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Westminster City Council’s cabinet has approved plans to bring housing services back under council control.
The council voted to take ALMO City West Homes (CWH) back in-house after a investigation uncovered a series of concerns over the body’s conduct.
In February the council fined CWH £15,000 and listed it on the mayor of London Sadiq Khan’s rogue landlord database for failing to disclose fees charged by its letting agent, City West Residential, clearly enough on its website.
Set up in 2002 City West Homes provides housing services for over 12,000 social housing tenants and 9,000 leaseholders for Westminster City Council.
Approval of the decision to take the ALMO in-house came following feedback from residents, ward councillors and an independent report commissioned by Westminster in late 2017 - all of which highlighted serious issues.
Figures obtained by housing campaigners through the Freedom of Information Act and seen by Inside Housing show that over a 12-month period in 2016-17, Westminster City Council paid £393,571 from its Housing Revenue Account (HRA) to CWH in fees for selling council homes on the private market, and another £240,000 to buy back other ex-council homes.
Over the same period, council leaseholders selling their homes back to the council paid CWH £532,715 in sales fees.
According to government figures, Westminster made the biggest loss of any council on its HRA in 2017/18 with a deficit of around £28m.
Andrew Smith, Westminster City Council’s cabinet member for housing and customer services, said: “As we’ve made clear, our residents deserve the very best. That’s why it’s important to hear their views at such an important time following the Cabinet decision to bring the council’s housing services back in-house.
“The independent review said that residents are being failed by CityWest Homes, and so this decision is in the best interests of our residents.
“We’re already working closely with residents’ groups and associations, and these residents’ consultation events will be key in helping us deliver the high standards they deserve.”
Following the council vote services provided by CWH will be transferred to the council on 1 April 2019."
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