What is Stock Options?

During 2004/05 the Government made all stock owning councils to take a long-term look at their housing stock. A minimum standard was established - the Decent Homes Standard - and all council homes had to meet this standard by 2010.

If a council could not meet this standard, or maintain its homes to the standard in the longer term, then it was required to look at alternative options.

These were :-

Stock Transfer

Arms Length Management Organisations (ALMOs)

Private Finance Initiatives (PFI)

Runnymede's Options Appraisal Process

During 2004/05 the Council consulted with its residents about Stock Options. Meetings were held, newsletters sent out and an information hot-line established. An independent tenant advisor (ITA) was appointed, chosen by the tenants themselves, to advise them throughout the process.

A group of tenants formed an Options Appraisal Forum, which met regularly, and now the process has been completed, a number of the tenants who took part have retained their interest in tenant participation, and a new group, the Runnymede Council Residents' Association, (RCRA), was formed.

Housing Revenue Account Business Plan

The Housing Revenue Account (HRA) is the exclusive account for the housing service. Its income comes mainly from rents, and this income is used to run the housing service, and covers items such as salaries, administration and repairs.

The HRA has a 30-year business plan, and this plan looks at the long-term ability of the Council to maintain the housing service. It is this plan that is required to meet and maintain properties to the Decent Homes Standard.

The business plan did not allow for very much additional work over and above the Decent Homes Standard and consequently tenants were asked if they would like to consider other alternatives which might generate more income to provide additional services. Overwhelmingly, the tenants indicated they would prefer the Council to remain as their landlord.

The Council considered the response from the residents in April 2005, and agreed that retaining the housing stock was the best option for residents. A formal submission was then made to the Government Office for the South East, (GOSE), who formally approved the decision made by the Council.

The result of the Options Appraisal process is that Runnymede Borough Council will retain the ownership and management of its housing stock for the foreseeable future. The business plan will be kept under regular review to ensure the retention decision remains the best option for residents.