ALG Housing Directors
Homelessness Update
Report by:
Ian McIntyre
Date:
15th July 2005
Contact Officer:
Ian McIntyre
Telephone:
0207 934 9642
Summary:
Recommendations:
Item no:
Job title:
2
Housing Policy Manager
Email:
[email protected]
In June ODPM published a Policy Briefing ‘Providing more settled Homes’,
which is eleventh in a series of briefings. This follows on from the
publication of the governments Homelessness strategy in March. It looks
at building new homes and better use of existing housing stock,
including a section on enabling temporary accommodation to become a
settled home. Recent reports in the Housing press suggest that
government is about to review the subsidy of temporary accommodation.
Directors are invited to Note:
1. London boroughs have had an 18% drop in acceptances in Q1 2005
from Q1 2004 (para 2.3)
2. That government are indicating support for temp to perm schemes
where they are value for money (paras 3.1 and 3.2)
3. That the indication is that there will be no changes to legislation or
definitions in the short term (paras 3.4 and 3.5)
4. That ALG is in discussion with Shelter on campaigning to extend the
Working Futures pilot (para 4.2), possibly to include existing
temporary to permanent scheme (para 4.3)
5. That the indications are that DWP are reviewing the rents for
temporary accommodation, usually funded by housing benefit (para
4.4)
6. The closing date for bids to the Homelessness Innovation Fund is the
9th September (para 5.2)
7. ALG Officers are working with Shelter on the feasibility of a London
based Inclusion Project (para 6.4)
8. Verbal report on the Homelessness Prevention seminar.
Consider:
1. The current legislation, and the discharge of duty to applicants on
the voluntary acceptance of an assured shorthold tenancy in the
private sector (para 3.6, appendix 1).
2. Extending the Working Futures Pilot to include the temporary to
permanent scheme (para 4.3)
Agree:
1. That the ALG should campaign jointly with Shelter to extend the
Working Futures Pilot.
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1.
1.1
Introduction
This report seeks to inform directors on developments since their meeting in May, including the
publication of ODPM’s most recent policy briefing.
2.
2.1
Background
In March 2005 ODPM published ‘Sustainable Communities: settled homes; changing lives’ which
outlines the government strategy on homelessness following on from the announcement made
on the 24th January of the Government’s five-year plan for housing. The strategy identifies five
strands to achieving the government’s target to halve the number of households living in
temporary accommodation:
 Encouraging homelessness prevention;
 Providing support for vulnerable people;
 Tackling the wider causes and symptoms of homelessness;
 Helping more people move away from rough sleeping; and
 Providing more settled homes.
2.2
In June 2005, ODPM published ‘Providing more settled Homes’, which concentrates on providing
more settled homes. It is number 11 of a series of briefings intended to provide advice to local
authorities on the government’s homelessness agenda. The full briefing can be found on ODPM’s
website;
www.odpm.gov.uk/stellent/groups/odpm_homelessness/documents/page/odpm_home_03820
8.pdf.
2.3
The release of the policy briefing accompanies the ODPM statistical release for the first quarter of
2005, reporting a sustained reduction in acceptances per quarter for the 2004/05 year in
England. In London, there has been a marked drop, an 18% decrease, in the number of
households accepted as homeless in Quarter 1 2005 compared to the same quarter in 2004
(6,060 and 7,420 respectively).
2.4
The policy briefing has two sections;
 Building new homes projects, 75,000 new social rented homes over the next three years and
up to 110,000 first time buyers by 2010. This is the shortest section and doesn’t add anything
new that hasn’t already been announced
 Better use of the existing stock. This section looks at the private rented sector, enabling
temporary accommodation to become a settled home, testing a block grant approach and
maximising the use of existing social housing.
3.
3.1
Enabling Temporary Accommodation to become a settled Home
The briefing indicates government support for temporary to permanent schemes, listing schemes
that it has supported including Local Space and Safe Haven. It states that ODPM will continue to
support innovative schemes which provide settled housing solutions for households in temporary
accommodation. Where such schemes offer value for money but require capital investment they
will encourage Regional Housing Boards to support bids for ADP funding.
