Future of Homelessness & Temporary Accommodation Services: Challenges & Strategies

1. Homelessness and Temporary Accommodation CIH Manchester 13th May 2014 Andy Gale Housing Consultant

2. Homelessness and Temporary Accommodation • 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

3. Update on Homeless prevention and numbers in TA • 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.

4. Homelessness Acceptance Trends • 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

5. Homelessness Trends – relatively stable outside of London • 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.

6. What is the story of TA for 2015 and beyond? • 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

7. Pressure from the Courts on TA • 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

8. So why are we here today if TA outside of London is in control? • 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

9. 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 • Structure • Delivery Options • Analyse types of TA used or could be used • Strategy and administration – property pool and essential checks • Financial – making TA cost neutral

10. Delivering your Temporary Accommodation Service in the future - Structure • 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

11. Delivering your Temporary Accommodation Service in the future – who might provide the service • 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

12. Temporary Accommodation services in the future – Analyse use by type of TA • 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

13. 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

14. Temporary Accommodation services in the future – Analyse use by type of TA Private Sector Leasing • 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

15. 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.

16. 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…

17. 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

18. 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

19. 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

20. Temporary Accommodation services in the future – A new Strategy for TA • 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

21. Temporary Accommodation services in the future – A new Strategy – the “Property Pool” • 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

22. 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

23. Temporary Accommodation services in the future – A new Strategy – the “Property Pool” • 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

24. Temporary Accommodation services in the future: A new Strategy – Better Administration • TA Administration and Placement essential checks • More ‘science’ to placement checks such as: • Support needs assessment • Financial ability to pay assessment – LHA qualifies; working and affordability; impact welfare reform; ensuring debts are tackled • Suitability assessment • Better off in work assessments • 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)

25. Temporary Accommodation services in the future: Making TA cost neutral • 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

26. 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.