Councillor Lesley Kelly, Cabinet Member for Housing, introduced the report

The report provided Members with the result of the recent test of resident opinion on whether Homes in Havering (HiH) should continue to manage the Council’s housing stock, or whether the service should be brought in-house.  Having conducted the consultation and received 5,836 responses from 14,793 questionnaires (39.4% - a very good response), it was found that 32.1% of the respondents wanted HiH to continue providing the service, 48.3% wished it to be provided by the Council directly and 19.6% expressed no preference. 

Due to the significant majority in favour of bringing the service back to the Council it was proposed that officers be instructed to negotiate the ending of the agreement with HiH and to make preparations for the Housing management service to be brought in-house.

Reasons for the decision:

·               The Council no longer needed to have an Arms Length Management Organisation (ALMO) in order to access funding from the Decent Homes Programme

·               Tenants and leaseholders had expressed their views clearly, that they would prefer their homes to be managed by the Council rather than retain the existing ALMO structure

·               The integration of the housing management service with the remaining housing services would provide a more transparent and accountable structure for the housing service

·               The removal of duplication in the management and governance arrangements for the service would save at least £300,000.

Other options considered:

To retain the current ALMO, Homes in Havering

This option was rejected as it was more expensive than reintegrating the service with the retained housing services in Havering.  In addition it was not the preferred option of the tenants and leaseholders of Havering.

To merge with another ALMO

This option was explored with the London Borough of Redbridge.  However, although this option appeared very attractive - providing a greater level of savings than the chosen option - it ceased to be available when the London Borough of Redbridge decided not to pursue it.

Cabinet:

1.                  NOTED the results of the tenant and leaseholder consultation, the cost/benefit analysis and the risk analysis and AGREED that the management of the Council’s housing stock be brought back in-house.

2.                  AUTHORISED the Head of Housing and Public Protection in consultation with the Group Directors of Finance & Commerce and Culture and Community and the Assistant Chief Executive to negotiate and conclude a termination of the management agreement with Homes in Havering as soon as practicable.

3.                  AUTHORISED the Group Director Culture and Community acting as the shareholder of the Council’s shares in Homes in Havering Ltd to take all such steps as may be necessary to achieve the termination of the management agreement for the Council’s housing stock.

4.                  DELEGATED to the Lead Member for Housing, acting in consultation with the Group Director of Culture and Communities authority to take such decisions as may be necessary to facilitate the process of bringing back the housing service in house - unless such actions would have significant financial implications in addition to those outlined in the report - in which case a further report would be brought to Cabinet.

5.                  REQUIRED that the retained housing services and Homes in Havering maintain the quality of the housing service and delivery of the programme of Decent Homes work