Homelessness and Temporary Accommodation CIH Manchester 13 th May 2014 Andy Gale Housing Consultant

Homelessness and Temporary Accommodation  Session will look at:  Briefly where we are nationally on homelessness applications, acceptances and TA  Future threats to TA  Options for delivering TA in the future  Don’t want to duplicate the arguments others will make today

Update on Homeless prevention and numbers in TA  TA up nationally by 7% in last calendar year 2013 to 56,930  TA outside of London stable and only up slightly from a very small base. London 75% of all TA  Homeless applications up but is this a sign of increased homelessness or better recording or mix of both?  Acceptances nationally and in regions outside of London now falling (9% reduction in last quarter 2013 compared to 2012) following a small rise on historically very low figures  TA in North West, North East Yorkshire and Humberside, and the Midlands low and stable – only a 2% increase in last quarter 2013  No big impact seen across these regions in higher B and B use.

Homelessness Acceptance Trends  Loss of ASTs up significantly (last quarter % nationally 33% London) but balanced by:  Large falls in family/friend exclusions  Preventions up 2% in 2012/13 – though proportion prevented by PRS landlord incentive schemes fell 5% but still high – 37% had homelessness prevented by accommodation in PRS /14 figures awaited

Homelessness Trends – relatively stable outside of London  Mix of higher preventions  Localism Act – slow start but growing impact  Not many discharge of duty yet (though growing) but larger number of applicants taking PRS property to prevent their homelessness and therefore no homeless application triggered.  Prevention criteria in Allocations schemes  PRS supply still high  All mean acceptances and TA are likely to remain stable outside of London and may fall  But – more accommodation needed to prevent homelessness and end any duty and more options needed for single people.

What is the story of TA for 2015 and beyond?  Pressures of ongoing welfare reform – arrears – budgeting support  Impact of implementing UC and direct payments – “Alternative Payment Arrangements”  Pressures of import and export business London exporting the rest importing – but how real is this threat?  Pressure from the Courts

Pressure from the Courts on TA  Ongoing challenge to suitability of accommodation offered – get offer letter right interim/full duty/PRSO  Potential challenge to type of tenancy/licence granted  Proportionality arguments (HR) and preparing your defence re Pinnock and Powell  Challenge to provide TA under National assistance Act and Children Act  Supreme Court decision on R (CN) v LB Lewisham; R (ZH) v Newham LBC awaited in the summer

So why are we here today if TA outside of London is in control? o Yes - TA is in control outside of London o So do you need to do anything other than tweak? o Lots you can do to modernise approach and provision of TA and by doing so provide a better service

How might TA be delivered in the future and what are the options and possible new thinking? For a better Temporary Accommodation service in the future consider the 5 point checklist 1. Structure 2. Delivery Options 3. Analyse types of TA used or could be used 4. Strategy and administration – property pool and essential checks 5. Financial – making TA cost neutral

Delivering your Temporary Accommodation Service in the future - Structure  Splitting Housing Options Service into 2 – 1) demand function and 2) supply function  Supply function merge - TA officers with PRS access officers to create bigger team  Supply Team function set roles: 1)commissioning and procurement of property and inspection; 2) managing property; 3)rent collection and arrears; 4)support to tenants; 5) administering placements: a)checks on suitability b)dealing with formally offering TA c) dealing with refusals and discharge of duty

Delivering your Temporary Accommodation Service in the future – who might provide the service  In –house  Combining accommodation services with a neighbouring council  Sub regional services  Provided by an RSL  Provided by a private sector body  Provided by a stand-alone local authority owned accommodation agency or social lettings agency. Future is likely to see a mixed provision

Temporary Accommodation services in the future – Analyse use by type of TA  Bed and Breakfast  Lawful for singles but can be costly  Not lawful for families unless absolute emergency  If forced to place offer formally to ensure lawful application of B and B restriction regulation  Then not more than 6 weeks and demonstrate looking during that 6 weeks

Temporary Accommodation services in the future – Analyse type of TA to use Annexes  Big in London not elsewhere  Tend to be self-contained rooms/flats/houses let on nightly or weekly basis  Higher rents charged  Can undermine market for direct lets  Can be issues over occupancy status – whether court orders are required to evict and who is responsible for eviction  To be avoided where possible

Temporary Accommodation services in the future – Analyse use by type of TA Private Sector Leasing o Gold platted best deal in town for landlords o Can be costly with Council responsible for voids/repairs/management/handback costs, but o Qualifies for the higher TA HB subsidy 90% + £60 outside London o Qualifies for TA subsidy based on property not family size o Alternative is to strip out costs in the lease (repairs/handback/management?) or change to a guaranteed rent only scheme

Temporary Accommodation services in the future – Analyse use by type of TA Taking accommodation on licence  Simple ‘Tesco Value’ version of leasing  Rent guarantee only guarantee and can be only for the time the accommodation is occupied  Still qualifies for Qualifies for the higher TA HB subsidy 90% + £60 outside London and property size not household size rules  No tendering costs or complications – simple agreement to take accommodation on licence from a landlord and pay whilst occupied.

