£1m-a-year savings as 2010 Rotherham Ltd scrapped

More than 90 per cent of residents said that they wanted to see the authority regain direct in-house control over social homes.

The 2010 company was set up six years ago to enable the borough to scoop £218 million Decent Homes funding for all 21,000 properties.

Cllr Jahangir Akhtar, the council’s Cabinet member for neighbourhoods, said: “This will be the best way forward for our tenants.”

Savings will come from administration, management and other back-office costs. The cash can be fed back into homes needing extra investment.

A report from management consultants last October noted that the arms length management company was set up because of a strong economic argument.

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The end of Decent Homes meant that this argument no longer existed, it added, and in-house provision held more advantages.

The council’s housing services director Dave Richmond said: “Chief amongst these arguments are the compelling economic benefits of generating significant savings and transferring them into frontline housing related services.

“This will directly improve the lives of tenants, leaseholders and residents.

“The overwhelming majority of tenants have supported the view that it is in their best interests for the council to directly provide housing management services in the future.”