CROYLEASE PILOT SCHEME 13th November 2009

Department of housing and adult services Sharron Smail Procurement Manager 020 826 6100 ext 61681 Miranda Butler Project manager 020 826 6100 ext 61612 Department of housing and adult services E-mail: Sharron.smail@croydon.gov.uk Tel: 020 726 6100 extn 61681

Overview of the Scheme - landlords Landlords lease properties to Croydon Council for a fixed term of 5 years, renewable to 10 with break clause after 1 year. 3 bed properties must be within the borough of Croydon and meet decent homes standards. Guaranteed rental income to landlords throughout lease Properties managed and maintained by Croydon Council throughout term of lease Hand-back in original condition as per surveyors Schedule of Condition with vacant possession

Croylease – What does it offer? Landlords have guaranteed rents for 5-10 years with potential for equity growth – risk free. Free management service, no agency fees. Voluntary scheme for waiting applicants Good quality housing [decent homes] for up to 10 years

Overview - tenants Equitable process of selection Overcrowded families given option to apply Applicants made sensible informed choices based on position on housing register Follow up visits – one month and one year. ‘This scheme has made huge difference to our lives and my family’s prospects’

Scheme costs Day to day administration Bad debt and void costs Responsive repairs Landlords lease rent Initial surveys and legal costs Handback costs

Non HRA properties and HB ‘Subsidy thresholds introduced in April 1991 apply to rent rebates awarded in respect of certain types of temporary accommodation which are held outside authorities housing revenue accounts (HRA). These thresholds apply to rent rebates paid to…..’ • accommodation held by the authority on a lease not exceeding ten years

The Process Landlord identifies property for scheme Council carries out survey and produces schedule of works to be carried out Council advises on whether qualifies for ‘empty properties’ grant Rent negotiated and agreement to Lease on condition that specified works are carried out within agreed time frame Property purchased and work carried out Interested applicants identified from housing register Second survey conducted and lease signed. Tenant views and if accepts, signs agreement and moves in

Evaluation Achieved 50 moves from overcrowded conditions and released 50 2 bed properties to the waiting list Requires intensive management to minimise arrears, repairs and voids Handback costs difficult to predict although minimsed through annual visits and assessments. Changes to HB subsidy regime wef April 2010 will restrict income Need to look at future alternative models: Amend lease to cap hand back costs at lease end Work with RSL partners to implement scheme Target larger properties – 4 need +

CROYLEASE Contact: Miranda Butler – Procurement Team Leader E-mail: miranda.butler@croydon.gov.uk Tel: 020 726 6100 extn 61870