Agenda item

(Director of Communities) To consider the attached report.

The Select Committee received a report regarding the marketing of incentives for tenants downsizing accommodation from the Assistant Director Housing Operations.

At its meeting on 27 June 2016, the Select Committee considered the Annual Report on Performance against Housing Service Standards 2015/16. Under the section relating to the Housing Register and Allocations, members had asked for details of the current incentives offered to existing tenants who were under-occupying Council accommodation to encourage them to move to any Council property with less bedrooms than their current property and the approach taken to marketing the incentives.

The Council’s Housing Allocations Scheme had been reviewed in 2015 with the revised scheme coming into force on 27 July 2015. When considering the recommendations of the then Housing Select Committee, the Cabinet agreed that the financial incentives offered to tenants moving to any Council property with less bedrooms than their current property would be increased. The financial incentives offered for releasing any bedroom had been doubled from £500 to £1,000 under the current scheme with a maximum payment of £4,000 being made, an additional payment of £500 made to cover decoration costs over and above the Council’s standard decorations allowance plus £500 to meet removal expenses. There were a range of other non financial incentives offered as well.

Since the revised Housing Allocations Scheme came into force on 27 July 2015, 34 downsizing payments had been made in the sum of £77,000 releasing 43 bedrooms. This included £17,000 in removal expenses with a total of £14,530 being credited to rent accounts due to arrears. All tenants downsizing were granted Band A priority. There were currently 139 applicants in Band A, 97 of whom were wanting to downsize accommodation. Since the time the revised Housing Allocations Scheme had come into force 87 lettings had been made to Band A applicants 34 of which were to downsize.

It was noted that there were already 97 tenants in Band A wishing to transfer to smaller accommodation. If incentives were increased and more tenants joined the list it would result in larger numbers waiting for smaller accommodation. Although a bigger pool of tenants would increase the likelihood of any available smaller properties being accepted, due to the current high number waiting to downsize and 43 bedrooms already released it was not considered beneficial to either increase the financial incentives nor invest in promotional campaigns. The Select Committee was advised that officers were not convinced that the financial incentives actually tempted tenants to downsize, as many were not aware of the financial benefits until they had applied.

It was noted that the availability of all types of accommodation was reducing. Furthermore, when the Housing Allocations Scheme was last reviewed members had agreed that homelessness applicants would only be made direct offers on flatted accommodation when discharging the Council’s homelessness duty, in order to give applicants on the Housing Register the opportunity for bidding on houses. In addition, existing tenants on the Housing Register living in 2 or 3 bedroom flatted accommodation were granted Band B priority and could make expressions of interest on houses that met their housing needs. This recognised that any tenant already living in a flat should be given the opportunity to bid on a house, freeing up further flatted accommodation for homeless applicants.

It was important that smaller accommodation was made available for this purpose as well as for those downsizing. There were currently 526 applicants in Band B, 187 of whom were actively bidding for houses under this category. Smaller accommodation was also desperately needed for single applicants on the Housing Register.

Members suggested increasing the residency criteria by which local people were prioritised for council homes. However, officers advised that there could be a legal challenge if the Allocations Scheme did not address fairness and need, irrespective of other local priorities.

Re-Housing Support Officer

It was explained that the Council employed a Re-Housing Support Officer who offered support to tenants who were downsizing accommodation in accordance with the Council’s Housing Allocations Scheme.

RECOMMENDED:

That the report regarding the marketing of incentives for tenants downsizing accommodation be noted and that no recommendations for any changes be made to the Housing Portfolio Holder.