CIH Annual Conference Localism Paul Downie Deputy Director – Affordable Housing Management and Standards

2 The Case for Reform “Stable social housing, with subsidised rents, is the tenure of choice for many, particularly those who experience insecurity in other aspects of their lives, such as health, employment or relationships” “…But far too often, the security and subsidised rent that social housing provides do not appear to help tenants to independence and self-sufficiency” ‘Local Decisions’ November 2010

3 Social housing in high demand Number of households on local authority waiting lists, England

4 Inefficient use Number of overcrowded / underoccupied homes in England,

5 Employment Economic status of social rented households,

6 Mobility Movement of social sector tenants in different sectors

7 Tenure New local authority flexible tenancy: minimum two years Existing tenants’ rights protected Flexible tenants get RTB & right to exchange Right to one succession for partners; landlords can give additional succession rights LAs to publish a strategic policy on tenancies Secretary of State to direct on the tenancy standard

8 Social Housing Allocations  Local authorities to determine who should qualify for housing waiting lists  Rules on eligibility set centrally  Existing tenants not in housing need - out of the allocation rules  Protection for the vulnerable provided by the statutory ‘reasonable preference’ criteria

9 Homelessness New flexibility to end the main homelessness duty with a PRS offer Applicant consent not required Minimum 12 month fixed term tenancy Must be suitable Right of review /appeal Duty recurs if unintentionally homeless within 2 years LAs can still end duty with social housing

10 Mobility National Home Swap Scheme Revised allocation rules for tenants More flexibility around tenure £13m DCLG funding for under occupation CIH “Making Better Use of Stock” team

11 Council house finance reform Valuation of each council’s housing business, assuming national rent policy costs 14% higher than under present system One-off adjustment to housing debt Costs and income are projected over 30 years – turned into a “net present value” The value of each council’s housing is then compared against existing supported debt. If the debt is lower, the council pays the difference to the Exchequer, if the debt is higher they receive the difference from central government Councils keep their rental income and meet their own costs

12 Consultation responses - 697

13 What respondents said about: Tenure Responses – 279 landlords

14 What respondents said about: Allocations Responses -

15 Responses – 369 LAs, HAs, legal, VCO, campaigns, TRG, individuals What respondents said about: Allocations

16 What respondents said about: Homelessness Responses – 257 LAs, HAs, individuals

17 Localism Bill Dates: December 2010 – introduction of Bill 18 May 2011 – Commons stage completed 7 June 2011 – 2 nd reading in the House of Lords

18 Localism…Localism…Localism Local decisions: Who qualifies for social housing? What tenancy terms should be set? What happens at the end of a tenancy? Which homeless households need social housing?

19 “I don't think rigid uniformity equalled fairness. “… if local areas want to prioritise different services because that's what suits their local area's needs, then that's a good idea. We should become comfortable with the truth - that Cornwall is different from Canterbury, and Reading from Redcar...so I'm happy for them all to drive off in different directions.” Rt Hon Eric Pickles, speech on ‘localism & the public services revolution, 15 June 2011