Reading council confirms closure of ‘unviable’ PRS housing company

Reading Borough Council has confirmed it will wind down its wholly-owned private rental housing company following a public consultation.

The local authority had previously said it was considering closing the company due to concerns about the company’s viability and loan repayment delays. The company, Homes for Reading, was set up in 2016 to buy homes and let them to residents for market rent.

The closure will mean the 101 homes owned by the company transferring to the council’s mainstream social housing stock, to be let to keyworkers at affordable rent levels.

To transfer the properties over to the council’s housing stock, there is a legal requirement for tenants to vacate the homes.

The council says it is planning to do this when the current tenancies expire. These agreements end on varying dates through to 2026, depending on the length of individual tenancies.

Matt Yeo, lead councillor for housing at Reading Borough Council, said: “I recognise the impact this decision will have on the 94 families who are still in these properties, and I am sorry for the disruption and inconvenience it may cause them.

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“Officers from the council will be working actively with every one of our tenants between now and 2026 to help them find alternative suitable housing.

“We are committed to ensuring that they can all make the transition to other suitable homes with our support.”

“Ultimately the difficult financial circumstances all councils now find themselves in mean we have a responsibility to look after our finances to support the provision of services that residents rely on. We must prioritise the interests of all residents and communities we serve, who depend on the Council remaining financially viable.”