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Housing association offering support to tenants of liquidated charity

A Lancashire housing association has stepped in to provide support to more than 160 vulnerable tenants of a charity that went into liquidation this summer.

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The Central Methodist Church in Preston, where the Fox Street Community is based (picture: Google)
The Central Methodist Church in Preston, where the Fox Street Community is based (picture: Google)
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Housing association @CGAPreston offering support to tenants of liquidated charity #ukhousing

Community Gateway Association, a 6,000-home stock transfer landlord based in Preston, said it acted to try to prevent Methodist Action North West’s (MANW) clients becoming homeless.

MANW appointed a voluntary liquidator in September having made losses of £398,815 in 2015/16 and £267,173 in 2016/17, while its accounts for 2017/18 are more than 100 days overdue.

The charity provided accommodation leased from private landlords for homeless people and ran the Fox Street Community homeless shelter in Preston.

Preston City Council said that the tenants’ rent is now being paid directly to the private landlords through Universal Credit or housing benefit, while Community Gateway staff have been visiting the homes to identify which are most vulnerable and need support.

Around 10 are in homes owned by the housing association, per an agreement made before MANW went into liquidation to let 50 one-bed flats to the charity. Some people are already moving in.


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Louise Mattinson, executive director of customers and communities at Community Gateway, said: “We have been working with Methodist Action North West for some time as part of our new corporate strategy, which prioritises working with our partners to reduce homelessness.

“When we heard that they had taken the decision to go into voluntary liquidation, naturally our first thought was to see how we could help ensure that the 160-plus people who were at risk of homelessness were able to be provided with a home and the support they need.

“Working in partnership with Preston City Council and The Foxton Centre, we are delighted that we have been able to help to ensure that Preston’s Rapid Rehousing Pathway project can continue uninterrupted and the city’s homeless shelter has been able to keep its doors open.”

A spokesperson for Preston City Council said: “We are continuing to support both landlords and tenants caught up in this situation, and to ensure a smooth transition to new accommodation, should this be required.

“Rent has been paid direct to landlords from the date Methodist Action North West went into liquidation.”

She added: “The council has been working closely with Community Gateway Association on a number of issues that have arisen since the voluntary liquidation of Methodist Action North West.

“The legal process regarding the landlords is in the hands of the appointed liquidator and neither the council nor Community Gateway has any jurisdiction in this matter.”

MANW has been approached for comment.