Glasgow Housing Stock Transfer

Glasgow City Council's controversal intention to pursue the wholesale transfer of all its housing stock is in danger of becoming a reality. Similar schemes in England have been a failure, and only recently the Highland Council ruled out any wholesale transfer of their stock on the grounds of it being financially unviable and a poor deal for their tenants.

One of the main arguments for Glasgow's stock transfer appears to be the writing off of £900 million of debt, which Gordon Brown has promised ONLY if the stock transfer goes ahead. Yet if the transfer does not go ahead, it is inconceivable that the Chancellor would withdraw his offer. That would not be an option for him in the run-up to the Holyrood elections in 2003.

The ballot of tenants on the issue has been postponed for a third time, and will now take place at the start of 2002 at the earliest. The postponement is an indication of even the Council's discomfort with the proposed Business Plan of Glasgow Housing Association.

Our concerns over the proposals include the following:

There is no guarantee on what rent levels will be after transfer. Glasgow tenants already pay the highest rents in Scotland

Banks have indicated doubts over investing in high rise blocks, leaving 20,000 tenants facing no improvement in their housing

Additional VAT costs are estimated at £200 million

We believe that public investment in social housing is a necessity, and that this can only be effectively achieved under the democratic control of a local authority.

Latest! Last Minute Lifeline for Housing Sell-off?

Amid continuing concerns about the viability of the Glasgow stock transfer, the Scottish Executive have stepped in with another financial package to subsidise the proposals. On 29th January they pledged a further £300 million grant, less than six weeks before tenants vote on the issue. Ministers approved the extra finance after accountants found potentially crippling cash-flow problems in the 4 billion pound plan. The additional "revenue sharing grant" brings the amount of public money being used to featherbed the handover to a privately-financed landlord to 1.6 billion pounds. Using yet more money to prop up the fraught project is New Labour ideology gone mad.

The zero-interest loan is a blatant subsidy for a failing project. The executive said they wanted workable, pragmatic solutions to Scotland's problems. Yet here they are falling over themselves to transfer the stock out of council control. It appears they will do absolutely anything, and spend absolutely anything, to make this happen. 10/2/02

What New Labour’s Stock Transfer Plans Mean:

Glasgow Housing Association accept that after five years Glasgow City Council tenants will pay an average £6 a week more in rent than tenants with other social housing providers.

GHA will charge above inflation rents thereafter.

Service charges, concierge, close cleaning etc. will be “restructured.” In other words charges will be increased.

Owner Occupiers will face common ownership bills of between £5,707 and £9,699.

The GHA plan expects to manage a new housing debt of £917 million after 11 years.

Tenants will only be able to elect nine of the twenty one places on the GHA’s Management Committee.

The SNP Alternative:

The Government should write off Glasgow’s Housing Debt NOW, not after transfer. This would mean:

No rent increases above inflation.

No new housing debt.

Council housing fully improved. 8/2/02

More...

NEW! SNP Social Housing Policy
Original Stock Transfer page on this site (August 2000)
Sandra White MSP's motion to the Scottish Parliament (October 2001)

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