Newark and Sherwood District Council to take back control of company that manages its housing stock

A council has agreed in principle to bring the company that manages its housing stock back in-house in a move that impacts 5,500 tenants.

Newark and Sherwood District Council's policy and finance committee voted unanimously to bring Newark and Sherwood Homes back in-house on the basis of savings that could be made that could be re-invested.

An independent report by Savills estimated that, subject to a one-off transitional cost, a minimum of £0.95m annually could be realised through re-integrating the service, while annual efficiencies of £950,000 could sustain new borrowing of more than £25m to deliver a programme of 200 homes or deliver year-on-year investment from revenue of up to ten new homes a year.

The company manages 5,500 homes across Newark and Sherwood on behalf of the council as an arms-length management company, which was set up 15 years ago from the council's own housing department.

It also manages the housing list.

The council is its soul shareholder.

An eight-week consultation with tenants and affected parties now follows.

Newark and Sherwood Homes was said at the meeting to have been highly successful in its role of gaining and administering £49m from the Government's Decent Homes programme.

Councillor Bruce Laughton said: "It has improved the housing stock beyond all recognition and deserves recognition for that."

However, it was decided that it's time was up.

It could be six to nine months following last night's decision for the transfer back to the council to happen.