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North West council to close ALMO
A council in Greater Manchester will close its arm’s length management company as part of a plan to improve local estates.
Bury Council has made the decision to bring 7,700 homes back under local authority control from its ALMO, Six Town Housing.
The ALMO was set up in 2003. With its own board and staff, the organisation has been responsible for the day-to-day running of the council’s housing stock since then, from collecting rents to carrying out repairs.
But Bury Council voted to take over the service following a review, which it believes will enable faster decision-making as well as remove a layer of management and associated costs to a local authority that is already “significantly financially challenged”.
A spokesperson for the local authority told Inside Housing that the council’s cabinet approved the plan on Wednesday, but did not have details on the financial implications of the change.
The cost of the move will be “determined during the transition period”.
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The council’s strategic housing review stated that Bury is faced with a stark operating reality, with ever increasing levels of demand and complexity of support needed.
As a result, existing operating models are no longer sustainable and the local authority must evolve to meet demand in different ways.
Part of the reason for the decision is that the council believes it can make savings by removing the ALMO management overhead.
The review document said: “Significant opportunities exist to create tenure neutral and joined-up services that will remove layers of duplication and siloed working across Bury, releasing resources to deliver frontline services and investment in the housing stock.”
Clare Cummins, cabinet member for housing services at Bury Council, said: “We all want to ensure that our tenants receive an excellent service and that Bury has quality homes in successful communities.
“While Six Town Housing has delivered housing services to tenants on behalf of the council for many years, there are now significant changes in regulation and new legislation, and the council is committed to improve and integrate services to our tenants and residents and improve the quality of the housing and estates.”
She said the proposals were part of a much wider plan to improve local estates generally, from health to community safety and the environment.
Ms Cummins added: “Repairs and services are very important to tenants, but they also want to live in quality homes and neighbourhoods, with safe and secure streets and communities that are invested in.
“There is a growing demand for social and affordable homes, and we recognise the special role that housing services have in supporting families and people to live independently in their own homes in successful communities.”
Robin Lawler, chair of the board at Six Town Housing, explained that the decision will “ensure the best use of resources and to consistently improve services ahead of the new housing regulations”.
He added: “Tenants are the key focus for this, as the services they receive are of the utmost importance and feedback has been, and will continue to be, used for service improvements.”
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