Agenda item

RESOLVED: The Committee

a)    Note the presentation.

b)    Receive an update on the Housing Allocations Policy at its next meeting.

6.1      Genevieve Macklin (Head of Strategic Housing) to give a presentation to the Committee. The key points to note were:

·         The previous Coalition Government brought in a number of changes that affected housing policy, namely:

o   Localism Act: 2011

o   Discharge into the Private Rented Sector (PRS) to end the homeless duty

o   Changes to housing register – no Band 4

o   5 year fixed term tenancies

o   Grant rates for new housing supply reduced by 70%

o   Affordable rents – up to 80% market rents on new supply and % of relets

o   Welfare Benefit Changes (Cap/Bedroom Tax/ Local Housing Allowance at 30^th percentile)

o   RtB Discount increased from £16k to £103k

o   Housing Revenue Account becoming self-financing

·         Some of the effects of these changes were as follows:

o   Chronic shortage of housing

o   New supply reduces hugely

o   Turnaround in available properties to let significantly dries up

o   Major hike in acute demand / homelessness

o   Affordability problems across all tenures

o   Massive Growth in PRS

o   Councils build new housing again

o   More partnership / cross borough solutions 

·         Some of the current key issues in London/Lewisham are:

o   London needs 80,000 new homes per annum. – but delivered less than 18,000 per annum (22%) 2010-2014

o   Lewisham need 1,144 affordable p.a. commitment to deliver 500 per annum

o   Last 20 years average house price increased by 350% in London and 330% in Lewisham (£92,000-£414,000, £74,000 - £319,000)

o   Average house price 11x average salary

o   Numbers in Temporary Accommodation – almost 1800 76% increase in last 5 years

o   Number of properties to let = 1,100 decreased by 44% in last 5 years

o   8500 on the Housing Register

o   Average wait time for 4-bedroom properties is 4 years…

o   50% of all homeless acceptances come from the PRS

o   PRS doubled in size in 10 years.

·         Number of available lets 2010/11 to 2014/15 are down by 45%, and Number of homeless households going into temporary accommodation, 2010/11 to 2014/15 up by 76%.

·         There has been a considerable decrease in the amount of capital subsidy for the development of affordable housing. This has increased the housing benefit bill to subsidise Affordable Rents and the increased number of households in the private rented sector.

·         The Council  has been operating more flexibly in response to change. Some examples of this are:

o   changing the role of Lewisham Homes so that it focuses the wider Council housing agenda: infill development, grounds maintenance, PRS for temporary accommodation pressures, enhanced sheltered housing management

o   Greater Sub Regional working

o   Council role in providing local strategic focus – set direction for partners on supply, affordability, grab opportunities, evolve where appropriate e.g. PRS/Rogue Landlords

·         The four policy and delivery objectives in the Housing Strategy will guide the Council’s work:

o   Helping residents at times of housing need

o   Greater security and quality for private renters

o   Improving our residents’ homes

o   Building the homes our residents need

·         There will be a number of challenges ahead for the Council that they will need to tackle. These are:

o   Increase demand due to a couple of recent court cases on homelessness; and changes to housing benefit

o   Reduce supply due to the extended Right to Buy, forced sales of high value council properties and uncertainty in the Housing Association sector

·         The Nzolameso v Westminster ruling will alter the protocols of where homeless applicants can be placed out of the borough – how far and who. A paper on the implications of this judgment will be presented to Mayor & Cabinet on 15 July – interim arrangements for temporary accommodations placements and PRS Discharge.

·         Hotak, Kanu and Johnson ruling (LB Southwark) lowers the threshold of vulnerability when assessing need.

·         Government proposals in the Budget for Housing Benefit Cap are to have new £23,000 limit in London, £20,000 outside London, and £0 for under 21 years/ Approximately 800 households would be affected in Lewisham.

·         A decision would need to be made in respect of the Bedroom Tax in respect of continuing to prioritise bedroom tax cases, or focus on PRS and temporary accommodation.

·         In respect of reduced supply, the new Government policy is focused on owner-occupation with the Right to Buy extended to Housing Association. Tenants Under current policy, sold properties have not been replaced one for one. Also, tenants with a household income over £40,00 to pay market rents. Extra income from local authorities will go to the Treasury

·         There will also be the forced sale of high value council properties will drastically reduce supply of re-lets. It has not yet been confirmed whether the policy will be set with reference to London-wide values or more local values – this will have a big impact on the number of properties the council is forced to sell. If this is enacted, reduced supply will increase temporary accommodation costs.

6.2      In response to questions from the Committee, the following was noted:

·         Officers will supply Committee members with the Homelessness Allocations Policy paper that will be presented to Mayor and Cabinet on 15 July.

·         The Homelessness Allocations Policy will outline the new Council position on placing individuals and families inside and outside of the borough.

·         It is proposed that this is an interim position for approximately four months, until more analysis can be conducted.

·         The policy proposes that families could be placed up to 90mins travelling time away from the borough boundaries – with special stipulations for children in exam years, children with special needs and other exceptional circumstances.

·         The Council are under statutory obligations to notify local authorities when placing homeless households in emergency temporary accommodation outside the borough.

·         The Council will work with its local and regional partners to look at the impact that the Right to Buy and forced sale of high value empty Council homes would have on housing supply and demand.

6.3      RESOLVED: The Committee

a)    Note the presentation.

b)    Receive an update on the Housing Allocations Policy at its next meeting.