English Partnerships is on the verge of a groundbreaking deal to put a stalled stock transfer back on track.
In a move that could be repeated across the country, EP is understood to have agreed to put up about £20m to allow the transfer of the 2400 homes of Manchester council's Hattersley estate to Contour Housing Group. Contour is a merger of Collingwood and Portico housing associations.

The money will not come from EP's controversial gap funding regime, revived last summer (HT 18 July 2003, page 16). It will be raised through the quango buying sites on the estate.

The deal, the first of its kind, could be used as a model to push through other stalled transfers but specific sites have not been mentioned.

The Hattersley estate is an overspill site that comes under the jurisdiction of Tameside council, which is also involved in the deal with EP.

Hattersley was supposed to have been transferred two years ago, to Harvest Housing Group, but the deal fell through when it emerged that there was a funding gap of at least £10m (HT 7 February 2002, page 6).

Derek Martin, assistant director of housing at Manchester council, said: "This is the first time we have had a transfer where we've got a lot of land that could have a high commercial value. It would not be advantageous to sell the land immediately but to wait until the council homes have been improved. We are bringing EP on board to buy sites so we get that value, the business plan goes ahead and we generate more value in the future."

EP regeneration manager Kevin Tierney said: "[Our] interest is in helping to establish a sustainable community. A successful transfer is a major, but not the only, means to achieve this and EP is considering how best to support the process as part of a wider regeneration programme."

Source

Housing Today