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The chief executive of the National Housing Federation has today (Monday, November 21) accused George Galloway and anti-stock transfer campaigners of cheating Tower Hamlets tenants out of improvements to their homes.
David Orr hit back at accusations by Defend Council Housing and George Galloway MP that housing associations are driven by profit and are not accountable to tenants.
Tower Hamlets is one of the biggest council landlords in London, with 24,000 social-rented and 12,000 right-to-buy properties making up more than a quarter of the homes in the borough.
In 2002, the council estimated it would cost 590 million over five years to bring its homes up to the governments Decent Homes Standard.
But the council can raise only 300 million through rents and government subsidy over the same period.
After a ballot in which three-quarters of tenants voted in favour of exploring a range of options for the future of their estates, the council started a five-year programme of stock transfer ballots.
David Orr dismissed as scaremongering allegations that tenants who transferred to housing associations faced rent rises and lost their secure tenancies.
In a statement the NHF said: "Housing associations exist to provide quality homes at affordable rents for people who need them and the stock transfer agreement includes guarantees protecting tenants from rent rises. In addition, housing association rents are controlled by the government.
"In Tower Hamlets, the average housing association rent is 70 per week, compared with 66 per week for a council property and 191 in the private sector.
"The stock transfer contract ensures that housing association tenancies are as secure as council ones. Housing association tenants can only be evicted by court order if they refuse to pay their rent, destroy their property or make their neighbours lives a misery."
Claims that housing associations are not accountable were also rebuffed. All stock transfer housing associations have tenant board members and housing associations are also tightly controlled and inspected by government watchdogs.
David Orr said: "Its time to speak out about the myths that George Galloway and his fellow scaremongers are peddling to council tenants.
"Housing associations are not-for-profit organisations born out of community activism, not private landlords. Any money they make is invested in the communities they work in.
"Stock transfer tenants rents and tenancies are safe and they win much-needed investment in their homes and neighbourhoods.
"This is why, three years ago, Tower Hamlets tenants voted overwhelmingly for the council to investigate the option of stock transfer.
"Housing associations support council tenants right to choose what happens to their homes.
"To do this, tenants need to know the facts. Galloway accuses Tower Hamlets council of spin, but he is twisting the truth and cheating tenants out of better homes to further his own political agenda.
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