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Housing Stock Options Appraisal

The council (along with all other councils which are still landlords) is required to carry out a review of future funding requirements needed to provide management of, maintenance of and investment in the housing stock. This review is known as a Stock Options Appraisal (SOA).

What is a Stock Options Appraisal?

A Stock Options Appraisal is an OBJECTIVE review of the council's role as a landlord, which is undertaken by independent consultants. There are four options to consider:

  • Retention – the council retains ownership of the stock and continues to provide all the existing services as it does now
  • Large Scale Voluntary Transfer (LSVT) – council tenants elect to transfer ownership of the stock to a Registered Social Landlord, who will provide all services
  • Arm's Length Management Organisation (ALMO) – the council regains ownership of the stock but creates a separate company to manage the services; the council would wholly own the company
  • Private Finance Initiative (PFI) – the council retains ownership of the stock but works with a private sector provider, which then provides the managements and maintenance services in the form of a contract arrangement

The council carried out its first full stock options appraisal in 2005 and the consultants concluded that the council could remain as a landlord whilst meeting and maintaining the Government's Decent Homes Standard.

Where are we now?

The council's current policy is to remain as landlord but to keep this situation under annual review. Independent consultants, Cascade Consulting, conducted a desktop Stock Option Appraisal for Uttlesford District Council in 2009 and concluded that there is no immediate need to look at different options to manage the stock.

However the revised business plan indicates that the Housing Revenue Account will fall into deficit in year 5, unless action is taken to reduce costs to sustain a balanced position for the medium term. This is due to the provision for capital expenditure being increased in line with the results of the new stock condition survey.

In relation to the Decent Homes Standard, the council commissioned independent consultants to carry out a stock condition survey in 2008. The information gathered from this survey has been assessed and now forms part of the council's Housing Revenue Account (HRA) Business Plan, which sets out the council's plans for the future management, maintenance and investment in its stock.

The business plan concludes that a balanced position can be achieved until 2013/14, but in year five the stock condition survey projects a major capital spend which, within the current regime, is unaffordable.

As the HRA cannot be allowed to fall into deficit, officers will be working with the tenant forum to construct an action plan to tackle the required savings or to identify other alternative means of financing the identified capital shortfalls. The Government’s proposed changes to housing finance could also bring about a change in the way the HRA balances look in the future and may give some answers to the capital shortfall.  

Do you want to know more?

If you would like more information on Stock Options Appraisal or if you have any ideas on how we can best consult with you, please contact the council's tenant participation officer, Nicole Shephard-Lewis, on 01799 510571 or by emailing housing@uttlesford.gov.uk.

The Decent Homes Standard

The Decent Homes Standard was introduced by the Government in 2001. All councils and housing associations must meet the standards set out by 2010. A 'Decent' home is one that meets the following criteria:

  • It meets the current minimum standard for housing
  • It is in a reasonable state of repair
  • It has reasonably modern facilities and services
  • It provides a reasonable degree of thermal comfort

For more information, visit the Department for Communities and Local Government's Decent Homes Standard page.

Uttlesford District Council has been committed to maintaining its property to a high standard for many years. This has resulted in its current position, where over 98 per cent of the stock meets the Decent Homes Standard. A Decent Homes Strategy was drawn up to ensure that all council-owned properties meet the standard by 2010.