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European Research Conference Access to Housing for Homeless People in Europe York, 21st September 2012 Securing resettlement for single homeless people.

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Presentation on theme: "European Research Conference Access to Housing for Homeless People in Europe York, 21st September 2012 Securing resettlement for single homeless people."— Presentation transcript:

1 European Research Conference Access to Housing for Homeless People in Europe York, 21st September 2012 Securing resettlement for single homeless people in London’s private rented sector Adam Stephenson (2011) Insert your logo here

2 European Research Conference Access to Housing for Homeless People in Europe York, 21st September 2012 Contents Introduction Methodology Findings Conclusions

3 European Research Conference Access to Housing for Homeless People in Europe York, 21st September 2012 Introduction Carried out in Summer of 2011 Aimed to explore the challenges facing PRS access schemes in London; and how schemes adapted to these challenges Context:  Government policy  Rising demand and rising rents  Changes to Local Housing Allowance

4 European Research Conference Access to Housing for Homeless People in Europe York, 21st September 2012 Government policy Successive governments have promoted PRS as source of accommodation for single homeless people in UK  S.73 of 1988 Housing Act funded voluntary sector to develop access and resettlement services e.g. landlord registers and hostel based advisors  New Labour promoted PRS access as source of accommodation for: Hostel move-on Single homeless with low or no support needs Approx 30 schemes in London in 2007

5 European Research Conference Access to Housing for Homeless People in Europe York, 21st September 2012 Government policy Coalition government (CLG, 2010a:40)  “We are keen to support the voluntary sector and local authorities to help single homeless people access accommodation in the private rented sector” Crisis PRS Access Development Programme  Committed £10million over 3years  Created12 new schemes in London

6 European Research Conference Access to Housing for Homeless People in Europe York, 21st September 2012 Rising demand Demand is increasing across all tenures Between 2008 and 2033 (CLG, 2010b):  No. of households to increase by 5.8million (27%)  33% of increase in London and South East  One person households to increase by 159,000 annually Demand in PRS  Between 1939 and 1991, PRS shrank from over 50% to 9%  Over last 20 years, trend has reversed: Increased from 9% to 12% No. of households increased from 1.7m to 2.6m (52%) (DCLG live table 801)

7 European Research Conference Access to Housing for Homeless People in Europe York, 21st September 2012 Changes to LHA Housing Benefit introduced in In 2000, the House of Commons Committee on Social Security reported:  “It is now by far the most important financial instrument of Government housing policy… …HB substantially exceeds all other forms of housing grants, subsidies and tax reliefs” LHA introduced in 2008 to encourage tenants to ‘shop around’; therefore, improving standards in PRS

8 European Research Conference Access to Housing for Homeless People in Europe York, 21st September 2012 Changes to LHA Between 1999/10 and 2009/10, HB bill increased from £11billion to £20billion  Estimated to rise to £25billion by 2015/16 (DWP, 2011) Distribution disproportionally concentrated in London  London accounts for 26% of spend, but only 17% of claimants (Hamnett, 2011) Many of changes specifically focused on London  2 claimants each receiving £147,000/year

9 European Research Conference Access to Housing for Homeless People in Europe York, 21st September 2012 Changes to LHA  Summary of measures affecting single homeless: ChangeEffective date Claimants affected Absolute caps by property size Apr 11In high cost areas e.g. Inner London Removal of £15 excessApr 11Rent below median Setting max. LHA at 30 th percentile Oct 11Rent above 30 th percentile Extending SAR to 35Jan 12New & existing claimants over 35 Linking LHA to CPIApr 13All claimants 10% reduction for those claiming JSA for 12m Apr 13Long term unemployed

10 European Research Conference Access to Housing for Homeless People in Europe York, 21st September 2012 Methodology Consisted of 2 components:  questionnaire quantitative data about schemes  in-depth semi-structured interviews qualitative data about perspective of practitioners Participation  6 practitioners from 4 organisations

11 European Research Conference Access to Housing for Homeless People in Europe York, 21st September 2012 Findings Organisation, sector, scheme & location OrganisationSchemeSectorFunding of scheme Location A1Local Authority ExternalInner London B2CharityExternalInner London C3CharityExternalOuter London D4Social Enterprise Self fundingInner London 5CharityExternal

12 European Research Conference Access to Housing for Homeless People in Europe York, 21st September 2012 Findings Type of scheme SchemeTypeOther 1Incentive£700 to £1000; includes agent’s fees; non- repayable 2Rent in advanceRepayable. Client to apply for Crisis Loan & sign repayment plan 3Tenancy finder & rent guarantee insurance £300 premium, which is repayable. Covers rent loss & legal expenses 4PRS leasingFull management: guaranteed rent, no voids & maintenance. Landlord is charged % of rent 5IncentiveNon-repayable

13 European Research Conference Access to Housing for Homeless People in Europe York, 21st September 2012 Findings Services for clients SchemeService 1Self-help; landlord matching; relocation; long-term tenancy; benefit applications; furniture; tenancy supports 2Self-help; landlord matching; benefit applications; furniture; tenancy support 3Landlord matching; relocation; long-term tenancy; benefit applications; drop-in support; job club 4Landlord matching; benefit applications; ; long-term tenancy; tenancy supports for 6m 5Landlord matching; ; benefit applications; relocation grant

