Issue - meetings

Report of the Cabinet Member for Housing Services is attached.

The Cabinet Member for Housing Services presented the Service Level Agreement fDecision:
Cabinet approved the SLA for 2026–27.

The Cabinet Member for Housing Services presented a report outlining the requirement to extend the Service Level Agreement (SLA) between Bury Council and Six Town Housing Ltd (STH) for a further 12 months, covering the period 1 February 2026 to 31 January 2027. Members were reminded that following the cessation of STH’s role as the Council’s ALMO in February 2024, STH continued as a wholly owned subsidiary and Private Registered Provider of Social Housing, responsible for its remaining housing stock. STH now owns and leases 115 social housing homes, reduced from 149 following the end of the Mosscare St Vincent lease and hand?back of 34 properties.

The Cabinet was advised that STH no longer employs staff and is managed solely by its Board. It is therefore wholly reliant on the Council for operational support. The existing SLA, agreed in July 2024, enables Bury Housing Services to deliver all landlord functions on STH’s behalf, ensuring compliance with statutory and regulatory duties. The SLA expires on 31 January 2026, and an extension is required to ensure stability and continuity of services for tenants while the longer?term dissolution of STH is progressed—an 18?month process initiated following Cabinet approval in September 2025.

Members noted that the extension includes updated charging arrangements reflecting the reduced stock numbers and the 3.4% corporate salary uplift applied to Council staff delivering the services. The annual block charge for 2025/26 was £100,850, with additional spot charges approved by the STH Chair as needed. The charging formula will be reviewed to ensure ongoing accuracy and proportionality.

The report also emphasised that the SLA forms part of the required regulatory assurance framework, with the Operational Plans and SLA potentially subject to review by the Regulator of Social Housing. The arrangement supports the Council’s priorities by ensuring safe, compliant homes for local residents and facilitating continuity in housing management during organisational transition.

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 from 1/2/26.

Reasons for recommendation(s):

STH no longer performs the ALMO function for the Council but it continues as an active Private Registered Provider of Social Housing company now owning and leasing just 115 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.

Cabinet agreed to begin the process of dissolving STH on the 9th September 2025. This process will take at least 18 months. During this time, consistent management of the properties will ensure stability for the organisation and tenants.

Alternative options considered and rejected:

The  ...  view the full minutes text for item 110