Homelessness and Temporary Accommodation CIH London 22 nd May Andy Gale Housing Consultant

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1 Homelessness and Temporary Accommodation CIH London 22 nd May 2014 Andy Gale Housing Consultant

2 Homelessness and Temporary Accommodation Session will look at: Briefly where we are on homelessness applications, acceptances and TA Future threats to TA Options for delivering TA in the future with a London and South East focus Don t want to duplicate the arguments others will make today

3 Update on Homeless prevention and numbers in TA TA up 9% in London and 10% in South East in last calendar year 2013 Nationally up to 56,930 (75% in London) and with London accounting for the majority of last years increase Homeless applications up nationally but is this a sign of increased homelessness or better recording or mix of both? Acceptances up in London 3% but nationally now falling (9% reduction in last quarter 2013 compared to 2012) following a small rise on historically very low figures It is the lack of supply and properties for prevention that is driving TA up in London and the South East and not significantly higher acceptances but that is likely to change in 2015

4 Homelessness Acceptance Trends Loss of ASTs up significantly (last quarter % London (up 19% in 1 year) nationally it is 23% Large falls in family/friend exclusions Preventions proportion 12/13 prevented by PRS schemes fell 5% and likely to fall significantly in London and South - 37% had homelessness prevented by accommodation in PRS /14 figures awaited and cause for concern

5 Homelessness Trends London in crisis South under pressure - relatively stable elsewhere. Higher preventions Localism Act slow start but growing impact Not many discharge of duty yet (though growing) but larger number of applicants taking PRS property to prevent their homelessness and therefore no homeless application triggered. Prevention criteria in Allocations schemes PRS supply falling off a cliff in London A tale of 2 countries London and south east overspill acceptances and TA will rise elsewhere are likely to fall or at worst remain stable

6 TA in London and the South both now and for 2015 and beyond? Caps combined with lack of supply creating toxic problem The worst is still to come households propped up by DHP but for how much longer B and B use for families substituted for annexe accommodation Unsustainable financial impact Impact of implementing UC and direct payments Alternative Payment Arrangements

7 TA in London and the South both now and for 2015 and beyond? Inevitably because of caps and supply legal TA duty may only be able to be met outside of London. 21% of all TA is placed outside of the placing LA area inevitably will grow Long distance moves in big numbers unlikely but reality may be taking up supply elsewhere in the south east with huge impact on those councils ability to meet their own homeless pressures Political support for the new reality likely to be driven by finances and new 4 year term Pressure from the Courts and Ombudsman

8 Pressure from the Courts on TA and how to respond Ongoing challenge to suitability of accommodation offered get offer letter right interim/full duty/prso use new pack Increasing challenges to LA assessment of affordability with impacts for TA offered B and B Ombudsman and compensation awards Potential challenge to type of tenancy/licence granted Proportionality arguments (HR) and preparing your defence re Pinnock and Powell Challenge to provide TA under National assistance Act and Children Act Supreme Court decision on R (CN) v LB Lewisham; R (ZH) v Newham LBC awaited in the summer

9 The Government s response to the current problem Blame and how did all this happen? Spot the contradiction from former Housing minister Mark Prisk: There is absolutely no excuse for families to be sent miles away without proper regard for their circumstances, or to be placed in unsuitable bed and breakfast accommodation for long periods of time. And on the DWP policy of moving people out of central London Nor is it right that those living on benefits should be able to live in parts of the capital that those who aren t reliant on this support couldn t afford to.

