Future of Swindon housing company in serious doubt
The report was held back due to personnel changes
- Published
The future of a town's housing company could be at a "critical stage".
Swindon Borough Council's audit team reported that Swindon Housing Company Ltd is at a "tipping point" of financial stability.
However, the company has still allowed the council to remain in a surplus because council staff and support to the company is charged at a rate which complies with state aid rules.
The report said: "An urgent review is required of performance against its business plan and the viability of projects/sites...There is currently no exit strategy in the event of liquidating the company."
'No active development'
Swindon Housing Company Ltd is a housing development company that delivers housing schemes, with social benefits, across Swindon.
Auditor Lorraine Sarson added to the report: "The auditor considers the Swindon Housing Company Ltd has reached a ‘tipping point’ in terms of commercial viability and financial sustainability.
"This is because the company has had no active development of projects on site for the last 19 months."
According to the Local Democracy Reporting Service, the last properties built by the company were six houses in Sparcells Drive in 2020.
"The company needs an ongoing flow of land and opportunities to consider for building.
"There are two businesses cases being assessed by finance and the likelihood of a positive outcome is that one probably will and one won’t," said councillor Brian Pinchbeck.