The new housing company, will pay the council£52.2m for the
stock and carry out a£67m repair and modernisation programme.
Housing minister Tony McNulty said: Vale Royal tenants would benefit
from an accelerated programme of repairs and improvements, while
rents remain affordable.
'By working together, the council, Weaver Vale Housing Trust, and
tenants now have an excellent opportunity to provide real
improvements in Vale Royal.'
Today's announcement brings the number of approved LSVTs to 157,
involving 647,000 dwellings. These transfers have raised more than
£10bn in private finance raised to purchase and invest in
1. Provision to set up Local Housing Companies (LHCs) appears under
the Housing Act 1996. LHCs allow greater local authority and tenant
participation than other Registered Social Landlords such as housing
associations and are not limited by the same borrowing restrictions
imposed on local authorities.
2. Under the Leasehold Reform, Housing and Urban Development Act
1993, a local authority proposing a transfer of more than 499
dwellings must first obtain a place on an annual disposals programme
approved by the Secretary of State. Councils must then obtain the
consent of the Secretary of State under the Housing Act 1985 for each
transfer after it has formally consulted its tenants.
3. The first transfer under the LSVT programme was of 4,650 dwellings
by Chiltern DC to Chiltern Hundreds Housing Association
in December 1988. With the Vale Royal transfer, there will have been
157 whole or partial stock transfers by 128 local authorities.
4. The government is committed to brining all social housing up to a
decent standard by 2010 and housing transfer is expected to remain an
important vehicle in achieving this target. The Housing Policy
Statement - Quality and Choice: a decent home for all - the way
forward for housing - issued on 13 December 2000, confirmed that the
government is willing to support the transfer of up to 200,000
dwellings a year, where the authority believes this is the right
choice and tenants are in favour.