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1 LONDON BOROUGH OF WALTHAM FOREST Committee/Date: Cabinet 17 May 2005 Title: Council Priority: Directorate: Report of: Contact: Interim Private Sector Housing Renewal Strategy & Assistance Policy Building Capacity and Partnerships to Deliver Excellent Services Community Services/Environmental Services Deborah Hindson/Linda Wacey Michael Cromby/Gavin Douglas Phone: / E.Mail: Action required: Wards affected: Appendices: For Decision All (A) Private Sector Housing Renewal Strategy (B) Private Sector Housing Renewal Assistance Policy Status: Open 1. SUMMARY 1.1 This report seeks Cabinet approval for the implementation of an interim Private Sector Housing Renewal Strategy (Appendix A). The report also seeks Cabinet approval for the implementation of an interim Private Sector Housing Renewal Assistance Policy (Appendix B). Due to a backlog in cases under our previous policy the funding available for this new Private Sector Housing Renewal Assistance Policy (Appendix B) is limited. Therefore, we seek Cabinet approval to allocate 240,000 to this new policy out of a total private sector housing capital budget of 2.6 million in 2005/ RECOMMENDATION 2.1. For Cabinet Decision Cabinet is requested to agree: (a) The approval and implementation of the interim Private Sector Housing Renewal Strategy; (b) The approval and implementation of the interim Private Sector Housing Renewal Assistance Policy; and

2 (c) To allocate 240,000 to provide the following type of assistance (under the interim Private Sector Housing Renewal Assistance Policy): HouseProud Equity Release Support Grant Minor Repairs Assistance Environmental Intervention 3. REASON FOR DECISION 3.1 The Private Sector Housing Renewal Strategy and Assistance Policy is not a statutory strategy or assistance policy reserved to Council under its Terms of Reference. 3.2 The Strategy and Assistance Policy is a Key Decision as it proposes a change to a policy affecting service delivery by the Council, which will have a significant impact on the local community. 4. PROPOSAL 4.1 As part of the Council s CPA Improvement Plan the Council are required to develop a strategy, detailing how it will assist in the renewal of the boroughs private sector housing stock. The Private Sector Housing Renewal Strategy mainly seeks to reduce the level of unfit dwellings in the borough and target limited resources into areas of most need with the maximum effect. 4.2 Cabinet agreed the initial assistance policy in September Due to a backlog in cases from our previous grant system funding was unable to be allocated to this new assistance policy. However, Cabinet is now requested to approve the implementation of a revised policy using limited resources (appendices A&B). 4.3 Under this interim proposal the Council aims to allocate funding to the following areas. HouseProud Equity Release Support Grant is designed to encourage the take up of equity release loans. Due to the limited funding for private sector housing renewal the Council aims to offer applicants a maximum of 5,000 towards loan set up costs and works to be carried out to make the property decent. We will allocate 130,000 of capital resources to this specific assistance. Minor Repair Assistance will cater for housing disrepair problems that can be addressed at an earlier stage with small amounts of money. It can also be used for thermal comfort works to make a property decent and security works to provide peace of mind to some of our more vulnerable and elderly residents. In response to this, the policy creates a minor repairs grant of not more than 4,000 available to all residents who meet the means tested criteria. We will allocate 70,000 of capital resources to this specific assistance.

3 Environmental Intervention is assistance that is designed to target dwellings where immediate action is necessary as certified by the Head of Environmental Services or the Head of Housing. The merits of each case under this category will determine the amount of resources allocated, which will be left to the discretion of Heads of Service. We will allocate 40,000 of capital resources to this specific assistance. 4.4 Many private sector homeowners in London, particularly the elderly, are equity rich and cash poor. By allocating funding to support the London wide equity release (HouseProud) scheme and encouraging residents to release equity to pay for improvements the Council is maximising the limited funding and alleviating many of the pressures on the public purse. 4.5 Cabinet is therefore requested to continue to give assistance under the old policy for 2005/06 and allocate 240,000 to fund this interim Private Sector Housing Renewal Assistance Policy which will be reviewed annually until the backlog is cleared. 5 ALTERNATIVES CONSIDERED 5.1 As an alternative to the targeted resources set out in 4.3 the authority could re-allocate to different areas of need to meet changing priorities or introduce a loan scheme instead of a grants system. This approach is not recommended because of the demands on current resources and the lack of structure and delivery mechanism. However, we will research the possibilities of future loan schemes and report back to cabinet once findings have been established. 6 CONSULTATION 6.1 The Strategy has been presented to various local agencies and has been posted onto the Borough s website requesting stakeholders to comment. Have there been any comments? If so, please indicate what comments were made. 6.2 The Private Sector Officers Group, Housing Strategy Group and Homelessness Prevention Group have been consulted and contributed to the strategy and assistance policy. 7 IMPLICATIONS 7.1 Financial The capital budget for private sector housing renewal in 2005/06 is million and allocated as follows. Grant Amount Allocated Disabled Facilities Grant 1,100,000 (Backlog) Renovation Grant 930,000

4 (Backlog) HRA Grant 75,000 Non-Council Adaptations 200,000 Priority Central Heating Scheme 50,000 Decent Homes Feasibility Study 50,000 New Assistance Policy 240,000 Total 2, Whilst implementing the interim Private Sector Housing Renewal Strategy and Assistance Policy the Authority will also be processing a backlog of cases from the old system. We have to complete forward commitments totalling 3 million. We will review our approach annually until the backlog is cleared, which based on current funding streams is estimated to take at least three years. 7.2 Legal On 18th July 2003, the relevant provisions of the Housing, Grants, Construction and Regeneration Act 1996, relating to the private sector, was repealed (with limited transitional provisions). The Regulatory Reform Order (Housing Renewal) 2002 replaces previous grant powers with a wide-ranging power to provide assistance for housing renewal. However, the powers cannot be exercised until the authority publishes its policy on how it intends to use its powers. This general power will enable the Council to make the best use of, and better target limited resources for the private sector As with all discretionary powers, the policy must comply with statutory requirements and be rational (in that it is not a policy, which no reasonable authority would adopt). The policy and application process must allow for consideration of individual applications, which fall outside the policy, and approve them where appropriate. 7.3 Human Resources None as yet identified 7.4 Social Justice and Older People The Policy will enable valuable support to vulnerable people, including older people and families with vulnerable and at risk children, by addressing their poor or unsuitable housing and enabling them to stay in their own home. It will also contribute to the wider regeneration of the borough.

5 8 CONCLUSION 8.1 This report has set out the basis for approving and implementing the council s Private Sector Housing Renewal Strategy and Assistance Policy. The intention is to review these proposals annually until the backlog is cleared. This report has been cleared after discussion with the Portfolio Member Signed Date 4 th May 2005 Portfolio Holder for Housing