Six Town Housing has been deemed as putting the local authority and itself at regulatory risk
Bury Council will close its wholly-owned housing management firm after the company ceased to be the authority’s Arms Length Management Organisation (ALMO) last year.
The local authrority’s cabinet members last night took the decision to close Six Town Housing.
After a January 2025 review of the options for Six Town Housing (STH), the local authority’s director of housing deemed the company unviable in its current state, resulting in the decision to end its social housing operations.
STH is seen as putting both itself and the council at “regulatory and reputational risk” as it “requires a disproportionate level of senior leadership time and governance management to deliver the very small social housing stock STH provides,” according to a council report.
Although STH has not been an ALMO since February 2024 and has no paid staff, it continued to own and manage 149 properties across the borough.
The alternative option presented to the council in a report by consultancy Campbell Tickell, was to invest in STH’s operation and governance with a view to developing a specialist accommodation vehicle In the long term.
This option was rejected due to the commercial and regulatory risks associated with it. Officers noted that the council is able to build social and affordable housing without STH via partnerships and that it could be difficult to manage both the council’s and STH’s housing operations as both entities require regulation.
The closure of STH is estimated to cost the council £500,000 and will be funded by its HRA balance and STH reserves.
STH’s properties are likely to be sold to other housing providers.
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