Budget crisis may hit homes transfer

Tenants on north Bransholme voted in April for their homes to be transferred from Hull Council to Liverpool-based Riverside Housing Association.

But for the deal to go through the Government has to write off more than 10m debt – a move which could be in doubt because of the economic crisis.

A report to a council scrutiny committee – meeting on June 22, the day of the emergency budget – says there "remains a risk, especially in the light of the change of Government and their review of financial commitments".

So far the report says, there's been no indication that the Government won't help. However if it decided not to write off the debt, then the transfer would be unaffordable.

The report also reveals that under the deal with Riverside, Hull Council will pick up the bill for demolishing 91 homes and hand over development land, estimated worth 1.5m.

Nearly 65 per cent of the residents took part in the vote over the last month, while Labour activists and trade unionists fought to convince them that they should stay with the local authority. The pro-transfer lobby argued that the transfer will lead to improvements to housing beyond those that the council can afford and people on the estate will get more jobs and training opportunities.

Of the 797 residents who took part in the vote 451 – 56.6 per cent – voted for the measure while 346 – 43.4 per cent – opposed the move. The decision affects 1,183 properties.

The stock transfer is the seventh won by the Riverside Group in the last decade. It owns 48,000 homes between Carlisle and London, including many former council properties.