Section: Local Authorities

Rotherham ALMO to be Wound Up

After six years of being managed by an ALMO, council housing in Rotherham is to return to the direct control of the Local Authority later this year.

The Council has announced that, following a consultation with both tenants and leaseholders, it has been agreed that the management of 21,000 council-owned properties should return to Rotherham Borough Council.

A number of other councils have already decided to take their ALMO back in-house, as the Decent Homes programme draws to an end. A number of ALMOs have also been reconfigured and registered as 'registered providers', to facilitate them taking a transfer of their council's housing stock.

Rotherham Council'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 (the ALMO) has been providing during the past six years.

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, it said, includes significant efficiencies in administration, management and other back-office costs. The Council estimates 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.

In accordance with the 1985 Housing Act, the authority had to consult extensively with tenants before making any final decision. Overall, 7,590 questionnaires were completed - a return of 36% - with over 90% in favour of the services returning to the direct management of the Council.

KeyFacts

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Reporting on May 2011

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