Council plans to retain ALMO after positive review

News16.08.2310.30 AM by Grainne Cuffe

Doncaster Council is planning to retain its arm’s-length management organisation (ALMO) after an internal review.

The ALMO manages nearly 20,000 homes on behalf of Doncaster Council (picture: Alamy)

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Doncaster Council is planning to retain its arm’s-length management organisation after an internal review #UKHousing

According to a report going before its cabinet on Wednesday, the local authority’s agreement with St Leger Homes of Doncaster (SLHD) is “working well”, while the council “regards the ALMO as offering the opportunity to respond effectively to the new regulatory and legislative requirements and to make financial efficiencies”.

SLHD was established in 2005 and currently manages just under 20,000 homes on behalf of the Northern council.

During 2023, an internal review was undertaken to evaluate performance under the existing agreement to ensure it remains fit for purpose.

“The [review] has provided an opportunity to consider SLHD’s performance, value for money, what’s working well and areas that need improvement, alongside reviewing the best way to respond to the changes in social housing legislation and regulations which have been introduced since 2019, the most recent being the Social Housing (Regulation) Bill which received assent in July 2023.

“The outcome of the review has indicated that the agreement is working well, and there is appetite to extend the existing arrangement for a further five years from 2024 to 2029, retaining a review and optional break point in year three,” according to the report.

The report outlines some of SLHD’s achievements, including since the launch of its service improvement drive for “repairs excellence” in 2021.

The programme aims to modernise the service, drive out inefficiencies and deliver improved services.

By introducing a system of texting and ringing ahead, the ALMO was able to reduce no-access visits from approximately 3,500 per year to nearly zero.

“This has been a fundamental element of St Leger’s ability to absorb the additional post-COVID demand for repairs without any additional resources.

“Additional benefits include a near 95% outcome for jobs completed right first time and, crucially, greater transparency and choice for tenants with regard to repairs appointments,” according to the report.

At the start of 2023, the ALMO introduced a single repairs service by combining reactive and scheduled repairs teams.

The report states: “The impact of these changes is still working through, but notable improvements so far include a reduction of daytime jobs being sent to the out-of-hours call-out service, from 30 to 40 repairs a day at the peak to just four to five a day, with some days seeing zero jobs being passed over to the emergency repairs service.”

The review found some areas for service improvement “which will be pursued going forward through the close joint working arrangements between [Doncaster Council] and SLHD”.

These included enhancing the key performance indicators set by the council and getting a more detailed understanding of data firm HouseMark benchmarking and where the organisation sits in comparison with other organisations.

The council also wants to strengthen its assurance processes to manage, monitor and challenge performance, “including financial reporting and general governance, reflecting the focus of the new social housing regulatory inspection regime on councils rather than their ALMO”.

Several councils have announced plans to bring their ALMOs back under direct control.

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

Newcastle Council is also considering the move.