Birmingham housing association Bulb enters voluntary special administration

Image copyright Getty Images Image caption The Bulb Building was reduced to rubble by the fire on 31 May

Birmingham housing association (HFA) Bulb has entered into voluntary special administration.

The HFA says the move, announced by its chairman Sir Norman Foster, is to secure a “safe and sustainable future” for it.

The rent payments are expected to be made through the end of November, but redundancy packages have yet to be agreed with the staff.

More than 1.7 million households are thought to be affected by the fire in May.

The housing association is the second largest in Birmingham and has a portfolio of more than 22,500 homes.

Terence Brady, the insolvency practitioner acting as trustee of the HFA pension scheme, said the administrator would be appointed “when there is the right level of support and support is in place”.

A spokesman for the HFA added that the voluntary administration “is to secure a safe and sustainable future for the company”.

Analysis: Laurie Graham, executive editor

Birmingham houses. Their precariousness is measured in price, affordability and infamy. Once the people of Bugb built the model of a city centre. Then in the 1980s the sort of council housing people were given in the riots of 1981 was demolished and replaced with a newised market of big, very square flats.

The old, brown blocks were demolished: in the schools, on the street corners and in the places you could least afford to live.

It’s a classic city centre redevelopment story, full of worries for people who are poor, are physically disabled, young or youngish.

Even if the BBC can find out how many people live in Bugb’s vast estate, there are a lot of them: as a nationally credible poll recently claimed, one in three people live in Birmingham council houses.

But in one sense, Bugb is so poor that the demolition of its homes in 1989 was resisted by many people. In today’s homes, some of them still stand, the bricks being stretched back to an aspect of the facade to give a rather odd feeling of the place once known as Bugb Hill.

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