Council house gloom

THE consultation process which City of York Council is set to undertake about options for re-financing York's council housing is likely to be a farce.

The "options" offered to councils are severely limited by the Labour When tenants consider these options - however they are packaged - they may not realise that council house rents are set to rise, to match the average rents in all local social housing, whether the council remains their landlord or not. If the council sells its stock to a housing association the benefits to the council will be paltry. Against an estimated equity value of £250 million, York would be allowed to reinvest only about £11 million.

If it retains its stock against Government opposition, the financial penalties could be crippling.

If the council does neither and creates an "arms length organisation" (ALO) the financing risks do not disappear, activities are duplicated and another public service falls to be managed by a quango.

Even then, with the profits from "right-to-buy" sales belatedly brought into use for housing, there will be awkward financial challenges for the ALO and, importantly, no let-up in the relentless rise in rents for the long-suffering tenants.

Coun David Livesley,

Liberal Democrat, Housing,

Lang Road,

Bishopthorpe, York.

Updated: 12:20 Wednesday, October 31, 2001