This item was published during the term of a previous administration that ended in April 2007
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D & G consult tenants on housing transfer
02/05/2002
Council tenants in Dumfries and Galloway will be
consulted on proposals to transfer their homes to the
Dumfries and Galloway Housing Partnership (DGHP).
Dumfries and Galloway Council has now received consent
from Iain Gray, Minister for Social Justice, to consult
tenants on the proposals. The statutory consultation period
will help to ensure that tenants have the opportunity to
consider the Partnership's proposals in detail.
Welcoming the proposals, Deputy Minister for Social
Justice, Margaret Curran said:
"These proposals represent a significant step towards
our goal of good quality, affordable housing for all and
follow the landmark votes in Scottish Borders and Glasgow
where tenants voted "yes" to transfer to community
ownership.
"Transfer to DGHP will deliver substantial new
investment for housing in Dumfries and Galloway, rent
guarantees, provide employment opportunities in the
building industry and give tenants a much greater say in
the future management of their homes and estates.
During the formal consultation period, tenants will be
able to make representations to the Council about the
proposals. They will then be asked to vote in a secret
ballot. Only if tenants vote 'yes' will the transfer of
some 12,800 houses take place.
If the transfer takes place, arrangements will be made
jointly by the Scottish Executive and the Treasury to
tackle the Council's housing debt burden. Currently, around
40 pence in every pound of tenants' rent money is spent
servicing historical debt.
DGHP is a new not for profit organisation, created
specifically to own and manage the Council's 12,800 houses.
It is registered with Communities Scotland who will monitor
the Partnership's activities and expect it to meet a
rigorous set of performance standards. Tenants, the Council
and the wider community are all represented on DGHP's Board
of Management.
The Partnership is committed to encouraging tenant and
community involvement. It aims to set up four local
district management committees and delegate powers to those
committees.
In order for potential new landlords in each council
area to purchase council stock, it is necessary to agree a
price following an independent valuation. The valuation is
based on a transfer of a rented housing business to a
not-for-profit organisation. It takes into consideration
that the not-for-profit landlord will have a clear
requirement to bring the houses to an acceptable condition
of repair, to maintain the housing in good condition over
the longer term and to retain the stock for affordable
renting. This means that the valuation will be lower than
the open market value of the individual houses. It will be
an accurate reflection of what the business aims to deliver
based on affordable rents.
Dumfries & Galloway Council has received the consent
of Scottish Ministers to consult tenants on the transfer
proposal. The Council will decide whether to make a formal
application for consent to transfer the houses following
the tenant ballot. Ministers cannot approve a transfer
unless the majority of tenants voting support the
proposal.