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16-278
PAPER NO.
WANDSWORTH BOROUGH COUNCIL
HOUSING AND REGENERATION OVERVIEW AND SCRUTINY COMMITTEE –
6TH JULY 2016
FINANCE AND CORPORATE RESOURCES OVERVIEW AND SCRUTINY COMMITTEE –
7TH JULY 2016
EXECUTIVE – 11TH JULY 2016
Report by the Chief Executive and Director of Administration on the Council’s plans to address
housing needs, the allocation of social housing and its management of housing resources
including a review of its acquired sales policies in 2016/17.
SUMMARY
This report sets out proposals on the allocation of housing resources in 2016/17 to ensure that
the Council is maximising resources to meet identified housing needs, including for the
temporary and permanent housing of homeless households. To support these proposals, the
report forecasts housing supply and recommends an allocation plan for approval, adoption and
monitoring by Members during 2016/17.
The report also provides forecasts for the use of temporary accommodation during the year
and recommends rehousing targets for 2016/17 so the Council is able to demonstrate that it is
effectively using resources available to meet its statutory duties relating to housing the
homeless. The report also sets out the rationale for the allocation of social housing resources
to a number of non-statutory rehousing queues and how these rehousing demands have been
balanced against the Council’s statutory housing responsibilities. The report also makes
recommendations for changes to the Council’s Housing Allocation scheme.
The report provides details of activity around former acquired homes in 2015/16. This covers
the use of claw-back from sale and properties referred for sale during the year and details
outcomes under the revised policy approach approved in Paper No. 15-198 a year ago,
whereby consideration is given to the replacement of a vacant unit through purchase
elsewhere so as to achieve either improved value for money and/or additionality.
Other home ownership initiatives available to Council tenants and Borough residents in
2016/17 and the anticipated benefits of these schemes to the Council and to the Borough
generally are set out in the affordable housing update report (Paper No. 16-279) elsewhere on
this agenda.
Performance against forecasts and targets will be regularly monitored by Members who will be
able to consider any amendments recommended by the Director of Housing and Community
Services as appropriate, to ensure that the Council is properly meeting its rehousing
responsibilities and balancing these requirements against other policy and financial objectives.
The detailed comments of the Director of Finance can be found in section 5.
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GLOSSARY
AST
Assured Shorthold Tenancy
B and B Bed and Breakfast
BRMA
Broad Rental Market Area
CLG
Communities and Local Government
COSTA
Council-Owned Supported Temporary Accommodation
DHP
Discretionary Housing Payments
DWP
Department for Work and Pensions
EEA
European Economic Area
EIA
Equality Impact Assessment
EU
European
Union
GLA
Greater London Authority
HALS
Housing Association Leasing Scheme
HB
Housing
Benefit
HPG
House Purchase Grant Scheme (Portable Discounts)
HRA
Housing Revenue Account
LHA
Local Housing Allowance
NGS
New Generation Scheme
NHHG
Notting Hill Housing Group
OOB
Out of Borough
PLA
Private Licence Agreement
PRS
Private Rented Sector
PRSO Private
Rented
Sector
Offer
PSHI
Private Sector Housing Initiative
PSL
Private Sector Leasing
PTT
Permanent as temporary (accommodation)
RSL
Registered Social Landlord
RTB
Right to Buy
SHMA
Strategic Housing Market Assessment
SSA
Shared Staffing Arrangement
SSSC
Social Sector Size Criteria
SPSS
Stay Put Stay Safe
TLC
Tendered Leasing Contract
TWBC Total
Welfare
Benefit
Cap
UASC
Unaccompanied asylum seeking children
UC
Universal
Credit
UK
United
Kingdom
UKBA
United Kingdom Border Authority
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RECOMMENDATIONS
1. The
Housing
and
Regeneration
Overview
and Scrutiny Committee are recommended to
support the recommendations in paragraphs 3(a)-(s) and the Finance and Corporate
Resources Overview and Scrutiny Committee are recommended to support the
recommendations in paragraph 3(s)-(t).
2. If the Overview and Scrutiny Committees approve any views, comments or
recommendations on the report, these will be submitted to the Executive or General
Purposes Committee for information.
3. The Executive is recommended to recommend to the Council:-
Recommendations relating to Sections 1 and 2:
(a) to note the final outturn position on homelessness in respect of homelessness
demand in 2015/16 and in respect of the number of households accommodated in
various forms of temporary accommodation at 31st March 2016 (paragraphs 8 to
16 and paragraph 26);
(b) to note the continued high levels of new homelessness demand generally, and
specifically from the private rented sector during 2015/16 (paragraphs 17 to 19 )
and improved performance in that year around homelessness decision making
(paragraphs 20 to 25);
(c) to note levels of use of bed and breakfast generally, and for families with children
specifically, the reasons for that and to note the position generally about the
location and quality of temporary accommodation for the homeless in use at 31st
March 2016 (paragraphs 27 to 35);
(d) to note activity during the year 2015/16 regarding the purchase of large properties
for use as temporary accommodation (paragraphs 42 and 43);
(e) to note that the average period spent in temporary accommodation by those
rehoused in the year was increased compared to the previous year, in view of
increased demand during the year (paragraph 44 and table 10);
(f) to note the final outturn position on homelessness prevention activity and other
homelessness issues in 2015/16 (paragraphs 47 to 52 and Table 1);
(g) to note the comparative position across London in relation to the use of temporary
accommodation (paragraphs 54 to 56);
(h) to note the possibility of legislative change to homelessness provisions during
2016/17 (paragraph 58);
(i) to note the contextual background around the risk of increased homelessness
demand and around other homelessness related activity in 2016/17 and the
intention to bring further recommendations forward if significant homelessness
demand due to the previous and forthcoming reforms around welfare benefits, or
for other reasons, manifests itself during the year (paragraphs 59 to 75);
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(j)
to approve the various forecasts for the use of temporary accommodation during
2016/17 for both statutory homeless households (paragraphs 76 to 82 and Tables
2 and 3) and for asylum seekers and other destitute persons (paragraphs 124 to
126);
(k) to approve a target of 574 accepted homeless households receiving an offer of
accommodation to bring the full duty to an end, during the year, to include an offer
of a PRSO wherever possible (paragraphs 83 to 88);
(l) to note the position in terms of future procurement of non bed and breakfast
temporary accommodation under the Private Sector Leasing Scheme during
2016/17 and note the Director of Housing and Community Services’ view that, in
the light of various challenges arising from welfare benefit reform, procurement
wholly within the Council’s own district may not be reasonably practicable
(paragraphs 89 to 90);
(m) to note the continuing, significant number of larger households accepted for the
main duty in 2015/16 albeit that they reduced compared to previous years and the
range of measures to meet that category of demand (paragraphs 93 to 114 Tables
4-7);
(n) to approve the targets for homelessness prevention activity in 2016/17 (paragraphs
118 to 121 and Table 8);
(o) to note the final outturn position in 2015/16 around performance against that year’s
resources and commitments forecasts, including details of waiting times for those
rehoused and of numbers registered on the housing queues at the end of the year
(paragraphs 136 to 161 and Tables 9, 10 and 11);
(p) to approve the resources forecast for 2016/17 and the commitments forecast for
2016/17 (paragraphs 162 to 179, Table 12 and Appendices 3 and 4);
(q) to consider the EIA Appendix 8 and to approve in principle, subject to consultation
lasting 6 weeks with registered providers and other organisations listed on the
Housing and Community Services Department’s consultation database, the various
changes to the Housing Allocation Scheme proposed as are detailed in Appendix
7, and to note that a report will come to the September 2016 cycle. That report will
cover the outcome of that consultation, any amended recommendations around the
content of the scheme, an EIA on the impact of those final recommendations and a
proposed effective date and implementation strategy, as necessary (paragraphs
180 to 192);
(r) to note developments around the various National Mobility Schemes and
outcomes achieved during 2015/16 (paragraphs 193 to 200);
Recommendations relating to Section 3 – former acquired properties:
(s) to approve the continuation of the revised policy around the sale of former acquired
properties, as approved a year ago via Paper No. 15-198, noting activity during
2015/16 (paragraph 202 to 211) and to confirm delegated authority to the Director
of Housing and Community Services to purchase accommodation under those
policies; and
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(t) to approve a Housing Revenue Account positive capital budget variation of £5.3
million in 2016/17 only, for the purchase of replacement larger units aimed at
increasing the supply of larger family units to help to meet rising demand or through
the purchase of decant units in and around the regeneration scheme areas.
