Directorate for Sustainable Communities. Private Sector Housing Strategy

Transcription

1 Directorate for Sustainable Communities Private Sector Housing Strategy

2 Contents Foreword 1 Overview 2 Section 1 Introduction 3 Section 2 Stock and demographic profile 5 Section 3 Condition of the private sector housing stock 11 Section 4 Home energy & affordable warmth 22 Section 5 Adapting homes to meet the needs of people with a disability 30 Section 6 Making better use of existing homes 37 Section 7 Improving standards in the private rented sector 41 Appendices 46 - Summary of stock condition findings by are - Statutory responsibilities Glossary 48 List of Tables and Figures 49 Private Sector Housing Strategy

3 Foreword A warm and safe home is something many of us take for granted but sadly this is not the case for everyone. Our strategy highlights that some elderly homeowners and people with a disability on low incomes and tenants in the private rented sector continue to live in unsuitable housing. The Council through its private sector housing function plays a vital role in protecting the health, safety and welfare of residents living in poor housing conditions. The effect of poor housing has a bearing on people s quality of life, their health and well-being and their ability to live independently We are fortunate that the majority of homes in the Borough are well maintained and are of a good standard and the main focus of this strategy therefore is towards helping those more vulnerable residents where our advice and assistance in respect of their homes will make a significant difference to their lives. We are committed to seeing that housing standards across all tenures are maintained to a level which means occupiers live in decent housing. We will use our enforcement powers where necessary in the private rented sector where risk to occupiers health and safety is compromised. We also wish to recognise good landlords who provide high standards of accommodation through the development of a Landlords Accreditation Scheme. Our research show the need for us to increase our activity around promoting energy efficiency as cold homes is one of the most serious issues within the housing stock. We know the benefits of improving housing standards go beyond that of just the welfare and comfort of the occupiers. it makes economic sense as well for example it has been estimated that spending between 2,000 and 20,000 on adaptations that enable an elderly person to remain in their own home can save 6,000 a year in care costs. Our aims to promote warm home, lift people out of fuel poverty, provide timely interventions to stop further property decline and address issues of poor management within the rented sector will add not only to the quality of life for individuals but maintain our neighbourhoods as good areas to live in. Councillor Duncan Lumley Cabinet Member for Strategic Housing Private Sector Housing Strategy Page 1

4 Overview Chelmsford Borough Council s vision is that Chelmsford will be the centre of economic, social and environmental excellence in Essex and our work in the private housing sector with owners and landlord s makes an important contribution to achieving this. The Council s previous Private Sector Housing Strategy was produced in The principle objectives identified at that time remain the same today in that the need to protect resident s health, safety and welfare remains paramount as does the prioritising of assistance to the elderly and low income groups, whilst encouraging private investment and self reliance. What our new strategy shows however is that in addition to this we need to significantly increase our work around energy efficiency not just to those householders in fuel poverty but to all home owners to help reduce carbon emissions. Objectives delivered through this strategy will make a key contribution to taking forward the ambitions contained within the Council s adopted Climate Change Strategy. Our intention is also to use the greater understanding and knowledge we now have, to expand our work in the private rented sector and improve the service delivery to customers of Disabled Facilities Grants. What is the Council seeking to achieve The overall aim of the strategy is to improve housing conditions in the Borough both in terms of standards, accessibility, energy efficiency and to encourage a thriving private rented sector by recognising landlords that are operating an excellent business whilst also using enforcement action against landlords and owners whose properties pose an health and safety risk to occupiers. The strategy sets out our evidence base that support the areas the Council will seek to address within its Housing Renewal Policy and day to day work. Our priorities will be: self help by way of loans and creating further capacity through the development of suitable equity release options. actions to address risks that cause falls in homes and cold homes. where ever possible bring homes up to the Decent Homes Standard when assessing for loan assistance to prevent further decline of stock condition. run awareness campaigns to areas of properties shown to be most likely to have poor conditions. actively promoting energy savings measures. targeting work around fuel poverty. increasing standards in the private rented sector. re-licensing of Houses in Multiple Occupation and implementation of a rolling three year inspection programme recognising higher level of risk in this area. improving the Disabled Facility Grant process for customers. planning with Registered Social Landlords and other partner organisation for the anticipated growing demand for Disabled Facility Grants as our population ages. increased intervention on empty homes if numbers continue to increase. Page 2 Private Sector Housing Strategy