14 European Research Conference Access to Housing for Homeless People in Europe York, 21st September 2012 Findings Services for landlords SchemeAdditional services for landlords 1Legal advice (from team); references; landlord accreditation; inventory; direct payments (application if outside borough) 2References; direct payment applications 3HB fast track (with neighbouring borough); referencing (including Credit); mediation; inventory; direct payment applications 4Full management service provided 5No additional services

15 European Research Conference Access to Housing for Homeless People in Europe York, 21st September 2012 Findings Access to scheme SchemeOpenReferralMove- on Additional 1XHighly formalised ‘pathway’; must have local connection; target driven 2XFormalised from organisation’s own hostel 3XXAccept referrals from own ‘outreach team’ & hostel; neighbouring hostel (informal) 4XXMove-on form own hostels; Local Authorities (Commissioned) 5XX

16 European Research Conference Access to Housing for Homeless People in Europe York, 21st September 2012 Findings Professional perspectives – landlords Number of willing landlords declining Existing landlords are not increasing supply – but new landlords are Landlords are requesting larger incentives Schemes adapt by:  Increased focus on maintaining existing relationships  Introducing stricter referral criteria  Better ‘marketing’ – press releases & landlord forums  Increasing ‘incentives’  Using own funds rather than Crisis Loans for rent in advance

17 European Research Conference Access to Housing for Homeless People in Europe York, 21st September 2012 Findings Professional perspectives – quality Standard of accommodation reducing  e.g. ‘hard to let’; ‘damp’ & ‘dinghy’  shared converted into self contained  unfurnished Poor quality not thought to have major impact on ‘resettlement’ Schemes adapt by:  greater filtering – increasing costs  managing expectations – PRS not council  ‘coercion’ – threat of eviction

18 European Research Conference Access to Housing for Homeless People in Europe York, 21st September 2012 Findings Professional perspectives – location Difficult to procure accommodation in Inner London  trend established with LHA Often unable to provide move-on accommodation locally  including in neighbouring boroughs Number of affordable boroughs decreasing Some schemes routinely procure accommodation outside on London All aware of clients refusing accommodation due to locations  including some areas deemed to be too posh

19 European Research Conference Access to Housing for Homeless People in Europe York, 21st September 2012 Findings Professional perspectives – location Half responded that locality had an effect on ‘resettlement’  distance between accommodation and ‘home’ area  difficulty of arranging ‘support’ in other boroughs Location not thought to have major impact on employment, education or training  clients do move after finding work due to travel times and costs Schemes overcoming this by:  greater filtering – increasing costs  managing expectations – PRS not council  ‘coercion’ – threat of eviction

20 European Research Conference Access to Housing for Homeless People in Europe York, 21st September 2012 Findings Professional perspectives – location Schemes adapt by:  procuring in dispersed localities - increasing costs  focusing on areas where they developed knowledge of local market  refusing accommodation in areas where clients have refused  managing expectations  ‘coercion’ – threat of eviction; one offer policy  greater dispersion has greater impact on Scheme 4 full management, including maintenance and support costs passed to landlords making Scheme less competitative

21 European Research Conference Access to Housing for Homeless People in Europe York, 21st September 2012 Findings Professional perspectives – single homeless people Most responded that resettlement in PRS had increased Resettlement in PRS mostly positive for single homeless people PRS tenancies can encourage greater independence than more secure social tenancies

22 European Research Conference Access to Housing for Homeless People in Europe York, 21st September 2012 Findings Professional perspectives – single accommodation rate Under 35s excluded – only one scheme accepted under 25s prior to changes  SAR substantially below market rents  confusion over how LAs will interpret exemptions Adaptations being considered:  LA – converting decommissioned hostels to HMOs  Exploring procurement of HMOs, but poor response from licensed HMO landlords creation of HMOs economically unviable concerns regarding support arrangements

23 European Research Conference Access to Housing for Homeless People in Europe York, 21st September 2012 Conclusions Schemes offer a variety of incentives to procure housing, but additional services are similar  ‘self help’ limited – greater choice = greater satisfaction (Lipton, 2000)  location/identity essential to resettlement (Leal, 2005) Schemes chasing smaller pool of properties  driving ‘incentive inflation’ Linear model dominant  for those with low support needs

24 European Research Conference Access to Housing for Homeless People in Europe York, 21st September 2012 Conclusions Procurement becoming more difficult, but schemes are adapting  dispersed, poorer quality - at greater expense  sustainable? pressure to ‘move-on’ ‘payments by results’  forging successful relationships with participating landlord restricting access to only those with low or no support needs Potential of ‘housing first’ not being realised

25 European Research Conference Access to Housing for Homeless People in Europe York, 21st September 2012 References CLG (2010a) Local decisions: a fairer future for social housing, London, DCLG CLG (2010b) Housing and Planning Statistics 2012, London, DCLG Hamnett (2011) Moving the poor out of central London, Environment and Planning, 42, Leal, M (2005) Resettling Homeless People: Theory and Practice, Dorset, Russell House Lipton (2000) in Johnsen & Teixeira (2010) Staircases, Elevators and Cycles of Change, London, Crisis


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