Profile incomplete
9:59 AM, 9th February 2024, About 3 months ago 46
Text Size
Tenants of NCH Enterprises, a council-owned company, are facing eviction as the firm tries to sell 44 properties to repay a £18m debt to Nottingham City Council, the Local Government Chronicle (LGC) reveals.
The news comes just days after it was revealed that the council had failed to ringfence its selective licensing fees.
The company, a subsidiary of Nottingham City Homes (NCH), which manages the council’s housing stock, owes the money to the council for illegally using funds from the housing revenue account (HRA) over six years.
The Chartered Institute of Public Finance and Accountancy (CIPFA) found in 2022 that NCH had breached the law by not ringfencing the HRA funds, and the company admitted in its latest accounts that it has an ‘obligation’ to return the money to the council.
The council, which issued a section 114 notice – a legal warning of impending bankruptcy – last year, took back the management of its housing stock in March 2023, along with all NCH staff.
However, a service level agreement between the council and the company means the same staff still provide services to the properties owned by the company.
The company’s accounts for 2022-23, filed in January, show that it still owns 187 properties, which it lets at market rent.
The accounts also reveal that it has ‘commenced the process of asset sales’ as part of the solution to the £18m debt.
LGC has obtained one of the letters sent to the affected tenants, which shows that the company is issuing section 21 notices, also known as no fault evictions, to them.
The letter gives the tenants a ‘move out date’ and asks them to ‘let us know asap if you have any queries’.
A spokesperson for the Nottingham City Homes Group board, speaking on behalf of the council, told LGC: “These are difficult times and we’re having to take difficult decisions.
“Our for-profit subsidiary is not making a profit, which is putting the group as a whole at risk.”
They added: “The controlled approach we’re taking to winding up NCH is working well, and we will continue to work closely with affected tenants to support them in every way we can to find new homes.”
The government has pledged to end section 21 ‘no-fault’ evictions, which allow landlords to evict tenants without giving a reason, with two months’ notice under the Renters (Reform) Bill.
However, one tenant accused NCH of acting like a ‘rogue landlord’ and said the letter did not inform them of their rights as tenants.
They said they could stay in their property beyond the date on the section 21 notice and require the landlord to seek a court order, which could take up to five months.
The tenant told LGC: “They are panicking and causing unnecessary stress during these difficult times by informing their tenants that they ‘must be’ out on a particular date rather than explaining their tenants’ rights.”
The NCH spokesperson said staff had visited every tenant in person to explain the situation and their rights and had given affected tenants ‘first refusal’ to buy the property.
They said: “We appreciate that this is difficult for our tenants, and it was a difficult decision for us to take, but we believe we’re acting in the best interests of the group as a whole and the wider tenant population we serve.
“We have been careful to offer affected tenants flexibility as regards timing of the end date of their tenancy and have assured them they can come to us to discuss their concerns at any time.”
Next Article
Scotland's new build starts plummet by 24% in a year
Peter Lassman
18:28 PM, 10th February 2024, About 3 months ago
Reply to the comment left by NewYorkie at 10/02/2024 - 14:28
It’s a crazy world we live in with rules for Government councils and groups and rules for private Landlords it makes you wonder what their bigger agenda is !!
Dean Allan
20:43 PM, 10th February 2024, About 3 months ago
I am the person this article is about. My Name is Dean Allan I am an environmental health officer for a local authority. I regularly prosecute rogue landlords and find it disgusting that there is nothing I can do about the worst landlord I have ever come across. My landlord came into my home and stated that they are evicting tenants due to unlawful transfer of funds between Nottingham City Council and Nottingham City Homes. Upto 100 people will be made homeless due to this and yet we have had NO correspondence from either the council or Nottingham City Homes. Time is ticking and we have no help or support. Please share this story 🙏
Peter Lassman
10:35 AM, 11th February 2024, About 3 months ago
Reply to the comment left by Dean Allan at 10/02/2024 - 20:43
Hi Dean this whole saga is Apalling this should not be allowed to happen I do hope the local Newspapers and your MP is involved and fighting for you all if this was a Private Landlord the council, civil liberties groups, social housing groups and MPs would definitely be involved please do keep us updated and fingers crossed your successful in staying put
Mick Roberts
11:45 AM, 11th February 2024, About 3 months ago
Reply to the comment left by Dean Allan at 10/02/2024 - 20:43
They unaccountable Nottingham City Council. They make so many people homeless & never get pulled up on it.
I'm biggest Private Provider in Nottingham to Benefit tenants over 27 years & NOT ONCE has the Council rang me to ask What can we do Mick to keep these people safe in their homes so u & your Landlord mates stop selling?
The homeless side (who I get on with) are always asking me & my colleagues for houses, they spend days on the phone & house no one. Hotels £2400pm for family all in one room. Yet we can't put the SAME family in a 3 bed cause one of the rooms is 1 inch too small-Gets a bed & wardrobe in.
Keep us posted Dean, we can only humiliate them further.
Nav K
12:26 PM, 11th February 2024, About 3 months ago
Reply to the comment left by SimonP at 09/02/2024 - 01:49Shelter should advise the tenants to stay put for next 18 months like they advise for private sector. Hypocrites. Rules only apply to us, but not to council ? Criminals in charge
Matthew Jude
12:31 PM, 11th February 2024, About 3 months ago
Reply to the comment left by Dean Allan at 10/02/2024 - 20:43
Hi Dean. Are you a tenant of a housing association under the control of Nottingham City Council?
NewYorkie
12:57 PM, 11th February 2024, About 3 months ago
Reply to the comment left by Nav K at 11/02/2024 - 12:26
We shouldn't lose site of the fact this is effectively a 'private' landlord, [supposedly] making profit from rentals. Not to confuse that side of the business with the 'council' social housing. As such, they should be subject to the same rules as other private landlords, and be subject to the same processes and court delays as we all have to grin and bear. It took me 15 months to evict a feckless tenant. Let's see how quickly they manage to do the deed, and how!
Dean, you've bravely put your head above the parapet, and I suspect you will feel the wrath of your employer. You're a whistle blower, and protected under the law.
One for Shelter to get their teeth into, although this sounds like too hard work for them.
Chris @ Possession Friend
16:48 PM, 11th February 2024, About 3 months ago
Reply to the comment left by Dean Allan at 10/02/2024 - 20:43
Respect for @Dean Allan
Nav K
18:02 PM, 11th February 2024, About 3 months ago
Reply to the comment left by Dean Allan at 10/02/2024 - 20:43
What if all 100 tenants get a stay order from court ? This seems more like hurried eviction due to somebody's money transfer issue in sale. There are many private landlords who purchased house with tenants SITU. Why can't same be done in this case ? So that landlord name changes rest all remains same.
Mick Roberts
18:10 PM, 11th February 2024, About 3 months ago
Reply to the comment left by Reluctant Landlord at 09/02/2024 - 14:04
That's it, it's just common sense isn't it. Which the Council & Councillors & MP's clearly lack.
We're getting lot of UC Landlords now saying it's easier to evict than try get direct payment-And we know eviction takes over a year.