READING Borough Council is considering options for a housing company following changes to lending rules.
The future of Homes for Reading Ltd, the council’s wholly-owned housing company, is unclear as the council says that the viability of the company is no longer assured.
RBC has contacted tenants of homes managed by the company expressing its desire to transfer the properties to its mainstream stock.
The council is seeking to do so to make them available as key-worker housing, and is proposing to allow current tenancies to expire before vacating the homes.
More than 100 tenants at properties have received consultation documents explaining the council’s intentions, as well as offering advice and assistance in finding alternative housing.
Homes for Reading was set up in 2016 as an independent company owned by the council and used to by properties to be let on their behalf.
However the council said that “difficult financial circumstances”, including the current state of the housing market, interest rates, and changes to lending rules for local authorities have put the future of the company in jeopardy.
Cllr Ellie Emberson, lead councillor for housing, said: “The difficult financial circumstances all councils now find themselves in mean we have a responsibility to look after our finances to support the provision of services that residents rely on.
“This is one of those difficult decisions but we are not in a position to absorb significant financial losses or significant delays in repaying loans.”
She explained: “We fully appreciate this is unsettling for affected tenants, but it is important to emphasise that all tenants will be able to remain in their properties until their tenancies expire, some of which run up to 2026.
“The Council is fully committed to working with all affected tenants at the appropriate point to help them find their next home, should they require assistance, and if a decision is made following consultation for the company to cease trading.
“In those circumstances, there is the potential for the provision of more than 100 Council tenancies properties at affordable rent levels to help tackle the chronic shortage of affordable housing for key workers in the borough.”
Cllr Rob White, Green Party leader, said: “Greens have been raising the housing crisis in Reading for some time.
“Labour have been failing on affordable housing, failing on rough sleeping and the failure of the council’s housing company is going to leave more Reading residents homeless.
“The council needs to do everything it can to make sure every single person is rehoused.”
Reading Today has contacted representatives of other parties for comment.
