Question to the Department for Levelling Up, Housing & Communities:

To ask Her Majesty’s Government what action are they taking to support council tenants who want to form housing cooperatives.

We encourage local authorities to work closely with their communities to look at the range of options open to them. This may include forming community led groups, such as co-operatives, Community Land Trusts or Tenant Management Organisations. My officials continue to discuss issues affecting co-operative housing more generally with the co-operative sector.

Council tenants have the Right to Manage, which enables them to set up a Tenant Management Organisation (a management co-operative) to manage the homes in their area, with a management allowance from the Council. The Tenant Empowerment Programme, £2 million in 2014/15 and £1 million in 2015/16, supports social housing tenants to engage in, manage and/or take control of their housing services. This includes training, support and funding to enable tenant groups to take up their Right to Manage. There are currently over 200 Tenant Management Organisations across England, managing around 80,000 homes.

In October 2012, we funded the Co-operatives UK to establish and run the Community Shares Unit to grow a sustainable market and promote the long term success of the community shares model, as a means to raising equity finance and increasing participation in community enterprises and projects. Community-led housing is one of the areas identified as requiring development.

We are also encouraging community led organisations, including co-operatives, to apply for funding through the 2015-18 Affordable Homes Programme. The Homes and Communities Agency has held back over 25% of their £1.7 billion budget, for which it is now inviting bids. This should be of particular help to smaller community-led organisations.