Largely flying under the public radar is a move to transfer ownership of council estates to other social landlords. It is part of a central government agenda implemented by local government and has already led to large-scale property development much of it aimed at the private market on previously publicly owned spaces.

An example of this is in Tower Hamlets, East London, where the council has offloaded the Crossways Estate on to Swan Housing Association. The rationale behind this is that local councils are strapped for cash and are not allowed to borrow money to maintain existing housing, or to build new. They have central government’s Decent Homes Standard to reach by 2010 so in order for conditions to improve they are transferring their stock to not-for-profit housing associations.

Before stock transfer can take place residents have to be balloted and give a yes or a no to the transfer. It has become the norm at these transfer polls for the prospective new owners of the estates to launch a glitzy yes campaign: Balloons, glossy leaflets, clowns, jugglers, an estate flooded with door-knocking paid employees in ‘yes’ t-shirts. There are also many promises made to residents. On Crossways Estate there was, amongst other promises, a “100 day promise”, which stated that … “Within the first 100 days following transfer, Swan will visit every flat to identify short term repairs needed until refurbishment” and to “start an emergency catch up repair programme”. They also promised to … “achieve a reliable lift service”.

Those and other longer term promises won over residents, the ayes won. But since Swan’s yes victory and takeover in March 2005, conditions on the estate have deteriorated. Chris Kingsley-Smith a resident confided in me that under Tower Hamlets … “it was bad but not nearly as bad”. Residents of the three tower blocks on the estate have on-going problems with their water supply, which has often been cut off for days at a time. According to Mr Kingsley-Smith they have been without water for at least 72 days over the last year. The lifts have frequently been out of action also for days at a time, no joke in a 25 storey building.

In one of the tower blocks the Abul Hassan household is expecting a new baby. This baby is going to be born into far from ideal surroundings. Their drains are leaking, resulting in a pool of fetid, stinking liquid. The Abul Hassans told me they had continuously phoned Swan, but despite repeated assurances, their drains are still leaking. Furthermore, the duct housing the leaking drain is made of asbestos.

The Maliks live below. The Fetid water continuing its downward journey through the 25 storey building, drips from their ceiling into buckets and baby baths. The Maliks have phoned Swan more than once a day in an attempt to get something done about the dripping ceiling; no one has showed up.

The exterior of the tower blocks is crumbling. Large lumps of concrete have fallen off, and drains are broken leaving ugly trails of waste. It is obvious that Swan has not fulfilled its promises.

Before Swan took over, the estate was made up of three 25 storey tower blocks and one low-rise block. After Swan obtained control of the estate it appears that rather than address the serious and immediate problems of maintenance faced by existing tenants, they put their energy into the building of a further 418 homes in between the existing buildings on land previously publicly owned and used for children’s play areas and much needed green space. The human density was already high, but these new homes will put the density up to a level that must surely be questionable.

Many of the new build dwellings on Crossways will be for sale on the open market. Swan has plans to empty all three of the existing tower blocks in order to refurbish them. Once they get vacant possession and the refurbishment is complete, all the flats in one of the blocks will be sold to private buyers. The people who live in the block destined for sale will be forced to move. Tower Hamlets has granted a Compulsory Purchase Order (CPO) in order to move leaseholders out. A few weeks before Christmas 2005 leaseholders were given 4 weeks to move. This is not what residents thought would happen after accepting Swan Housing as their new tenants. Instead of being able to complain to the Council, who have to obey certain standards, the residents found they had nowhere to go. This is when they started organising and appointed Nigel Laing a chartered surveyor as expert witness who specialises in Compulsory Purchase.

The leaseholders, their lawyer and expert witness pressed for a public inquiry, which they got. In his evidence for that inquiry Laing argues that the CPO lacks a necessary council resolution and hence is invalid. He also boldly states …
“The standard of behaviour of Swan (a housing association and charity) has been unacceptably aggressive… Their behaviour includes threats, including a specific physical threat (to cut off the leaseholder’s water) made in my presence and apparently carried out… On several occasions, including at the meeting on 2nd November and a meeting on 15th February the threat has been made that if agreement is not reached [for leaseholders to leave the building] that the [building] works will be carried out around the leaseholders and that their life will be made very difficult.”

It is extremely difficult to contact Swan on the phone, as many residents have found. When I did eventually make contact with Swan’s PR department I felt they were unhelpful and indeed aggressive. They refused to comment on Nigel Laing’s evidence.

One of the new blocks being developed by Swan on Crossways has been built in the wrong place contravening planning permission and in the opinion of many local residents, worryingly close to their houses. Even after the ‘error’ came to light, construction was not halted. Tower Hamlets under pressure from locals slapped an injunction on construction. It was only then that work stopped. Though Swan fought to keep the existing location of the building, planners at the council, again under pressure from residents (who picketed the construction site), caved in and have denied permission for the misplaced building. At the time of writing this incomplete building still stands.

Swan’s behaviour over the misplaced building appears entirely consistent with their overall approach. Their apparent disregard for the wellbeing of their residents contrasts with their slick corporate website which proclaims that…
“It was very rewarding to be voted Social Landlord of the Year 2005. This award recognised the work carried out in investing in stock, tenant empowerment, best value and social inclusion and also the contribution made by the association's committed workforce.”

‘Best social landlord of the year’ is not how many of the witness statements collected by Nigel Laing read. They are a depressing catalogue of indictments against Swan, lifts out of action, noise and dust nuisance from their construction work, failure to consult residents, ongoing problems with hot and cold water supply, threats, heating not working, and security problems. Security in the tower blocks has been so lax that some residents have been burgled multiple times, and anti social squatters have moved into the blocks. Chris Kingsley-Smith believes Swan have broken the conditions of his lease. He comments that they have knocked down resident’s garages with little or no consultation, and also moved walkways on the estate causing residents considerable inconvenience, again with minimal consultation. It would be an under estimate to say Swan’s reputation on the Crossways Estate is not good, nor is it good with many residents on the estates surrounding Crossways.

The feeling I got at Crossways is one of desperation. Chris Kingsley-Smith spoke to me about psychological impact of living in the conditions nurtured by Swan. He knows of a number of residents who have suffered from breakdowns and are taking medication. Rania Khan, a Respect councillor lives in a house overlooking the construction work on Crossways. She has been campaigning tirelessly on behalf of residents and has numerous horror stories to tell. She confided in me she is particularly concerned for the wellbeing of the older residents and families with young children in the tower blocks.

Stock transfers are happening all over the country. The case of Swan on the Crossways Estate should be looked at in a nationwide context. The expanding social landlord sector is under-policed and under-legislated. Notions of Best Practice are not enough to govern their behaviour. What has happened on Crossways demonstrates that there is a need for a greater level of transparency and accountability. The land that these estates occupy in our cities is of immense financial and social value. Once out of public ownership control over how this land can be used is diminished or lost altogether.

Two main factors have come together to strengthen the argument if favour of transfer. They are the Public Sector Borrowing Requirement, which prevents councils borrowing money, and the Decent Homes Standard. Both of these conditions are manufactured by central government. Together they create a Catch 22 situation, in which local government can say it has no choice other than stock transfer. Many campaigners fear that, left unchecked, this policy will be a swan song for social housing, because beneath this song lies the true melody, the real agenda, privatisation.