Orbit Housing dispute settlement agreed

Heart of England Housing Association Limited and Stratford-on-Avon District Council have been involved in a dispute and court proceedings in connection with properties transferred by the Council to the Association in 1996.

The parties can confirm they have reached an amicable settlement of the dispute and the court proceedings have been brought to an end.

In 1996 and in accordance with the Government's rules the Council sold its housing stock of over 5,000 units for £54M to the Association's predecessor South Warwickshire Housing Association (SWHA).  It was the Association's view that during the transfer process the Council had not disclosed details of noise insulation issues in relation to some of the properties and that had led to a loss being incurred by the Association in terms of required remedial works and had this been known the purchase price would have been lower.

The Association issued court proceedings, and after significant out of court discussions the Council has agreed to make a payment to the Association of £3.6M in full and final settlement of its claim, to include legal fees.

The Council's own legal fees amounted to about £550,000.  

Provision for this settlement and the Council's fees has been provided for and therefore will not have an adverse impact on the Council's spending plans.