The transfer of Copeland council's 3800 homes to Home Group has been stalled by five months after the association's board decided the original deal could not be delivered.
The Cumbrian council has admitted it contemplated pulling out of the transfer over the delay but said the deal was now back on and would be completed at the end of May – rather than January, as had originally been planned.

However, tenants are incensed they have not been kept informed of progress and that the transfer has taken so long to materialise – tenants voted in favour of the transfer last August.

Paul Whalley, housing portfolio holder at Copeland, said: "Home left us in limbo for two months, which has not gone down well with staff, tenants or councillors.

"We almost walked away at one point but now I really think we've got something we can sign up to."

The transfer has been stalled since the Home Group board raised objections last December.

Home Group took until 11 February to decide on a new approach, resulting in protracted negotiations with Copeland council. A deal was finally hammered out at a nine-hour meeting last Wednesday.

Home left us in limbo for two months, which has not gone down well with staff, tenants or councillors

Paul Whalley, Copeland council

Peter Stott, managing director of Home Housing Association, said the board was concerned because the housing investment required in Copeland rose from £39,000 to £44,000 per property.

The council attributed the rise to the loss of 300 properties under the right to buy. It said the homes sold had been those that had required the least investment so the cost per property had risen.

Home was also seeking an assurance that £5m in market debt – money owed by the council to private sector lenders – would be paid by the government.

The ODPM said the agreement to let the council transfer this market debt into public works debt, which the government will pay, was normal. The deal will be put to a council vote on 2 March.

Source

Housing Today