Housing Choice questions & answers

• Does Housing Choice mean the privatisation of council housing in Tower Hamlets?
• Does it mean less democratic control?
• Do rents go up much faster if the stock is transferred than with the Council?
• What about tenants rights?
• Is it easier for housing associations to evict tenants?
• Does transfer affect my housing benefit?
• Does transfer affect the Right to Buy?
• What about the future of housing in the borough?
• What benefits has the transfer of stock brought to Tower Hamlets?
• Do the banks own the homes after transfer?
• What if things go wrong?
• How do I know that the new landlord will keep the promises made before the ballot?

Does Housing Choice mean the privatisation of council housing in Tower Hamlets?

No. Housing associations (also called registered social landlords or RSLs) are not private companies. They are not –for- profit organisations and there are no shareholders to pay dividends to. All the money made goes into managing, maintaining and improving homes and paying off their loans.

Organisations of this type are registered (hence the term registered social landlord) with the Housing Corporation, which monitors and regulates the organisation to ensure that it meets certain standards.

Does it mean less democratic control?

Housing Choice is democratic, in that changes can only be made if tenants vote in favour of transfer. And allow much more direct resident involvement in the way they are run. Many – such as THCH and Poplar HARCA, which were involved in previous transfers – are run by a governing body made up of at least one third residents, who have a direct say on the day-to-day running of the organisation that runs their homes. On the EastendHomes board, residents will be the largest group.

Housing associations do have to answer to:

• The Housing Corporation, which makes sure that it meets certain standards, and governs such things as the amount of rent it can charge and tenants’ rights

• The council, which will be responsible after any transfer for ensuring that the RSL is running the estate properly and keeping the promises that it made to residents before transfer. All housing associations have ways of ensuring that residents have a say in the way that their housing is run.

Do rents go up much faster if the stock is transferred than with the council?

No. Firstly, rents of homes transferred by the council to Poplar HARCA and Tower Hamlets Community Housing (THCH) have not risen faster than council rents. In fact the average rent for Poplar HARCA is lower than the council's average rent.

Secondly, the Government is concerned about significant differences in some parts of the country between the rents charged by RSLs and councils for similar sized properties, so it has introduced a new policy of rent control. This means that each home in an area is set a target rent according to a Government formula and over a 10-year period each RSL and council must change its rents to meet this (maximum) rent target. Some councils and RSLs will have to reduce their rents to meet this target, some will have to increase them, but in the end rents in social housing in any one area will be similar for similar properties This will happen whether you transfer or stay with the council.

 What about tenants’ rights?

An RSL tenancy has a different name to a council tenancy but in practice, as the chart below shows, rights are very similar with a housing association as they are with the council. Tenants are certainly no less secure. The attached chart summarises tenants’ rights with the council and the rights they have after transfer (PDF 24k).

Is it easier for housing associations to evict tenants?

No, this is not the case in Housing Choice. Although housing associations can use extra grounds to evict tenants – the so-called Grounds 8 and 11 – the housing associations involved in Housing Choice will NOT be able to use them against tenants who transfer from the council.

All social landlords - councils and housing associations - use eviction as a last resort against tenants who persistently do not pay their rent or who make their neighbours lives a misery. However, the housing associations involved in Housing Choice have similar eviction rates to the council.

Does transfer affect my housing benefit?

No – transfer makes absolutely no difference whatsoever to housing benefit. Applications are made to the council in the same way.

Does transfer affect the right to buy?

Transfer does not make any difference. If you have the right to buy your home with the council, you still have what is called the ‘preserved right to buy’ if you transfer. This will be written down as a right in your tenancy agreement.

What about the future of housing in the borough?

Transfer will not have any adverse effect on future applications for housing. All social landlords in the area share a common housing register. There will be no net loss of affordable housing. In fact, housing associations are more likely to have the money to build new homes.

What benefits has the transfer of stock brought to Tower Hamlets?

To date, 32 estates have transferred to RSL’s through the Housing Choice process. Over 12,000 homes – almost 40% of the council’s stock – will benefit from over  £422m of regeneration to date including regeneration initiatives such as community facilities, youth schemes and projects to tackle anti-social behaviour

Do the banks own the homes after transfer?

No – the housing association owns the homes. Housing associations can borrow money to do up the homes, but they own the properties.

What if things go wrong?

Housing associations are carefully monitored by the Housing Corporation and their accounts checked to ensure that things are not going wrong. This means that if things go amiss, they can be sorted out quickly. No transfer tenant has ever lost their home because a housing association has had financial problems.

How do I know that the new landlord will keep the promises made before the ballot?

Before tenants vote  in a ballot, they receive an 'offer document' from the council, setting out exactly what they can expect from the new landlord. This is legally binding on the housing association. It cannot change its mind after the ballot - unless tenants agree.