Agenda item

(Director of Communities) To consider the attached report.

The Chairman agreed that this report should be heard as the second item on the agenda. The Panel received a report regarding the Review of the Housing Allocations Scheme from the Director of Communities.

 

The Government required local authorities to have a Housing Allocations Scheme for determining priorities and the procedure for selecting a person for accommodation. Government guidance allowed for authorities to decide how accommodation should be allocated based upon local priorities, provided schemes were both legal and rational.

 

The Council’s Cabinet asked that an item should be included in this Panel’s Work Programme for 2014/15 to undertake a 12 month review of the scheme. The Panel received a copy of the Department for Communities and Local Government (DCLG) Guidance on Social Housing Allocations for Local Authorities, to which the Panel had regard in respect of all its deliberations on proposed changes to the Housing Allocations Scheme.

 

Housing Portfolio Holder’s Initial Views

 

It was noted that the Housing Portfolio Holder had held informal discussions with Cabinet Members to inform his initial views on the 12 month review. It was suggested that the Panel had regard to these initial views, in order to ensure that the Panel did not put forward any proposed changes which were unlikely to be agreed by the Cabinet, These were as follows:

 

(1)  That the residency Criteria be increased with new applicants who had lived in the district for less than five continuous years immediately prior to the date of registration, not qualifying for inclusion on the Housing Register.

 

(2)  That all existing home seekers, on the Housing Register, who had lived within the district for less than 4 ½ continuous years immediately prior to the date the new Housing Allocations Scheme was introduced, should be removed from the Register.

 

(3)  That all existing home seekers who were removed from the Register due to not meeting the Local Eligibility Criteria should be allowed to re-register if or when they meet the new criteria, but that their registration date would be the date of re-registration.

 

The Portfolio Holder advised that despite the local housebuilding programme there was still a shortage of social housing. He felt that local residents with the longest connection to the district ought to be prioritised.

 

Exceptions to the Residency Criteria

 

The current scheme already had some exceptions to the Residency Criteria. However the Government’s Code of Guidance suggested that some other exceptions should be considered. It was officer’s view, though, that the wording within the Code of Guidance was very open to interpretation, particular potential exceptions relating to applicants with a “strong association” to the District.

 

The Housing Portfolio Holder had therefore suggested that no exceptions should be made to the criteria for those with a “strong association” to the district as this could lead to inconsistent decision making. However, his view was that, in accordance with “expectations” under Government Guidance an exception should be made for existing social housing tenants who were seeking to move from another local authority in order to access work and that the following paragraph should be added at 14 (f):

 

“Are in or have secured either permanent employment comprising of a minimum of 24 hours each week, or an apprenticeship or full time work related training and currently live either in excess of 50 miles from their current or intended place of work. Journey distances would be based upon Internet based Journey Planners.”

 

Furthermore, that the existing Band C (i) should be amended as follows, complying with the above:

 

“All home seekers (in accordance with paragraphs 14.3 (f) of this Housing Allocations Scheme) who need to move to be nearer to their place of work or to take up an offer of permanent employment, an apprenticeship or full time work related training.”

 

Officers further recommended that, should the Residency Criteria be increased to 5 years, the rules relating to those who had moved out of the district would need amending, it was suggested that those who had moved out of the district into settled accommodation for less than 3 years but had lived in the district for at least 5 years immediately before moving out should be treated as home seekers who had lived in the district for more than 5 years.

 

It was noted that the Government Guidance referred to care leavers, officer felt that if the Residency Criteria was increased to 5 years, a lesser residential requirement of 3 years should be applied to those leaving care.

 

The Panel supported these proposals.

 

Financial Criteria aspect of the Local Eligibility Criteria

 

Under the current scheme, applicants who, in the opinion of the Council, had sufficient funds including annual income, residential property equity, savings, shares or other assets, enabling them to meet their housing costs, would be ineligible to join the Housing Register.

 

The Housing Portfolio Holder felt that the Financial Criteria aspect of the Local Eligibility Criteria should be substantially reduced to reflect income and assets that would be required in order for any applicant to secure accommodation in the private rented sector.

 

Accordingly officers recommended that where gross annual household income including residential property equity, savings, shares or other assets, exceeded £76,000, they should not qualify to join the Council’s Housing Register.

 

The Chairman was concerned that the long term effects of these proposals would change the social mix of the social housing sector.

 

However, the Panel supported the proposals.

 

Downsizing Incentive Payments

 

It was noted that currently, any tenant of the Council was offered a payment to encourage them to downsize accommodation, where both properties were owned by the Council. The maximum payment was £2,000. The budget for downsizing payments and removal expenses for 2013/14 was £44,000. During this period 41 tenants of the Council downsized to another property owned by the Council with less bedrooms. This resulted in 54 bedrooms being released, the total amount paid in downsizing payments and other expenses was £47,500.

 

 

The Housing Portfolio Holder felt that the downsizing incentive payments should be increased. Accordingly there were three options presented to the Panel by officers:

 

(a)  The amount paid for removal costs remained the same, but the incentive payments for each bedroom released by moving, be doubled to £1,000 subject to a maximum payment of £3,500.

 

(b)  The incentive payments for each bedroom released be doubled to £1,000 with the amount paid for removal costs remained the same, and a standard decoration allowance payment of £500 be paid using “Homebase” vouchers subject to a maximum payment of £400.00.

 

(c)  The incentive payments for each bedroom released be doubled to £1,000. The amount paid for removal costs remain the same, and a standard decoration allowance payment of £500 be paid by way of “Homebase” vouchers. Subject to a maximum payment of £4,000. Furthermore, the tenant could be offered a rent-free period of 3 months in their new smaller property.