INTRODUCTION
4.
This report is set out in six sections:-
Section 1 - homelessness review
Section 2 - resources and lettings review
Section 3 - former acquired properties and sales activity
Section 4 - legal issues
Section 5 - financial implications
Section 6 - report summary and conclusions
This is accompanied by eight Appendices: -
Appendix 1 –
2015/16 homelessness demand and assessment
Appendix 2 –
2015/16 temporary accommodation and permanent rehousing
Appendix 3 –
2015/16 resources forecast and actual and 2016/17 resources
forecast
Appendix 4 –
2015/16 commitments forecast and actual and 2016/17
commitments forecast
Appendix 5 –
Housing Act 1996, Children Act 2004, Homelessness Code of
Guidance (2006) and Supplementary Guidance (2012)
Appendix 6 –
Proposed NRPF rates effective 1st August 2016
Appendix 7 -
Draft revised Housing Allocations Scheme
Appendix 8 -
Equalities Impact Assessment re Appendix 7
BACKGROUND
5.
The Council carries out an annual review of housing needs, housing allocations and its
sales plans to ensure that it continues to meet its statutory and regulatory housing
responsibilities, maintains a viable Housing Revenue Account (HRA) business plan and
meets wider Borough objectives set out in the Council's Sustainable Communities
Strategy published in 2008. That strategy provides the basis for the development of more
detailed housing policies and plans with annual actions being identified against these
objectives in the Council’s key issues action plan.
6.
The most recent review was undertaken at this time last year and its findings and
recommendations were set out in Paper No.15-198 that was approved by the Council in
July 2015.
SECTION 1: HOMELESSNESS ISSUES
7.
The following section sets out the Council’s plans to meet its responsibilities to prevent
and provide advice, assistance and accommodation to homeless households as required
by the Housing Act 1996 Part VII (as amended by both the Homelessness Act 2002 and,
more recently, by the Localism Act 2011).
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2015/16 – the year in review
8.
By way of historical context, between 2004/05 and 2009/10, the Council achieved a 72
per cent reduction in its use of temporary accommodation for statutory homeless
households which, compared to the position at December 2004, was the largest
percentage reduction amongst all London boroughs. Temporary accommodation at 31st
March 2010 stood at 435 households accommodated across all forms of accommodation.
However, in 2010/11 through 2014/15 increased homelessness demand was seen which
resulted in increased use of temporary accommodation that, at 31st March 2015, stood at
1,057 households accommodated across all types of temporary accommodation.
9.
Paper No. 15-198 approved a recommendation of closing 2015/16 with1,307 households
accommodated, with that forecast predicated on an ‘intake’ into temporary
accommodation during the year of 750 'net' admissions and an 'outflow’ from temporary
accommodation of 500 accepted homeless households being rehoused, having accepted
an offer made under the Housing Allocation Scheme.
10. As set out in Appendix 2, 2015/16 saw steady rises in the use of temporary
accommodation against that forecast during the year, with numbers rising in all but two
months of the year but with sharper rises in the final quarter of the year from an opening
position at the beginning of April of 1,057.
11. The trend seen over recent years in high levels of homelessness arising from the Private
Rented Sector (PRS) continued during 2015/16 and is echoed regionally, sub-regionally
and nationally. In England, as per the Communities and Local Government’s (CLG’s)
‘December 2015’ statistical release on homelessness (the most recent release available),
the loss of an assured short-hold tenancy was the single biggest reason for acceptance
of the full duty in 31 per cent of cases across the whole of England, with this reason for
homelessness now being the most common reason for 15 consecutive quarters.
12. The position is worse in London where the same statistical release confirms that the loss
of an assured short-hold tenancy was the reason for acceptance of the full duty in 40 per
cent of cases. In Wandsworth, in 2015/16, 50 per cent of households accepted for the full
duty were homeless for this reason, slightly up on the previous year.
13. In London, between April 2015 and December 2015, the use of temporary
accommodation increased by just under five per cent from 48,238 placements to 50,006
(out of a total across England of 69,140), with 25 of the 32 London boroughs (excluding
the Corporation of London) reporting increased numbers over that period. The change
over that period ranges from minus seven per cent (Camden) to +25 per cent (Harrow).
The Council’s was +11 per cent, almost exactly the same as both Lambeth and Croydon.
14. In Wandsworth, during 2015/16, 1,231 households approached the Council presenting
themselves at risk of homelessness; an increase of 1.5 per cent against the previous
year. Cases admitted to short-term temporary accommodation under the ‘interim’ duty
were 2 per cent lower than the previous year (1,068 compared with 1,088). Generally
speaking, homeless demand was at similar levels to the previous year which is in
contrast to the previous 5 years which saw year on year increases.
15. ‘Net’ admissions in temporary accommodation (those admitted into temporary
accommodation but excluding those subsequently refused the main duty) were again at
very similar levels to the previous year 2014/15 (757 compared to 749) but some twenty
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three per cent higher than in 2011/12 (757 compared to 582).
16. Cases accepted under the ‘main’ duty, 855 compared with 787 cases in 2014/15,
increased by eight per cent. The main duty was not accepted in 382 cases, compared
with 332 in the previous year, an increase of 13 per cent.
17. With regard to the main causes of homelessness, 2015/16 was notable for a continuing
trend in terms of homelessness arising within the PRS, where tenants generally have
assured short-hold tenancies (ASTs) which offer only limited protection from eviction and
where, amongst those seeking assistance from the Council as homeless, rental costs are
very often met (partially or wholly) with the assistance of Local Housing Allowance (LHA).
18. In 2015/16, homelessness as a result of the end of an AST was 50 per cent of all cases
accepted which represents a slight percentage increase, compared to 2014/15, when
homelessness as a result of the end of an AST was 48 per cent of all cases accepted.
The preceding two years show 52 per cent in 2013/14 and 43 per cent in 2012/13.
19. 2015/16 was the seventh year of significant homelessness for this reason, given that this
cause of homeless was previously very much marginal at just 13 per cent in 2009/10.
The other main reason for homelessness acceptance in 2015/16 include family and
friends’ exclusions (28 per cent) with all other reasons combined making up the balance.
