Tenants of more than 160,000 council homes could benefit from repairs and improvements to their homes as a result. The programme will involve over 160,000 dwellings in large scale voluntary transfers, generating capital receipts of over 940 million.
Transfers can offer benefits for tenants.
The new landlord must plan for proper maintenance and future repairs. Increased investment means that any backlog of repairs can be carried out more quickly than if the properties had remained in local authority ownership. But housing transfers are voluntary and may only take place if tenants are in favour. The consent of the Secretary of State is also required before a transfer can proceed and will not be granted if it appears that a majority of tenants do not wish the transfer to proceed. Under the new arrangements, announced on 16 December 1999, the government is prepared to use a one-off payment to assist those authorities repay their overhanging debt.