Temporary Accommodation services in the future – Analyse use by type of TA Hostels  Good form of accommodation (interim duty especially) and maximum flexibility  As long as it meets the definition of a hostel then person occupies on an excluded licence so no court order needed  Acceptable form of ‘B and B’ – better managed and better standards  All genuine costs for rent and management can be met under the TA subsidy rules  Be careful what is called a hostel is often not…

Temporary Accommodation services in the future – Analyse use by type of TA LA/RSL Social Housing Stock as TA  High use in the North and Midlands of Council or RSL mainstream stock  Sometimes dedicated units sometimes dispersed random use based on demand at a given time  Cost effective and useful for rental stream if difficult to let or property subject to redevelopment  Not good if taking mainstream stock that is needed for general needs applicants  Option - Start as Temp option with ability to grant a secure or assured tenancy at the point of full duty acceptance.  To do so must be made under Part 6 and must be a clause in Allocation policy to provide the flexibility to make a direct offer at the stage of full duty acceptance

Temporary Accommodation services in the future – Analyse use by type of TA Direct lets as TA  Not enough being done as TA by local authorities – help to move from LA/RSL stock  Can use prevention 2 PRS resources new toolkit to develop the landlord deal to increase direct lets  Flexible landlord offer to meet the landlord’s needs  Bond Guarantee; rent in advance or deposits funded by DHP; Guaranteed rent schemes; Insurance schemes – build a deal around individual landlord’s needs

Temporary Accommodation services in the future – Analyse use by type of TA Direct lets as TA TA versus PRSOs to end duty - Is there a conflict? Issues raised – “Can’t get 12 month ASTs so ends up as TA” “Has to be an AST to end duty” Option start as TA – direct let or even if on a non-secure tenancy under lease or licence - and converts to PRSO at point when landlord and hopefully the tenant are happy

Temporary Accommodation services in the future – A new Strategy for TA  A new view of Temporary accommodation taking out the word ‘temporary’  No such thing as temporary accommodation in the Homeless legislation itself -just a duty to provide or ensure the applicant is provided with suitable accommodation  Everything is accommodation and one unit may be able to be used to prevent homelessness; meet a full interim or full duty; or to end that duty with a PRSO.  Build up a pool of accommodation and look to maximise length of tenure

Temporary Accommodation services in the future – A new Strategy – the “Property Pool”  Build a pool of available accommodation without a label on it  Flexible use for that accommodation for prevention/interim duty/full duty/PRSO to end duty  Concept of progression - the right people in the right accommodation for the right amount of time  Objective that any property in the pool is at nil or minimum financial cost to the LA

Temporary Accommodation services in the future – A new Strategy – the “Property Pool” Pool options for a smaller LA select from, or Typical pool for a larger LA might be:  Hostel  Supported accommodation  HMO accommodation  Lodgings with resident landlord  Accommodation held on licence  Shared housing  Some PSL  Direct Lets

Temporary Accommodation services in the future – A new Strategy – the “Property Pool”  New properties will come into the pool and other fall out  The bigger the access to properties in the pool the more you can do:  e.g. accommodation options for non-priority homeless using power under 192 (3)  Option to ‘sell’ accommodation to social services – internal trading or to other local authorities

Temporary Accommodation services in the future: A new Strategy – Better Administration  TA Administration and Placement essential checks  More ‘science’ to placement checks such as: 1) Support needs assessment 2) Financial ability to pay assessment – LHA qualifies; working and affordability; impact welfare reform; ensuring debts are tackled 3) Suitability assessment 4) Better off in work assessments 5) Position of those in longer term TA on the register? To protect their priority status or non-qualifying as adequately housed (Hammersmith and Fulham model)

Temporary Accommodation services in the future: Making TA cost neutral  Making sure TA is as cost neutral as you can get it  Direct lets – minimise the cost of incentives by offering a flexible package  Own stock and hostels – set level of rents to reflect your actual costs  PSL – minimise risks in the lease you use and include short break clauses  Taking accommodation on licence – minimises risks

Temporary Accommodation services in the future: Making TA cost neutral Using TA subsidy in the future: We know that:  DWP recognise TA costs more – though with UC switch to household not property  2 stream funding system into 2017 and possibly beyond  90% plus £60 and LHA plus £45 for UC Jan LHA rate  TA may be one of the last streams to convert over to UC  We don’t know if time limits will be imposed and whether TA subsidy for preventing homelessness will continue.