Judicial Review threat over council homes transfer

Published by Julien Tremblin for 24dash.com in Housing and also in Local Government

Council tenants are preparing to go to Judicial Review if housing minister Grant Shapps signs off the transfer of Wycombe District Council’s homes to a new not-for-profit company.

Several members of the Conservative-controlled Wycombe District Council (WDC) are increasingly critical of the proposal to transfer the council’s 6,000 homes to the newly-created Red Kite Community Housing.

The outcome of a tenant ballot on the transfer, held in March-April 2011, was 2,661 Yes, and 2,027 No.

Liberal Democrat Councillors, led by Cllr. Trevor Snaith, said they oppose the use of the transfer receipts for non-housing purposes, and the lack of provision for new affordable housing in the transfer plans.

Local residents also expressed their concern over the inclusion in the transfer deal of 55 open spaces and play areas.

Labour Councillors said they were worried about "misleading information" given to tenants during the transfer consultation, and the Council’s “failure to carry out a full Options Appraisal, including prospects for the government’s ‘self-financing’ reform of local authority housing finance”.

Tenants claim they were told that the promises set out in the Offer Document would be "the subject of a legally binding contract between the council and Red Kite”; and that “If Red Kite did not deliver so much as one of the promises set out in the Housing Transfer Offer document, the council could take legal action against them.”

However, they claim that the Council has so far refused to disclose the contract, and Labour Councillors have lodged a Freedom of Information Act request to see it. 

Cllr. Victoria Groulef, Leader of the Labour Group, quoted Communities Secretary Eric Pickles who once said that ‘transparency is the foundation of accountability’. She added: “Perhaps he should come to Wycombe to see if transparency is happening here”.

Wycombe District Council has yet to make a formal application to the Minister for the transfer to go ahead. The transfer will be discussed at a full council meeting on 29 November, after which a formal application may be submitted, with the date of the transfer itself set for 12 December, only 13 days later.

Mr Isa Ibrahiim, a WDC tenant and a supporter of the campaign group Defend Council Housing (DCH), said: “The Council’s malpractices should invalidate this transfer application”.

Supporters of DCH believe that housing privatisation, with a new private-sector landlord accessing private finance, would lead to higher rents and inferior tenancy terms.

The Judicial Review would be the first challenge to a stock transfer under the 2009 DCLG Statutory Guidance on transfer consultations, which set new standards with which Councils must comply, in order to transfer their stock.

Red Kite Community Housing is run by a board made up of six tenants, one resident leaseholder, three council nominees and five independent members.

In a statement, Wycombe District Council said: "The transfer of 6,500 homes within Wycombe district is something that local tenants asked this council to deliver.

"We have supported our tenants and worked in partnership with them every step of the way towards the transfer.  We have worked with them to create a unique local social landlord, Red Kite Community Housing, which is headed by a local tenant, Jennie Ferrigno. The board has a total of seven residents elected by their peers to serve on the Board."

"The transfer offer document issued prior to ballot was carefully drawn up and was scrutinised and endorsed by independent specialist solicitors and DCLG before it was given to tenants.

"We are proud of the quality and breadth of information it contains and the commitments it makes for the future of local housing here in Wycombe district."

Wycombe District Council Leader Cllr Alex Collingwood said: “Local tenants have told us, very clearly, over the last few years, and, crucially, through the ballot box last April, what they want for the future of their homes.

"We have worked in partnership with them to create a tenant-led organisation which will not only run and manage their homes but also, invest over £100million over the next five years in their homes – an investment which will boost the Wycombe economy and create local jobs.

"We are confident we have met all the statutory requirements throughout this tenant-led stock options transfer process."