Housing Minister Kris Hopkins gave the green light for Salford City Council to transfer ownership of its social homes to Salix Homes.
The deal will see the Government write off the council’s £65m historic housing debt.
In exchange, Salix Homes has made a commitment to invest £75m to ensure that all 8,500 properties will reach the government’s Decent Homes standard by 2020.
Salix Homes upgrade plan
4,000 homes getting new kitchens or bathrooms
2,000 homes getting new windows
3,000 homes getting upgraded heating
The deal will now be put to consultation, before Salford tenants get a chance to vote later this year. Only if tenants vote yes will the deal go ahead.
Hopkins said: “This investment from Salix will mean residents in all 8,500 social homes in Salford will benefit from a range of improvements, whether new kitchens or bathrooms, new windows or better heating.
So I’m pleased to sign this deal with the City Council and write off £65m of their historic housing debt, so they can put the offer to their tenants and so Salix can plan ahead for the investment they have committed to making.”
Gloucester, Durham and Lewisham Council in London are also considering stock transfer using the debt write off offer.
Gloucester received approval for a £50m debt write off in April, while Durham was promised £130m would be written off in March.