3.2
The London Housing Board is also supportive of the development of such schemes, and is
recommending that £20million of the London Regional housing Pot 2006-08 be allocated for
‘trail’ schemes that require capital investment. The funding is given on the assurance that the
schemes offer value for money based on the ODPM’s assessment of various schemes.
3.3
In June, ALG Officers met with Officials from ODPM’s Homelessness and Housing Support
Division, to discuss the ALG’s Better Value Investment model and the wider issues around
government’s homelessness strategy.
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3.4
The ALG’s Better Value Investment model has been analysed by ODPM’s economists who have
presented their findings to officers in the Homelessness and Housing Support Division. Further
questions were asked and taken away by the economists and when these questions are answered,
ODPM officers will make recommendations to ministers. It is not clear what those
recommendations will be, but the key feedback at this stage is that where temporary to
permanent schemes are better value for money government will support them.
3.5
Affordability and security of tenure remain key concerns for ODPM as these schemes remain
unaffordable for a significant period. ODPM questioned why temporary to permanent schemes
are only offered on a licence s and why assured shorthold tenancies can’t be used instead of
licenses. ALG officers explained that generally this is a condition of financing from lenders.
3.6
The indications from the meeting on changes to legislation and definitions are that government
is not yet convinced of the need to make changes. They feel that existing legislation doesn’t
make reference to discharge to permanent housing and that this already allows for the discharge
of duty to temp to permanent schemes. Appendix1 contains Section 193 (6) – (8) of the Housing
Act 1996, and the amendments to those sections from the Homelessness Act 2002.
3.7
Ministers indicate they would be reluctant to make changes that could be seen as just massaging
the figures. They would need to be persuaded as much as possible had been done within the
existing framework before agreeing to any changes. It is worth noting that there was no
reference to Homelessness legislation in the Queen’s speech, which indicates that there will be
no changes in this parliamentary session.
4
4.1
Poverty Trap
The policy briefing makes reference to testing a block grant approach. This was discussed in the
meeting with ODPM, who indicated that there will be a senior level meeting between DWP and
ODPM in July where the issue of funding of temporary accommodation will be discussed.
4.2
The ALG is in discussion with Shelter on what might be possible by way of joint campaigning for
the 2006 spending review to expand the scope of the Working Futures pilot. Shelter would like to
see the number of households covered in the pilot significantly increased, as would the ALG.
4.3
One possibility would be to campaign to include existing temporary to permanent scheme, as
this would redress the affordability problems and might enable these schemes to be used for a
discharge of duty, although the tenure question would also need to be resolved.
4.4
Directors may recall in 2003 that DWP produced proposals that temporary accommodation rents
should be referred to the rent officer service to be assessed for a reference rent for Housing
Benefit purposes. These proposals would have been disastrous for boroughs and would have
severely constrained their ability to acquire properties to let to homeless households. These
proposals were never dropped. After a successful campaign by London Boroughs and the ALG,
these were shelved, and DWP agreed to come back after they had undertaken research. Recent
reports in the housing press (appendix2) suggest that this issue will come back in the very near
future.
5
5.1
Homelessness Innovation Fund
ODPM has announced a Homelessness Innovation Fund. The fund has been created to make
available at least £2 million revenue funding to be spent over two years. It aims to encourage
partnership and co-operation with and between statutory and voluntary agencies at a national,
regional or sub-regional level.
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5.2
The bidding form was launched on the 28thJune and is available on the ODPM website:
http://www.odpm.gov.uk/stellent/groups/odpm_homelessness/documents/page/odpm_home
_038535.hcsp. The deadline for bids is 9th September 2005.
6
6.1
Shelter Inclusion Project
Shelter is piloting an innovative approach to tackling anti-social behaviour. It works with
households to identify and deal with the causes of their behaviour, and to build the skills they
need to enable them to resolve their situation. The project was developed by Shelter in
partnership with Rochdale Metropolitan Council, in October 2002.
6.2
ALG Officers have been in discussion with Shelter and ODPM about the possibility of running a
pilot in London. Shelter has agreed in principle to part fund the set up of a London project.
ODPM have made positive noises but would want to be assured of the on going revenue funding if
they are to part fund.
6.3
This proposal has been discussed at HWG. There was broad support to develop a proposal. A
number of boroughs indicated a willingness to be involved in such a project and members of the
South East and the West sub region agreed to take to back to their respective sub regions.
