Two of the South West's largest housing providers have completed the exchange of around 1,400 properties in Somerset and Wiltshire, one of the largest ever stock swaps in the social housing sector, in an effort to deliver a more efficient local service to residents.
Under the swap deal, Sovereign Housing Association will take on the ownership and management of 758 homes from Knightstone in the Swindon and wider Wiltshire area, while Knightstone Housing Association will take ownership and management of 677 homes in Somerset from Sovereign.
Confirmation of the stock swap follows a detailed six-week consultation with the residents affected by the transfer.
Heather Bowman, Sovereign's Housing and Communities Director, said:
"Having consulted residents in Wiltshire and Somerset, we are very pleased that they have understood the rationale for this move. They have welcomed the fact that it will result in a more responsive and cost-effective local service for customers.
"This is one of the largest ever stock swaps in our sector, and it makes sense in the current economic climate. It allows both businesses to consolidate in areas where they already have a significant presence and deliver efficiencies, which will enable us to re-invest in services and provide more high-quality affordable homes."
Knightstone, based in Weston-super-mare, is one of the largest registered social landlords in Somerset and the West of England, while Sovereign, which has a regional office in Swindon, already has a significant number of homes and a very active development programme in Wiltshire.
For Knightstone, this move is an important part of their 'Take on The Future' transformation plan, which include concentrating services across nine local authorities.
Nick Horne, Knightstone's Chief Executive, said:
"These home swaps are part of a package of bold changes that will transform what we do, how we do it and where we do it.
"By responding proactively to customer priorities, government changes to housing policy, rents, tenures and welfare benefits and the current economic climate, we're making sure we're doing the right thing for our business, residents, staff and partners in the years ahead.
"Knightstone and Sovereign share a passion for providing excellent customer service and we have assured residents in both areas that this will continue.
"Part of our plan is to invest more in supporting neighbourhoods, so they are places people continue to want to live and this first stock swap will help us achieve just that."
A proposal to transfer 10,500 Swindon Council homes to a newly formed Swindon Housing Association has been rejected by tenants.
The Council had balloted 12,600 tenants in December on the transfer proposal and 72% voted against it (turnout 66%).
The Council had supported the stock transfer as a way of negating the impact of £139 million of debt taken on under the new self financing funding arrangements.
Past reports from officers have warned that the additional debt charges would result in a £68 million capital shortfall in the first 10 years of the Council landlord business plan.
Bernie Brannan, Director of Housing at Swindon Council, said:
"The extra borrowing we'll have to take on under the new housing finance system will limit the amount of money the Council has to spend on improving homes and services over the next ten years.
"But we will of course continue to do our very best to provide the highest standards possible within the resources available to us."
Tower Hamlets Council has taken the decision to maintain its arm's-length management organisation, Tower Hamlets Homes (THH), as the housing management provider.
The decision follows a housing stock options appraisal in late 2011. As part of the appraisal, tenants, councillors, contractors, the Homes and Communities Agency and the Greater London Authority were all consulted.
From the consultation, a list of 37 different models for delivering housing was considered. A shortlist of two of these was then agreed - either to bring housing in-house, or maintain the ALMO with changes to improve accountability, performance and value for money.
Lutfur Rahman, Mayor of Tower Hamlets, said:
"Tower Hamlets Homes is a young organisation and having examined resident views and the merit and costs of the various models, I believe that currently continuity with THH will sustain my drive to improve housing in the Borough.
"They have made good progress in the first three years but I am keen to ensure this trend continues, especially given the changes driven through by central government.
"This proposal and the changes to the board will strengthen our ability to ensure continued performance improvement and fast delivery of the Decent Homes programme."