20. Performance in relation to the assessment of homelessness applications fell short of
targets set a year ago with 54 per cent of statutory decisions made within 33 working
days compared to (a) a target of 60 per cent but also to (b) 39 per cent in the previous
year and (c) to the Code of Guidance (at paragraph 6.16) which recommends that,
wherever possible, authorities should aim to assess homelessness applications within 33
working days. The shortfall against target was as a direct result of the factors described
in the paragraphs that follow.
21. However, and more generally, as regards that part of the statutory guidance, the Director
of Housing and Community Services has had regard to it but considers that the
recommendation in the Code, which applies to all councils across England ranging from
those with minimal levels of homelessness to those such as Wandsworth with perennial
and increasing pressures, is unrealistic in the current local context as set out throughout
this report.
22. However, Members will wish to note that, in 2015/16, the average time to conclude the
assessment of homelessness applications decided during the year was 48 working days,
compared to 60 in the previous year. The shortfall in performance against the 33 day
target in 2015/16 was due to the significant number of cases dealt with during the year
and, to a lesser extent, to the fact that the higher incidence of homelessness from the
PRS necessitates more enquiries than was, generally speaking, needed when dealing
with friend and/or family exclusions, which used to be the single most common cause of
homelessness.
23. Further, during the year, there was some turnover of staff and vacant posts have latterly
been filled by temporary staff in advance of proposals for the shared staffing arrangement
with the London Borough of Richmond-upon-Thames (Paper No. 16-138).
24. Performance against target improved during the year with the running caseload of cases
under assessment much reduced to stand at a total of 112 at the end of March 2016
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compared to 183 at the end of April 2015; a decrease of forty per cent. It is expected that
performance will continue to improve through 2016/17, to meet or better the 60 per cent
target working towards implementing the revised structures approved for Housing
Services as part of the shared staffing arrangement during the 2nd half of the year.
25. Appendix 1 to this report sets out the year-end position around homelessness demand
and the assessment of applications in full.
26. In relation to the use of temporary accommodation, 2015/16 closed with 1,309
households (all sizes) across all forms of temporary accommodation, (against a revised
forecast of 1,307) including 152 housed in bed and breakfast (B and B) accommodation
of which 57 were families with children. Family households should only be
accommodated in B and B for a maximum six week period, except where the placement
is made at the Council’s discretion e.g. during a review or appeal against refusal of the
main duty (see further at paragraph 29 below).
27. During the whole of 2015/16, 105 separate families were accommodated in B and B
accommodation for longer than six weeks, with the average time of 9 weeks and a
longest time of 29 weeks. The number of families placed in such accommodation at the
end of each month during the year is set out within Appendix 2 and ranged from 5 at the
end of May 2015 to 17 households at the end of March 2016. The year closed with 17
families in B and B for longer than six weeks which was unfortunately the highest during
the year, reflecting both demand in the 4th Quarter and that offers of other
accommodation made during the latter part of March are not occupied by month end. For
context and reassurance, all seventeen households were under offer of alternative non
bed and breakfast accommodation at month end.
28. The use of B and B generally, and for families in particular, during the year remained
more or less stable which, in the context of the overall global rise in the use of temporary
accommodation and of increased homelessness demand was a notable achievement by
the teams concerned. Further, it is notable that, as a percentage of all temporary
accommodation, bed and breakfast use represented 19 per cent at March 2010 but 12
per cent at March 2016. However, the continuing use of B and B for families with children
remains certainly the most concerning feature in 2015/16.
29. A minority of those households (including the longest stayer) were accommodated at the
Council’s discretion pending either a statutory review under s202 or an appeal under
s204 of the Housing Act 1996 and, as such, were outside the terms of the Homelessness
(Suitability of Accommodation) (England) Order 2003. Members will recall that that Order
'outlaws' the use of B and B accommodation for families with (or expecting) children,
except in an emergency and then for no more than six weeks. Where families remain in B
and B for longer than six weeks (unless outside of the terms of the Order), it is important
to note that the Council is not discharging its duties lawfully as the Order offers no
flexibility or room for its’ application to be shaped by the context. Appendix 2 to this report
sets out the year-end position in full.
30. The increased use of temporary accommodation in 2015/16 in line with the forecast(s)
approved last year was again because of high new homelessness demand generally,
from the ending of ASTs particularly and specifically because of increased family case
demand during the year. Other factors in play include difficulties in procuring sufficient
numbers of Private Sector Leased (PSL) units, the slow down in properties secured for
the prevention of homelessness under the Private Sector Housing Initiative (PSHI) and
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Out of Borough (OOB) schemes and, of greatest significance, the shortfall against the
overall resources forecast generally as detailed further below.
31. Lastly, it will also be noted that the overall, average time spent in B and B during 2015/16
by all families with children placed into such accommodation for any length of time was
actually 6.12 weeks, compared to 5.43 weeks in the previous year 2014/15.
32. The reality in 2015/16 was, therefore, that, in the face of increased homelessness
demand, more families were admitted into B and B and, although the average time in
such accommodation increased slightly, a still significant number stayed longer than six
weeks, albeit that some did so on a discretionary basis following refusal of the main duty.
33. It will be noted that the revised forecast for the level of temporary accommodation proved
accurate but that, within that, the forecast for B and B use, was not met albeit that
number reduced overall across the year. It should also be noted that B and B use
remains prohibitive in terms of General Fund costs, in that the maximum Housing Benefit
(HB) subsidy level for B and B is set at the applicable single person rate, regardless of
the size of household placed into such accommodation.
34. The various targets, strategies and measures recommended around homelessness and
the use of temporary accommodation in 2016/17 are intended to mitigate and reduce the
Council’s reliance on B and B type accommodation to a minimum so as to comply with
the requirement of the suitability order detailed above. As previously mentioned, this has
proved problematic in recent years and may do so again in 2016/17 if homelessness
demand were to increase further, if the pattern of that demand involves any particularly
sharp spikes and/or if those targets, strategies and measures are not accurate and/or not
delivered in full.
35. However, the trend over 2015/16 showed a stable level of use above six weeks
(excluding March 2016) and, in fact, it is often the case that, as families enter their
seventh week in such accommodation, they have accepted, or are under offer of, non
bed and breakfast type temporary accommodation. The use of bed and breakfast for
families is particularly sensitive to the peaks and troughs of demand and supply but it is
expected that, during 2016/17, the use of bed and breakfast will be further reduced to
ensure compliance with the terms of the order.
36. The reason for the overall increase in the use of temporary accommodation for the
homeless at year-end was the increase in homelessness demand seen during the year
referred to above. In Paper No. 12-64 (January 2012), it was reported that, under existing
delegated authority, the Director of Housing had decided to increase the number of
general needs units of (permanent) social housing used as temporary accommodation for
the homeless. This was intended to mitigate, insofar as possible, the increase in B and B
use and this continued through 2015/16 with 251 such units occupied by homeless
families (almost all with children) by year end compared to 187 units occupied at the
beginning of the year. This measure will continue to be applied during 2016/17 as
detailed further below.
37. By
31st
March
2016,
against
a
forecast
of
500 homeless rehousings (into both the social
and private rented sectors) during the year, 494 had been offered and accepted by
homeless households bringing that duty to an end. Additionally, 24 offers were made to
accepted homeless families but were not (yet) accepted at the end of March 2016. The
near full achievement of the forecast for homeless rehousings was a consequence of the
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over achievement against the global resources forecast, as explained in more detail in
paragraphs 136 to 140.