6.4
ALG Officers are meeting with Shelter in August to work develop a costed proposal, and consider
the options.
7
7.1
Homelessness Prevention
Verbal update on the Homelessness Prevention Seminar held on Wednesday 6th July to be given.
8
8.1
EQUALITIES
Homelessness affects the most disadvantaged within society and is particularly acute for
households within BME communities, single parent families or people with disabilities.
S:\HOUSING\Public\ALG Housing Directors Meetings\2005\July 05\Final\Item_3_Homelessness_Update.doc
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Appendix 1
Housing Act 1996
Duty to persons with
priority need who are
not homeless
intentionally.
193 (6) The local housing authority shall cease to be subject to the duty
under this section if the applicant(a) ceases to be eligible for assistance,
(b) becomes homeless intentionally from the accommodation made
available for his occupation,
(c) accepts an offer of accommodation under Part VI (allocation of
housing), or
(d) otherwise voluntarily ceases to occupy as his only or principal
home the accommodation made available for his occupation.
(7) The local housing authority shall also cease to be subject to the duty
under this section if(a) the applicant, having been informed of the possible consequence
of refusal, refuses an offer of accommodation under Part VI, and
(b) the authority are satisfied that the accommodation was suitable for
him and that it was reasonable for him to accept it and notify him
accordingly within 21 days of the refusal.
(8) For the purposes of subsection (7) an applicant may reasonably be
expected to accept an offer of accommodation under Part VI even though he
is under contractual or other obligations in respect of his existing
accommodation, provided he is able to bring those obligations to an end
before he is required to take up the offer.
Homelessness Act 2002
7
Events which cause the main homelessness duty to cease
(1) Subsections (6) to (8) of section 193 of the 1996 Act (events which bring main
homelessness duty to an end) are amended as follows.
(2) In subsection (6), after paragraph (c) there is inserted"(cc) accepts an offer of an assured tenancy (other than an assured shorthold
tenancy) from a private landlord,".
(3) For subsection (7) there is substituted"(7) The local housing authority shall also cease to be subject to the duty under this
section if the applicant, having been informed of the possible consequence of refusal
and of his right to request a review of the suitability of the accommodation, refuses a
final offer of accommodation under Part 6.
(7A) An offer of accommodation under Part 6 is a final offer for the purposes of
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subsection (7) if it is made in writing and states that it is a final offer for the purposes
of subsection (7)."
(4) After subsection (7A) (which is inserted by subsection (3) above) there is inserted"(7B) The authority shall also cease to be subject to the duty under this section if
the applicant accepts a qualifying offer of an assured shorthold tenancy which is
made by a private landlord in relation to any accommodation which is, or may
become, available for the applicant's occupation.
(7C) The applicant is free to reject a qualifying offer without affecting the duty
owed to him under this section by the authority.
(7D) For the purposes of subsection (7B) an offer of an assured shorthold tenancy
is a qualifying offer if(a) it is made, with the approval of the authority, in pursuance of
arrangements made by the authority with the landlord with a view to bringing
the authority's duty under this section to an end;
(b) the tenancy being offered is a fixed term tenancy (within the meaning of
Part 1 of the Housing Act 1988 (c. 50)); and
(c) it is accompanied by a statement in writing which states the term of the
tenancy being offered and explains in ordinary language that(i) there is no obligation to accept the offer, but
(ii) if the offer is accepted the local housing authority will cease to be
subject to the duty under this section in relation to the applicant.
(7E) An acceptance of a qualifying offer is only effective for the purposes of
subsection (7B) if the applicant signs a statement acknowledging that he has
understood the statement mentioned in subsection (7D).
(7F) The local housing authority shall not(a) make a final offer of accommodation under Part 6 for the purposes of
subsection (7); or
(b) approve an offer of an assured shorthold tenancy for the purposes of
subsection (7B),
unless they are satisfied that the accommodation is suitable for the applicant and that
it is reasonable for him to accept the offer."
(5) In subsection (8), for "subsection (7)" there is substituted "subsection (7F)" and the
words "of accommodation under Part VI" shall cease to have effect.
(6) Nothing in this section affects the operation of section 193 in relation to an offer of
accommodation under Part 6 which is made before the commencement of subsection (3)
above.
Appendix 2
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