Decent Homes Standard and Stock Options
In 1997 the Government stated its vision to improve housing conditions and told all councils in the country to ensure that their homes are up to the Decent Homes Standard, defined as warm, weatherproof and having reasonably modern facilities.
Financing the improvement works to council owned homes from the council’s budget was not possible for Salford. Like many other local authorities, the council does not have the funding needed to bring all of its council housing up to standard. Therefore the council undertook a housing options review and have produced a Decent Homes Investment Strategy which has taken into account the opinions and aspirations of our tenants. The plans provide for the use of a variety of our investment options, which provide for different solutions for the various parts of the city.
- Central Salford – establishment of an arms length management company, Salix Homes, to manage and maintain our council housing stock.
- Pendleton – Private Finance Initiative whereby the council enter into a long term contract with a private sector consortium who will be responsible to ensure that the council housing stock complies with the Decent Homes Standard
- West Salford – Transfer of our housing stock to City West Housing Trust, a new, not for profit housing company.
Salix Homes
On 4th July 2007, the council established this arms length management company to manage and maintain its council housing stock in Central Salford. The council pays to Salix Homes a monthly management fee based on a jointly agreed annual budget. For 2008/09 a fee of £10.2 million was agreed for the housing management activities and a further £8.9 million was allocated to give Salix Homes accountability for the associated repairs.
City West Housing Trust
In August 2007 council tenants in west Salford voted in favour of transferring their homes to City West Housing Trust, a new, not for profit housing company. As a result council homes in west Salford are set to receive over £205 million investment over the next 6 years.
The transfer is scheduled to take place in July 2008 and the improvement programme will start shortly after. The HRA revenue budget 2008/09 reflects the impacts on this transfer which results in substantial changes to both expenditure and income. The main areas are as follows:
- Loan interest charges - reduction in financing costs reflecting the receipt of Government grant used to pay off the debt related to the transfer properties.
- Government subsidy – reduction in grant reflecting the transfer of responsibility of the transferred stock – please refer to ‘Housing Subsidy’ below.
- Repairs – reduction in the major repairs allowance and general repairs and maintenance costs.
- Rent income – loss of rent from transferred properties.
Private Finance Initiative (PFI)
This page was last updated on 18 March 2008
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