38. In terms of the quality and location of temporary accommodation used by the Council in
the performance of homelessness duties, 65 per cent of all temporary accommodation
used at the close of the year was located within the Borough, with a further 24 per cent
located in other south west London boroughs (principally the adjacent boroughs of LB
Croydon and LB Lambeth), with 10 per cent elsewhere in London and just 1 per cent
accommodated outside of London. The majority of out of borough placements comprises
B and B and/or annex type accommodation, of which there is a very limited supply within
the Borough, occupied on a spot purchased basis often at short notice. Out of the 1,309
placements made at the end of March 2016, 157 were in B and B whereas the other
1,152 (or 88 per cent) were spread across other types of temporary accommodation,
which, by a large majority, provide self contained accommodation.
39. Also of interest from the CLG’s December 2015 homelessness release is the fact that
Wandsworth makes relatively low use of ‘out of borough’ temporary accommodation
amongst the inner London boroughs; the 5th lowest amongst those twelve boroughs with
the lowest being Lewisham with 22 per cent and the highest being the Royal Borough of
Kensington and Chelsea with 72 per cent placed out of borough.
40. A feature of the year was the continued significant use of what is commonly known as ‘B
and B annex’ accommodation. These are self contained flats let out by (mainly) B and B
providers on a nightly rate basis; at 31st March 2016, 45 such units were occupied
compared to 55 at the beginning of the year. During recent years, rates charged for such
accommodation had increased but working collaboratively with others boroughs, rates
began to reduce in the latter part of 2014/15 and remained stable through 2015/16.
41. The portfolio of self contained temporary accommodation includes 236 households
occupying units within the Council’s own hostel stock, for example at Nightingale Square
(Nightingale), at Edwin Trayfoot Lodge (Latchmere) and at Carnie Lodge (Bedford)
compared to 230 at the beginning of the year. The increase reflects the completion of
conversion works at Battersea Park Road (Latchmere) to create 7 new large units of self
contained hostel accommodation and the letting of those units in late summer 2015. It
also includes 287 households in privately leased accommodation, compared to 191 at
the beginning of the year and, as mentioned above, 251 in Council short term
accommodation.
42. In Paper No. 14-413, the purchase of properties on the open market, using HRA capital
funding, for use as temporary accommodation was approved, as part of the response to
the significant increase in large family homelessness in recent years which, as detailed
below, continued in 2015/16, albeit at a reduced pace than that in previous years. During
that year 19 properties were purchased of which 11 were within Wandsworth and 8
outside the borough boundaries. In total 3 x 5 beds, 4 x 4 beds and 1 x 3 beds were
acquired outside of the borough. The five beds were acquired in Reigate and Banstead,
Kingston and Croydon, the four beds were acquired in Mole Valley, Reigate and
Banstead, and Crawley. The only three bedroom unit was acquired in Epsom. A number
of these properties have multiple reception rooms which can be utilised as additional
bedrooms where required.
43. Eleven properties were acquired within the Borough of Wandsworth. The portfolio
consists of 2 x 1 bedroom flats, 4 x 3 bedroom flats, 1 x 3 bedroom house, 2 x 4 bedroom
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flats, 1 x 4 bedroom house and 1 x 5 bedroom flat. Of these units five are in close
proximity to the Winstanley / York Road regeneration area. A further three units are
located within the Alton estate. All will be initially used as temporary accommodation
ahead of providing local decant rehousing opportunities once the phasing of the re-
provision, decanting and demolition process gets further advanced.
44. The average time spent in temporary accommodation (all forms) was 14 months for
households accepted for the main duty and who were rehoused into both the Council’s
own stock and into other registered providers' stock during the year, which was higher
than was the case in 2014/15 (13 months).
45. Further, the average time for all households who left temporary accommodation during
the year (including those accepted for the main duty and rehoused as well as those
refused the main duty) was also higher at 12.5 months (8.7 months in 2014/15).
46. The increased waiting times are the inevitable consequence of both increased levels of
homelessness admissions and acceptances over recent years, of the changed profile in
terms of household composition amongst those accepted for the full duty, with very many
more large households and the relative slowdown in the supply of properties becoming
available, from all sources, for offer to bring that duty to an end.
47. In relation to homelessness prevention, 2015/16 was another difficult year, again in view
of rising homelessness demand and a falling away in the number of landlords prepared to
accept nominations from the Housing Options Service. Moreover, the guidance given by
the Supreme Court in the case of Nzolameso v Westminster City Council (Judgment 2nd
April 2015), concerning how local authorities fulfil their duty under s208(1) of the Housing
Act 1996 `so far as reasonably practicable’ to secure accommodation within their own
district, made the sourcing of, and reliance upon, a Private Rented Sector Offer (PRSO)
to bring an accepted homelessness duty to an end much more problematic.
48. For 2015/16, a combined target of 175 'preventions' was set for the PSHI, OOB and Stay
Put Stay Safe (SPSS) schemes. Outturns by the close of the year were as set out in
Table 1 below.
Table 1
Prevention scheme
2015/16 forecast
2015/16 actual
SPSS
50
58
PSHI (including PRSOs)
100
29
OOB
25
12
Total
175
99
49. The reasons behind the falling away in the volume of properties being accepted as an
option to prevent homelessness are exclusively a supply side issue with fewer landlords
willing to work with the Council. Anecdotally, it is understood that this is in common with
other boroughs in the south west London sub region and that a significant factor has
been ongoing nervousness on the part of landlords around continuing to let to tenants
who are, in the most part, reliant on successfully claiming welfare benefits, in particular
LHA (also known as HB), in view of the wider context of welfare reform. The buoyant
private rental market for people not reliant on welfare benefits is also thought to be a
factor.
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50. In relation to the OOB scheme, the same reasons apply to the lower than forecast level of
activity seen in 2015/16. For the last few years, properties moved to have been more or
less exclusively taken up by the Council’s own tenants seeking to move away from the
Borough for family, employment or other reasons. The 12 households moved under the
scheme during the year re-located to places such as Kent, West Sussex, Hampshire,
Yorkshire and Cardiff.
51. As mentioned above, the proportion of accepted homeless households whose
homelessness arose from the PRS remained by some margin the single biggest cause of
homelessness in the borough. During the year, and prior to any homelessness
assessment being completed and the full duty being accepted, applicants continued to
have an unfettered choice to reject an offer of suitable PRS accommodation. It is perhaps
not surprising that many applicants expressed reluctance or a refusal to consider being
assisted in this way if a greater percentage of applicants have recently become homeless
from this sector. The use of PRSOs to bring the main duty once accepted is reported and
discussed below.
52. In respect of the SPSS scheme, whereby households at risk of homelessness through
domestic or other violence are assisted to remain in their current home, via multi-agency
working and with enhanced security measures, there were 58 cases completed during
the year, compared to 70 in 2014/15, overachieving against target.
53. In respect of youth homelessness, the use of B and B for 2016/17 year old applicants
under the terms of the Housing Act (as opposed to the Children Act) was kept to an
absolute minimum during the year. In 2015/16, the range of numbers in B and B was
between none and seven at any one time, with those young people placed there in an
emergency and then for very short periods of time. Between August 2015 and March
2016, only one young person was placed into bed and breakfast with no placements at
all after August.
