate ratings to be allowed full borrowing freedoms through arm鈥檚-length management. The Treasury has so far blocked the idea.

LGA head of housing Gwyneth Taylor said transfer and arm鈥檚-length would now be equally attractive.

But the white paper provisions will still leave some landlords with poor stock unable either to transfer or improve standards.

鈥淔or those councils, the government will have to make a decision. We want extra freedom to borrow overall,鈥� she told Housing Today. 鈥淲e are concentrating on improving maintenance, not management. The decision on what option to take should not be influenced by investment criteria.鈥�

Officially, the government maintains all options, including 鈥渟tay as you are鈥�, are still available. Privately though, civil servants say poorer performers will be forced to look at transfer.

Chartered Institute of Housing policy director John Perry said: 鈥淭he DTLR is increasingly painting a picture of poorer councils transferring, while the better ones do ALM. But there is nothing on the table for those that cannot transfer. In future we may see government help with debt breakage costs and new transfer options.鈥�

Some councils will be able to meet the government鈥檚 decent homes standard without taking either option. Ipswich, for example, has separated strategy and management to form Ipswich Borough Homes as a landlord.

Corporate housing director Michael Palmer said applying for arm鈥檚-length status carries risks.

鈥淚t involves setting up a company before you have the assurance of additional finance. Councils need that certainty before going through the pain of splitting off parts of the organisation,鈥� he argued.

Source

Housing Today