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Social Housing: Refurbishment & Decent Homes Programme

 

 Development Programme & Eco/Sustainability Agenda

  

 

Restructuring of Local Government

The 2006 Local Government White Paper set out the Government's commitment to invite councils in shire areas to come forward with proposals for unitary local government.

 

The proposals will see 46 District, Borough and County Councils abolished and replaced by 12 single tier, unitary authorities which will be responsible for almost all local government functions.

 

Communities and Local Government (CLG) have announced successful proposals for seven of the 10 authorities bidding for unitary status. The remaining three are still under review.

 

ALMO Funding Allocations

The Government has announced further details of the funding allocated to ALMOs for 2008 – 2011. Over the three-year period, a total funding amount of £2.4billion has been confirmed (£400million higher than the original announcement of £2billion).

 

The overall figure includes £1.8billion of funding that has been set-aside for ALMO Rounds 3, 4 & 5. Of this reserved funding, £1.6billion has now been allocated to 26 ALMOs, (all of which have attained the required two or three star Audit Commission rating), and can be used over the next three years to complete ongoing decent homes work. The remaining pot of £200million has been held in reserve for a further six ALMOs that have yet to attain a two star rating. 

 

Of the 16 proposed Round 6 ALMOs, four have now had their places on the programme confirmed and have agreed funding of £211million. The remaining twelve Round 6 ALMOs are still in consultation with Communities and Local Government and therefore have not yet had places or funding confirmed. No further announcements are expected before March 2008.

 

New Stock Transfer Round Announced

In December 2007, it was also announced that there would be a new round of stock transfers. Therefore, Local Authorities which had failed tenants ballots and were facing the prospect of keeping their stock can now reapply for a place on the programme - either as a whole stock transfer or they can re-examine their tenants ballot and opt for a partial transfer for the areas which responded positively. In addition those that missed the last transfer programme deadline can now apply for a place.

Local Authorities must submit their proposals to CLG by March 31st 2008, the successful applicants to the programme are due to be announced by July 2008.

A number of Local Authorities have already announced that they intend to resubmit a revised stock option appraisal.

There are also rumours that Local Authorities with ALMOs, which have already met the Decent Homes Standard, will be eligible to apply for a place on the programme in order to access further investment.

Implication of the 2007 Comprehensive Spending Review

Since the Government first introduced the decent homes programme, around one million homes have been made ‘decent’ over the past seven years (i.e. at an average rate of 150,000 homes per year).

Furthermore, the Government announced, as part of the 2007 Comprehensive Spending Review, that it will continue to invest in the programme, with an expectation that a further 500,000 homes will be made decent by the end of 2010/11 (i.e. at an average of 170,000 homes per annum).

This will still leave approximately 240,000 to 340,000 homes to go (according to latest LA and RSL figures). Therefore, the programme will clearly stretch beyond the original 2010 deadline, possibly to 2012 or 2013.

Twelve Procurement Consortia Responsible for Over 1.1 Million Homes  
Communities and Local Government (CLG) wish to see social landlords create a network of social housing procurement consortia to deliver improved efficiency in housing capital works. It is envisaged that the consortia will deliver efficiency gains through the development of long-term supply chain partnering contracts. Twelve consortia have been set up to date, with over 1.1 million dwellings to refurbish between them.