Council tenants in Clifton have described how their properties have been left in poor repair at a time when up to £40m of their rent was being wrongfully shifted to other services.
An independent investigation found that Nottingham City Council and Nottingham City Homes misspent up to £40m of ringfenced cash from its Housing Revenue Account.
The council housing tenants’ rent – which should have been pumped into council housing and repairs – was put into general council services instead.
The Penn Report, published on Tuesday, says the money was misspent, and in some cases was used to prop up other council services and to avoid job losses.
It found that the local authority has misspent up to around £22.8m since 2014/15 while Nottingham City Homes, which manages the council housing stock on behalf of the authority, misspent up to £17.1m.
The money must now be paid back into the Housing Revenue Account, but opposition council leaders are concerned there is not enough money in the bank to ensure that can happen.
The council says taking this cash from reserves “could well leave the council vulnerable to managing service demand and other inflationary pressures”.
On Thursday, April 28, Labour councillors sitting on the Executive Board decided to bring the authority’s council housing stock back in-house and terminate its contract with Nottingham City Homes. This will cost around £750,000.
Cllr Sam Webster (Lab), portfolio holder for finance, said this will lead to “a better service for council tenants” and described the end result as “positive”.
He said the city had a lot of “very good quality” and “well-maintained” council housing.
But some residents in Clifton disagree and say they have been calling for years to have major improvements made on their homes.
Clifton Estate was one of the largest council estates in Europe when it was first constructed in the 1950s.
Nottingham City Homes manages a number of properties in the area, including around Eddlestone Drive.
Bridgit Taylor, 67, has rotting cladding and rendering on the front and back of her council home. In some places the problem is so bad pieces have started to fall off the wall.
She says there is constant water dripping down the side of her home, rotting away the wooden guttering and leaving her bedroom and bathroom damp.
Bridgit holds down two cleaning jobs and says the ongoing problems affect her mental wellbeing.
She said: “I have got damp in my bedroom and bathroom – and water dripping down the side of the house.
“We had an inspector out before the pandemic about the rotten wood outside, but I have not heard from them since.
“They were telling me: ‘it is not damp, it is condensation’ and he told me to ‘have my heating on and open the windows at the same time.’
“If you look at my house it speaks for itself. I don’t think the council have invested in this property. It is an eyesore.”
Another resident, who did not wish to be named, said: “This house is made of wood, and we get damp in the back bedroom. I have contacted Nottingham City Homes, but they have not come out.”
Karen Roberts, 65, is also a Nottingham City Homes tenant and says she is appalled by the news that tenants’ rent has been misspent.
“I think it is disgusting, especially when you look at all the wood rotting and peeling. This used to be a lovely estate, well-kept, but these homes have been allowed to deteriorate over the years.
“Other things have taken priority and it sounds like the work is not going to be done for years now. It is not fair. These properties should be updated.”
Victoria Harrison, 36, moved into the area in 2006 and decided to enter a leasehold with Nottingham City Homes to rent her property out in 2012.
This means she owns the inside of her home but not the structure. She has been informed by Nottingham City Homes she will need to spend £10,000 to replace the front and back walls of the property and some of the drainage.
She says there is no option within the contract to “get your own quote” and must pay NCH for the work that needs doing.
“Who has got £10,000 lying around?” she said. “I know it looks awful, but we are not allowed to do anything about it.
“It is horrible – and it is not the only street. No one seems to care about it. Council housing has got worse.
“If they had not spent up to £40m (on the wrong services) then I might not have to pay that £10,000.”
Nottingham City Homes, which has been looking after the council’s housing stock since 2005, says the £17.1m had not been misspent and the money remains available for council housing.
A spokeswoman for NCH said: “We are proud of what we’ve achieved over the last 17 years, and what we’ve delivered for our tenants, securing investment to meet the decent homes standard, building new homes for Nottingham people, and increasing tenant satisfaction with homes and neighbourhoods.
“We have delivered value for money, enabling rents to be kept low for tenants, with independent benchmarking showing we are nearly £8m a year more cost effective than other Councils and Housing Associations would be in managing the council’s stock.
“In addition to managing council housing, we also provide homes for homeless families, and survivors of domestic violence.
“We’re proud to have provided homes for some of the most vulnerable people in the city, saving Nottingham City Council £10m a year on B&B costs. We have provided these homes without using any funding earmarked for council housing.
“Our staff have done their best for tenants throughout, and have worked diligently with compassion over the last two years of the Covid pandemic, helping tenants above and beyond the call of duty.
“We will now support staff and tenants alike through what we hope will be a smooth transition back into the council.
“We will continue to focus on our tenants’ priorities – keeping people safe in their homes and coping with the cost of living crisis.
“We are aware of these properties [in Clifton] and they are a priority for us. If residents are having issues, including damp and mould then they need to contact us directly through the usual channels so we can send out a surveyor.”
Cllr Kevin Clarke, opposition leader for Nottingham Independents, who represents residents in Clifton, said: “On this estate we have had a lot of people complaining. It is mainly damp and cladding and rendering falling off.
“One resident has complained that every time she puts the shower on her electrics cut out – and it is still ongoing now.
“When this money is recovered it needs to be put into these properties.”
Cllr David Mellen (Lab), leader of the council said at the Executive Board meeting on Thursday: “We are determined to put right what has been wrong.”