54. Notwithstanding the problematic issues discussed above, the Council’s position in
relation to the use of temporary accommodation for the homeless during 2015/16
compared favourably with the results found in London as a whole. The most up to date
figures on the use of temporary accommodation (available from the P1(E) statutory
homeless returns posted on the CLG website) are those as at 31st December 2015,
when Wandsworth (with 1,139 placements) had the 19th lowest number of households in
temporary accommodation out of the 32 London boroughs (excluding the City of
London). The position a year ago saw Wandsworth as the 20th lowest user of temporary
accommodation.
55. The boroughs with lower numbers than Wandsworth (in addition to the City of London
which is not a borough) were: London Borough of Merton (167), Richmond upon Thames
(241) London Borough of Sutton (372), London Borough of Camden (426), London
Borough of Greenwich (427), London Borough of Hillingdon (574), London Borough of
Kingston (599), London Borough of Havering (659), London Borough of Bexley (769),
London Borough of Harrow (789), London Borough of Islington (924), London Borough of
Hounslow (1,073) and the Royal Borough of Hammersmith and Fulham (1,123). Of the
twelve inner London boroughs, the Council’s was the fifth lowest.
56. The period March 2015 to December 2015 shows a consistent picture across London
with 25 of the 33 London boroughs seeing their use of temporary accommodation
increase with just 8 seeing their use decrease. The range was between minus 219
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placements and plus 569 placements. The change over that period range from minus
seven per cent (Camden) to +25 per cent (Harrow). The Council’s was +11 per cent,
almost exactly the same as both Lambeth and Croydon. As mentioned above, trends in
terms of the number of households accepted both nationally and regionally are on an
upward trend.
57. In summary, 2015/16 proved to be another challenging year in which significant levels of
homelessness demand continued, in common with wider trends, along with a reduction in
the supply of self-contained temporary accommodation and of PRS accommodation
available to prevent and address homelessness. Demand was at very similar levels to the
previous year coming after five years of year on year increases; although it would unwise
to assume that the trend line has or will flatten. The use of bed and breakfast, generally
and for families with children did not reduce as forecast but did not increase in terms of
gross numbers and actually reduced as a percentage, reflecting well on the teams
involved, when seen in the proper context as set out in above.
2016/17 – issues for the current year
Possible reform of Homelessness duties
58. In December 2015, the Housing Minister announced that Government would work with
homelessness organisations and across government departments to explore options,
including legislation, to prevent more people from facing a homelessness crisis in the first
place. At the time of drafting this report, the Parliamentary Communities and Local
Government Committee was carrying out an inquiry into homelessness, and took oral
and written submissions in February through April 2016. Once the Committee’s
conclusions are promulgated and, if they lead to changes to homelessness provisions,
these will be reported to this committee as soon as possible.
Contextual
background
59. Given the longer term trends of increased levels of homelessness demand and increased
use of temporary accommodation, including at the end of 2015/16, there are a number of
reasons why homelessness demand may be assumed to be likely to continue to run at
significant levels during the (now) current year, given that the Council has again entered
the year on an upward trend.
60. 2015/16 was characterised by continuing significant homelessness demand and this will
not have been limited to this Council. Nationally, regionally and sub regionally, the
number of homeless households accepted for the 'full duty' has increased as has the use
of temporary accommodation. 2015/16 was the sixth consecutive year when
homelessness has been increasing coming after a number of years when homelessness
demand was generally decreasing. There are a number of risks and threats around a
continuing and perhaps steeper rise in homelessness and the use of temporary
accommodation in 2016/17.
61. Risks around continued high levels of homelessness demand include any consequences
in terms of increasing homelessness arising from any further deficit reduction/welfare
reform programmes. The roll out of Universal Credit (UC) remains restricted to single
people, who would normally claim job seekers allowance, across the Borough and not to
family households; the timeline for which remains unconfirmed.
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62. However, because temporary accommodation placements cross borough boundaries,
there are some areas, notably in Croydon, where the roll out of UC is more advanced,
potentially impacting significantly on rent collection levels and temporary accommodation
arrears, if monies paid direct to the homeless family are not paid onto the Council. It is
too early to quantity the risk of this but officers will need to finalise procedures for the
early identification of such cases and for implementing such remedial measures as may
be possible.
63. Moreover, the current LHA levels are not keeping pace with rents being charged
elsewhere in the borough for tenants not needing to seek LHA/HB support in meeting
rental obligations. This coupled with the fact that the LHA claimant caseload has begun
to reduce suggests that the LHA reliant housing sub sector may be reducing and that that
local landlords may increasingly look to leave that sector in future.
64. Further, there are two previous major welfare benefit reforms, that came into effect during
2013/14 and which continue to carry the potential to cause homelessness in 2016/17.
65. The first of these is the Social Sector Size Criteria (SSSC) which took effect from April
2013 and which reduces automatically the level of HB to those below pensionable age
(or otherwise not exempt) living in the social housing sector who occupy ‘too large’
accommodation for the current household composition. It will be recalled that HB is
reduced by 14 per cent where the household have one bedroom more than their
assessed need and by 25 per cent where they have two or more bedrooms too many.
Locally, there remain 950* Council tenants losing an average of £24.70 in HB per week
and 469* registered provider tenants losing an average of £23.42 in HB per week
affected by this (*figures as at 11th April 2016).
66. During 2013/14, in 2014/15 and again in 2015/16, no household affected by the SSSC
was evicted as a direct result of the SSSC and the general policy for Council tenants is
that eviction action will be abated and/or Discretionary Housing Payment (DHP) awarded
as long as the affected household is engaging with the Council to move to right sized
accommodation or is otherwise taking steps to fully occupy their home. During recent
years including in 2015/16, as detailed below, an increased number of under-occupying
households were assisted to move and the Allocations Plan recommended as a part of
this report makes reasonable provision for such moves in 2016/17.
67. The second welfare benefit reform that took effect in 2013/14 and which continues to
have the potential to impact in the current year is the Total Welfare Benefit Cap (TWBC)
that saw the maximum weekly income any household with children that is below
pensionable age (or otherwise unexempted) that is not working at least 24 hours per
week can receive in benefits capped at £500 per week, including HB. It is also worthy of
note that the government will reduce the total welfare benefit cap to reflect £23,000 per
annum, as opposed to £26,000 as presently applied, which is expected to come into
effect in the Autumn of 2016.
68. As members will recall, this reform went live in Wandsworth in August and September
2013 and, locally, although in excess of 1,100 have been subject to the cap at some
point since implementation, the ‘running’ caseload of capped households has settled at a
reduced level of around 296 (much lower that the original estimate of circa 875 affected
households provided by the Department for Work and Pensions (DWP) and indeed lower
than the 450-500 households in the rolling caseload that emerged in the months
immediately after rollout).
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69. However, amongst the 296 or so households there is currently an average loss in HB of
£56.20 per week. It will be recalled that HB is the first form of benefit that will be reduced,
down to a residual level of £0.50 per week if necessary, and it is very notable that around
55 per cent of the households believed to be affected live in the PRS, with only limited
security of tenure allowing landlords to recover possession within a relatively short
timescale if they are minded to do so.
70. As such, any risk of increased homelessness as a result of the SSSC can perhaps be
assumed to be less than significant in 2016/17. However, it may be the case that as
2016/17 progresses, homelessness presentations from households affected by the
reduced level of TWBC will begin to be seen, although it remains impossible to attempt to
quantify how many and by when but it seems prudent to expect that a significant minority
of those households subject to the cap and/or reduced cap may subsequently apply for
statutory homelessness assistance. As a general point, where eviction was due to rent
arrears that are attributable, upon investigation, to the reduction in benefit as opposed to
a default by the tenant, a finding of intentional homelessness is unlikely.
