City council confirms plan to close one of the UK’s largest ALMOs

It was set up to access the government’s Decent Homes funding, which councils could not access directly.

However, that funding no longer exists, the city council said, and with more stringent housing regulation under the Social Housing (Regulation) Act in place since July, the decision was taken to close the ALMO.

YHN’s commercial subsidiary, Abri Trading, is also expected to transfer into the council’s ownership.

The council said it expected to save around £1m a year from the closure of YHN that could be used to improve homes and services.

The move follows a consultation with tenants, leaseholders and other residents. According to the council, over 80% of respondents supported the proposals.

Work to transfer all YHN staff will begin immediately and is expected to be completed by July 2024.

Irim Ali, cabinet member for a dynamic city at Newcastle City Council, said: “In recent years, we have faced major financial and regulatory changes in the housing sector that mean we need to get more from every pound we spend, so it was vital to consider whether there was a more effective and efficient way to deliver for our residents.

“Bringing all our housing services together in the council is an exciting opportunity to reflect on our achievements, identify areas for improvement and create a new housing service that will help us deliver now and in the future.”

In October, Cheltenham Borough Council said it would wind down its housing ALMO after a 20-year partnership, because of increasing financial pressures and a changing regulatory framework.

Bury, Lewisham and Tower Hamlets councils are also in the process of bringing housing management back under direct control in the face of similar regulatory and financial pressures.