CIH Annual Conference Localism

CIH Annual ConferenceLocalism

Paul DownieDeputy Director – Affordable Housing Management and Standards

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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

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Social housing in high demand

0

0.2

0.4

0.6

0.8

1

1.2

1.4

1.6

1.8

2

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

(r)

2009

Year (as at 1 April)

Hou

seho

lds

(mill

ions

)

Source: Housing Strategy Statistical Appendix (HSSA)

Number of households on local authority waiting lists, England

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Inefficient use

Number of overcrowded / underoccupied homes in England, 2008-2009

5

Employment

Economic status of social rented households, 2008-2009

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Mobility

Movement of social sector tenants in different sectors

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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

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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

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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

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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

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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

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Consultation responses - 697

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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%

YesNoDon’t know

Responses – 279 landlords

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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 -

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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

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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

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Localism Bill

Dates:

• December 2010 – introduction of Bill

• 18 May 2011 – Commons stage completed

• 7 June 2011 – 2nd reading in the House of Lords

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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?

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“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