URL: https://councildecisions.bury.gov.uk/ieDecisionDetails.aspx?ID=4256

Decision Maker: Cabinet

Outcome:

Is Key Decision?: Yes

Is Callable In?: No

Purpose:

Content: The Cabinet Member for Housing Services presented a report providing a review of the options regarding the future of Six Town Housing Limited (STH) as an entity owned by Bury Council. Members noted that the recommendation was to close down STH, owing to the commercial and regulatory risks associated with the option to invest. This process would take at least 18 months with a £500k budget from STH reserves and the Housing Revenue Account balance. Members noted that the first step will be to procure advisors for the project management legal and financial due diligence, and any financial decisions such as the options for the assets will be brought back to cabinet for decision and be subject to tenant consultation.   With regards to the regularisation of contracts, the matter was considered prior to the insourcing of management of the housing stock and all matters relating to the contracts will be resolved prior to the dissolution of STH. In response to Member questions, it was noted that all details such as recharging would be worked through as part of the close down process, with reports coming to Cabinet for decision as required.   Decision:   Cabinet approved the “Close Option”, the first step being to procure advisors to provide project management, due diligence, legal and financial advice.   Reasons for the decision: ·       The Invest Option entails participating in a specialist accommodation sector which is highly and increasingly regulated, and external providers are more suited to deliver this for Bury. The Council is already able to make use of opportunities to build social and affordable housing without STH via partnerships and potentially via the HRA in the future. ·       Whilst STH could fund roles to support its growth under the Invest Option, Bury Housing Services would be responsible for ensuring both the Council (as a social housing provider) and STH each complied with the Regulator of Social Housing’s regulatory framework (since the Council is STH’s sole managing agent). ·       After considering the options and mindful of the challenges facing the Council’s own delivery of council housing (and upon consulting with the Council’s senior housing officers and its professional advisors), the Director of Housing takes the view that the commercial and regulatory risks associated with the Invest Option are both too high and difficult to fully quantify when weighed against the potential advantages of that option.   Alternative options considered and rejected: ·       Retain Six Town Housing “as is” – The current governance arrangements constitute a regulatory risk as per the Campbell Tickell Report and STH is not realistically a viable proposition based on its current size and remit. ·       Invest and grow Six Town Housing – grow Six Town housing to become a specialist housing provider.

Date of Decision: September 10, 2025