In defence of ALMOs

The latest annual survey from the National Federation of ALMOs, published today, and figures due out this week from my own ALMO, Derby Homes, show that ALMOs perform particularly well when they are the catalyst for collaboration across sectors and between a wide range of organisations, able to come up with sustainable solutions to issues such as rough sleeping, homelessness, employability, debt and poor health.

Just a few examples that bear witness to this: a cross-agency partnership with police and mental health services that is transforming support for troubled children and families (Cheltenham); a ground-breaking support programme for care leavers, traditionally a group at exceptionally high risk of homelessness (Blackpool); and international recognition for the promise of a council and its ALMO to end homelessness by 2030 (Newcastle-upon-Tyne).

“We can’t get away from the fact that ALMOs have sometimes failed as housing managers, but the same failings have been seen in local authorities, in housing associations and in the private sector”

The pandemic has shown clearly what flexible and fast-moving local authority partners we are. We were well-placed during each lockdown to get support in place fast.

ALMO staff transferred to community hubs where they co-ordinated or worked in emergency food provision. They made thousands of well-being calls. They were integral to local authority resilience planning, and – because of their unique link to the councils that have a statutory duty to the homeless – were able to smoothly deliver the Everyone In and Protect programmes.

Here in Derby, our staff even became a reassuring presence at cemeteries and crematoriums.

Of course, we can’t get away from the fact that ALMOs have sometimes failed as housing managers, but the same failings have been seen in local authorities, in housing associations and in the private sector. Processes and systems can and do fall down in all types of organisation, but there’s no inherent fault in the ALMO model itself.

The evidence is quite clear: the key factor in an ALMO’s success is the quality of its relationship with its parent council.

It frustrates me hugely that when an ALMO is closed, someone somewhere will cite impressively large numbers to explain why this is the sensible decision.

I have yet to see any hard evidence that significant savings have ever been delivered, or that housing management, standards and, crucially, resident support services – where ALMOs excel – have been maintained at exactly the same level for less money.

Why does this matter? In a post-COVID world, we will certainly find out. In a threadbare economy with national and local government counting every penny, joined-up working will be needed like never before. No ALMO should be thrown back into the pot for a short-term financial win. The long-term costs will far outweigh any benefits.

This is the thing: there is nothing partisan about an ALMO. Across my 39 years in housing, I have heard arguments for and against them from every point on the ideological spectrum.

Here, where we work with a Conservative-led council, I can truthfully say that the relationship between Derby Homes and its parent is the most positive it has ever been.

There is a real recognition in this city that we are all better working together. Our culture is cross-sector and all about partnership and positive outcomes, and I believe the ALMO model has played a crucial part in nurturing that spirit of collaboration over the past decade.

“I have yet to see any hard evidence that significant savings have ever been delivered, or that housing management, standards and, crucially, resident support services – where ALMOs excel – have been maintained at exactly the same level for less money”

We could not, for instance, have delivered our remarkable success in reducing homelessness and rough sleeping in the city, or sustained that success, without our partners and our ALMO. We expect that when our latest figures are published later this week, the number of rough sleepers in Derby will be in single figures for the first time, as far as I can recall.

As we are an independent business, our board can approve the use of our surplus against any housing-related services; in our case, we contribute well over £2m a year to wider city initiatives.

A key area is our part in supporting vulnerable individuals who are homeless or at risk of losing their home. Because we’re close to our partners in health and law enforcement, we know this is money well spent, providing hope for these individuals as well as significantly reducing the burden on other parts of the public budget.

Our sector is already delivering the Social Housing White Paper’s promise of more tenant engagement; today just under a third of ALMO board members are tenants or leaseholders.

We still await a new Building Safety Bill, but ALMOs are already on the case. Three – Lewisham Homes, Stockport Homes and Your Homes Newcastle – were among the five social housing providers recognised by Inside Housing’s recent Resident Safety Campaign.

Successes like this are repeated quietly, daily, across the ALMO sector. Nobody does it better when we’re allowed to do it well. Indeed, we should be creating more ALMOs, not closing them down.

Maria Murphy, managing director, Derby Homes