Less than £5,000 a property for council

Fenland Council will get less than £5,000 for each of its 3,800 council houses and flats if tenants vote to transfer later this year to a housing association.

Fenland Council will get less than £5,000 for each of its 3,800 council houses and flats if tenants vote to transfer later this year to a housing association.

The figures were revealed after the council disclosed the amount Circle Anglia plans to pay for Fenland's houses, bungalows and flats.

Tim Mills, Fenland's head of housing, says Circle Anglia's total package price was originally £41.6m but it will be taking on £2m of pension liabilities "that crystallise at the point of transfer."

However, Mr Mills says that is a gross capital receipt which will be reduced by various adjustment such as the payment of levy to the government and the possible repayment of outstanding council debt and set-up costs.

"These reduce the estimated capital receipt to £19m. This net capital receipt will be available to the council to invest in capital, expenditure or to generate investment income to reduce net general fund costs," says Mr Mills.

Should tenants opt for a transfer following a ballot in November, the council should get its hand on the money in the second half of the next financial year.

Most Read

His report will be discussed by the overview and scrutiny panel at Fenland Hall and sets out the mechanics of transfer.

Circle Anglia has promised tenants a raft of improvements to their homes that will include new bath showers, off-street parking improvements, security lights and gardening and decorating service.

In addition Circle Anglia says it will invest £1m in the first five years toward social regeneration initiatives.

And it has promised to deliver a minimum of 500 new affordable homes in Fenland in the first five years from transfer.

Mr Mills says: "The proposal goes significantly beyond what can be offered by the council to meet the aspirational needs of tenants."

Circle Anglia has also promised there will be a 10-year no-compulsory-redundancy agreement with staff transferring from the council.

Mr Mills says a "pool of opinion" last May showed 52pc of tenants who responded were in favour of transfer.

"However further analysis showed that the offer would need changing to ensure it was attractive to all tenants - sheltered and general needs tenants of all ages," he says.

If it goes ahead, a new housing local board will be set up as a subsidiary of Circle Anglia to run the housing stock. It will comprise 15 people, one-third tenants, one third councillors and one third independents.