There must be a radically different approach to the management of council housing in Waltham Forest, according to a town hall report. 

Ascham Homes, the arms length management organisation which currently looks after the authority's housing stock, is facing being closed down as the council looks to improve tenants' services and save money. 

A decision will be made by cabinet on Tuesday, with housing portfolio holder Cllr Khevyn Limbajee to recommend management of is taken back under town hall control completely.  

A report by director of housing and growth, Ken Jones, said the current arrangement with Ascham Homes is no longer feasible. 

He wrote: “The aspirations of the council have however now progressed and the vision for the 2018 council requires a radically different approach for the future. 

“The public consultation results demonstrated that, of those that participated, the majority support a return of housing services. 

“Accountable relationships between tenants and councillors will be delivered by bringing together control and responsibility. 

“Through cabinet, councillors will be able to directly shape housing services. This strategic role will be informed by effective scrutiny and neighbourhood accountability, as well as influenced by resident views.” 

According to the report, an immediate saving of £50,000 would be made if Ascham Homes is wound up and a short-term saving of up to £500,000 could be achieved through the restructuring of the senior team, suggesting some managers are likely to take on council roles. 

In the long term, more than £1million would be saved through "back office integration" and a “preventative approach” to service provision. 

Some costs are expected, including redundancy pay-outs. 

Ascham Homes was set up in 2003 to manage the council’s housing stock and access government grants to improve homes and services. 

Although it is council-owned, the ALMO is an independent company, managing its own business, budget and staff. 

However, as the sole shareholder of Ascham Homes, the council may wind up the company if it chooses. 

The council was forced into a £8million bail-out of the company after it lost a legal battle with leaseholders in 2010. 

The court ruled it could not recoup the cost of repairs from homeowners it had not consulted properly.