You are viewing 1 of your 1 free articles
Two more councils set to close ALMOs
Two northern councils have become the latest to set out plans to shut down their ALMOs.
Kirklees and Manchester councils this week declared intentions to scrap their housing management companies and return the service in house.
The former currently relies on Kirklees Neighbourhood Housing (KNH) to run the vast majority of its 22,000 homes.
But its Labour cabinet has agreed to start consulting with residents and staff about closing KNH, claiming that the move will aid “better understanding and [address] challenges individuals and communities face”.
The council attempted to strengthen KNH’s governance in December 2018 with a smaller board, but an officer’s report to the cabinet noted that “a number of wider management issues” have since arisen, including “concerns about fraud and strategic alignment”.
Cathy Scott, cabinet member for housing and democracy at Kirklees Council, said: “This is a decision we have made to meet the changing needs of our residents in Kirklees.
“Taking back the management of our housing stock will help us to ensure people live in safe, affordable and suitable accommodation that meets the needs of individuals and families.”
KNH – launched in 2002 – is expected to close by 31 March 2021 with its staff transferring to the council.
Kirklees Council also owns around 460 homes managed through Excellent Homes for Life, a private finance initiative, which are not affected by the decision.
READ MORE
Manchester Council’s Labour cabinet has completed a review of its ALMO, Northwards Housing, and stated its preference to take back direct control of managing its 13,000 homes.
An officer’s report discussed at the meeting described “cause for concern” about Northwards’ “finance and performance, particularly around customer service and repairs”.
It added that “there have now been three consecutive years of underperforming” in delivery of the housing capital investment programme, increasing costs.
Northwards “requires actions to be taken immediately to address the weaknesses identified”, it said.
The report also warned that the council’s current 30-year Housing Revenue Account business plan is set to end £438m in deficit.
Officers identified a “growing concern” about the financial impacts of fire safety work in 2019, it said, while retrofitting housing stock to zero-carbon standards by 2038 in line with the council’s targets is expected to cost £213m.
The decision is subject to consultation with tenants, with a business case set to be presented to councillors in September.
Suzanne Richard, executive member for housing and regeneration at Manchester Council, said: “Zero-carbon retrofit, further fire safety investment and the need for continued investment in our existing homes brings with it huge financial challenges.
“It’s therefore right we should take the time to reflect on the challenges ahead and the best way to meet these.”
Sue Abbott, chair of Northwards Housing, said: “We will continue to work tirelessly in the best interests of tenants, which is something I can say as a council tenant of many years’ standing.
“We recognise that the council needs to periodically review how best to manage and repair council-owned homes, and we will fully participate in the review to ensure that tenants’ voices are clearly heard.”
Northwards was launched in 2005. Another 3,000 homes owned by the council are managed by several companies, housing associations and tenant management organisations.
Manchester Council also agreed plans this week to establish a new housing development company.
KNH and Northwards are two of 30 ALMOs operating in England.
ALMO numbers have dwindled significantly following a series of closures since 2009, with The Gateshead Housing Company and East Kent Housing also set to be scrapped.
