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Local Lettings Agency Model: Providing Quality Private Sector Accommodation for the Public Sector

Local Lettings Agency Model: Providing Quality Private Sector Accommodation for the Public Sector. The Royal Institution of Chartered Surveyors Housing Conference 2010. Introduction to Settled Housing Solutions Consultancy Service. Formed in 2007.

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Local Lettings Agency Model: Providing Quality Private Sector Accommodation for the Public Sector

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  1. Local Lettings Agency Model:Providing Quality Private Sector Accommodation for the Public Sector The Royal Institution of Chartered Surveyors Housing Conference 2010

  2. Introduction to Settled Housing Solutions Consultancy Service • Formed in 2007. • Build successful partnerships between the private rented sector and local government. • Invited to contribute to the Govt’s response to the Rugg Review of the private rented sector. • Leading practitioners in making it possible for local govt to integrate the Rugg Review Recommendations. • Our business models aim to stimulate new PRS investment. • Commercial partners for Central Bedfordshire Council’s Local Lettings Agency Model – Lets Rent.

  3. Setting the Scene: The Challenge for Central and Local Government • 1.7 million families on local authority social housing waiting lists in the UK (source CLG). • £539 Million - Total subsidy payments made for temporary accommodation in 2007/08 (source Inside Housing). • Between 3 and 33 years – Time it will take to clear the social housing waiting lists (source Shelter). • 50% - The percentage of unregulated letting agents operating in the UK (ARLA). • 50% - The percentage of private rental sector properties that do not meet Decent Housing Standards (source CLG).

  4. Rugg Review/CLG Recommendation – Local Lettings Agency Model • Broadly supported by all political parties. • Deliver a more co-ordinated approach to securing PRS tenancies. • All models are unique and subject to local market conditions and council priorities. • Run by small ‘business unit’ within local authority, sub-regional groups or commercial partners. • Tenancy Sustainment at the heart of Local Letting Agency Models.

  5. A New Business Model is Required • To convert Private Sector Leased accommodation to Assured Shorthold ‘ Landlord Assisted Schemes’. • Promoting regulation while meeting commercial objectives of the PRS. • Returning management function back to PRS landlord and managing agents. • Views the PRS as a ‘Business Activity’. • Less reliance on Govt funded landlord incentives. • Commercially viable and sustainable. • Sharing the risk.

  6. Central Bedfordshire Council’s Local Letting Agency Model – Let’s Rent

  7. Central Bedfordshire Council’s Local Letting Agency Model – Let’s Rent • Unique to local housing market conditions. • Combines a regulatory framework with a housing supply function. • All available resources steered towards tenancy support and sustainment. • Working in partnership with HB service, Private Sector Housing team, local floating support and local licensed letting agents. • Utilises rent arrears indemnity and landlord insurance policies as ‘Prevention Tools’. • Provides framework for integrating PRS accommodation into the ‘Choice Based Lettings Strategy’.

  8. Promoting Better Housing Management • All Let’s Rent letting agents must be registered with either the Royal Institution of Chartered Surveyors (RICS), the Association of Residential Letting Agents (ARLA) or the National Approved Letting Scheme (NALS). • All supplied properties’ must meet Central Bedfordshire Council Property Accreditation Scheme’s Housing Fitness Standards. • Let’s Rent letting agents must make their properties available for inspection by council officers at least once a year. • Letting agents to receive ongoing category 1 Hazard awareness training. • Ongoing Local Housing Allowance Training for local PRS landlords and letting agents providing they register with RICS, ARLA or NALS.

  9. Promoting Better Housing Management

  10. How Central Bedfordshire’s Local Lettings Agency Model was sold to the local PRS • ‘Fear and Prestige’ strategy employed. • New market - new income stream. • Safeguards in place to protect PRS from the risk of tenancy failure. • Local Housing Allowance and Category 1 Hazard training for licensed letting agents. • Opportunity to contribute and influence future housing strategy.

  11. How Central Bedfordshire’s Local Lettings Agency Model is sold to tenants • They do not require a rent deposit and rent in advance to secure accommodation. • Increased choice. • All letting agents are licensed. • All properties meet the council’s Housing Fitness Standards. • Access to floating support, advice and local training initiatives. • They can still remain on the council’s social housing register.

  12. How the tenancies are sustained • Good management by licensed and professional letting agents. • Early intervention floating support. • A tenancy support and sustainment plan implemented. • Ongoing LHA and property management monitoring. • Service level agreements between HB service, Housing Options Team and Licensed Letting Agents. • Focused Housing Service.

  13. Potential Costs and Cost Savings • Sub – standard housing costs the taxpayer £1.8 million per year (National Housing Federation). • Failed tenancies cost between £4,000 and £10,000 per case (source CIH). • Based on 100 tenancies, Let Rent will be saving £108,000 per year on up-front re-housing costs. • As the landlord pays a yearly management fee the local authority will receive a free professional management service. • Reduction in the use of temporary accommodation. • Prevents Incentive inflation between neighbouring boroughs. • Private Sector Housing Team can focus resources on ‘Worst First’ housing management cases.

  14. Testimonial “The Association of Residential Letting Agents (ARLA) is very pleased to support Central Bedfordshire Council’s new private rented sector housing option, Let’s Rent. By seeking the expertise and views of local ARLA Licensed Letting Agents during the development phase of the project, Let’s Rent can now be confidently promoted to both tenants and local landlords as a sustainable housing option which offers management by professionally qualified staff and consumer protection for all parties. We also hope that the commercial success of Let’s Rent will also incentivise other unregulated letting agents to join the ARLA Licensed Scheme and by doing so offer both tenants and landlords greater choice of professionally regulated letting agents in the Central Bedfordshire area”. Ian Potter –Operations Manager – Association of Residential Letting Agents (ARLA)

  15. www.settledhousingsolutions.com info@settledhousingsolutions.com

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