The future of Arms Length Management Organisations: the uncertain fate of a social housing hybrid

Abstract

The proportion of social housing in England managed by Arms-Length Management Organisations (ALMOs) has increased steadily over the past eight years, until it is now responsible for the management of over one million council homes. Created initially as a conduit for the delivery of the Labour government’s Decent Homes programme, the ALMO sector has gathered momentum and acquired a distinctive identity and purpose. This paper discusses how ALMOs are facing up to future challenges in a new political and financial climate, based on a series of interviews undertaken with ALMO Chief Executives at the end of 2009 and in early 2010. Chief Executives focused on two critical challenges that faced the sector: funding, not least in terms of multiple pressures on revenue budgets, and the quality and maturity of the relationship with the parent local authority. They were keen to retain the broader neighbourhood role that many ALMOs have developed, though this was tempered by the recognition that funding realities might press the organisations back into concentrating on their core housing service. The crux was whether the future financial regime would be amenable for the development of a new style of social housing organisation some where between the current local authority and housing association models. In conclusion, we suggest that some of the organisational, operational and governance arrangements pioneered by ALMOs seem to within the coalition government’s enthusiasm for organisational autonomy, localism and empowerment. This may offer an opportunity for ALMOs if, and only if, the financial sums can be made to add up to ensure their survival.