Shropshire’s council homes set for new management structure
Shropshire’s council houses could be run by a new management board under plans which would give tenants more of a say in decisions affecting their home.
Shropshire Council would still own the homes under the proposals, but the housing service would be run by an organisation known as an “Arms-Length Management Organisation”.
Many other councils in the country already manage their housing stock in this way, and tenants will be asked whether they would like Shropshire to do the same.
If councillors agree with the proposals at a Cabinet meeting on Wednesday 11 January 2012, the consultation will take place this year with the new organisation being set up by April 2013 if tenants are supportive of the plans.
Staff currently employed in the housing team at Shropshire Council would be transferred to the new organisation, which would be run by a management board which will include councillors and tenants.
Councillor Mal Price, Shropshire Council’s Cabinet member for housing, said:
“It’s important to stress that we are going to talk to our tenants before any decisions are made, and we need the support of tenants to move the plans forward in any case. I hope they will see the benefits of the management board, which will give tenants more involvement in the service and will hopefully result in greater investment in their homes in the future.”
A report being discussed by Cabinet on Wednesday 11 January 2012 sets out the proposals, highlighting the set-up costs of £150,000 which will come from the housing revenue account, meaning there will be no effect on any council service. These costs will include an extensive consultation exercise, as well as the specialist legal advice required to establish an Arms-Length Management Organisation.
The report also explains that council housing services will have to be ‘self-financing’ from April 2012, which means that councils are given a one-off payment or loan by the Government and thereafter must rely on income from rents to fund the repayments and all services. The report can be seen by clicking this link.
These new rules are one of the reasons the council feels the time is right to set up a management organisation to run the housing service, as it will give the service more flexibility to manage its budgets and invest income back into the housing stock.
If Cabinet agrees to go ahead with the consultation, tenants will be given more information about how to get involved over the coming months.
Further notes
Shropshire Council currently owns and manages just over 4,000 properties in the Oswestry and Bridgnorth areas, which were formerly owned by Oswestry Borough Council and Bridgnorth District Council.
Social housing in all other areas of Shropshire is owned by a number of different housing associations.