 

The Panel supported officer’s recommendations and endorsed Option (b) above. However, the Panel was of the view that the increased incentive payments should only apply to tenants who were not subject to the removal of the spare room subsidy (sometimes referred to as the “bedroom tax). It was noted that the increased incentives set out in Option Two could result in an estimated increase in budget provision of around £68,000 making a required total annual budget of £115,500.

 

Penalties for refusals of offers of accommodation

 

It was noted that under the current scheme, any home seeker who refused two offers of suitable accommodation for which they had expressed an interest within any three month period would have their application deferred for 6 months.

 

The Housing Portfolio Holder suggested amending this policy to any homeseeker who refused two offers of suitable accommodation within any period would have their housing application deferred for 12 months. He felt that any home seeker who was an existing tenant of the Council who was under-occupying and wished to move to smaller Council accommodation who refused three offers of suitable accommodation for which they had expressed an interest in any period should have their applications deferred for 12 months. The Panel endorsed these views.

 

The Panel noted and supported all of the detailed, more minor proposed changes to the Housing Allocations Scheme set out an Appendix 2 to the report.

 

Hillsden v Epping Forest District Council

 

It was noted that the Council was currently being challenged by way of Judicial Review in the High Court against the Council’s decision to not allow a non-qualifying applicant to join the Council’s Housing Register due what she considered to be her exceptional circumstances. The claimant’s two main arguments were:

 

(i)    The scheme inferred that the discretion given to officers considering applicant’s exceptional circumstances applied to both qualifying and non-qualifying persons; and

 

(ii)   That housing allocation schemes nationally should consider exceptional circumstances of all non-qualifying applicants following a request for a review.

 

It was noted that if the claimant was successful in her claim regarding (1) above, the Council would need to amend its Scheme as soon as possible. In addition, a review of the claimant’s case would need to be undertaken by the Director of Communities to determine whether there were any exceptional circumstances for the claimant to be a qualifying person to join the Council’s Housing Register.

 

The proposed changes suggested by officers and agreed by the Panel set out a change to paragraph 7.2 of the scheme making it absolutely clear that such discretion only applied to qualifying persons.

 

It was noted that the second claim, if successful, could affect every local authority’s scheme in the country as they would be required to consider any exceptional circumstances of any person not meeting with any aspect of their scheme, irrespective of how they were framed.

 

The Council was vigorously defending the claim and were currently awaiting the judgement.

 

Consultation and Cabinet Approval

 

The Panel was advised that the amended Housing Allocations Scheme would be considered by an external legal advisor prior to statutory consultation being undertaken and final Cabinet approval. In accordance with legal advice, the consultation period was required to be at least 12 weeks, however the Council could choose a shorter period if it had good reason. Officers recommended reducing this period to 10 weeks, due to the expiry of the contract for the administration of the Choice Based Lettings Scheme being in June 2015. Locata Housing Services had advised that if they were unsuccessful under the tendering process, any changes to the scheme including home seekers having to update their information on-line would need to be completed by the contract’s end. By reducing the consultation period this would enable a report to be submitted by the Panel in March 2015 to the Cabinet.

 

The target date for the revised scheme coming into force was 1 July 2015. It was suggested that the next review of the scheme should be considered by the Panel following 2 years of operation.

 

RECOMMENDED:

 

That the following amendments for incorporation in the Housing Allocations Scheme be recommended to the Cabinet:

 

(1)          That the Residency Criteria be increased to five continuous years for new applicants;

 

(2)          That all existing home seekers who have less than 4 ½ years continuous residency be removed from the Housing Register;

 

(3)          That despite having regard to the Code of Guidance no exceptions be made to the Residency Criteria regarding “strong association” with the district;

 

(4)          That an additional exception be made to the Residency Criteria for Home seekers who wished to be nearer their place of work, take up an offer of permanent employment, an apprenticeship or full time work related training, in accordance with paragraph 14 (f);

 

(5)          That, should the residency Criteria be increased to 5 years, those who had moved out of the district into settled accommodation for less than 3 years, but had lived in the district for at least 5 years, be treated as Home seekers who have lived in the district for more than 5 years;

 

(6)          That, should the Residency Criteria be increased to 5 years, a lesser residency requirement of 3 years be applied to those applicants leaving care;

 

(7)          That applicants for housing whose gross annual household income exceeds £76,000 be disqualified from joining the Council’s Housing Register;

 

(8)          That the incentive payments paid to home seekers downsizing accommodation, for each social housing bedroom released, be increased from £500 to £1,000 plus the current removal expenses payment of £500.00 and a further redecoration allowance of £500 subject to a maximum payment of £4,000;

 

(9)          That any home seeker refusing two offers of suitable accommodation in any period for which they had expressed an interest have their application deferred for a period of twelve months;

 

(10)       That any home seeker who is an existing tenant of the Council who is under-occupying and wishing to move to smaller Council accommodation who refused three offers of suitable accommodation in any period will have their applications deferred for a period of 12 months;

 

(11)        That following the agreed amendments being incorporated into the draft Housing Allocations Scheme, the scheme be considered by an external Legal Advisor;

 

(12)        That any advice given by the external Legal Advisor be incorporated into the draft scheme and a consultation exercise be undertaken with the Tenants and Leaseholders Federation, Registered Providers of Housing operating in the district, local councils and partner agencies with an interest in the scheme;

 

(13)        That the consultation period referred to above be for 10 weeks due to the timing of the renewal of the contract concerning the administration of the Choice Based Lettings Scheme;

 

(14)        That, the target date for the revised scheme coming into force be 1 July 2015;

 

(15)        That the next review of the scheme be considered by the Panel following 2 years of operation; and

 

(16)        That the Housing Scrutiny Panel submits a report on the proposed revised scheme to the March 2015 Cabinet meeting for consideration.