1. CROYLEASE PILOT SCHEME 13th November 2009

2. Department of housing and adult services
Sharron Smail
Procurement Manager
ext 61681
Miranda Butler
Project manager
ext 61612
Department of housing and adult services
Tel: extn 61681

3. 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

4. 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

5. 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’

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

7. 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

8. 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

9. 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 +

10. CROYLEASE Contact: Miranda Butler – Procurement Team Leader Tel: extn 61870