71. Given these potential risks it is reasonable to assume that there will be a continuing and
significant rate of homelessness from the local private rented sector with the likelihood
being that larger family cases would be more susceptible to (statutory) homelessness,
given the larger reductions in benefits applicable to larger households including potential
readjustments of the total welfare benefit cap. In turn property released is likely to be let
to a different and more affluent market including sharers and those who cannot move into
home ownership. This has been the experience in 2011/12 through 2015/16 and
2016/17 brings a real prospect that this effect will continue. The forecast of 750 net
admissions in 2016/17 has been developed on this raft of assumptions.
72. To illustrate this, it is noteworthy to compare the number of accepted ‘full duty’ cases on
the homeless queue needing four, five, six or seven bedroom rehousing. In February
2012, there were seven such cases registered, whereas, at the end of February 2013
there were 20, which rose to 57 at the end of February 2014. At the end of February
2015, the figure had risen further to stand at 82, including 33 needing five/six/seven
bedroom rehousing and stood at 110, including 36 needing five/six/seven bedroom
rehousing, at February 2016.
73. In summary, the dominant issue in 2016/17 will continue to be whether and, if so, by how
much, how fast and in what way homelessness further increases and to what extent the
Council can minimise and mitigate any such rise. During 2010/11 through 2015/16, net
admissions into temporary accommodation significantly increased and have remained at
that increased level.
74. In turn, any such increases may further pressure on the homelessness spend, following
past achievements in reducing the use of temporary accommodation by the largest
percentage in London during the period 2004/05 to 2009/10.
75. If it should be the case that any further significant increase in homelessness demand,
and particularly in respect of larger households needing four bedroom or larger dwellings
upon rehousing, is attributable to the ongoing welfare benefit reform programme set out
above, recommendations as to the scope for, and the detail of, possible remedial action
will be made with appropriate urgency.
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Forecasts for the use of temporary accommodation
76. In view of these issues and of the rise in the use of temporary accommodation in
2015/16, it is recommended that once again a high forecast for net admissions during
2016/17 of 750 be approved, which is similar to that seen in the previous two years but
far higher than was the case earlier in the current decade. This assumes that
homelessness demand, as measured through net admissions in temporary
accommodation under statutory duties will not reduce during the year but will rather
remain at levels seen in 2015/16, which itself represented an increase of ten per cent on
the 2013/14 outturn (and of 38 per cent compared to 2010/11) and to seek to offset that
level of intake, as far as possible, by a significant number of lettings to the homeless
under the allocations scheme and including, where possible via PRSOs. Although
homelessness demand, as measured by net admissions, has been rising over recent
years it stabilised during 2015/16 and, as such, a forecast of 750 during the year is
considered both realistic and reliable.
77. As the final cohort of homeless families in temporary accommodation at 31st March 2016
was 1,309 it will need 574 ‘permanent’ offers to be accepted by homeless households in
2016/17 to see that year close with 1,485 households accommodated in temporary
accommodation; a forecast of a net rise of 175 placements over the year.
78. Accordingly, it is recommended that the following forecasts in Table 2 below for (a)
homelessness intake and outflow through the Council's re-housings and (b) for the use of
temporary accommodation be approved.
Table 2 - Forecast temporary accommodation requirement to meet homeless 'interim'
and 'main' duties 2016/17
Homeless cases in temporary accommodation at 31st March 2016
1,309
(including applicants in referring accommodation)
Add – forecast intake during 2016/17 (net)
750
Assumptions: intake at similar level as 2014/15 & 2015/16.
Sub Total
2,059
Deduct – Forecast for ‘re-housings’ from all sources to include 50 PRSOs
574
Forecast total use of temporary accommodation as at 31st March 2017
1,485
Deduct - Temporary housing available at 31st March 2016
1,309
Forecast – Increase in temporary accommodation requirement during 2016/17
175
79. In terms of where homeless households are forecast to be accommodated and in the
terms of the size and shape of the temporary accommodation portfolio, at the close of
March 2017, it is recommended that the forecast(s) set out in Table 3 below be
approved.
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Table 3 –
Statutory homeless cases in temporary accommodation forecast 2016/17
Homeless cases in
Homeless cases in
short-term
short-term
accommodation at
accommodation at
31/3/2016
31/3/2017
Council Leasing scheme (PSL)
287
400
Nightingale Square
80
80
COSTAs (Council)
195
277*
Council short-term
251
317**
Referrals to local hostels
18
18
Other nightly paid accommodation
215
174
Bed and breakfast inc annexes
103(a)
85(a)
94(b)
84(b)
Applicants in referring accommodation
66
50
TOTAL
1,309
1,485
Forecast increase in the use of short-
175
term accommodation during 2016/17
a) Single vulnerable people
b) Families
*Assumed addition of circa 35 newly acquired larger properties via OOB TA capital purchase scheme.
**Assumed significant growth in council short term via
(i) designation of permanent stock as TA outside of the re-generation areas (as at present) and
(ii) increasing referrals of voids (arising opportunistically or via transfer outside of the re-gen areas)
within the regeneration areas for use as temporary accommodation
80. The key proposed changes to the temporary accommodation portfolio proposed above
are:
(i)
An increase of 113 units of self contained PSL accommodation within and
outside of the borough. In the previous year, 104 units were secured although
the rate of procurement accelerated in the latter part of the year following
revisions to rents offered. At the start of the current year, there were nearly 100
potential units in the tentative pipeline;
(ii)
An increase of 66 self contained units of self contained council short term
accommodation (permanent HRA units used as temporary accommodation; it is
expected that during the year the majority of these will be within the
regeneration areas);
(iii)
Consequent and commensurate decreases in the use of nightly paid and bed
and breakfast accommodation, which is often out of the borough and /or
provides shared facilities.
81. It will be noted that, notwithstanding the assumption of continuing increases in
underlying homelessness demand, the forecasts above involve very challenging issues
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around performance management for the service in the current year. The overall aim is
to limit any impact of continued significant demand, coupled with a reduced supply of
rehousing opportunities, to a net rise on the use of temporary accommodation of 175
placements over the full year. This is important both in terms of how the Council fulfils
its statutory homelessness duties over the year and the associated budgetary
implications.
82. For the period 2004/05 to 2009/10, the Council forecast and achieved successive
reductions in the overall use of temporary accommodation for the homeless, but, given
experience between 2010/11 and 2015/16, it remains no longer possible to do so
without providing the overwhelming majority of offers made under the Housing
Allocations Scheme towards the statutory homeless, who are, of course, just one of the
groups entitled to reasonable preference in the allocation of such housing. Even then,
the numbers of properties predicted to become available during the year which would
be notionally suitable for homeless households would be insufficient, in quantum, to
plan for a reduction in the use of temporary accommodation.
83. Therefore, as set out in section 2 below, it is recommended that a target of 574
‘permanent’ offers to the homeless during 2016/17 is approved as part of the overall
allocations plan set out at Appendix 4. This level of offers represents 47 per cent of
forecast supply.
84. The principal measure in achieving such a challenging target will be the successful
delivery of the significant number of ‘final’ offers made under the Allocations Scheme to
accepted homeless families. Delivering 574 homeless rehousings in 2016/17 when the
year opened with 1,309 in temporary accommodation will necessitate rehousing around
44 per cent of that original cohort and will, in turn, inevitably result in more churn with
the various types of temporary accommodation and increased average periods spent in
temporary accommodation.
