Localism Bill

Yes, I entirely agree that there is scope for innovative solutions. It is by no means the Government's position that in a majority of cases it will be appropriate for social landlords to follow this route, but where it is clear that there is an obvious disadvantage to tenants who are stuck in the temporary accommodation loop, it is surely right to take steps to deal with that more effectively, and I hope that the House will agree. The homelessness code of guidance provides that the location of accommodation will be relevant to the suitability of the tenancy and that the appropriateness of the location relates to all members of the household, who must all be considered. Employment, schooling, and family and social connections are all relevant matters that will be taken into account. New clause 3 and new schedule 1 relate to changes in the governance of arm's length management organisations, and I hope that I can be helpful to hon. Members as far as that is concerned. New clause 3 would oblige all councils with ALMOs to undertake a statutory ballot of their tenants and seek the consent of the Secretary of State before an ALMO can be closed down. I have listened to the comments that have been made and read the amendment and the briefing from the organisation. I am sympathetic to a number of the arguments put forward, particularly the need to protect tenants and have a consistent consultative model for ALMOs in cases where local authorities are minded to change their status and take them back in house. For those councils that hold a ballot before establishing an ALMO, it seems reasonable that they should hold a ballot when they are minded to wind up such an organisation. I understand that of the 61 ALMOs that are currently extant, around 30 were formed following such ballots. The principle of ““ballot in, ballot out”” does not seem a bad one to hold on to. For those councils that did not hold a ballot, our departmental guidance already stipulates that they should consult widely with tenants before an ALMO is wound up. It does not stipulate what specific format the consultation should take. I have asked my officials to look again at that guidance and the options for strengthening it so that all tenants can be assured of their rights.