Magazine article Public Finance

RSL Sues Council over the Value of Transferred Homes

Magazine article Public Finance

RSL Sues Council over the Value of Transferred Homes

Article excerpt

A Scottish council is facing a claim of up to £1m from the housing association it set up to take over its houses under the government's voluntary transfer scheme.

Scottish Borders Housing Association is taking action against Scottish Borders Council over a transfer agreement that led to it acquiring the council's 6,728 properties in March 2003.

The SBHA says the action is designed to correct what it considers were serious inaccuracies' in the process of determining the value of the houses.

The association paid £23.34m, an average cost per house of £3,400. It claims it paid too much for the properties and is suing the council to claw back some of the money.

The transfer was approved in November 2001 after 82% of tenants voted in a secret ballot, although it was a further 16 months before it was completed.

In accordance with the arrangements for the operation of the voluntary transfer scheme, the Scottish Executive provided £38m to pay off the residual loan debt on the Borders houses. …

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