The findings come from independent analysis by housing data and insight specialists Housemark of the most recent full-year TSM data. The show that, on average, councils that manage stock through an ALMO are performing better across almost all metrics than direct-delivery local authorities.

Following on from last week’s C1 gradings from the Regulator of Social Housing for NFA members Barnet Council/Barnet Homes and London Borough of Sutton/Sutton Housing Partnership, this is further vindication of the ALMO model of council housing management. A third ALMO, Rykneld Homes (owned by North East Derbyshire Council) was also regraded to a C1 last week by the RSH. So far, after more than 60 RSH inspections of council landlords, just seven have earned the top C1 grade – and four of these deliver services through ALMOs. 

The Housemark analysis shows that in the second year of TSM data gathering, ALMOs again are performing better than their direct delivery counterparts on 23 of 26 measures.

Further Housemark analysis of cost data across its 350 social landlord members also shows that on average, even taking all salaries into account, ALMOs deliver these better results for less money per unit than both direct council delivery and housing associations. Later this month, the NFA will publish more detailed data cost analysis that suggest NFA members’ organisations are on average now the most cost-effective of the three UK social housing delivery models.

Commenting on the findings, NFA Managing Director Eamon McGoldrick said: “Councils that have closed ALMOs most often cite cost savings and better oversight.

“However, the data continues to suggest that councils aiming for the better quality housing services that the ALMO sector’s TSM scores reflect, across both tenant satisfaction and regulatory performance, should perhaps think about setting up an ALMO.

“These significantly better results in the three areas of TSM scores, value for money and inspection grades, are not accidental. They come from specialised teams focused exclusively on the complex business of housing provision.

“The ALMO advantage also means that when the inspectors come in, the evidence of assurance the RSH looks for is in one place, rather than spread across a range of wider council functions.

“Our members know that the best ALMOs have extremely close, constructive relationships with their parent councils, and combine that democratic oversight with the specialist housing focus that sits at the centre of the ALMO model.”