5 Section 1 Introduction 1.1 In 2003 the Government set out its vision for the quality of the country s housing stock and its ambition that everyone should have the opportunity for their homes to be of a decent standard. They expressed the view that poor quality housing can have an impact on the health of the occupants and on the quality of life in an area. The Government s view is that it is primarily the responsibility of private sector owners to maintain their own property, but it recognises that some owners particularly the elderly and most vulnerable do not have the necessary resources to repair or improve their homes. Local Authorities therefore have an important role to play in providing assistance in these cases The Council s Private Sector Housing Policy adopted in 2003 supports this approach and identified the local priorities as being: To protect residents health, safety and welfare Deal with unfit properties by targeting those occupiers in need of assistance Taking early intervention in the process of housing decline especially for elderly occupiers Provide a Home Improvement Agency Encourage the supply of good quality private rented accommodation Provide assistance for disabled people via mandatory disabled facilities grants Keep under review the condition of the stock to assess need for major repairs Encourage private investment and self reliance 1.3 The intention of this strategy is to provide an updated evidence base that will inform our future work in this area and ensure the Council s actions, and those of its partners, in continuing to improve housing conditions in the area contribute to wider health, social and energy efficiency agenda s. 1.4 The Council has a duty under the Housing Act 2004 to keep the condition of the housing stock under review with a view to identifying any actions that may need to be taken. In the case of residential dwellings this means making sure homes are safe for people to occupy and where reasonable are of a decent condition. 1.5 The Council carries out this duty within its day to day inspection of properties where complaints have been received or where owners have requested advice and assistance with repairs. To monitor the overall condition of the housing stock the Council will also from time to time carry out borough wide stock condition surveys. The most recent Private Sector Stock Condition Survey (PSSCS) was completed towards the end of 2007, and the full report can be downloaded from the Council s web site The survey of 800 private sector homes was carried out across five geographical areas. Prior to the survey, information on stock conditions down to Census Output Area level (between addresses geographically adjacent) was profiled. On the basis of detailed projections produced by this modelling, sample surveying was carried out in five sub areas: Chelmsford Rural, Rettendon & Runwell, South Woodham Ferrrers, Chelmsford Eastern Arc and Chelmsford Western Arc. The number and age of dwellings within each area determined the number of surveys carried out. 1 Circular 05/2003 Private Sector Housing Strategy Page 3

6 1.7 Public sector housing was excluded from the survey. The responsibility to maintain these homes belongs to Registered Social Landlords, and Government and the sector s regulator the Tenant Services Agency monitor the progress public sector landlords make towards the national targets for Decent Homes. Data is generally therefore available on the condition of the public housing stock through other methods and was therefore not part of the survey. 1.8 The Council has drawn on the findings of the PSSCS and its own knowledge to provide background data and inform the development of this strategy. Page 4 Private Sector Housing Strategy

7 Section 2 Stock and Demographic Profile 2.1 The condition of the existing stock will be affected by its age, type and use and the likelihood of an owner s ability to maintain their home which will be determined by their financial means and age. The following profiles consider these and other factors to build up a picture of where and what type of assistance may be needed. Stock profile 2.2 The Council s Private Sector Stock Condition survey found that the Borough has a stock profile that is more modern, with proportionately larger homes and higher levels of owner occupation than that found in England as a whole. 2.3 The age profile of the total private stock of 59,000 dwellings in Chelmsford differs from the average for England in that the stock profile contains a much lower proportion of pre 1919 stock at 12.5% compared to the national average of 24.9%. There are also fewer dwellings built between 1919 and 1944, at 11.7% compared to 18.5%, but a consequent increase in those dwellings constructed from 1945 onwards. Fig 1 Dwelling age profile England and Chelmsford 30% 29.4% 25% 20% 24.9% 18.5% 21.3% 17.1% 20.9% 25.0% 18.6% 15% 10% 12.5% 11.7% 5% 0% Pre Post 1980 Construction date Chelmsford HCS 2007 English HCS 2005 Private Sector Housing Strategy Page 5

8 The types of housing found in the Borough is similar to the national average with the notable exceptions that it has more detached houses and bungalows and fewer small terraced houses and fewer converted flats. Fig 2 Dwelling types comparison England and Chelmsford Dwelling Type High rise purpose built flats Low rise purpose built flats Converted flats Bungalow Detached house Semi detached house Medium / large terraced house Small terraced house 0.7% 0.0% 7.8% 7.1% 3.3% 0.8% 9.2% 11.7% 6.9% 16.8% 17.1% 12.1% 21.0% 27.6% 29.1% 28.8% 0% 5% 10% 15% 20% 25% 30% Chelmsford HCS 2007 English HCS 2005 Dwelling use. 2.4 Just over 90% of all private sector homes are houses. Flats, converted or purpose built are estimated to form 8% of the stock. Table 1 Dwelling use Purpose built flat Licensable House in Multiple Occupation Other House in Multiple Occupation House Converted flat Total Dwellings 4, , ,000 Percent The estimated number of houses in multiple occupation (HMOs) is 680, which is 1.2% of the stock compared with 2% across England. There are an estimated 40 mandatory licensable HMOs (approximately 0.1% of the stock). A licensable HMO is defined as a dwelling which has three or more storeys, with shared amenities occupied by five or more persons in two or more separate households. Page 6 Private Sector Housing Strategy

