Agenda item

RESOLVED: That the Committee note the report.

6.1      Genevieve Macklin (Head of Strategic Housing) presented the report to the meeting. The key points to note were:

·         The Coalition Government 2010-2015 had delivered a number of changes to  Housing Policy over their lifetime, such as

o   Discharge into the private rented sector (PRS) to end the homeless duty

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

·         The effect of these changes have been numerous, such as:

o   Acute shortage of housing

o   New supply reduces hugely

o   Turnaround in available properties to let also dries up

o   Major increase in demand / homelessness

o   Affordability problems across all tenures

o   Massive growth in PRS

o   Housing Crisis becomes common parlance

o   Move households in need to cheaper areas

o   Encourage people into work (low pay)

o   Councils build new housing again

o   More partnership/cross borough solutions for housing

·         The effect of housing policy 2010-2015 has been that housing supply has gone down, at the same time as demand has gone up; plus there have been fewer new builds for social rent and an increase in affordable home ownership products. 2013-2014 was the first year that there were less lettings than those needing temporary accommodation.

·         The new Conservative Government have brought forward a number of proposal for Housing Policy, namely the Housing and Planning Bill: published 13 October and Welfare Reform and Work Bill. These include the following measures:

o   Introduction of ‘Right To Buy’ for Housing Associations

o   Forcing the sale of “high value” Council void properties

o   “Pay to stay”

o   Planning policy and affordable rented housing

o   PRS changes

o   1% rent reductions

o   Reductions in UC

o   Withdrawal of benefit form under 21 year olds

·         With the introduction of ’Right To Buy’ for Housing Associations, after some resistance this was agreed voluntarily by Registered Providers and is not set out in legislation, though the Bill states that it will be monitored by the Homes and Communities Agency (HCA).

·         The National Housing Federation (NHF) has provided an ‘offer’ to the Government in respect of ‘Right to Buy’, which includes such things as:

o   All Housing Association tenants (2.3m v 1.3m stated by Government) to be offered the ‘Right to Buy’ at the existing discount

o   Housing Associations will have the discretion to sell the tenant an alternative property at the same discount in certain circumstances such as in a rural area or where the property is operationally specific e.g. Sheltered/Supported or it has been built exclusively from charitable funds

o   Housing Associations are to be compensated the full value of the ‘Right to Buy’ discount

o   Housing Associations can replace sold homes on a 1 for 1 basis and with alternative tenures within 3 years

o   Government to enable Housing Associations to convert empty properties from social or affordable rent to other tenures

o   Government to enable Housing Associations to have greater control over who they house i.e. nominations by local authorities to Housing Associations to be appropriate to the properties

·         Some of the issues that affect local authorities in the Housing Bill include forcing the sale of “high value” Council void properties. Some of the modelling that has been carried out, shows that:

o   If average prices across London are used to determine “expensive” then Lewisham could be expected to sell 27 voids (6.4%) per year.

o   27 times our average property value of  £282,094 provides an estimate of £7,616,538 to be repayable to the government each year

o   If average prices across Lewisham are used to determine “expensive” then Lewisham could be expected to sell 137 voids (32.6%) per year.

o   137 times our average property value of £282,094 provides an estimate of £38,646,878 to be repayable to the government each year.

·         The ‘pay-to-stay’ proposal - forcing Councils (and all social housing providers) to assess tenants’ incomes and charge up to a market rent to any tenants in London with a household income of more than £40,000 – will lead to approximately 1,800-2,200 people falling above the threshold, that might lead to higher income tenants to exercise their ‘Right to Buy’.

·         The proposed 1% year-on-year reduction in social rents will lead to Lewisham losing approximately £25m over the next 4 years to improve existing social housing and new builds.

·         The Benefits Cap will be reduced to £23,000 inside London and £20,000 outside London. It would affect the 311 current households subject to the benefit cap plus a further 777 will be affected when the reduction is introduced.

·         There would be no Housing Benefit for 18–21 year olds (with exemptions).

·         There was also a new proposal by the Government, which would amend planning laws so that Councils can no longer require affordable homes to be rented, enabling starter homes to count as affordable instead. Councils would be expected to promote the supply of Starter Homes. The Secretary of State will have powers to veto developments if he believes the local authority has failed to secure enough Starter Homes.

·         There are other proposals, such as dealing with Rogue Landlords with a Rogue Landlords Database, with Councils will having the responsibility for maintaining the content of the database, local authorities can impose financial penalties rather than prosecute for unlicensed homes of multiple occupation and changes to Buy-to-Let tax relief.

Standing Orders were suspended at 9.55pm.

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

·         The Mayoral candidates for London Mayor might have their own proposals in relation to Housing that might impact local authorities and housing association plans.

·         Lewisham is looking at a model to help provide homes for the private rented sector like Newham’s Red Door Ventures.

·         Local authorities and Housing Associations will be looking at the actual proposals that will come out in regulations before deciding how they will be implemented, or if any bodies will look to pursue a judicial review.

·         Officers will get back to Members about the sanctions regime in respect of Housing Benefit.

·         There are some stipulations in the Housing Bill in relation to self-builds, but officers are awaiting the implications of these in the upcoming regulations.

·         The Council will continue to pursue its house-building programme in light of the difficulties with shortfall of materials and labour, and an increase in developments.

6.3       RESOLVED: That the Committee note the report.