£45m gets council housing transfer moving

Apr 2 2008 by Sion Barry, Western Mail

ONE of the biggest funding deals for a housing association in Wales has been struck.

Barclays Commercial Banking has backed a large scale voluntary transfer (LSVT) to the Monmouthshire Housing Association.

The £45m funding package will incorporate the transfer of over 3,600 properties from local authority ownership to the newly incorporated company.

The housing association, created following a ballot of local tenants, is accountable to the Welsh Assembly Government and has the capacity to raise debt funding from commercial organisations such as Barclays – a facility differentiating them from their council counterparts.

John Keegan, chief executive of Monmouthshire Housing Association said “The Welsh Assembly is determined to improve housing standards across Wales and views housing associations as a key component.

“By being able to raise capital and debt funding against the property portfolio we are able to quickly implement a series of maintenance and investment strategies.

“The objective is to improve all properties to the Welsh Housing Quality Standard as quickly and efficiently as possible. By improving the standards of housing it logically follows that standards of health and prosperity will also improve.”

Andy Jones, Barclays Commercial Banking relationship director, said, “Barclays is committed to using our industry expertise and specialists to support such propositions, which are vital to a prosperous economy.

“By really understanding the business, Barclays has been able to provide innovative solutions to support Monmouthshire Housing Association both financially and professionally.

“As one of a small group of social housing specialists based in Wales I am looking forward to a very busy 2008 as other large scale voluntary transfers go out to tender.”

Mr Keegan added, “Our aim is to improve the standards of housing across our entire portfolio working in conjunction with the local communities to establish what matters to them.

“We have also received funding from Barclays community investment fund to create a financial education project for our tenants which supports our philosophy of addressing not only the standards of housing but also the various social issues which have an impact on our tenants.”

In addition, tenants in Merthyr Tydfil County Borough Council have voted yes to transfer their homes to new vehicle Merthyr Valleys Homes.

The creation of the new not-for-profit organisation has been welcomed by Community Housing Cymru, the membership body for housing associations and community mutuals in Wales.

By voting yes, Merthyr tenants join Conwy, Newport, Rhondda Cynon Taf, Torfaen, Monmouthshire and Bridgend local authorities to transfer their housing stock to a new housing organisation – almost a third of local authorities in Wales.

The result was 1,199 in favour – 1,185 against, a margin of just 14 votes.

Turnout was 57% with 2,390 votes cast by post, phone, text and on the internet.

The new organisation estimates that in the first five years after transfer, it will be able to spend about £69.5m to bring homes up the Welsh Housing Quality Standard, set by the Welsh Assembly Government, which needs to be achieved by 2012.

The transfer is expected to take place early next year.

Nick Bennett, chief executive of Community Housing Cymru said, “By voting for positive change, tenants are unlocking the door to better housing conditions, essential regeneration opportunities and new forms of local leadership”

Ian Williams, chair of Community Housing Cymru added, “We welcome the recent transfer votes and the substantial investment this process will provide for the local communities, not only improved housing but investment in neighbourhoods and communities as a whole.”