Home management back with council after tenants’ 90pc vote

Since its formation, 2010 Rotherham Ltd has faced a series of controversies, and senior staff were warned in summer 2009 that they were at risk of losing their contract over poor service delivery.

Several consultations have been held with people who live in council homes in the Rotherham borough, and yesterday the authority revealed that a decision had been taken to end the firm’s agreement.

The organisation is non-profit-making and wholly owned by Rotherham Council. It was given a budget of £300m when it was set up to deliver the Government’s Decent Homes Programme.

Members of the authority’s cabinet said the overwhelming majority of tenants supported the view that it was in their best interests for the council to provide services previously provided by 2010 Rotherham.

Coun Jahangir Akhtar, the cabinet member responsible for housing, said the return to in-house management provision made “sound economic sense”.

He added: “This will 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.”

The arms-length management organisation, or ALMO, was set up in May 2005 to apply for money under the Decent Homes initiative and was then made responsible for carrying through the work required.

But the council said Decent Homes funding was now coming to an end and there was a strong economic argument in favour of returning to in-house provision.

The Government’s spending watchdog, the Audit Commission, judged the ALMO as having “uncertain prospects for improvement” back in June 2008, which sparked the first tenant and leaseholder survey.

At that point officers described the results as “very mixed” with more than 40 per cent saying that housing should be transferred back to the council.

Officers said the benefits of winding up 2010 Rotherham Ltd included “significant efficiencies” but were unable to detail potential job losses.

A council spokesman said: “It is estimated that the financial benefits achieved by returning housing management services would be in the region of £1m per year after exit costs have been paid.

“This money can be used to improve those housing services which tenants think need extra investment.”

To comply with legislation, the authority had to consult with tenants before making any final decision and did this 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 total of 36 per cent of those sent out – and well over 90 per cent expressed a preference to see the services return to the direct management of the authority.

Cabinet members are due to receive a further report in the coming weeks identifying the timescale for the return of services.

Coun Akhtar added: “In the test of opinion the tenants agreed with us 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, and we are absolutely committed to making sure tenants have the best quality of housing we can deliver in exchange for a fair rent.”