Options for Homes for Reading Ltd

READING Borough Council has written to tenants of Homes for Reading Ltd, its wholly owned housing company, to consider options for the future of the company. 

The Council’s preferred option is to transfer the properties to the Council’s mainstream housing stock, to be made available as much-needed key worker homes at affordable rents. 

There have been changes to local authority lending rules, the housing market, interest rates on borrowing, and other external factors in recent years which have affected the potential viability of the company in the long term.  

To transfer the properties to the Council’s housing stock, there is a legal requirement for vacant possession. The council is proposing to do this when the current tenancies expire. These agreements end on varying dates through to 2026, depending on the length of individual tenancies. 

In total, 101 tenants will have received the consultation documents and letters explaining the situation. The Council will also offer advice and assistance to all affected tenants to help them find alternative housing.  

Councillor Ellie Emberson, Lead Councillor for Housing, said: 

“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.

This is one of those difficult decisions but we are not in a position to absorb significant financial losses or significant delays in repaying loans.

“We fully appreciate this is unsettling for affected tenants, but it is important to emphasise that all tenants will be able to remain in their properties until their tenancies expire, some of which run up to 2026. The Council is fully committed to working with all affected tenants at the appropriate point to help them find their next home, should they require assistance, and if a decision is made following consultation for the company to cease trading. 

“In those circumstances, there is the potential for the provision of more than 100 Council tenancies properties at affordable rent levels to help tackle the chronic shortage of affordable housing for key workers in the borough.”

Homes for Reading Ltd was set up as an independent but wholly owned Council company in 2016 to buy properties on the open market and let them at open market rents.