affordablehousingnews edited by George Sell (
georgesell@mac.com)
Government failing to honour right-to-buy promise
The government is “breaking its promise” to ensure that a new council property is built to replace every one sold to tenants through the Right to Buy initiative, according to its own statistics.
When the Coalition launched its Right To Buy drive, ministers promised there would be no net loss of housing, but figures show that building work has commenced on only one new property for every seven local authority homes sold off. In the 2012/13 financial year and in the year to date, 10,954 council homes have been sold under the scheme, with 1,662 replacements started in the same period. When the scheme was introduced, an echo of one of the Thatcher government’s policies, the then housing minister, Grant Shapps, said: “Right to Buy was a fantastic, liberating policy which assists where people are hardworking and aspire to own their own home. However, it was a mistake then [in the 1980s] and would be one now not to replace the homes that are sold off. There will be no net loss of housing – this is a one-for-one policy.” Emma Reynolds (pictured), Labour’s shadow housing minister, said: “David Cameron has broken his promise to replace badly needed council homes. Labour supports those who
Helm Housing reinstated to Northern Ireland’s Social Housing Development Programme
Helm Housing has been reinstated to Northern Ireland’s Social Housing Development Programme, after being suspended in May 2013 following a government inspection.
want to buy their own homes
but there are nearly two million families on council waiting lists desperate for a home and this government is failing to live up to its promise to replace every home sold with a new home built. It just goes to show you can’t trust Tory promises to tackle the housing crisis.”
A spokesman for the Department for Communities and Local Government said: “Right to Buy helps hard-working people get onto the housing ladder. Every additional home sold will be replaced with a new affordable home. Of course, there will be a slight time-lag, simply because it takes time for the new home to be built.”
A review carried out by the Department for Social Development’s Housing inspection team reported that all issues identified in the inspection have been addressed. Helm, which owns and manages around 5,500 homes, has “continued to make good progress through active involvement with the board and due diligence by the development team,” it said. Helm chair Liz Cuddy said: “This announcement allows Helm Housing to move forward its development priorities across Northern Ireland. Along with the ongoing £2.5m investment in our maintenance programme, which will see significant improvements made to nearly 1,200 homes in 2013/14, today heralds a new era for Helm and allows us to fully focus on what we do best – providing affordable homes and support services for people across Northern Ireland.
NW RSLs enter merger talks
St Helens-based Helena Partnership and Warrington-based Golden Gates Housing Trust are in early discussions about merging to form a new 22,000-home housing association. Under the proposed terms, the organisations would come under a single group board, but would maintain their own identities as subsidiaries in the new structure. Rob Young, chief executive of Helena Partnership, said the move could save the organisations around £25m over 10 years “We are under a huge amount of pressure as a business to provide vital support services and build new homes against a backdrop of welfare reform and funding cuts. Forming a group structure would provide an exciting opportunity to build on the respective strengths of each organisation to better face the challenges ahead,” said Young.
“Housing Associations now have a wider responsibility, both to lead the development and improvement of social housing, and also to promote and support wider community regeneration in towns and cities across Northern Ireland. This will mean physical investment in homes along with support in developing a wider community infrastructure in the areas where we work.”
Gallions board quits after HCA criticism
The board of Gallions Housing Association have left their positions after the RSL was heavily criticised by an HCA report in October. All five board members, including chair John Sands, are standing down after Gallions made a six-figure payoff to its chief executive and breached gas safety rules.
Gallions, which manages around 7,000 homes, became the first landlord to fail the HCA’s “serious detriment test” after failing to apply for
a court order to carry out a safety check on a property for more than two years. Sands said: “We agreed that it would be appropriate for the full members of the board to accept collective responsibility and step down.” The new board, which will be in place early in the new year, will take legal advice on whether former board members should pay back any of the £247,000 which they were not contractually obliged to award to former chief executive Tony Cotter.
Meanwhile, credit agency Moody’s has downgraded its rating for Peabody, citing its proposed merger with Gallions as a key factor. It said the merger is “credit negative given the need for Peabody to provide a subsidy over the near term and challenges to integrating two organisations. Gallions has had relatively weak operating results... poor governance practices (as reflected in the HCA’s recent downgrade)... and its stock is in need of significant regeneration”.
showhouse January 2014 | 89
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