Use of PRSOs in 2016/17
85. Paper No. 13-49 approved a policy framework, around making use of the new powers
brought in via the Localism Act 2011, to bring to an end the full homelessness duty via a
suitable offer of PRS accommodation (referred to in this report as a PRSO), without
requiring the applicant’s consent.
86. That reform took effect for households accepted for that duty where their application
was made on or after 9th November 2012 and, during the remainder of 2012/13, and
throughout 2013/14, the reform was given effect and offers made. 27 accepted
households saw the main duty owed to them ended via PRSO in 2014/15 and 9 did so
in 2015/16.
87. Paper
No.
15-198
included
recommendations, approved a year ago, to address the
issues arising from the decision of the Supreme Court in the case of Nzolameso v
Westminster City Council (hearing 17th March 2015 and judgment 2nd April 2015),
discussed in detail in that report. The decision made the making of PRSO offers more
complicated in terms of suitability considerations, specifically around the geographical
location of offers made. The full judgment may be found on the Supreme Court’s
website under “Decided cases”.
88. As mentioned above, the Council made limited use of PRSO’s during 2015/16 and this
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was partly deliberate, with efforts concentrated on procuring PSL units as an alternative
to B and B. During 2016/17, it is recommended that officers secure properties for the
purposes of making a PRSO wherever possible.
Temporary accommodation portfolio 2016/17
89. The forecast for temporary accommodation used during 2016/17 in Table 2 above
assumes no loss of COSTA units or sites but does assume a significant increase in the
PSL portfolio, mainly involving larger properties, and it remains possible that procuring
such units may become more problematic if the private rented sub market were to
contract in the face of the welfare reforms, including the possibility that it may not be
reasonably practicable to procure units within the Borough or indeed within London,
especially for households subject to the TWBC as rents would not be affordable. All
efforts will be made to procure within the Borough, but should this not prove possible,
OOB placements may become unavoidable
90. During 2016/17, it is forecast that the number of PSL units will need to increase by
around 110 new units in total, although any sustained increase in homelessness
demand during the year may well necessitate a faster expansion of the portfolio,
including provision OOB. It needs to also be noted that around 110 of the current leases
will expire during the coming year and will need either renewal or replacement as
applicable and that all leases due to be renewed in 2015/16 were renewed. At present,
leases are taken for a maximum period of between three and five years as approved via
Paper No. 10-467 (June 2010) and via Paper No. 14-317 (June 2014).
91. The forecast also assumes a significant increase in the number of the Council’s own
general needs housing units being let during the year as temporary accommodation, to
avoid and/or mitigate admissions into B and B and/or to minimise the length of time
spent in B and B for households where placement is unavoidable. This increase will
come through a) the letting of `permanent’ stock outside of the regeneration areas as
temporary accommodation but mainly though b) the letting of units within the
regeneration areas as temporary accommodation if becoming void in blocks scheduled
for demolition and c) of new housing units secured via acquisition through purchase,
whether within or outside of the regeneration areas. Units sourced though all of these
ways will provide self contained, and mainly in-borough accommodation, maintained to
the council’s usual standard.
92. Lastly, the Assistant Director - Housing Services’ ability to claw back a property from
sale will be considered as appropriate, as the year unfolds, and subject to approval of
revised policy considerations detailed below.
Improving the supply of temporary accommodation for larger households
93. The last five years have seen a significant change in the size profile of households
accommodated in temporary accommodation under duties set out in the Housing Act
1996. Tables 4 and 5 below detail the changed profile of admissions into temporary
accommodation under the interim duty and acceptances of the main duty during the
period April 2010 to March 2016.
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Table 4 – Interim duty admissions 2010 to 2016 by bedsize
Bedsize
2010/11 2011/12 2012/13 2013/14 2014/15 2015/16
0
347
322
292
268
287
279
1
71
68
73
91
73
88
2
368
415
462
427
514
485
3
68
106
154
202
159
173
4
13
20
48
74
44
37
5
5
6
10
11
8
4
6
0
4
3
4
2
2
7
0
1
1
0
0
0
Total
872
942
1,043
1,077
1,087
1,068
NB: 0 = studio needed
Table 5 – Full duty acceptances 2010 to 2016 by bedsize
Bedsize 2010/11
2011/12
2012/13
2013/14
2014/15
2015/16
0
155
128
137
92
125
150
1
45
41
38
48
49
67
2
256
320
335
355
413
452
3
53
78
113
157
152
148
4
5
24
35
68
41
35
5
1
6
10
10
6
5
6
1
2
2
4
1
2
7
0
1
1
0
0
0
Total
516
600
671
734
787
859
NB: 0- studio needed
94. The profile of admissions and acceptances in the same period split by cases needing up
to three bedroom properties against those needing four bedroom and larger properties
is indicated in Tables 6 and 7 below.
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Table 6 - Admissions and accepted cases – smaller households
Table 9 - Admissions & Accepted Cases
Smaller Households (Bedsize 0-3)
1200
1033
1025
981
988
1000
911
854
817
739
800
623
652
567
600
509
Total Cases
400
Interim
Accepted
200
0
Years
Table 7 – Admissions and accepted cases – larger households
Table 10 - Admissions & Accepted Cases
Larger Households (Bed Size 4+)
100
89
90
82
80
70
62
60
54
48
48
50
43 42
Total Cases
40
Interim
31 33
Accepted
30
18
20
7
10
0
Years
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95. It will be noted that for households who, if and when rehoused, require a four, five, six or
seven bedroom property, there has been, over recent years, a significant increase. In
terms of admissions into temporary accommodation for four bed households, these hit a
high of 74 families in 2013/14 and, although numbers have been decreasing over the
last two years, numbers remain considerable. Whether 2015/16 represents the
continuation of a downslope from this spike will be closely monitored throughout
2016/17.
96. During the same period, the number of families requiring five bedroom accommodation
has more than doubled and, in terms of acceptances, there have been even bigger
increases. Table 7 above shows that in terms of cases accepted for the main duty in
2010/11 requiring four bedroom housing, just five families needing that size of
accommodation were accepted, whereas in the year just closed, 2015/16, that had risen
to 35.
97. This increase in numbers is likely to have been the consequence of a number of factors,
but particularly including the wide-ranging review of welfare benefits initiated by the
government over that period. It will be recalled that LHA was widely accepted as
running out of control with many high profile cases reported in the media, in London in
particular, where landlords were receiving payments in excess of £1,000 per week.
98. In Wandsworth, the highest payment prior to the reform was circa £850 per week and,
as part of the wider welfare reform agenda, LHA was capped nationally for four bed and
larger properties at £400 per week maximum.
99. That reform, coupled with the difficult lending environment and reduced mortgage starts
over most of the five year period and the rise of the buy-to-let market for professionals,
saw increasing rents in the private sector and a move to shared accommodation
between younger working households unable to raise mortgages. This combination of
factors is believed to have driven the very significant increases in large family
homelessness indicated in the tables and graphs above.
100. This has been combined with a change-around in the type of temporary accommodation
in which households are accommodated. For the same reasons as above, acquiring
larger units of accommodation either by way of homelessness prevention or by way of
leased temporary accommodation has become much more problematic and higher
numbers of families in bed and breakfast have been seen throughout the period.
