Tenants form housing firm

Tenants in the London Borough of Tower Hamlets are among the first in the country to form a non-profit making Local Housing Company.

The prospect of similar developments across the country and the new funding that they will attract is good news for construction companies.

The possibility of transferring local social housing stock into housing companies was made possible by the 1996 Housing Act. The move is backed by both political parties so is unlikely to be affected by the election result. The major advantage of these new arrangements for local government is that they open up access to funding for housing stock.

In Tower Hamlets the vote in favour of the new Housing and Regeneration Community Association will mean improvements of œ50 million over the next five years, say the Council.

The HARCA will be an independent body with its own management board jointly controlled by the Council, elected tenants and others with an interest in the local community.

Tower Hamlets' Director of Housing Bob Brett said:"The HARCA can spend millions of pounds improving these estates and the local environment because it can access funding that is unavailable to the Council."

The replication of developments like the HARCA across the country will offer vast opportunities for contractors.

A Housing Policy Consultant with the House Building Federation confirmed that the move will provide more building work. "There will be big investments in the fabric of estates which will mean more work for construction companies," she said.