Middlesbrough council has postponed its plan for stock transfer after concerns arose about the financial viability of the proposal.
The council was due to ballot tenants this summer and transfer its 13,000 homes to Erimus Housing by the beginning of next year.

However, the council, which has roughly £100m of overhanging housing debt, is re-analysing the cost of the transfer and the impact it will have on its contract for some IT, legal and human resources services with HBS, an outsourcing firm.

Under procurement rules, HBS' contract with the council would not pass directly to the new association. The council fears it could be left to cover the entire cost of the HBS contract out of its general fund.

Source

Housing Today