10 The Government s response to the current problem No win situation for authorities: Welfare reform + inflated rented market in London and other hotspots = more homelessness and less PRS options to prevent homelessness or even meet a homelessness duty let alone end the duty = Bed and breakfast use = the wrath of ministers and blame game. Something has to give and soon.. Money to tackle B and B use for families substitute self contained annexes Need to recognise the scale of the problem facing London and parts of the South

11 So what can be done to manage TA in a London and South context? o Politically post elections today Councils will have to focus on the hard decisions relating to location and costs o At an operational level take the opportunity to modernise your approach to providing TA

12 How might TA be delivered in the future and what are the options and possible new thinking? For a better TA service in the future consider the 5 point checklist 1. Structure 2. Delivery Options 3. Analyse types of TA used or could be used and make changes 4. Strategy and administration property pool approach and essential checks 5. Financial making TA as cost neutral as possible

13 Delivering your Temporary Accommodation Service in the future Structure to recognise need for resources Splitting Housing Options Service into 2 1) demand function and 2) supply function Supply function merge - TA officers with PRS access officers to create bigger team Supply Team function set roles: 1)commissioning and procurement of property and inspection; 2) managing property; 3)rent collection and arrears; 4)support to tenants; 5) administering placements: a)checks on suitability b)dealing with formally offering TA c) dealing with refusals and discharge of duty

14 Delivering your Temporary Accommodation Service in the future who might provide the service? In house Combining with a neighbouring council Sub regional services Provided by RSLs (RPs) encouraging RSLs back Provided by a private sector body G4/Serco/Capita/Mears able to source the supply and location? but asylum contract concerns re quality plus cost of contract Provided by a stand-alone local authority owned accommodation agency or social lettings agency bringing private sector focus RP s not for profit

15 Temporary Accommodation services in the future by type of TA Bed and Breakfast Inevitable some use in London and south Lawful for singles but not for families unless absolute emergency If forced to place (families) make sure you offer formally to ensure lawful application of B and B regulation Then not more than 6 weeks and demonstrate looking during that 6 weeks After 6 weeks either consent of family if they wish to stay or if not you must offer suitable accommodation non B and B

16 Temporary Accommodation services in the future Analyse type of TA to use Annexes Big in London and parts of the south Self-contained rooms/flats/houses let on nightly or weekly basis In most cases higher rents charged than PRS self contained or leased Undermine market for direct lets but inevitable use given crisis Can be issues over occupancy status whether court orders are required to evict and who is responsible for eviction Need an agreement between LAs on price standards and first refusal.

17 Temporary Accommodation services in the future Analyse use by type of TA Private Sector Leasing o o Gold platted best deal in town for landlords but in London many landlords not willing to lease Costly with Council responsible for voids/repairs/management/handback costs o Qualifies for the higher TA HB subsidy 90% + 60 outside London o o Qualifies for TA subsidy based on property not family size Outside London look to cut costs in the lease (repairs/handback/management) or consider change to a guaranteed rent

18 Temporary Accommodation services in the future Analyse use by type of TA Private Sector Leasing 2: o o o o o Potential to help RSLs back into the market Leased accommodation for preventing homelessness or ending a homeless duty does not have to be subject to TA subsidy 90% + 40 Subject to a referral to the valuation office only where rent is unreasonably high Use median market rent in London Rent Map (set by postcode) or outside of London local market rent figure to set trigger rent for valuation referral. Should be able to obtain rent and subsidy at LHA or more depending on market

19 Temporary Accommodation services in the future Analyse use by type of TA Taking accommodation on licence more achievable in non London Councils Simple Tesco Value version of leasing Rent guarantee only guarantee and can be only for the time the accommodation is occupied Still qualifies for Qualifies for the higher TA HB subsidy 90% + 60 outside London and property size not household size rules No tendering costs or complications simple agreement to take accommodation on licence from a landlord and pay whilst occupied.

