V I S I O N H O M E S

Question & Answer

Frequently Asked Questions

What is a Stock Transfer?

• A Stock Transfer is the legal process where housing currently owned by the Council, in this instance the Patmos area, is transferred to another registered provider, Vision Homes Lambeth, if the majority of tenants who vote in the ballot are in favour of this following a formal consultation and ballot process.
• Housing stock transfers can only be made to providers of social housing registered with the Regulator for Social Housing. They also require the support of a majority of tenants as well as consent from the GLA.
• Local Authorities that are considering transferring housing stock to registered providers must work closely with tenants at all stages of the transfer process. A ballot of tenants must be conducted to establish the tenants’ views.

• Transferring housing stock to a private registered provider is a means of securing investment for the improvement of social housing.
The benefits include:

• Private registered providers can borrow money they need from banks and building societies to buy and invest in housing to bring it up to a decent standard.
• Stock transfers create more focused tenant involvement in the management of their homes and contributes to wider community regeneration.
• This leaves the local authority free to focus on more strategic housing issues.

• The process of a residents’ ballot for Stock Transfer can be broken down into four key steps, as follows:

• Lambeth Council must alert residents to the fact that this process is underway and advise them on what will happen over the next few months.
• Offer documents will then be issued to Council tenants and leaseholders, which sets out the Vision Homes Lambeth (VHL) offer, as opposed to the Council’s, and asks them to fill in a response slip and return it within 28 days.
• The responses will then be considered by the Council and the offer could be altered at this stage, before proceeding to a ballot.
• A ballot will be held for up to 28 days where Council tenants decide whether or not they support the stock transfer to VHL.
• The ballot is undertaken by an independent body, such as the Electoral Reform Ballot Society.
• For the ballot to be successful, a majority of the Council tenants who took part in the vote, must vote in favour of the stock transfer.

• If there is a vote in favour, then there will be a period of time where the properties will still be owned by the Council, before the transfer is complete, and therefore residents will see very little difference during this period.
• During this period VHL will be speaking to residents ahead of the transfer being completed, to identify their priorities for their homes and the area.

• Potential to look at providing free Wifi to the residents within the stock transfer area in the future to enable all residents to access the internet and get online. This would be part of the “community chest” investment for employment and learning opportunities.
• Vision Homes Lambeth will lower rents across the stock transfer area by 1% per year in the first three years in the event of transfer. This will ensure that current Council tenants will have stability and will be able to continue to afford their rent. If the Patmos area were to remain under Council ownership, rents may increase by a maximum of 7% next year. With additional increases likely in the following years.
• There will be a local office within the Patmos area where residents can go to discuss any issues that they may be having, as well as ask questions.
• There will also be local employment and training opportunities delivered as part of VHL’s offer.

Vision Homes Lambeth will be a Registered Provider who is hoping to undertake a stock transfer of housing within the Patmos area of Lambeth. VHL is not currently a Registered Provider, which is not uncommon in a stock transfer. If the ballot is in favour of a stock transfer later in the year, VHL will continue the registration process then. We understand that there might be some concerns about the lack of track record for VHL, but please be reassured that VHL will employ industry experts to ensure that the highest level of service is given to residents of the Patmos area. VHL will also have resident board members to ensure that local residents’ voices will be heard.

VHL will be a for-profit Registered Provider. They will fund the stock transfer and increase spending on repairs/maintenance through investment and borrowing. The GLA have reviewed the business case for VHL and have found it sound, which means that they believe that the rent decreases and increased spending on repairs and maintenance are fully costed and implementable.

Tenants of the Patmos area will find that their tenancy rights will be protected, under VHL. All contractual rights guaranteed within the Council’s tenancy agreements are also guaranteed within VHL’s tenancy agreements – including the Right to Buy (called the Preserved Right To Buy) and the Right to Succession. Not only will tenants’ rights be protected within VHL’s tenancy agreement, but there will be an additional Right To Succession giving those who have succeeded already an additional right to succeed within the VHL tenancy, meaning that tenants can pass their tenancy to a close family member who lives with them in the event that the tenant dies.

• Recently, there has been a lot of negative media attention around Lambeth Council’s failings to undertake repair and maintenance work to its current housing stock (a number of these articles are provided below). We also know that similar issues have also been experienced in the Patmos Area, with many residents telling us that they struggle to get Lambeth Council to carry out repairs to a high standard and in a timely manner.
By contrast, Vision Homes Lambeth is committed to undertake repairs and maintenance. VHL has pledged to provide £4.4 million worth of funding in the first five years following the transfer to carry out home improvements and repair works. VHL will also provide a local office and dedicated phoneline which will allow you to raise your concerns and repair requests directly and quickly.

• Brixton Buzz, November 2022 - Lambeth Council receives more than 9,000 complaints from residents in a six month period with housing repair issues topping the list.
• My London, November 2022 - Families on 'Dickensian' South London estates furious as council hardly fixes anything.
• Brixton Buzz, November 2022 - Housing Ombudsman finds severe maladministration by Lambeth Council after one year delay to fix broken window.

• Vison Homes Lambeth understands that the cost of everything is increasing due to the cost-of-living crisis. That is why we have committed to lowering rents across the Patmos area by 1% a year, for the first three years in the event of the transfer.
The Government has recently announced that it has capped the amount that social housing rents can be increased to a maximum of 7% next year. This is in direct response to the cost-of-living crisis. To see how much you could be saving if the stock transfer goes ahead, use our online rent comparison calculator available here.