Supplementary memorandum by the Housing
Corporation (DEC 66(b))
Thank you for your letter of 10 February 2004
requesting additional information for the ODPM Select Committee's
Inquiry into Decent Homes. The information you require related
to past and future disposals of RSL stock and changes of use of
stock in the sector.
We collect figures on disposals. I attach figures,
taken from our annual Regulatory and Statistical Returns (RSR),
for disposals over the past three years. These fall into three
groups:
— disposals to other RSLs, sometimes
as part of a stock rationalisation strategy or restructuring,
where the property does not go out of the sector;
— sales to tenants under a variety
of statutory schemes such as Right to Buy or Right to Acquire;
— voluntary sales, including sales
to sitting tenants, sometimes offered by charitable associations
whose tenants are not eligible for the statutory schemes, as well
as sales on the open market.
Associations are not, in general, free to sell
properties without the Corporation's express consent. This is
a legal requirement under section 9 of the Housing Act 1996. The
Corporation issues about 1,500 consents a year, some covering
single, some multiple sales. The majority of the disposals are
sales or transfers within the sector from one association to another.
The Corporation collects figures on planned
voluntary disposals through the five year financial forecasts
that are provided by associations with more than 250 units and
by small associations that are developing. These cover about 97%
of RSL stock. Planned sales over the next three years are attached.
It should be noted that these figures include disposals to other
RSLs as well as sales on the open market, as we do not ask associations
to break them down into different categories.
We recognise that as part of a sensible asset
management strategy some associations sell properties that may
be particularly expensive to refurbish or that are hard to let,
in order to finance improvements to their remaining stock. We
do not, however, have any evidence that this practice is widespread
or leading to significant reduction in stock numbers.
The Corporation does not collect figures on
homes that have moved, or that may move, from subsidised to market
rents. Where the properties were grant funded, this would trigger
repayment of grant. Where the properties were built using the
association's own resources, they would be able to change the
use from social to market renting, but would only be able to do
so if units were vacant.
I hope this information is useful to you—please
let me know if have any queries.
I welcomed the opportunity to appear before
the Committee on 2 February 2004, and I look forward to being
of further assistance to you and your colleagues in the future.
Disposals 2001-03
Year |
| | |
| Disposal | 2001
| 2002 | 2003 |
To other RSLs | 7,819
| 5,723 | 7,654 |
| To tenants (under statuatory schemes) | 7,125
| 8,375 | 10,702 |
| Voluntary sales | 1,350 |
1,543 | 1,879 |
| Totals | 16,294 | 15,641
| 20,235 |
Planned | 2004
| 2005 | 2006 |
| For RSLs with 250 or more units and Developing RSLs
| 5,514 | 4,895 | 4,543
|
Sources:
|
| | |
| Lines used from RSRs | RSR 2001
| RSR 2002 | RSR 2003 |
| To other RSLs | Part C, Line 17
| Part K, Lines 10, 11 and 23 | Part K, Lines 10, 11 and 25
|
| To tenants (under statutory schemes) | Part C, Line 5
| Part K, Lines 4 and 6 | Part K, Lines 4 and 6
|
| Voluntary sales | Part C, Line 13
| Part K, Lines 5, 7, 9 and 12 | Part K, Lines 5, 7, 9, 12 and 13
|
| Planned Disposals | FV5, Line 22
| | |
| |
| |
|