9 Household income profile 2.6 It is important in determining the extent of possible intervention policies to understand not only the condition of the housing stock, but also the financial capacity of home owners to be able to maintain their homes. In the Borough we know that the majority of home owners are able to finance home repairs themselves and are therefore not a concern for the Council. Overall average incomes 2 are well above the national average but there are significant levels of lower income households, some 18% having an annual income of less than 10, Benefit receipt is only slightly lower than that found nationally at 16% compared to 17%, with 33% of the private rented sector receiving benefits compared to 13% of owner occupiers. 2.8 The overall levels of household income and benefit receipt will have a bearing on the affordability of repairs and potential for householder to struggle with fuel bills particularly amongst older owner occupiers. This is sometimes referred to as being asset rich but cash poor, and as shown below some 17,400 householders have incomes of below 15,000. Table 2 Number of households within each income band Income band per annum Under 10,000 10,000-14,999 15,000-19,999 20,000-29,999 30,000-39,999 40,000-49,999 50,000 and above Vacant dwellings Total Number of households Chelmsford 2007 survey 17.6% 10, % 7, % 6, % 10, % 7, % 6, % 8, % 2, % 59,000 Family Resources Survey 22% 15% 11% 18% 13% 8% 13% n/a 100% 2 Based on income of the head of household and where appropriate the partner of the head of household. responses were combined to give a gross household income. Private Sector Housing Strategy Page 7

10 Income bands by area 2.9 The income distribution as found in the survey is shown below: Table 3 Income distribution Area Name 0k-10k 10k-15k 15k-20k 20k-30k 30k-40k 40k-50k 50k + Chelmsford rural 29.9% 11.1% 9.7% 17.2% 6.8% 9.3% 16.0% Rettendon & Runwell 16.4% 16.4% 16.4% 23.6% 7.3% 12.7% 7.3% South Woodham Ferrers 4.1% 6.1% 22.5% 12.2% 22.5% 10.2% 22.4% Chelmsford Eastern Arc 13.2% 16.7% 13.2% 17.6% 16.2% 9.9% 13.1% Chelmsford Western Arc 16.2% 11.2% 9.0% 19.6% 13.7% 14.5% 15.7% 2.10 This indicates that Chelmsford Rural and Rettendon and Rural have the highest proportion of private sector householders with income below 15,000 (41% and 32% respectively) with South Woodham Ferrers in contrast displaying higher level household incomes. Table 4 Income bands by tenure Income band Owner occupied Privately rented 0k-10k 10k-15k 15k-20k 20-30k 30k-40k 40k -50k 50k % 12.4% 12.2% 16.9% 12.8% 12.1% 16.3% 27.9% 10.0% 10.3% 27.3% 14.9% 2.4% 7.3% 2.11 Comparisons of income groupings between tenures show a significantly higher number of low income households in the under 10,000 bracket are to be found in the private rented sector. Page 8 Private Sector Housing Strategy

11 Fig 3 High and low income by age of head of household 70% 60% 50% 50% 51% 40% 30% 31% 28% 27% 38% 20% 10% 0% 0% 12% Over 85 0k-10k 50k+ 17% 7% 6% 7% Age of head of household 0% 0% 2.12 The greatest proportion of low income households are where the head of households are aged 85 followed by those aged The chart illustrates that low income ( 10,000 per annum) is mostly associated with the younger and older age groups. The greatest proportions of low income households are where the head of household are aged 16 to 24 followed by those over 85. There are higher levels of income above 50,000 for those age groups that are between 25 and 59. This reflects the earlier findings of higher than average incomes. The pattern illustrates that the greatest need for assistance to vulnerable occupiers is at the youngest and eldest ends of the age range. Savings 2.14 The survey asked residents if they had any savings and if so was the amount of savings below 6,000. Nearly 60% had savings of which 41% had savings of less than 6,000. Equity 2.15 Average equity levels for owner occupied households in Chelmsford Borough is estimated at 149,000 Private Sector Housing Strategy Page 9

12 Summary of stock and demographic profiles There are high levels of owner occupation within the Borough. The housing stock is relatively modern with most homes built post 1945 The majority of dwellings built are houses. Household incomes are generally above national averages however just under 39% of householders living in the private sector have incomes of less than 15,000 A higher proportion of lower income (under 10,000) households can be found in rural areas. Incomes of less then 15,000 are found in both the privately rented (37.9%) and owner occupied (29.7%) sectors. Lowest income levels were found amongst those aged over 85 and those aged Only 60% of households had any savings of which 41% had less than 6,000 Average equity levels are 149,000 Page 10 Private Sector Housing Strategy

13 Section 3 Condition of the Housing Stock 3.1 Up until 2003 housing conditions were defined as being either fit or unfit for habitation based on a very basic measure called The Housing Fitness Standard. In 2003 a new measure of housing conditions, known as the Decent Homes Standard, was introduced as part of a commitment to improve all social housing to meet reasonable, modern expectations by Since then the application of the Decent Homes Standard has been broadened and Local Authorities are required to monitor the condition of private sector homes in their areas against the Decent Homes Standard. The Decent Homes Standard For a home to be considered Decent it must meet all four of the following elements: A. meet current legal minimum standard for housing (must not have any serious hazards, referred to as a category 1 hazards) B. be in a reasonable state of repair. In Chelmsford the main defects found in this category relate to windows, electrics, boilers and wall finish C. have adequate, modern facilities (e.g. a kitchen less than 20 years old and a bathroom less than 30 years old) D. provide adequate thermal comfort (heating and insulation) 3.2 Since 2006, the legal minimum standard for housing is that homes must be free from category 1 hazards when assessed using the Housing Health and Safety Rating System (HHSRS). This means that homes must not present significant health and safety hazards that pose an unacceptable risk of harm to residents or visitors. The Housing Health & Safety Rating System (HHSRS) This is the legally prescribed method for assessing whether a home meets an acceptable minimum standard. It is based on a wide range of evidence that provides useful insight into what actually causes illness and injuries in the home environment. There are 29 hazards associated with the home itself rather than moveable fixtures and fittings such as portable electric appliances, carpets and furniture. These hazards include: Damp and Mould Excess Cold (harm from cold indoor temperatures) Falls on Stairs Electrical Hazards Fire Private Sector Housing Strategy Page 11

