Liberal Democrat Council Promises to Give Tenants the Power to Decide

7.12.26pm BST (GMT +0100) Wed 22nd Sep 2004

Council tenants will have the power to decide the shape of Milton Keynes' council housing in the future.

The Council is currently undertaking a Stock Option Appraisal - looking at ways of bringing each and every council house up to 'Decent Homes Standard' by the Government's deadline of 2010.

An independent Tenant Adviser has been appointed to provide all Milton Keynes tenants with impartial advice through newsletters, meetings, roadshows and a special advice line.

A Steering Group has been established, made up of tenant representatives, councillors and council staff. This will be a vital link between the Council and its tenants and will help spread the word about the vital decisions to be made over the coming years.

There are four options for bringing all the Council's housing stock up to Decent Homes Standard. All of these will be discussed with tenants, who will then be able to vote on their preferred option.

The options are:

1 No change - The Council remains as landlord and continues to be responsible for all major repairs and day-to-day services. Tenants keep their existing secure tenancy agreements and the Right to Buy scheme continues as at present. Funding to bring properties up to Decent Homes Standard has to be found from the Council's current income.

2. ALMO - An Arms-Length Management Organisation is formed to take over the management of the housing with the Council as landlord. It is expected that the Government will offer extra cash and loans for repairs and improvements, providing that the Council's housing service achieves a two-star rating from the Audit Commission. Tenants' rights remain unchanged.

3. Stock transfer - An existing or new Housing Association takes over some or all of the houses currently owned by the Council and becomes responsible for improvements and repairs. A Housing association, unhindered by the borrowing rules that apply to local authorities, can take out loans to fund improvements.

4. Private Finance Initiative - The Council continues to own the housing but a private company funds improvements to one or more specific estates, in return for a management fee. At the end of 30 years, management of the housing stock returns to the Council.

Whichever option tenants choose, their rent level will not be affected - that is controlled by central Government.

Councillor Irene Henderson, Liberal Democrat Cabinet member with responsibility for Housing, says: "We are determined that our tenants and leaseholders should have all the information they need before they make this critical decision. It is the tenants - with an independent adviser - that are leading the process and examining the options available to them, and it will be the tenants who will make the final decision through a ballot."