Council could wind up housing company

Reading Council said the current cost to run Homes for Reading is too much

Tenants face eviction if a council shuts down its property company that houses hundreds of people.

Reading Borough Council set up its own property company in March 2016 to cut the cost of putting up people in temporary accommodation.

But it said it could wind up Homes for Reading as running it is too expensive.

A current tenant who faces moving next year said she "cannot put into words how stressful" the situation is.

Rowan Perry-Smith (second right) said her family's situation is stressful

Rowan Perry-Lee's family of six, two dogs and two cats have lived in Caversham since 2018.

“When we were shown the place we were told we could stay here long-term, as long as we wanted," she said.

“This is the only home my family knows so it’s not a nice situation to be in."

She said her family has paid around £100,000 in rent to the council's company since they moved in.

A Reading Borough Council spokesperson said Homes for Reading, which was funded by loans taken out by the authority, is not able to pay them back “within a reasonable time”.

They added: “It is of course regrettable that the original vision for Homes for Reading is no longer viable in the council’s view.

"This view has been reached after careful consideration of the company’s finances, the risk to wider provision of local council services if no action is taken and an independent analysis of the options.”

No final decision has been taken on the future of the company.

But the spokesperson said all tenants would be contacted in the event the company is wound up and helped to find alternative accommodation.

They would also be able to stay until the end of their tenancy agreement.