£150,000 firm set up to run Shropshire's council houses
Thousands of Shropshire's council houses are to be managed by a new company which Shirehall chiefs have agreed to set up at a cost of £150,000.
Shropshire Towns and Rural Housing, or Star Housing, is the name of the new company, which is scheduled to start managing 4,200 homes which are situated in the Oswestry and Bridgnorth areas.
Yesterday Shropshire Council agreed to create the company to run the houses it inherited when the old district and borough authorities were wound up in 2009.
The move comes despite some tenants claiming they were not properly consulted.
The Oswestry Defend Council Housing campaign group has raised fears the changes amount to privatisation of Shirehall's remaining council housing stock.
But Councillor Malcolm Price, cabinet member for housing, told the meeting: "There is nothing in this for Shropshire Council; I keep stressing that."
He said some council staff would move to the new company on their current pay and conditions.
He said there had been 'sufficient' consultation with affected residents via mailshots, a free phone line and drop-in events.
A report to councillors said 14 per cent of affected tenants responded to the consultation, with 49 per cent saying they were in favour of a new organisation, and 25 per cent saying they were not in favour.
The format of the company is known as an arm's length management organisation, or ALMO, used by other councils already. It is scheduled to be up and running by April 2013.
After the meeting, Councillor Price said the move made 'financial sense' and tenants would have seats on Star Housing's board.
He said rent collected from tenants in the next few years would partly pay down a ring-fenced £83 million debt taken on by Shirehall under government changes to housing finance rules in April.