14 Each hazard is assessed to determine: 1. How likely it is to cause harm; and 2. How much harm would result from it The assessments help to produce a hazard score which, if over 1,000 represents an unacceptable risk of harm, known as a category 1 hazard 3.3 This section looks at the overall condition of the housing stock using the Decent Homes Standard and then goes on to consider the proportion of dwellings that represent an unsafe or health risk to occupiers as defined under the HHSRS. 3.4 The Stock Condition Survey estimated that 15,400 dwellings in Chelmsford (26.1% of the stock) fail the standard of which: The majority of dwellings are non decent due to thermal comfort failure (8,200 dwellings, 13.9% of the stock compared with 19.8% at national level). Category 1 failures under the Housing Health & Safety Rating System occur at 12%. (described further under 3.15) The lowest level of failure is for dwellings lacking adequate modern facilities at 0.8%, which is below the national average of 1.3%. Reason and number of failures of Decent Homes Table 5 Types of and scale of failures Reason Category 1 Hazards In need of repair Lacking modern facilities Poor degree of thermal comfort Failures using Decent Homes Standard Dwellings 7,100 3, ,200 % of non decent 46.2% 20.8% 3.3% 53.3% % of stock 12.0% 5.4% 0.8% 13.9% English comparison %* n/a 8.1% 1.3% 19.8% Failures using previous fitness Standard Unfit dwellings 1, % 2.4% 4.0% NB: Total number of failures includes dwellings with multiple failures. * English House Condition Survey 2005 Page 12 Private Sector Housing Strategy

15 3.5 The table compares failure rates against the previous fitness standard showing the substantial increase in number of homes failing. This underlines the fact that the fitness standard was a very minimal standard and shows the impact of Government s commitment to improve housing standards overall. This also means however an increased workload placed on local authorities who will be required to inspect substantially more premises then under the previous regime. Non decency by dwelling type and area 3.6 The survey found that non decent dwellings are most associated with pre 1919 properties, the private rented sector, low rise purpose built flats, converted flats and also with occupiers on the lowest incomes and those in receipt of benefit. Non decency is also associated with heads of households aged 16 to 24 and those The highest rate of non decency is found in low rise purpose built flats at 63.7% which account for 7.1% of the private sector housing stock. Converted flats have the next highest rate at 45.5% and are often association with the private rented sector and poor repair. Medium/large terraced houses are the next highest at 29%. The lowest proportion of failures is found amongst detached houses at 14.1%. Fig 4 Non decent rates by type Overall ND Rate 26.1% Low rise purpose built flats 63.7% Dwelling type Converted flats Bungalow Detached house Semi detached house 24.1% 14.1% 26.6% 45.5% Medium / large terraced house 29.0% Small terraced house 26.4% 0% 10% 20% 30% 40% 50% 60% 70% Chelmsford HCS The highest non decency score by area is recorded in the Rettendon and Runwell area, with lowest in the South Woodham Ferrers area. Private Sector Housing Strategy Page 13

16 Fig 5 Non decent dwellings by area Overall ND Rate 26.1% Chelmsford Outer 24.5% Area Chelmsford Central South Woodham 15.7% 22.2% Rettendon and Runwell Rural 33.2% 36.9% 0% 10% 20% 30% 40% Chelmsford HCS 2007 Fig 6 Non decent dwellings by date of construction Overall ND Rate 24.5% 26.1% Construction date Post % 24.8% 28.9% 19.1% Pre % 0% 10% 20% 30% 40% 50% Chelmsford HCS 2007 Source: 2007 House Condition Survey 3.9 Levels of non decency tend to be highest in rural areas, a fact driven largely by thermal comfort issues, as this criterion of the decent homes standard is heavily weighted toward the use of mains gas and insulation. The lack of mains gas supply and preponderance of older dwellings in the rural areas results in this distribution. South Woodham Ferrers shows a far lower level of non decency, which was a key reason for separating this area within the sampling Page 14 Private Sector Housing Strategy

17 Table 6 Non decent dwellings with vulnerable households by sub-area Area Vulnerable households in non decent dwellings Percent vulnerable households in non decent dwellings Chelmsford Rural Rettendon & Runwell South Woodham Ferrers Chelmsford Eastern Arc Chelmsford Western Arc Total , % 24.0% 22.2% 23.2% 16.7% 22.8% Vulnerable households are defined as those in receipt of certain benefits some of which are means tested. Government had set a target that by 2010/11, 70% of all dwellings occupied by a vulnerable households should be made decent. The housing stock in the Borough already meets those targets at 77.2% decent Cost of repair needed to tackle non decent homes 3.10 The table shows the overall cost to just make all private sector homes in the Borough decent with no allowance for further dilapidation (ie: not a comprehensive improvement) Table 7 Cost by criterion Reason Cat. 1 hazard Repair Amenities Thermal Comfort Total Total cost ( millions) Cost per dwelling 1,000 2,500 7,500 1,200 2, It is interesting to compare the cost per dwelling above to that of owners estimates, this may suggest improvement beyond that of just a decent standard as they are on the whole higher. It is difficult to say whether these higher estimates were a factor in the decision made by owners to delay carrying out these repairs. Private Sector Housing Strategy Page 15

