GAP FUNDING IN TOWER HAMLETS
Supplementary memorandum by Bethnal Green &
Victoria Park Housing Association (DEC 42(a))
Quantifying LBTH gap funding requirements for
its phased transfer programme is subject to one major caveat,
namely that residents have a real say in what happens on each
estate. Just over half of the estates have yet to decide whether
they wish to choose to transfer.
The Council has undertaken valuations of all
its estates. This suggests that with one large exception, gap
funding of between £100 million and £125 million would
be required if all of the homes transferred. However, this figure
combines some positive value estates, some of which are interested
in pursuing transfer and some of which have still to decide. If
any of these positive estates were to choose to remain with the
Council then the gap relating to the negative value estates would
be higher and if they did not transfer the figure would be higher.
The one exclusion from the above valuation is
the Ocean Estate, which is part of the New Deal for Communities
programme. The NDC masterplan is being reviewed and until this
is complete we do not have a funding gap figure for this. It could
be anything from £30 million upwards.
In reality the funding gap for transfers may
be lower as the Council does not expect that all estates will
opt for transfer. However, this will create a demand for an alternative
public funding stream in order to deal with the Decent Homes requirements.
As there will be no injection of private finance through a partner
RSL, more public funding per unit will be required than through
stock transfer.
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