Housing company lent £51.7m could be wound down

A housing company loaned £51.7m by a council to help it buy properties could be wound down.

James Elliman Homes (JEH) is owned by Slough Borough Council and was set up back in 2017 to buy properties for the rental market.

But it has been loss-making for the council and questions over its management and finances have continued over recent years.

The authority's leader Wal Chahal said the company was set up "very poorly" and has been managed "very badly".

"It has taken us quite a while to get under the covers to dig out all of the problems that it has to now be on a path to recovery," he said.

Consultants carried out an external review of the company and two of five options they recommended were discussed at a council meeting on Monday.

It could be subject of a managed closure, which could take up to two years, or could be kept it as a "vehicle for delivering temporary accommodation".

The council's loan is due to be paid back in October 2028 and October 2029.

JEH currently owns either the freehold or leasehold of 214 units, some of which are leased back to the council for temporary accommodation.

Peter Walsh, the council's acting director of property, said: "We need to understand the assets [of the company] and at the moment we don't understand them."

No final decision has been made about the company's future just yet.

The council's chief executive Will Tuckley said: "This has not been a very happy picture for some time.

"I'm really pleased to see this report because I think what we're trying to do strategically is set out a direction of travel in terms of the future of JEH."

He added that it gives a "strong indication" of what the council needs to do next because it has "struggled to get to the bottom" of what has happened with the company.