Agenda item

Report of the Executive Director for Growth, Planning and Housing

7.1     The Committee received a report on the issues that will influence the allocation of social housing in 2016/17.

7.2     Greg Roberts, Head of Supporting People and Temporary Accommodation, informed the Committee that the social housing allocations for the first 9 months of 2015/16 show high levels of homeless re-housings reflecting the a a demand from this group.  Total social housing lettings are projected to increase in 2016/17 to 840 from 805, reflective of increased supply from registered providers and fewer regeneration area decant transfers. The committee asked for a breakdown of when affordable housing developments that are currently under construction or are due to commence building works will be delivered in 2016/17 and 2017/18.  Mr Roberts advised that the Council expected the supply of affordable rented accommodation in 2016/17 to meet the 66 RP first let nominations for affordable rent and 30 RP first let nominations for social rent. He undertook to provide the committee with a breakdown in which schemes these would be provided.

7.3     Mr Roberts was asked whether social housing tenants purchasing their properties under the Right to Buy provisions would impact on the supply projections.  He considered that this would not have an affect this year and he was confident that the supply projections for the year would be delivered.  However, he commented that there would be a range of factors that might affect supply in 2017/18.

7.4     Mr Roberts explained that the principal factor that is driving the high levels of homelessness continues to be the availability of private sector housing for households on benefits.  Homeless acceptances during 2016/17 are forecast to continue at the same level of approximately 550 and the total requirement for TA will remain between 2300-2500 during the year. The committee asked whether there was any influence that the Council could bring to tackle the reluctance within the private rental sector (PRS) to let properties to people on benefits or to encourage further those landlords which the Council already had an existing relationship with.  Mr Roberts explained that the difficulty of securing such accommodation was less around discrimination by landlords than the impact of the housing benefit caps.  He explained that when the housing benefit regime was more generous and landlords could be paid high rents there was less difficulty in securing accommodation.

7.5     Mr Roberts was asked whether the Council had factored in or had detected any increase in rents being asked by landlords due to changes introduced to landlord’s tax arrangements.  He stated that it was currently too early to say what impact the changes would have.  However, it was clear that there was a very wide gap between overall existing rent levels and the Local Housing Allowance. The changes to tax arrangements could provide a further dimension to affordability.

7.6     The implementation of the TA commissioning strategy had succeeded in ending the use of Bed and Breakfast accommodation for families over 6 weeks, reduced unit costs and increased supply and made best use of Council resources.  However, the challenges of sourcing sufficient private sector accommodation suitable and affordable for households in housing need continue. Members asked for details of the cost of the nightly booked sector.  Mr Roberts advised that the gross cost of leasing TA properties in the last year was £42 million.  Most of the cost related to private rented properties.  While the majority of this cost was reimbursed to the Council there was a net cost to the Council of £4 million.  The cost of the nightly booked accommodation was £10 million for approximately 430 properties.

7.7     Members asked whether the Council still retained a responsibility for families in temporary accommodation that it had housed outside of the borough.  Mr Roberts explained that the Council retained its housing obligation for such residents. This would continue until it had discharged its duty and this could be on-going for 10 years and above in some cases.    

7.8     Mr Roberts outlined the new policy initiatives and amendments to the housing allocations scheme.  This included the recommendation to build on the success of a scheme to offer additional points to working households living in temporary accommodation. The new proposal involved introducing a target quota of 10 lettings for working households with total gross income of £20,000 or less who would not otherwise have priority for social housing under the Housing Allocation Scheme.  The committee asked for details of the criteria that will be used to determine which households will benefit from the quota of 10 lettings.  Mr Roberts explained that eligibility and priority would be based on the length of time the individual or household had resided in Westminster and the amount of time they had been in work.  The allocations would be managed through Home Ownership Westminster.  Members also asked whether the change in policy would disadvantage anyone who is on the social housing waiting list.  He advised that the allocations would be to studio and one bed properties, reflecting the high level of supply of these size units.  Therefore, the impact would be minimal.

7.9     The committee was also informed of the steps taken to procure the necessary amount of housing to meet its statutory duty to support vulnerable households in housing need.

7.10    RESOLVED: That the report be noted.

7.11    ACTION:

1.      Provide the committee with a breakdown of which affordable housing developments will be delivered in 2016/17 and 2017/18 and in which schemes supply projections would be provided.

(Action for: Greg Roberts,Head of Supporting People and Temporary Accommodation)