18 Table 8 Occupiers estimate of repair costs Repair cost band 1-4, ,999 10,000-14,999 15,000-19,999 20,000-24,999 25,000+ Percentages 68.4% 12.5% 5.5% 5.1% 4.8% 3.8% Owners attitude towards repairs 3.12 Where it was indicated that repair work was required occupiers were asked if they could afford to carry out the work or not with 45.2% saying that they were not affordable Owner occupiers were asked if they would consider equity release as a method of paying for repair/improvement to their home. 13.3% indicated that they would consider equity release although, conversely, 86.7% said they would not. Given that average equity levels in the Borough are 149,000, this point requires further investigation When asked if they planned on carrying out any repairs/improvements only 9.2% responded with 54% of those saying that they were, with a majority (53.5%) indicating that they would pay for these through savings, 32.9% through a loan facility and 5.1% needing grant assistance. Unfitness and the Housing Health and Safety Rating System 3.15 The proportion of private sector dwellings with a Category 1 Hazard under the HHSRS is 12% (7,100 dwellings) and is significant when compared with the overall rate of unfitness that would have been recorded under the previous standard of 2.4% (1,400 dwellings). Category 1 Hazards are associated with older dwellings, the owner occupied sector and bungalows. There is a clear association between Category 1 Hazards and low-income households, households in receipt of benefit, residents with a disability and heads of household over The highest proportion of Category 1 Hazards by area was found in the Rettendon and Runwell area The cost to remedy all Category 1 Hazards is 4.6 million, at an average of 980 per dwelling. This compares to a cost of 1.6 million to make unfit dwellings fit, an average of 1,142 per dwelling. If a more comprehensive standard were adopted (no further work required for at least 10 years) to dwellings with a Category 1 Hazard, rather than just remedying the hazard(s), the costs would be 19.8 million; an average of 4,240 per dwelling. Page 16 Private Sector Housing Strategy

19 3.18 The overall proportion of dwellings with a Category 1 Hazard is estimated to be 12%, representing 7,100 dwellings across Chelmsford with 6,700 being houses and 400 being flats. Fig 7 Category 1 Hazards by reason, as % of Category 1 Hazards Food Safety 2.4% Entrapment 1.2% Category 1 hazards Damp and mould Excessive cold Hot surfaces Fire Falls between levels 0.9% 0.0% 0.0% 8.3% 37.2% Falls on the level 6.0% Falls on stairs 51.8% 0% 10% 20% 30% 40% 50% 50% Chelmsford HCS 2007 Source: 2007 House Condition Survey 3.19 Usually, both unfitness and Category 1 Hazards are more strongly associated with privately rented dwellings. However, this is not the case in Chelmsford where the owner occupied stock has a higher Category 1 hazard failure rate than the privately rented stock at 12.4% compared to 8.1%, although the unfitness rate follows the more usual pattern. The rate of unfitness in privately rented sector dwellings at 4.9% is over twice that found in owner occupied dwellings. Private Sector Housing Strategy Page 17

20 Fig 8 Rates of unfitness and Category 1 Hazards by building type Low rise purpose built flats 2.1% 7.3% Converted flats 0.0% 13.9% Dwelling type Bungalow Detached house Semi detached house Medium/large terraced house 3.5% 1.1% 2.6% 1.7% 10.0% 12.6% 16.4% 14.6% Small terraced house 7.8% 6.7% 0% 5% 10% 15% 20% Cat 1 Hazard Unfit Source: 2007 House Condition Survey Fig 9 Rates of unfitness/cat 1 by construction date 30% 25% 26.4% 20% 15% 10% 5% 0% 3.6% Pre % 11.5% 8.6% 4.2% 5.1% 2.9% 0.0% 0.9% Post 1980 Construction date Cat 1 Hazard Unfit Page 18 Private Sector Housing Strategy

21 Action available to improve conditions 3.20 Depending upon the risk scored the Council will determine whether it is a Category 1 failing (highest risk) or a Category 2 failing The Council will choose the most appropriate action available to deal with the identified risk. This could include serving one of the following: Improvement Notices Prohibition Orders Hazard Awareness Notices Emergency remedial Action ( for Category 1 hazards where there is imminent risk of serious harm) Demolition Order (Category 1 only) Clearance Order (Category 1 only) In all cases the role of the Council s Private Sector Housing team is to work with owners, giving a reasonable time for them to carry out works or advice on the most appropriate solutions to deal with any issue identified. Assistance available to help low income home owners maintain their property The vast majority of owners are financially able to maintain their homes. The Council becomes involved with owners generally at their invitation when approached for advice and/or assistance. Our policy is designed to offer financial assistance to low income home owners who without this help would have no means to adequately maintain their home The Council provides financial assistance by way of interest free loans, repayable when the property is sold. Loans are available for either urgent, minor repairs or major renovation work. Since the scheme was introduced in 2004, 463,000 has been loaned out which has helped 184 households address significant health and safety concerns in their homes. Housing Repair/Renovations Year Number of loans Amount p.a. 000 s 04/ / / / / With the information gained from our stock condition survey we will target identified areas to raise awareness amongst certain household types to encourage the take up of assistance by those home owners in greatest need. This is in keeping with the Council s commitment of encouraging self reliance and independent living and makes the best use of our funding The Council s resources are however limited and if we wish to increase our capacity to help more home owners in the future we will need to also develop suitable equity release products with financial institutions that owners feel confident about using. Private Sector Housing Strategy Page 19

