The Office of the Deputy Prime Minister is not going to provide gap funding for negative-value transfers, despite having promised a consultation on the issue
Housing professionals at councils supporting negative-value transfers had expected the issue to be addressed after the Communities Plan, released in February, said it would "explore options for gap funding".

An ODPM spokeswoman said: "It will be up to the new regional housing boards to decide whether proposed negative-value transfers in their areas [are] a regional priority worthy of funding."

There are 12 partial transfers on the 2003 transfer list, of which nine are in London. The councils involved are likely to have been encouraged by the government's PSA Plus review, unveiled in February, which advocated the expanded use of partial transfers.

The ODPM's stance on funding caused dismay among tenants on the 270-home Market Estate in Islington, north London.

Plans for stock transfer there appeared to have hit a brick wall after two years of preparation. Despite the council's offer of a £5m dowry to potential transfer landlord Southern Housing Group, a further £9m is needed to regenerate the run-down estate.

Chris Worby, Islington's assistant head of housing, said: "We thought we would be bidding for gap funding by now, but the ODPM seems to have dropped the issue," Worby said.

Transfer of the estate now depends on a reworking of the plans to involve more private homes for sale – an option known to be unpopular with tenants – or a possible bail-out by the London Housing Board, which must now decide whether to plug the gaps that threaten partial stock transfers in this and at least two other London boroughs.

Similar problems are known to be threatening transfers in the boroughs of Tower Hamlets and Lambeth. Two other boroughs are considering partial transfers.

Tower Hamlets, in east London, is planning four negative-value transfers – totalling more than 3500 homes – that could fail without gap funding. Liz Ormston, Tower Hamlets' housing stock manager, said: "Everything is up on the air until the board is set up and can decide where it will allocate funds."

The London Housing Board this week unveiled its draft housing strategy, which made little mention of gap funding.

Along with London, regional housing boards for the North-west, Yorkshire and Humber and the east of England have released their draft housing strategies.

Source

Housing Today