Issue - meetings

Report from the Cabinet Member for Housing Services is attached.

The Leader and Cabinet Member for Strategic Growth presented the report on behalf of Councillor Cummins, Cabinet Member for Housing Services which outlined the contractual requirements to continue the delivery of Council services to Six Town Housing Limited from 1st February 2025 and the strategic future of Six Town Housing Limited.

Decision:

Cabinet

1.    Delegated to the Director of Law and Democratic Services the preparation and signing of the variation instruments to extend the provision of Council Services to Six Town Housing and to introduce charging for the same from 1/2/25.

2.    Noted the progress of the Future of Six Town Housing Task and Finish group and their recommendation to resource independent legal, financial and commercial advice to complete an options appraisal for the viability of maintaining Six Town Housing.

3.    Noted that Cabinet will receive a report with recommendations based on the legal and commercial advice in June 2025.

Reason for Recommendation:

STH no longer performs the ALMO function for the Council but it continues as an active Private Registered Provider of Social Housing company owning and leasing just 149 social housing homes which it lets and sublets to its own social housing tenants. STH no longer employs staff, is managed solely by its Board, and wholly relies on the Council for services.

Therefore, an ongoing Service Level agreement is required so STH may continue with its reduced social housing activities relying on the support of the Council.

A cross-department Task and Finish group was set up in September 2024 to discuss and make recommendations to cabinet regarding the future of Six Town Housing Limited. The group have identified a number of opportunities where STH could benefit Bury Council Strategic aims that should be explored further. The time provided by the extension will the enable determination as to viability and feasibility of schemes and the development of an options appraisal which would include a business plan.

Alternative options considered and rejected

The option to “do nothing” is not appropriate since STH corporate governance arrangements must provide for and align with STHs significantly reduced role and activities post cessation of ALMO. The Provision of Council Services must be extended.

If there are no opportunities identified which are advantageous or viable for Bury’s Priorities then retaining Six Town Housing “as is” is a potential risk to Bury Council in terms of onerous resources and requirements to maintain regulatory compliance for an additional organisation.