Glasgow Housing Association hits back at finance claims

The head of Britain's largest housing association has denied suggestions that it is in financial turmoil just nine months after it took over more than 80,000 homes from Glasgow council.

Michael Lennon, chief executive of Glasgow Housing Association, launched a counter-attack against anti-transfer campaigners who had claimed rent arrears and management costs were spiralling out of control.

In a statement, Lennon admitted there had been delays in spending some of the £69m earmarked for investment this year, but denied the association faced a crisis.

He said: "GHA is heading in the right direction and we are committed to being open and transparent in our dealings.

"We are still a young organisation and it has taken time to appoint staff, ensure value for money and put the systems in place that will deliver the best possible housing."

Anti-transfer campaigners, made up of tenants and leaseholders, have been encouraging tenants to withhold their rent, in a continuation of the concerted campaign that dogged the £4bn transfer before it finally went ahead. The Scottish Executive and UK government backed the deal with funding of more than £1bn.

The only thing souring our development is the failure of certain groups to accept that transfer has taken place and get behind the project

Michael Lennon, chief executive, GHA

In a clear reference to anti-transfer campaigners, Lennon wrote: "The only thing that is souring our development is the failure of certain individuals and groups to accept that the transfer has taken place and get behind this project instead of engaging in mischievous, underhand sniping from the sidelines."

He said management costs were within the scope of GHA's business plan, but they would have to be cut by 30% in the coming five years.

And, contrary to the claims of anti-transfer campaigners, he said that rent arrears among sitting tenants had fallen by £400,000 to £9.4m between September and November.

But a spokesman for GHA admitted that although the rent arrears among sitting tenants had fallen, the overall amount of rent owed had risen to more than £12.1m. This is because GHA is owed about £2.8m by tenants who have left its properties, a sum that has increased by almost 50% in the past four months.