22 Role of the Home Improvement Agency 3.26 The Council can only provide a limited range of assistance to home owners but its work in this area is complemented by work undertaken by partner agencies and the voluntary sector. Home Improvement Agencies for example play an important role in carrying out routine jobs and prevention work that help people continue to live independently. Guinness Independence at Home is the local Home Improvement Agency which receives multi agency funding (including 67,000 from the Council) to provide a range of services to elderly and vulnerable home owners The Home Improvement Agency covers both the Chelmsford and Maldon areas and is commissioned by Essex County Council. A service level agreement to contract services from the Home Improvement Agency exists for Chelmsford and Maldon Councils and Essex County Council. Under its existing terms the current three year contract will be retendered when it expires in March Home Improvement Agencies are not for profit organisations that work with local authorities and health agencies to assist home owners to live in safe, and comfortable homes. Some of the work they offer to home owners include: operating a Handy Persons scheme for small day to day repairs gardening scheme home safety audits preventing slips, trips and falls organising and supervising all necessary work and form filling for Disabled Facilities Grant applicants home from hospital adjustments made to the home (bringing beds downstairs etc) to enable patient discharge from hospital offering advice and assistance on moving home options applying for charitable assistance where extra help is needed for an individual advising clients on home security and energy efficiency measures 3.29 Consultation carried out with older people for the Councils Housing Strategy for Older People published December 2009, confirmed that the minor repairs service and having help around the home are highly valued and play an important role in preventing or delaying the need to move to higher care schemes. Page 20 Private Sector Housing Strategy

23 Summary and key action points There are estimated to be 15,400 dwellings in Chelmsford (26.1% of the stock) that are non Decent. The majority of dwellings are non Decent due to thermal comfort failure (8,200 dwellings, Category 1 failures under the Housing Health & Safety Rating System occur at 12%. Non decent dwellings are most associated with pre 1919 properties, the private rented sector, bungalows, medium and large terraced houses and converted flats Main causes of failures are falls, cold homes and fire hazards. Non Decency is also associated in property occupied by households aged 16 to 24 and those 85+. Levels of non Decency tend to be highest in rural areas due to failure against the thermal comfort criterion associated with lack of gas supply. 2,112 or 22.8% of vulnerable household live in non Decent housing. Most repair costs are less than 5,000 with the average being 2,200 The majority of owners demonstrated a reluctance to use equity release schemes to fund property repairs but to expand our future capacity to assist home owners there is a need for us to develop suitable equity release schemes with financial institutions that owners will consider. Future work in this area includes: Continuing to offer financial assistance in the form of loans whilst developing alternative equity release schemes. Working closely with Essex County Council in the re-commissioning of a local Home Improvement Agency The focus of our work around non Decent homes and category 1 hazards will be to tackle the main causes of failures ie: falls, cold homes and fire hazards and raise awareness of the help available to householders particularly the elderly and those on low income. Private Sector Housing Strategy Page 21

24 Section 4 Home Energy and Affordable Warmth The national position 4.1 The need to reduce the impact of climate change on our environment is one of the greatest challenges we all face. The Council has responded to this imperative by setting out its plans for cutting carbon emissions in its Climate Change Strategy As we have seen from previous sections the issue of cold homes is one of the most important failures within the Borough s housing stock and we need to tackle this as part of a comprehensive approach to our private sector housing renewal activities. This section focuses on the area of domestic residential carbon emissions and fuel poverty, it looks at what is already being achieved and what needs to be done to create a step change that will assist all residents to take up opportunities to reduce their energy costs and help them take individual reasonability for making their homes as energy efficient as possible. 4.2 In July 2009 the Government issued the UK Low Carbon Transition Plan as part of the National Strategy for Climate and Energy. For the housing sector the plan intends to cut emissions from homes by 29% on 2008 levels by: Investing 3.2bn to help householders become more energy efficient Rolling out smart meters to every home by the end of 2020 Piloting pay as you save ways to help people make their whole house greener Introducing clean energy cash-back schemes so that people and businesses will be paid if they use low carbon sources to generate heat or electricity Opening a competition for 15 towns, cities and villages to be at the fore front of pioneering green innovation. 4.3 This and previously announced commitments to fund energy efficient programmes in the social housing stock and the new boiler scrappage scheme (launched Jan 2010) provide a fresh opportunity for the Council and its partners tomake a significant contribution to the UK Climate Change Strategy and carbon reduction targets. What needs to be done at a local level? 4.4 The key findings from the stock condition survey show: That one of the main causes of non Decent housing and Category 1 hazards are associated with cold homes. 5,800 (9.8%) of private sector households were estimated to be in fuel poverty (ie : householder spending 10% of their income on fuel) The energy efficiency of a dwelling is measured by a SAP rating and the average for the Borough is 52 compared to 46 nationally. SAP ratings are measured on a a scale of 100 with 100 being the most energy efficient level. Around 8% or 4,530 homes have a SAP rating of 35 (which is unacceptably low) and is generally associated with the use of expensive fuel such as electricity. The lowest mean ratings were found in Rettendon and Runwell and rural parts of the Borough which is consistent with properties having no gas supply in rural areas. Page 22 Private Sector Housing Strategy

