Homes for Reading closure forces tenants to find new homes

Homes for Reading closure forces tenants to find new homes

0:01 AM, 22nd August 2024, About 4 days ago 33

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Reading Borough Council has announced the closure of its wholly owned housing company, Homes for Reading, and tenants must leave when their tenancy ends.

The council will transfer the 101 homes to its housing stock and will be rented out as much-needed key worker homes at affordable rents.

Homes for Reading was established in 2016 to purchase properties and rent them at market rates to private tenants.

However, it has faced increasing financial challenges due to changes in local authority lending regulations, fluctuations in the housing market, rising interest rates and other external factors.

Some of the tenancies will end in 2026.

94 families are in the properties

The lead councillor for housing, Councillor Matt Yeo, said: “I recognise the impact this decision will have on the 94 families who are still in these properties, and I am sorry for the disruption and inconvenience it may cause them.

“Officers from the council will be working actively with every one of our tenants between now and 2026 to help them find alternative suitable housing.”

He added: “We are committed to ensuring that they can all make the transition to other suitable homes with our support.”

Difficult financial circumstances

Mr Yeo continued: “Ultimately, 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.

“We must prioritise the interests of all residents and communities we serve, who depend on the Council remaining financially viable.”

NCH Enterprises was forced to evict tenants

The move by Reading Borough Council mirrors a similar situation in Nottingham, where the council-owned NCH Enterprises was forced to evict tenants to sell properties and repay a significant debt – to Nottingham City Council.

In response to tenant concerns, Reading Council says it has carried out a consultation process, including meetings with senior staff and external expert analysis.

Now more than 400 people will have to move home – despite a petition with 1,125 names urging the council to keep the tenants in their homes.


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Judith Wordsworth

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10:59 AM, 22nd August 2024, About 4 days ago

I would suggest a leaflet drop (Property118.com???) to all the tenants they do not leave on the expiry of their tenancies and wait for court orders and the Council to rehouse them (in the PRS) !

Leaflet drop to include links to Shelter, Citizens Advice, Renters campaign groups et al.

Martin

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11:04 AM, 22nd August 2024, About 4 days ago

Irony - not just a metal thing then!

Reluctant Landlord

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11:47 AM, 22nd August 2024, About 4 days ago

Reply to the comment left by David Houghton at 22/08/2024 - 09:53that's how I read it too. Nuts!
So they replace the tenants with those paying less, yet this is more financially sustainable long term, bearing in mind this is only happening because the current situation is unsustainable because it can't afford to operate?
Sounds to me like there is a new 'pot of gold' via a new type of funding available from central government specific to providing accommodation at 'affordable rents to key workers'. Wonder if this is home grown key workers or the foreign workers who are exempt from restrictions/salary cap, who are being waved in from abroad to fill the social care/healthcare positions ....?
Affordable rents for key workers mean by their nature they can be offered according to the need to be located to a workplace.
Wonder if Shelter are going to go to town on this - after all isn't campaigning against tenants being removed from properties their ' speciality'?

Simon Lever - Chartered Accountant helping clients get the best returns from their properties

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11:59 AM, 22nd August 2024, About 4 days ago

Interested to know on what grounds the tenancy would be ended.

Section 21 - the so called "no fault" eviction - will not be available once the government passes the legislation - surely before 2026.

I cannot see a reason under Section 8 to evict the tenants, unless they have arrears of rent.

Homes for Reading Ltd is a limited company and would need to comply with companies legislation.

There might be something in the tennancy agreement. But if it goes to court then the tenants would argue that they were worse off if they were forced to leave and the judge might give them the right to stay.

Maybe there is something else that I am not aware of? Compulsary purchase?

Cider Drinker

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12:02 PM, 22nd August 2024, About 4 days ago

Reply to the comment left by Dylan Morris at 22/08/2024 - 10:43
I’d put money on it.

I’ve heard of private landlords evicting U.K. Nationals in order to provide homes for migrants. I guess it was only a matter of time before Councils did the same.

Reluctant Landlord

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13:38 PM, 22nd August 2024, About 4 days ago

Reply to the comment left by Cider Drinker at 22/08/2024 - 12:02
it makes sense as the 'new pots of money' are only ever released for a council to claim when a crisis is deemed afoot and the government want to 'incentivise' councils into doing something...

Blodwyn

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17:19 PM, 22nd August 2024, About 3 days ago

Well, well, well! Pot and Kettle calling each other nasty names comes to mind? Or has someone threatened them with proceedings to rectify sloppy LL procedures?
I hope Shelter will advise the current tenants to stay put in the same way they do for PRS tenants and what will a Reading councillor or oficial advise? Will there be a continuing consistent approach?
It's all a bit vegiue, are they seeking to sell with vacant possession (that seems to be so?) or would they sell to a LL from the PRS subject to the existing tenancy?
A lot of watching this space?

Darren Peters

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17:45 PM, 22nd August 2024, About 3 days ago

Reply to the comment left by Blodwyn at 22/08/2024 - 17:19
I think the council's LtdCo is selling or transferring the properties to the council itself.

"The council will transfer the 101 homes to its housing stock and will be rented out as much-needed key worker homes at affordable rents."

NewYorkie

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17:56 PM, 22nd August 2024, About 3 days ago

Reply to the comment left by Darren Peters at 22/08/2024 - 17:45Will the company have to pay tax on the sales/transfers?

Martin Thomas

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19:16 PM, 22nd August 2024, About 3 days ago

Apologies to all other readers but I'm obviously being a bit dim here. The company will be wound up and the houses transferred to the council's housing stock where they will be rented to key-workers at lower (affordable) rents than the company would charge. But as the loans still have to be serviced, won't the council make an even bigger loss than the company managed? If dear Brian Rix was still alive, I'm sure he would make something of this! What a farce!
(Note to younger readers - Brian Rix specialised in dramas that were farces.)

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