Council to close housing firm and bring company back under council control

HHC was created in 2017 to help the council generate income, but came into financial trouble during the pandemic when the lessee managing the properties began to struggle to make rental payments.

This saw the company rack up £5,489,398 worth of outstanding loans, alongside overdue interest costs and recharges of £563,439.

As a result of the debts, the council’s in-house housing team took responsibility for managing the properties in June 2024.

At a full council meeting on Wednesday (14 January), councillors were presented with three options for the company: continuing to run HHC as a separate organisation, selling the company and disposing of its property portfolio, or bringing the company in-house.

The report, authored by the council’s chief finance officer, Kit Wheeler, recommended that councillors vote to bring the company in-house permanently.

Wheeler’s report also noted that the company is currently inquorate, as only two directors have been appointed, instead of the minimum of three required.

The decision-making process is “not providing good governance and control process”, the document added.

The circumstances around the company and delays in bringing forward a decision on its future have also been the subject of criticism from external auditors and “therefore a reputational risk” to the council, the report also said.

Members unanimously voted to approve the report and accept the recommendation.

Adam Carey