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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11:49 AM, 23rd August 2024, About 3 days ago

Reply to the comment left by Simon Lever - Chartered Accountant helping clients get the best returns from their properties at 23/08/2024 - 10:50
I will keep you updated with our situation. Its extremely stressful as my daughter is starting secondary school whilst my other 2 children are at Churchend. Not knowing where we be living may force us to uproot my children from their school.
Thank you for your message.

NewYorkie

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11:53 AM, 23rd August 2024, About 3 days ago

Reply to the comment left by Monty Bodkin at 23/08/2024 - 11:17
I assume they are relying on having given notice they aren't renewing the tenancy. But the tenants can refuse to leave until a court order is granted, and even then, can wait until the date given for bailiffs to attend. At that point, they can tell the council they are being evicted for no fault of their own.

The.experience of landlords on here is that process takes many months, and the backlog is increasing as more and more landlords issue S21s and leave the PRS. My own experience was 15 months.

It will be very interesting to see if the landlord in this case manages to somehow achieve an accelerated eviction process.

Maybe, what the council could/should do when faced with homeless families [of their own making], is agree some form of payment for a period of time to bridge the gap between the current rent and what they will be faced with paying elsewhere. This would avoid the high cost of temporary housing.

Monty Bodkin

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10:21 AM, 24th August 2024, About 2 days ago

https://www.reading.gov.uk/housing/homes-for-reading/what-sets-us-apart/

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