Manchester city council has asked the ODPM to relax funding rules so it can finance four partial stock transfers.
The council has put in expressions of interest for four areas on the 2004-6 stock transfer programme.

Two would make money for the council and two would need gap funding.

The council, which needs £770m to meet the decent homes standard, wants to use the profits from two areas to make up for the loss on the others, but current rules on the use of capital receipts prevent this.

It has asked the ODPM to change the rules in this case and expects an answer this month.

The East Manchester and West Wythenshawe transfers would need gap funding, but the four transfers, totalling about 26,000 homes, could make a net profit of £13.5m.

Steve Rumbelow, director of housing at the council, said: "We are trying to make a city-wide solution without recourse to additional funding. That relies on the ODPM allowing us to roll forward capital receipts."

An ODPM spokesman said: "It shouldn't be a problem because it would be done within an overall strategic approach for the city."

Manchester's plan also includes a possible private finance initiative and a possible arm's-length management organisation.

Source

Housing Today