20 Temporary Accommodation services in the future Analyse use by type of TA Hostels Good form of accommodation (interim duty especially) and maximum flexibility As long as it meets the definition of a hostel then person occupies on an excluded licence so no court order needed LA could lease HMO as a hostel to provide an instant interim facility and qualifies for TA subsidy All genuine costs for rent and management can be met under the TA subsidy rules Be careful what is called a hostel is often not

21 Temporary Accommodation services in the future Analyse use by type of TA LA/RSL Social Housing Stock as TA High use across the Uk of Council or RSL mainstream stock now subject to the bedroom tax restriction Sometimes dedicated units sometimes dispersed random use based on demand at a given time Cost effective and useful for rental stream if difficult to let or property subject to redevelopment Not good if taking mainstream stock that is needed for general needs applicants Option - Start as Temp option with ability to grant a secure or assured tenancy at the point of full duty acceptance. To do so must be made under Part 6 and must be a clause in Allocation policy to provide the flexibility to make a direct offer at the stage of full duty acceptance

22 Temporary Accommodation services in the future Analyse use by type of TA Direct lets as TA Not enough direct lets as TA being done London pressures accepted but other LAs? Use prevention 2 new PRS resources toolkit to develop the landlord deal to increase direct lets Develop flexible landlord offer to meet the landlord s needs Bond Guarantee; rent in advance or deposits funded by DHP build a deal around individual landlord s needs Guaranteed rent schemes are the only deal landlords may accept post 2015

23 Temporary Accommodation services in the future Analyse use by type of TA Direct lets as TA TA versus PRSOs to end duty - Is there a conflict? Issues raised Can t get 12 month ASTs so ends up as TA Has to be an AST to end duty Option start as TA direct let or even if on a non-secure tenancy under lease or licence - and converts to PRSO at point when landlord and hopefully the tenant are happy

24 Temporary Accommodation services in the future A new Strategy for TA Take a new view of Temporary accommodation taking out the word temporary No such thing as temporary accommodation in the Homeless legislation itself -just a duty to provide or ensure the applicant is provided with suitable accommodation Everything is accommodation and one unit may be able to be used to prevent homelessness; meet a full interim or full duty; or to end that duty with a PRSO. Build up a pool of accommodation and look to maximise length of tenure

25 Temporary Accommodation services in the future A new Strategy the Property Pool Build a pool of available accommodation without a label on it Flexible use for that accommodation for prevention/interim duty/full duty/prso to end duty Concept of progression - the right people in the right accommodation for the right amount of time Objective that any property in the pool is at nil or minimum financial cost to the LA

26 Temporary Accommodation services in the future A new Strategy the Property Pool Pool options for a smaller LA select from, or Typical pool for a larger LA might be: Hostel Supported accommodation HMO accommodation Lodgings with resident landlord Accommodation held on licence Shared housing Some PSL Direct Lets

27 Temporary Accommodation services in the future A new Strategy the Property Pool New properties will come into the pool and other fall out The bigger the access to properties in the pool the more you can do: e.g. accommodation options for non-priority homeless using power under 192 (3) Option to sell accommodation to social services internal trading or to other local authorities

28 Temporary Accommodation services in the future: A new Strategy Better Administration TA Administration and Placement Team with essential checks to withstand legal challenge More science to placement checks such as: 1) Support needs assessment 2) Financial ability to pay assessment LHA qualifies; working and affordability; impact welfare reform; ensuring debts are tackled 3) Suitability assessment 4) Better off in work assessments 5) Position of those in longer term TA on the register? To protect their priority status or non-qualifying as adequately housed (Hammersmith and Fulham model)

29 Temporary Accommodation services in the future: Making TA cost neutral Making sure TA is as cost neutral as you can get it almost impossible for London Direct lets minimise the cost of incentives by offering a flexible package Own stock and hostels set level of rents to reflect your actual costs PSL minimise risks in the lease you use and include short break clauses Taking accommodation on licence minimises risks

30 Temporary Accommodation services in the future: Making TA cost neutral Using TA subsidy in the future: We know that: DWP recognise TA costs more though with UC switch to household not property 2 stream funding system into 2017 and possibly beyond 90% plus 40/ 60 and LHA plus 45 for UC Jan LHA rate TA may be one of the last streams to convert over to UC We don t know if time limits will be imposed and whether TA subsidy for preventing homelessness will continue.