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Last Updated: Thursday, 17 November 2005, 23:03 GMT
Move to block housing legal bid
Houses in Drumchapel
The GHA was worried the stock transfer could face a legal challenge
The Scottish Executive has moved to prevent a legal challenge to community ownership of Glasgow's former council housing stock.

Glasgow Housing Association had warned a second stage transfer to local housing organisations could be challenged in the European courts.

But Communities Minister Malcolm Chisholm has tabled an amendment to the Housing Bill to prevent that.

A spokeswoman for the GHA welcomed the executive's move.

When Glasgow's housing was transferred away from local council control in 2003 there were two elements to the deal.

Legal advice

The city's 1bn housing debt was cancelled on condition GHA took control of more than 80,000 former council homes.

The GHA was then in turn to be replaced by a transfer of its stock to local community ownership.

But on 31 October the GHA said the transfer could fall foul of European contract laws.

Mr Chisholm said at the time the move was "precipitate" and that the executive had taken its own legal advice.

The minister has moved an amendment to the Housing Bill in the Scottish Parliament which would prevent any legal action in Europe.

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