Hastings Housing Company to Close
PAUL MCLAUGHLIN
Plans to wind down the Hastings Housing Company (HHC) Ltd and transfer its assets back to the council moved a step closer last week, following a decision by Hastings Borough Council’s (HBC) Cabinet after a year-long review.
Chris Hancock, Head of Housing
HHC Ltd is wholly owned by the council. It was set up in 2017 to buy properties and to manage them on the council’s behalf. The company was funded with capital loans at preferential rates from the Public Works and Loans Board to HBC. These included mixed residential and retail units and houses in multiple occupation. In addition, the council extended revenue loans to the company to enable it to establish itself and pay running costs while the business got up and running. In total, HBC allocated over £5m to the company.
Despite a rise in the value of the property portfolio, the company failed to generate the expected income stream for the council and has remained a financial drain. In 2024, the company had outstanding loans with the council of £5.48m and overdue interest costs and recharges of £563,439.
The arrears were attributed to the failure of its former letting agent, Lets2share, to forward rent revenue collected from tenants. HBC’s Legal Department was forced to intervene to pursue the debt owed and the contract with the letting agent was terminated. The failure to pass on rent revenues not only increased the HHC Ltd debt burden but also impacted its ability to undertake essential property maintenance.
The closure plan was detailed in a report presented by Chief Finance Officer Kit Wheeler and Head of Housing Chris Hancock to HBC’s Cabinet on 1 December. If approved by Full Council at its next meeting on 14 January 2026, HHC Ltd will transfer all assets and liabilities to the council by 31 March 2026 and cease trading on 1 April 2026, at which point all outstanding council loans and interest will be terminated. One of the advantages of such a transfer would be the ability to recover VAT, thereby reducing operational costs.
Chris Hancock said bringing the HHC Ltd portfolio under direct council oversight would help HBC to reduce its temporary accommodation budget. HHC Ltd has 62 properties including a small number of commercial premises. An evaluation by the council’s Capital Assurance Board (CAB), will determine which properties will be retained or sold. CAB was established by the Green-led council to oversee major capital projects, ensuring funds are spent wisely and that projects deliver strong value for money.
There are legal restrictions the council will have to navigate, however. The tenancies granted by HHC Ltd are mostly assured shorthold, a type which can entitle residents to apply for the Right to Buy – a scheme HBC itself no longer offers as it transferred the ownership of its former housing stock. Therefore, HBC will need to work through partner landlords, such as housing associations.
Mr Hancock stressed that his primary focus was to protect tenants and ensure the long-term sustainability and quality of housing in Hastings. He indicated that tenants of properties currently managed under HHC Ltd will be contacted in due course with further information about the transition and that they will be assured of no change to their tenancy terms or management contact points during the interim period.
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