Stephen Byers recently announced a fresh start to tackle homelessness, pledging that
by March 2004 no homeless families with children should have to live in B&B. He must
therefore be breathing a sigh of relief that council tenants in Birmingham have given an
overwhelming thumbs down to the proposed stock transfer that would see a quarter of homes
demolished and no prospect of their replacement under the future "business
plan".That such a proposition should have been put forward demonstrates
the incompetence of those behind the stock transfer plan who should have realised that
when the "tenanted market value" of the stock (the price the new landlord would
pay) came in at only £159 a property, the plan was dead in the water. This is because the
receipt from the purchaser would have been insufficient to cover the Councils £204
million debt breakage cost or even the £36 million bill for the stock transfer process.
However, never to be put off by practicalities, they worked out that by demolishing those
properties considered the most expensive to maintain they could, at a stroke of the pen,
increase the value of the stock to £3000 a property, thus, surprise surprise, exactly
covering their costs!
In answer to my queries about where people would live, one assistant housing
director told me that they would simply disappear. Yet, for the first time since the
enactment of homelessness legislation in 1977, Birmingham City Council is having to use
bed and breakfast hotels to accommodate a proportion of the 3000 priority need homeless
families that seek their assistance each year. A programme of 2000 demolitions a year (and
the blight on the estates scheduled for demolition) would surely have seen their numbers
soar and the Governments latest target in tatters. Fortunately, Birminghams
council tenants are not as stupid as officials like this seem to think. They reckon that
the £600 million the Government is prepared to put up front to support stock transfer
could be better spent by direct investment in their homes and in providing new ones. And
who can blame them when, according to a written parliamentary answer I received, the whole
process would provide only £351million more over 30 years than is already available
not exactly best value.
Readers will, of course be aware that, only a few days before the Birmingham vote,
tenants in Glasgow did support the transfer of their homes to a housing association. Press
reports from that City would seem to indicate that promoters of the scheme did not get the
same level of in-depth criticism as in Birmingham. I only hope that financial arrangements
north of the border mean that tenants there are getting a better deal. Though, if so, the
taxpayer almost certainly isnt. It is for this reason that the Government must
change direction. There is no evidence to suggest that housing associations are more
efficient or accountable landlords only that they have been better resourced. The
Government must stop the discrimination against council housing it inherited from its
predecessor and provide fair funding for council housing. It must also accept that to
stand any chance of keeping the promise to bring all social housing up to a decent
standard, investment must increase to post war levels but over a timescale that permits
the necessary increase in the capacity of the building industry. So far, even with a
trebling of investment since 1997, expenditure is not set to match that of 1992/3.
As for Birmingham, the Council must give housing the same fresh start it gave its
failing education department in 1993. New people must be brought in and power devolved to
localities so that tenants and elected representatives can relate to people able to take
decisions. Strong alliances of this nature will be the best way of ensuring that central
government has to give council tenants the fair deal they deserve. Long live council
housing!