Homelessness and Temporary
Accommodation
CIH Manchester 13th May 2014
Andy Gale
Housing Consultant
Homelessness and Temporary
Accommodation
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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
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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
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Loss of ASTs up significantly (last
quarter 2013 - 23% 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 - 2013/14
figures awaited
Homelessness Trends – relatively
stable outside of London
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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?
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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
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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?
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Yes - TA is in control outside of
London
So do you need to do anything
other than tweak?
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
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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
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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
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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
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Gold platted best deal in town for landlords
Can be costly with Council responsible for
voids/repairs/management/handback costs,
but
Qualifies for the higher TA HB subsidy 90%
+ £60 outside London
Qualifies for TA subsidy based on property
not family size
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
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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”
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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”
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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)
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Temporary Accommodation services in
the future: Making TA cost neutral
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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 cases @ Jan
20111 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.