25 4.5 The following table shows the main cause of cold or poorly heated homes in the Borough are found in properties that have electric storage heaters/liquid Petroleum Gas or solid fuel as their form of heating. For those homes with just room heaters a change of heating source is the only answer. For all other properties where central heating is already present loft and/or wall insulation are required to keep the home warmer. Table 9 Breakdown of thermal comfort failures Decent Homes Area of failure Dwellings Total cost million Average cost Room heaters 1, ,390 Gas or Oil central heating 2, Electric storage heaters or LPG/Solid fuel central heating 4, ,070 Total 8, ,200 Source: 2007 Chelmsford House Condition Survey Opportunities and challenges in remedying thermal comfort failure 4.6 Looking in more depth at the profile of the homes requiring an increased in their thermal warmth tells us where and what type of issues we may have to tackle: 41% (3,400) of all properties failing the Decent Homes Standard are not on the mains gas supply. Just under 83% of all thermal comfort failures are in owner-occupied dwellings, 31% are 1965 to 1980 dwellings 41% are dwellings in the Chelmsford Rural area. There are just under 23% of dwellings that fail the thermal comfort requirement that are of non cavity wall construction. Dwellings that exhibit these characteristics can be considered hard-to-treat homes, which is to say they are potentially expensive to heat in their current form and are difficult or impossible to make more efficient cost effectively. 4.7 Looking at overall SAP ratings, the survey identifies, as would be expected, that areas of newer housing such as South Woodham Ferrers have higher ratings. New homes being built in recent years throughout the Borough will typically achieve energy ratings exceeding 80+. The survey also indicates rural areas with older more traditional housing as having lower energy ratings. Private Sector Housing Strategy Page 23

26 Fig 10 Mean SAP by sub-area Chelmsford Western Arc 56 Chelmsford Eastern Arc 51 Areas South Woodham Ferrers Rettendon and Runwell Chelmsford Rural Mean SAP Chelmsford HCS 2007 Source: 2007 Chelmsford House Condition Survey Reporting progress under the Home Energy Conservation Act 4.8 The Council is required under the Home Energy Conservation Act 1995 to monitor and report on energy consumption within the borough and to achieve a target set by government to reduce harmful CO2 emissions by 30% by The council has already met this target and between April March 2008 has shown an overall improvement of energy efficiency in the Borough of 34.68%. 3 The 1996 baseline energy use in Gigajoules was 7,803,072 and has fallen to 5,260,505 by 2007/ The need to continue with further energy reduction remains an ongoing commitment of the Council and our work will carry on in this area by using a range of initiatives: Partnership working with energy companies to increase take up of free household insulation and other energy saving improvements. Promotion of energy efficiency in areas of deprivation. Continue proactive signposting consumers to Warm Front. Continue offering top up loans where the energy improvements required are not met in full by the Warm Front grant so that low income households benefit from the full range of energy measures needed to maximise energy efficiencies. The council will use the introduction of Home Energy Certificates to be provided to all new tenants prior to signing a tenancy agreement in order to remind landlords that Warm Front grants are available to improve the energy efficiency of their properties if they have tenants in receipt of benefits The council will also be targeting areas of the borough where data from the 2007 Stock Condition Survey has highlighted lower SAP ratings particularly around rural Chelmsford including Rettendon and Runwell. 3 Chelmsford Borough Council HECA submission Chelmsford Borough Council Home Energy Statement Page 24 Private Sector Housing Strategy

27 4.10 Whilst the main focus of this strategy is on homes in the private sector the issue of Decent Homes and energy efficiency are the same for all tenures and it is therefore relevant to include a reference to the condition of the social housing stock here. There are around 10,000 affordable homes in the Borough owned by Registered Social Landlords (RSLs). There is a Government expectation that all RSLs will provide Decent Homes for their residents The Decent Home standard measures four elements, one of which is the thermal comfort of a dwelling. The main social landlord in the Borough is CHP who own around 6,500 dwellings following the transfer of the entire stock from the Borough Council in In 2009, CHP reported that only 2.6% 5 of their stock failed the Decent Homes Standard. This is as a result of their investment in modernising the properties during the seven years after handover from the council Around 50% of all CHP tenants are retired households and since 2003, CHP have installed 2,810 new central heating systems often to homes where no central heating previously existed. Zero carbon homes 4.12 CHP are looking to develop an area of new homes over the coming year that will achieve Code 6 for sustainability which means the home reaches a zero carbon emission standard. These homes which have received grant funded from the Council will provide an opportunity to show case some of the latest technologies so the general public can pick up ideas on what they could do in their own home. Extent of fuel poverty 4.13 The recent high increases in the cost of fuel combined with potentially inefficient heating systems and/or lack of insulation has added to the number of householders nationally that find they are paying more than 10% of their income on heating and energy bills. Commonly referred to as fuel poverty, although the borough has a slightly lower proportion than the national average, the 5,800 dwellings with households that are in this position will present issues in terms of both energy efficiency and occupier health. The highest private sector rates of fuel poverty are found in the owner occupied sector where 10% of households are in fuel poverty, compared with 9% in the privately rented sector stock. Intervention programmes such as Warm Front have been set up to tackle fuel poverty among vulnerable households in the private rented and owner occupied sectors, and provide grant packages to undertake energy efficiency measures for those eligible. 5 Self declaration to Council by RSL as part of annual monitoring for HSSA submission Private Sector Housing Strategy Page 25

