SHG chief executive Peter Walls said the association – the largest English transfer landlord with 36,000 homes – was talking to a number of councils in the region about helping them with their housing, but declined to reveal which ones. The help would involve either renting out certain functions – such as policy and strategy – to smaller authorities, or by allowing them to transfer stock to the group.
Walls said: "SHG has the opportunity to allow councils a significant amount of local autonomy, but also to take advantage of our central support and overheads. They don't need a policy guy every day, and it's the same with the finance director – they're pretty rare birds and very expensive. We provide an opportunity to spend the maximum amount of their income on customer service, and not waste money on overheads and central costs."
Chester-le-Street, currently under supervision by the Audit Commission, is thought to be one of the councils in discussions with SHG. Along with Easington, Castle Morpeth, Sedgefield and Wear Valley councils, it received a zero-star rating from Audit Commission inspectors in the past year.
SHG's joint venture with Sunderland council would deliver up council land for development.
Walls said SHG's building ambitions were being stymied by local and regional plans that assumed a declining population. Plans to clear 6000 homes and build 4000 in Sunderland will be delayed unless a fresh site for at least 100 homes can be found.
Walls said: "You can do it over time but it creates misery. SHG is going at a significant pace, but it's not so easy to change things in local government."
Phil Barrett, housing director at Sunderland council, said: "Whether our discussions lead to a formal partnership is still to be agreed."
Source
Housing Today
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