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CIH Annual ConferenceLocalism
Paul DownieDeputy Director – Affordable Housing Management and Standards
2
The Case for Reform
“Stable social housing, with subsidised rents, is the tenure of choice for many, particularly those who experience insecurity in other aspects of their lives, such as health, employment or relationships”
“…But far too often, the security and subsidised rent that social housing provides do not appear to help tenants to independence and self-sufficiency”
‘Local Decisions’ November 2010
3
Social housing in high demand
0
0.2
0.4
0.6
0.8
1
1.2
1.4
1.6
1.8
2
19
98
19
99
20
00
20
01
20
02
20
03
20
04
20
05
20
06
20
07
20
08
(r)
20
09
Year (as at 1 April)
Ho
us
eh
old
s (
mil
lio
ns
)
Source: Housing Strategy Statistical Appendix (HSSA)
Number of households on local authority waiting lists, England
4
Inefficient use
Number of overcrowded / underoccupied homes in England, 2008-2009
5
Employment
Economic status of social rented households, 2008-2009
6
Mobility
Movement of social sector tenants in different sectors
7
Tenure
• New local authority flexible tenancy: minimum two years
• Existing tenants’ rights protected
• Flexible tenants get RTB & right to exchange
• Right to one succession for partners; landlords can give additional succession rights
• LAs to publish a strategic policy on tenancies
• Secretary of State to direct on the tenancy standard
8
Social Housing Allocations
Local authorities to determine who should qualify for housing waiting lists
Rules on eligibility set centrally
Existing tenants not in housing need - out of the allocation rules
Protection for the vulnerable provided by the statutory ‘reasonable preference’ criteria
9
Homelessness• New flexibility to end the main homelessness duty with a PRS offer
• Applicant consent not required
• Minimum 12 month fixed term tenancy
• Must be suitable
• Right of review /appeal
• Duty recurs if unintentionally homeless within 2 years
• LAs can still end duty with social housing
10
Mobility
• National Home Swap Scheme
• Revised allocation rules for tenants
• More flexibility around tenure
• £13m DCLG funding for under occupation
• CIH “Making Better Use of Stock” team
11
Council house finance reform
• Valuation of each council’s housing business, assuming• national rent policy• costs 14% higher than under present system
• One-off adjustment to housing debt
• Costs and income are projected over 30 years – turned into a “net present value”
• The value of each council’s housing is then compared against existing supported debt. If the debt is lower, the council pays the difference to the Exchequer, if the debt is higher they receive the difference from central government
• Councils keep their rental income and meet their own costs
12
Consultation responses - 697
13
What respondents said about: Tenure
As a landlord, do you anticipate making changes in light of the new tenancy
flexibilities being proposed?
65%15%
20%
Yes
No
Don’t know
Responses – 279 landlords
14
What respondents said about: Allocations
87%
7% 5% 1%
Residency criteria
Financial circumstances
Supporting those inemployment
Other (e.g. tenancyhistory, maintainingsustainablecommunities)
Suggested criteria for closed waiting lists
Responses -
15
Should reasonable preference categories be retained?
74%
24%2%
Yes
Yes, but could clarifycertain categories, e.g.medical and w elfare;overcrow ding;hardshipNo
Responses – 369 LAs, HAs, legal, VCO, campaigns, TRG, individuals
What respondents said about: Allocations
16
What respondents said about: Homelessness
Local Authorities on 'use of new homelessness flexibility'
78%
6%
16% Yes
No
did not answer
Responses – 257 LAs, HAs, individuals
17
Localism Bill
Dates:
• December 2010 – introduction of Bill
• 18 May 2011 – Commons stage completed
• 7 June 2011 – 2nd reading in the House of Lords
18
Localism…Localism…Localism
Local decisions:
•Who qualifies for social housing? •What tenancy terms should be set? •What happens at the end of a tenancy?
•Which homeless households need social housing?
19
“I don't think rigid uniformity equalled fairness.
“… if local areas want to prioritise different services because that's what suits their local area's needs, then that's a good idea. We should become comfortable with the truth - that Cornwall is different from Canterbury, and Reading from Redcar ...so I'm happy for them all to drive off in different directions.”
Rt Hon Eric Pickles, speech on ‘localism & the public services revolution, 15 June 2011