Chisholm Approval Heralds Ballot on Highland housing transfer
Issued by Communities Scotland: Thursday 14 September 2006
Plans to transfer around 15,000 homes in Highland to community ownership, with a £450 million programme of investment, took a major step forward today.
The proposed transfer from The Highland Council to the Highland Housing Association (HHA) was given approval in principle by Communities Minister, Malcolm Chisholm, after assessment of the transfer proposals.
The approval follows an appraisal – by Communities Scotland and the council – of the business merits of the proposals from HHA to manage and invest in the housing stock. The proposals include a 30-year business plan for the housing.
The Minister’s announcement begins statutory consultation with tenants and puts plans in place for a secret postal ballot on the proposals. It follows a day after the transfer of council homes in the Western Isles under the Community Ownership Programme.
Mr Chisholm said: “I have no doubt that the proposals I have approved in principle today offer significant benefits to tenants, their families and their communities in the Highlands.
“The Scottish Executive is committed to improving the quality of housing in Scotland to ensure decent homes for everyone. We are also committed to involving tenants locally in managing their homes and letting landlords know what they want.
“My approval comes the day after the transfer of homes in the Western Isles to the Hebridean Housing Partnership enabling £38 million housing debt write-off and a programme of £12.5 million investment for 275 affordable homes for people in the area.
“A successful ballot will see the cancelling of The Highland Council’s housing debt of around £160 million and make funding available to support the £450 million package of investment in existing homes. In addition, £50 million of funding for new affordable homes in the area is already delivering new homes for people in the Highlands.
“Officials of the council and HHA have worked hard on the proposals and will now fully consult with and provide advice to tenants. Then it is up to tenants themselves.”
Details of the ballot will be announced later.
NOTES TO NEWS EDITORS
1. Among the highlights in the community ownership proposals are:
• A legally-binding guarantee to keep rent increases to no more than inflation for the first five years following transfer (thereafter, inflation plus ½ per cent for the next five years).
• Capital investment of an average of £15 million per annum for the next 30 years (around 50 per cent more than current council expenditure).
• New heating systems and energy efficiency measures in around 8,500 homes (better heating, lower fuel bills and lower CO2 emissions).
• 5,000 new kitchens and 3,000 new bathrooms.
• An additional £5.85 million to be spent on environmental improvements.
2. Existing tenants rights are protected, including the right to buy at discount.
3. The Highland Housing Association will be a ‘not-for-profit’ landlord, registered with Communities Scotland. Membership of the association will be open to all tenants, who will be able to vote representatives on to its area and management committees.
4. An additional £50 million provided through the Community Ownership Programme (already producing new housing in various communities) will deliver around 1,000 new affordable houses.
5. Independent professional advice to tenants is being provided by TPAS (the Tenant Participation Advisory Service).