ODPM leaves door open for ALMOs to own homes

The government gave out conflicting messages this week on the possibility of arm’s-length management organisations owning council stock.

The ODPM announced on Wednesday that its review into the long-term future of ALMOs “will not be considering any change to the fundamental ALMO proposition that ownership of homes remains firmly in the local authority sector”.

However, the list of issues to be considered by the review included “the options for ALMOs after they have achieved the decent homes standard, ranging from ALMOs taking on ownership of the stock to management reverting back to the local authority”.

An ODPM spokesperson said there was no contradiction because the close connection between councils and ALMOs meant homes would always ultimately be owned by councils.

The ODPM review will look at the options for ALMOs after they have got their stock up to the decent homes standard. It will consider a range of incentives to encourage and sustain good services for council tenants.

ALMO sources have suggested that allowing them to own stock would mean they could control their rent levels and borrow money against the revenue. But an ODPM spokesperson said the review would not consider letting ALMOs set rents.

Jim Coulter, chief executive of the National Housing Federation, said: “I would have found it a very difficult position for the government to hold as it would have meant a wholesale overhaul of the purpose of ALMOs.”

Mike Owen, executive director of Cornish ALMO Carrick Homes and a member of the ODPM’s review team, said: “We wouldn’t have gone down the ALMO route if we simply wanted to own our own stock.

“It is true that funding drives us but good service is reliant on tenant participation. We would not do anything without their consent.

“No one has an answer to what future incentives for ALMOs might be. This review is about exploring options, not selling off stock.”

Other issues to be looked at include how to reduce the loss in revenue from right-to-buy sales.

The review’s findings are to be published for public consultation early in 2005.