The government has published a report which sets out how a new not-for-profit housing quango would manage and eventually own the DoI’s social housing stock.
The proposal, outlined in a report by consultancy firm Altair, aims to address the island’s housing needs, including affordable homes and key worker accommodation, in an arms-length manner.
Costs outlined in the report include £556,261 in staffing costs including £92,000 in base pay for a CEO and £80,500 for a director operations.
This article has been updated to reflect that the government has not yet made a decision on whether or not to accept it or create a housing quango.
Struggle
Local authorities and support providers expressed mixed views during stakeholder consultations.
One interviewee said: “I do struggle to see how it will make a difference,” while another warned the entity could become “oversaturated with transferred DoI staff, pushing up rents.”
None of the local authorities interviewed were fully knowledgeable about the plans to establish a housing entity while one housing provider said the request for a meeting with the consultants “came out of the blue”.
New Approach
The report states that the new entity will take over the DoI’s landlord functions from, with ownership of the housing stock transferring at a later date.
The entity’s core purpose will be to provide housing services, manage maintenance, and develop new homes. It will also assume responsibility for the Ballacurn House Trust’s 32 properties.
“The intention is to have management functions operating from April 2025,” the report says. “In its first year, additional activities include management of the Ballacurn House Trust stock, planning new homes, and stock investment programmes.”
Financial Implications
The housing entity will be structured as a not-for-profit company, either limited by guarantee or shares, with the Treasury as its sole shareholder. The board will include independent directors and executives, ensuring operational independence while maintaining government oversight.
Financially, the DoI’s housing division currently generates a surplus of £5.1 million (forecast for 2024/25), which funds other departmental services.
Under the new model, this surplus will be ring-fenced for housing once ownership transfers, creating a budget shortfall for the DoI.
The report acknowledges this challenge, stating: “This would mean a significant loss of revenue budget for the DoI. It would need to be identified how this budget shortfall could be funded.”
Next Steps
The proposal requires Tynwald approval and if the new quango is approved, the entity will begin operations with a five-year roadmap guiding its expansion.
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