South Tyneside Council housing stock to be brought back 'in-house'

South Tyneside Council’s Labour cabinet has backed a formal process to dissolve South Tyneside Homes, the local authority’s arms length management organisation (ALMO).

This is part of a drive to bring the management of around 18,000 council properties back into the council, with a consultation announced by borough bosses last year.

The move has been described by the local authority as the biggest change to social housing in the borough for almost two decades.

The cabinet decision on Wednesday (March 13, 2024) follows an independent ‘test of opinion’ ballot with tenants and leaseholders.

All tenants and leaseholders were given the opportunity to cast their vote about the future of council housing in the borough, and 10.6 per cent responded.

According to a report presented to councillors, 94.2 per cent of those answering the question supported proposals to return housing to direct council control.

The total number of “valid” ballot papers in the consultation, listed in a council report, was 1,646.

However, the council report noted this was “typical of other tests of opinion that have occurred in other local authorities”, with the “typical response rate” being between 10 per cent and 15 per cent.

The consultation followed an independent review commissioned in 2023 in anticipation of revised regulatory and legal requirements, and to ensure the best outcomes for residents, according to the council.

Changes to housing management will include a TUPE (Transfer of Undertakings Protection of Employment Regulations) transfer of all South Tyneside Homes staff.

A council report adds the move would generate an “anticipated annual saving of £850,000 from management overheads”, and that savings would be “reinvested into council homes” in the long term.

South Tyneside Homes was originally established in 2006 to access the Government’s Decent Homes Fund that councils couldn’t access directly.

Since then, it has brought thousands of properties up to Decent Homes standard and beyond, improving conditions and enhancing residents’ quality of life.

However, that funding no longer exists and with changes to regulations and the sector facing increasing financial challenges, the council said it was time to look at whether it was still right to use a separate organisation to deliver housing services.

The outcome of the ballot means that the council will be able to take full control and ownership of its housing stock, subject to a formal six-month notice period.

Councillor Jim Foreman, cabinet member for housing and community safety, said: “Tenants are at the heart of all this, and they have given their overwhelming support for bringing services back in-house.

“As a responsible landlord, it’s important that we listen and act upon what they’ve told us.

“I’d like to thank South Tyneside Homes for the fantastic job they’ve done for almost 20 years, transforming thousands of homes.

“We are excited to welcome South Tyneside Homes colleagues, with all their experience and expertise, into the council.

“This is now the start of an exciting journey where together, we can identify areas for improvement and create a joined-up, streamlined housing service fit for the future.

“Having that direct relationship will result in better communication and accountability, ensuring a transparent and responsive service which involves and empowers tenants.

“Bringing all housing services together also means we can make better use of resources.”

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Councillor Tracey Dixon, leader of South Tyneside Council, added: “Housing is about so much more than bricks and mortar and we want to deliver a ‘whole housing system’ approach which focuses on early intervention and prevention and allows us to consider tenants’ housing and social needs in an integrated way.

“This decision signifies the biggest change to our social housing in nearly two decades but we are confident it will ensure the very best outcomes for residents.”

From April, 2024, the Regulator of Social Housing is changing the rules about the homes and services tenants can expect from landlords and will introduce four new consumer standards.

This includes the safety and quality standard; transparency, influence and accountability standard; the neighbourhood and community standard and the tenancy standard.

The regulator will hold all social landlords to account with regular inspections and scrutinising data on tenant satisfaction and repairs.

Town hall bosses have said bringing housing services together will allow for a “joined-up” delivery and “ensure compliance” with these new legal and regulatory duties.

Cllr Jim Foreman, speaking at the cabinet meeting this week, said there was “significant support” from tenants and leaseholders for services to return to direct council control.

Councillor Audrey Huntley, deputy leader of South Tyneside Council, said the consultation showed there was demand from tenants to be “actively involved” in council housing matters.

Councillor Joanne Bell, cabinet member for governance, finance and corporate services, also thanked South Tyneside Homes staff for their “remarkable” work over the years.

Cllr Bell added: “I think we just need to thank everybody that has been involved in the work so far and the work that we can look forward to, to have a seamless transition back into the council”.

A report presented to South Tyneside Council’s cabinet last year said that there are “currently less than 20 ALMOs managing housing services”.

The decision by South Tyneside Council leaders this week follows a similar plan by Newcastle City Council to close its ALMO and bring all of its housing services in-house.

It is understood that a “timetable of integration of services” back into South Tyneside Council will be agreed in coming months, along with a review of housing-related decision-making and performance structures.