Elmbridge Borough Council seeks to appoint external company to support its tenants

At February Cabinet, Councillors will be asked to recommend that Elmbridge Borough Council, as a registered provider of social housing, appoints an external company to manage our homes and support our tenants.

As of 13 January 2025, the council's residential portfolio comprises 94 homes – 45 dwellings used as temporary accommodation to help meet our homelessness responsibilities, 48 homes let as social housing, and 1 property let as a service tenancy.

By the end of March 2026, we anticipate acquiring approximately 7 additional homes and we plan to secure between 6 to 10 homes for temporary accommodation, contingent on the allocated but unspent capital funding. Consequently, Elmbridge’s residential portfolio is expected to expand to around 110 homes by mid-2026.

We became a registered provider of social housing in June 2024, having taken on properties previously let by the council’s housing company, EBC Homes, and because of the homes we had acquired and let under the Local Authority Housing Fund.  Consequently, we must comply with the standards established by both the regulator and the ombudsman, in addition to fulfilling our broader legal responsibilities as a landlord.

Having assessed the requirements and resources needed, an external contractor appointment is deemed necessary to carry out the technical and professional requirements. Elmbridge Borough Council has not directly managed residential stock since 2000. Outsourcing services to a managing agent could reduce the direct costs related to infrastructure, systems and staffing, with potential for savings due to economies of scale.

Additionally, the potential impact of Local Government Reorganisation lessens the  business case for investing in IT systems and infrastructure needed for an in-house service set to launch in 2025, especially if the landlord may change as early as 2027.

Our responsibility must be to our tenants and their homes and as such we are recommending the appointment of an external agency to support us.

If Elmbridge Cabinet agrees with this recommendation, it will come before Elmbridge Council on 26 February.

Cllr Alex Batchelor, Portfolio Holder for Housing Services.

February Cabinet agenda