Councils are applying to transfer fewer properties this year while examining the arm's-length management option.
This may result in lower borrowing figures than last year, according to lenders. Figures to be released next month show that councils have applied to transfer about 100,000 properties in the 2003/5 round – that's 45,000 fewer than last year's record numbers.

Experts attributed the drop to councils' interest in the £700m available under rounds three and four of arm's-length management, the natural tail-off as the last round of transfers are completed and applications for the next round are made, and the more difficult nature of the low-demand transfers to come.

However, from September, councils can also apply to transfer in 2004/6, and this could be another reason for the waning interest in the next round. The number of transfers could increase in the 2004/6 round as regional housing boards bed in and gap funding issues are resolved.

Nigel Minto, head of membership and projects at the National Housing Federation, said: "There is a dip and it might appear to be more than normal because last year was a bumper year. But you have to put it in context of there being a second transfer round to come, another ALMO round and consequences of the elections."

It does seem to have slowed, but transfer is so tried and tested that I think it will bounce back

Paul Harrison, director of housing finance, Bank of Scotland

Paul Harrison, director of housing finance for Bank of Scotland, said: "It does seem to have slowed down. But stock transfer is so tried and tested that I think people will carry on considering it and it will bounce back."

Nigel Straw, director of housing finance at lender Bradford & Bingley, said he had not noticed a lull. However he added: "I am expecting this government's flirtation with ALMO and the private finance initiative to cause a lull in transfers before it picks up again."

Source

Housing Today