28 Assistance by Government Warm Front scheme to Chelmsford residents 4.14 Warm Front supply the Council with data on their annual work programme and during : They received 883 household s referrals Completed schemes for 511 owner occupiers and 22 private renters with a total grant spend of 930,499 The main areas of work were for gas boiler replacement, cavity wall, and loft installation either new or top up 4.15 As indicated in Fig 11, householders in fuel poverty can be found in all across the Borough. Fig 11 Fuel poverty by area Chelmsford Western Arc 5.6% Chelmsford Eastern Arc 7.5% Areas South Woodham Ferrers Rettendon and Runwell 4.1% 10.9% Chelmsford Rural 18.1% 0% 5% 10% 15% 20% Rate of fuel poverty Thermal Comfort and Energy Efficiency 4.16 Tackling fuel poverty is an important issue for the Council as it aids those residents most in need, as well as improving thermal comfort (required under the Decent Homes Standard). It also potentially reduces the number of dwellings that are unfit or where a Category 1 Hazard exists. The greatest impact, in terms of reducing fuel poverty, can be achieved by focusing on making energy efficiency improvements to dwellings with: older heads of household; dwellings with benefit recipients; households on low incomes and both the owner occupied and privately rented stock. tackling on a geographical basis, the survey indicates that the highest rate of fuel poverty is to be found in the Chelmsford Rural area. Working with RSL s to identify issues in their stock Page 26 Private Sector Housing Strategy

29 National survey on benefit dependant householders in fuel poverty In January 2009 the Council carried out a survey of householders in receipt of benefits to understand more about how many low income householders were affected by fuel poverty. This survey was introduced by a National Indicator (NI 187) for all English authorities with the intention that it would be repeated over a three year period to assist Councils monitor the impact their work on tackling fuel poverty is having The results of our first survey found that 9.2% of all householders in receipt of benefits have a SAP rating of 35 or less. The Council is working to significantly reduce fuel poverty over the next three years and this is one of a number of key objectives the Health and Well Being sub group of the Council s Local Strategic Partnership are looking to deliver to bring about health improvements for the local community. The results of the survey which include householders living in the socially rented sector is shown below. Our RSL partners are critical to the success of our ambition as the majority of householders on benefits that are in fuel poverty are within this sector and we will therefore confirm an annual target after discussion with our RSL partners. Table 10 Results of fuel poverty survey Number of properties with low, medium or high SAP rating (by tenure) Owner Other (n/k) Private Rented Housing Association Total Lower than Greater than Total % of properties with low, medium or high SAP rating (by tenure) Lower than 35 8% 0% 13.1% 8.9% 9.2% % 66.7% 68.0% 51.1% 59.5% Greater than % 33.3% 18.9% 39.9% 31.3% Essex comparison fuel poverty amongst benefit claimants 4.19 The results across Essex place Chelmsford in sixth position. The initial analysis suggests that the new towns of Basildon and Harlow have lower levels and this may well link to the more modern form of building types found in those areas. Private Sector Housing Strategy Page 27

30 Fig 12 Fuel poverty across non unitary Essex authorities District Council Benefits and low energy efficiency rated houses - Essex comparison (Low is good) Basildon Braintree Brentwood Castle Point Chelmsford SAP 35 Colchester Epping Forest Harlow 4.00 Maldon Rochford 8.00 Tendring Uttlesford The Council s response to fuel poverty and CO2 reductions 4.20 Home Repairs Assistance offered by the Council has usefully provided top ups for Warm Front grants (26 during 08/09 for example) but the scale of the problem requires a step change. In 2008 the East of England Region invited bids from housing sub regions to fund housing renewal work. Chelmsford and its sub regional partners submitted a Fuel Poverty & Carbon Reduction Project which was successful. This project will be the main vehicle that the council will use to pro-actively tackle energy efficiency issues in residential dwellings over the next two years Key features of the scheme are: Comprises a consortium of 15 Councils, 10 in Hertfordshire and 5 in Essex Project awarded 6,627,066 over 2 years Potential to assist 13,500 household across the sub region Use of a management agent to coordinate the work across each area Targeting fuel poverty with grants & loans, insulation measures heating measures, income maximisation & signposting Advice & assistance to able to pays to help them reduce their energy consumption this element makes project potentially available to anyone in the private sector Page 28 Private Sector Housing Strategy