Council housing returns to the local authority

Following an extensive consultation with both tenants and leaseholders it was agreed yesterday (Wednesday February 23) that the management of 21,000 council-owned properties should return to Rotherham Borough Council.

Members of the authority's Cabinet heard that the overwhelming majority of tenants supported the view that it is in their best interests for the Council to provide the services, which 2010 Rotherham Ltd. has been providing during the past six years.

2010 Rotherham Ltd. - the Council's arms length management organisation (ALMO) was set up in May, 2005. At that time, councils could not themselves apply for Decent Homes monies, and so one of the benefits of setting up 2010 Rotherham Ltd. was that it enabled access to an additional £218 million contribution towards the cost of refurbishing council houses as part of the Decent Homes programme.

However, Cabinet members heard that as the Decent Homes funding is now coming to an end, there is a strong economic argument in favour of returning to in-house provision.

This includes significant efficiencies in administration, management and other back-office costs. It is estimated that the financial benefits achieved by returning housing management services would be in the region of £1 million per year after exit costs have been paid. This money can be used to improve those housing services which tenants think need extra investment.

In accordance with the 1985 Housing Act the authority had to consult extensively with tenants before making any final decision and this was done through questionnaires, road shows, a telephone hot-line and  a telephone poll of a random sample of 15 per cent of tenants and leaseholders.

Overall 7,590 questionnaires were completed -  a return of 36 per cent - and well over 90 per cent expressed a preference to see the services return to the direct management of the authority.

Cabinet members are now due to receive a further report in the coming weeks identifying the timescale for the return of services to the authority. It is likely that once services are transferred 2010 Rotherham Ltd will be wound up.

Cllr Jahangir Akhtar, Cabinet Member responsible for housing for Rotherham Borough Council, said that the return to in-house management provision makes sound economic sense at a time when the authority is having to review every part of its budget.

He added: "This will also be the best way forward for our tenants. By making this move we can make significant savings from administration, management and other back-office functions. These savings can then be transferred to frontline housing services - to the direct benefit of our tenants and leaseholders.

"In the test of opinion the tenants agreed with this and so we will now begin the process of transferring services back to the council. The Council is grateful to 2010 Rotherham Ltd. for the great work that has been done in delivering the Decent Homes programme on time.

"Now we are set for another step forward in the management of council housing in the borough, and we are absolutely committed to making sure that tenants have the best quality of housing we can deliver in exchange for a fair rent. "