Pinnacle, which holds several management contracts in London, is determined to take over what has until now been exclusively in-house provision.
Changes in both councils and housing associations has made them more amenable to outsourcing, the firm believes.
New partnership director Ian Keys said: "There are two driving factors. In councils it is the scrutiny regime, and in housing associations it is rationalisation."
The company says its new office will demonstrate its commitment.
It aims to start with a small number of "reference" contracts. Keys said: "Councils particularly learn from each other, from nearby authorities."
Given the long lead times for contracting or partnership arrangements with councils, early business is likely to be clinched with housing associations. But in the long run, Pinnacle believes its service could solve many councils' difficulties with their housing stock.
Under its scheme, the company takes over management of the stock for typically between 10 and 20 years, raising cash for refurbishment through an investment agency and taking the risk itself.
Efficiency savings over the term of the contract pay the money back.
The scheme contains performance safeguards. Keys said: "The financiers are in place for the duration and there is a break clause in the contract between them and Pinnacle. If we performed badly, or if a best value review found serious failures, the financier would kick us out ."
Keys said Pinnacle can meet government requirements for transferring and new staff and offers the same or better conditions: "We don't attack staff terms. It would be pointless – we are a people-based business."
The company ran a pilot with Hackney council in east London, where an average of £15,000 per home was invested.
Source
Housing Today
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