Review into ‘loss making’ housing company after failures

Financial risk from a loss-making housing company that Slough council loaned £51.7 million to could fall back on the council, officers have warned.

There is ‘quite a lot of work to be done’ to ensure that this does not happen, they say – and one problem is they ‘are not clear what the company is there for.’

Moreover, the situation ‘is not getting better.’

James Elliman Homes (JEH), a council-owned housing company, was set up back in 2017 to buy properties for the rental market.

The council loaned £51.7million to JEH to help the company purchase properties. In 2024, the company owned 168 homes worth around £55million.

The loan is due to be paid back to the local authority in October 2028 and October 2029 – but this is likely to be done through the sale of existing JEH properties.

Over the years, a number of external and internal reviews into the company’s governance were also carried out.

At a cabinet committee meeting on Thursday (December 11), councillors heard that another external review will look into James Elliman Homes further.

The review’s outcome will come back to councillors in February 2026, with a potential long-term business plan.

The council’s best value finance commissioner, Denise Murray, said Slough Borough Council’s culture ‘needs to change’ to fix the issues with James Elliman Homes.

Ms Murray said: “You have multiple reports and recommendations [about James Elliman Homes], but we’re still in the position where decisions haven’t been made, and actions haven’t been taken.

“There has to be a culture that focuses on delivering, reporting on the progress made and to ensure that we remain on track.”

She added that if these governance changes are not implemented, there are financial risks that will ‘fall back’ on the council.

Sarah Wilson, the council’s assistant director for legal and governance, agreed and said this issue goes back to the council needing to take ‘collective ownership’ of what happened.

Ms Wilson said: “If there isn’t a culture of compliance, if there aren’t people with capability and skills to understand those rules, then governance won’t improve.

“[James Elliman Homes] is loss-making… [There] is quite a lot of work to be done – fundamentally we’re not clear what the company is there for.

“This isn’t a quick fix; there isn’t a quick fix for something like this.

“I think it’s fair to say that the position is not getting better.”

She added that because the company does not hire its own staff and relies entirely on the council, there are a lot of ‘blurred lines’ regarding how the local authority manages things like conflicts of interest.

The company was set up to hold a mix of properties, including market rental units, key worker accommodation and others to support the council with its statutory services.

But Ms Wilson added: “Over time for whatever reason [James Elliman Homes] departed from that purpose”.

Leader of the council, Councillor Dexter Smith (Con, Colnbrook and Poyle) agreed that the council’s history with JEH is one of ‘distraction’.

But Cllr Smith recognised that the company has the potential to help the local authority control its temporary accommodation demand.

He said: “The company has paid little attention to the initial business plan – it hasn’t adhered to that business plan.

“That has put the council in a position of financial exposure. …We now have to make sure that we secure the return of that money.”