101. At present, the Department has limited means of meeting the increased and now
accrued demand, from larger homeless households. These include the use of
permanent housing within the Council’s own stock as temporary accommodation
(“Council short term” in Table 3 above) and this has increased over the last four years to
stand at 251 at 31st March 2016.
102. Typically, one bed and three bedroom units are taken out of the permanent lettings pool
to be used as temporary accommodation and households requiring two and four/five
bedroom accommodation are allocated those as temporary accommodation. Clearly,
this involves a degree of overcrowding (but not leading to statutory overcrowding) for
those households in those units, but that is considered suitable in terms of it being
temporary rather than permanent accommodation.
103. The Council’s significant hostel stock only provides accommodation in limited numbers
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for the very largest households although, for example, at Nightingale Square units are
sometimes `doubled up’ to provide for larger households.
104. The new hostel at Dawes House that was brought on line in May 2013 was specifically
configured to provide very large units in view of, at that time, the expected increase in
larger family households that has now materialised, but obviously those units are of
finite number. Likewise, in 2015/16, the new hostel at Battersea Park Road was let,
which offers six units of self contained accommodation, including four, very large 4
bedroom units, which will be let to households assessed as needing 4 bed and larger
accommodation upon `settled’ rehousing.
105. Looking further ahead, a significant number of additional large units of temporary
accommodation including 6 x 3 bed, 9 x 4 bed and 2 x 5 bed units, will be developed at
Wood and Palladino House (Tooting) as per approvals given via Paper No. 15-11
(January 2015), with letting expected early in 2017/18.
106. The Allocations Plan as delivered last year gave the significant proportion of larger units
to the homeless with 28/46 x four beds and 3/4 x five+ beds being accepted by
homeless families. At the end of March 2016 there were 85 accepted homeless
households on the homeless queue needing four+ bed rehousing, that is, more than
double the entire supply of larger units let under the allocation scheme in 2015/16.
107. For 2016/17 and indeed beyond, the registered provider development pipeline contains
no five+ bedroom units scheduled for completion during the year and, likewise, the
hidden homes initiative has no five+ bedroom units in the programme, although the on-
going research into the scope for contiguous conversion of, for example, adjacent three
bedroom units continues. This is carried out every time a property becomes void and
has, in the recent years, provided much welcome additional larger (five and/or six
bedroom) units including in Southcroft Road and in Ribblesdale Road (both
Furzedown). However, the scope for carrying out such conversions is, to an extent,
limited by the need for adjacent units to become vacant at or around the same time and
by the fact that approximately 50 per cent of the housing stock is in leasehold
ownership.
108. As such, it appears that the availability of larger units during the coming year will
comprise a mixture of casual vacancies, units released through transfer of the existing
(and frequently under-occupying) tenants, units secured in the private rented sector for
offer as a PRSO, units clawed-back from sale and units purchased on the open market.
109. The package of measures to encourage under-occupying tenants to relocate into
smaller, suitably sized accommodation approved in Paper No. 08-227 (February 2008),
and, subject to review in the 2013 report, and subsequently increased via Paper No. 15-
12 (H&ROSC January 2015), are intended to encourage greater turnover generally
including within the larger bed sizes and, during 2015/16, the newly approved (Paper
No.15-12) and appointed Housing Moves and Mobility Team began to have an effect on
the number of under-occupation transfers achieved.
110. During 2015/16, a total of 80 under-occupying Council tenants were assisted in moving
to smaller, ‘right sized’ housing (compared to 53 in the previous year), including 16
households moving into sheltered housing.
111. Given all of the above, the issue facing the Council is that large family homelessness
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has increased significantly over recent years resulting in a) increased use of the most
expensive forms of temporary accommodation and b) increased numbers in temporary
accommodation generally, with an inadequate supply pipeline to meet that increased
demand.
112. As was noted in Paper No. 14-317, to a large extent the same challenges are faced by
many other London boroughs and, at that time, at least three other London boroughs
had added to their temporary accommodation strategy the procurement/ acquiring of
larger units through purchase on the open market. In that paper, recommendations for
the Council to do likewise were approved and paragraph 87 above details activity in this
respect during 2015/16.
113. For the current year, Paper No. 15-10 (January 2015 H&ROSC) included further
provision of £10 million of HRA capital resources to fund further purchases and this is at
present, and will continue to be, deployed to increase the supply of self contained, good
quality temporary accommodation in the discharge of, but not the cessation of,
homelessness duties. That paper made similar financial provision for 2016/17.
114. 19 properties were purchased during 2015/16, compared to 16 referred for sale, and
provided, for use as temporary accommodation 4 x 5 beds, 7 x 4 beds, 6 x 3 beds and 2
x 1 beds.
115. Returning to the forecast for temporary accommodation use in 2016/17, it is also
expected that the use of B and B can be reduced during the year but remaining at a
significant level, again in recognition of homelessness trends. As challenging as this
may prove, it is necessary to aim high in this regard given that such accommodation is
the least suitable and financially least efficient type of temporary accommodation.
116. Having regard to the increased number of families who spent more than six weeks in B
and B during 2015/16, it is expected that, in view of the recommendations for a
significant number of ‘permanent’ offers to the homeless in 2015/16 set out below, for
the expansion of both the PSL and the Council short term portfolios during the year and
for the continued acquisition by purchase of larger units as temporary accommodation,
there will be significant turnover of COSTA and PSL units in the year, which will be of
assistance in reducing numbers in B and B generally and specifically for families with
children. In terms of meeting the demand for non B and B type accommodation, there
will always be scope to procure increased numbers of PSL units above the forecast.
117. The Director of Housing and Community Services considers that, although 2016/17 is
likely to prove to be another challenging year, the forecast set out above regarding the
Council’s use of temporary accommodation to discharge the statutory duties owed to
the homeless is realistic and achievable. As Members will be aware, as the numbers of
homeless households accommodated have risen over recent years, the standards of
accommodation in use have, in the round, risen insofar as the largest single type of
accommodation provided sits within the Council’s own COSTA stock, which now offers
predominantly self contained and 'in' Borough accommodation.
Homelessness prevention
118. In relation to homelessness prevention related service initiatives during the current year,
it is firstly proposed to continue with homelessness prevention measures and it is
recommended that the following targets in Table 8 below for 2016/17 be approved.
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Table 8
Prevention scheme
2015/16 Actual
2016/17 Target
SPSS
50
50
PSHI/PRSOs
29
100
OOB
12
25
Total
91
175
119. Although outcomes over 2015/16 were behind their respective forecasts, for the
reasons explained above, and notwithstanding the possibility of a further contraction
within the market, the targets recommended above are considered challenging but
achievable in 2016/17.
120. It should be noted that the recommended target for the PSHI above will also encompass
properties secured and offered by way of a PRSO and that the target has been reduced
compared to those set in recent years to take account of the implications of the
Supreme Court’s decision in the Nzolameso judgement (referred to at paragraph 87
above).
121. The targets above are recommended as ‘minimum’ targets for the year and all efforts
will be made to better them, as doing so would help to mitigate any further increases in
homelessness demand which would in turn mitigate the need for the proposed high
number of homeless rehousings during the year to keep temporary accommodation use
within performance and budgetary forecasts.
122. In conclusion, the position around the use of temporary accommodation to fulfil the
Council’s statutory duties is unclear. The year in prospect may be characterised by
further significant levels of underlying homelessness demand, depending in large part
on how the private sector housing market reacts to further welfare reforms, and
progress in delivering the forecasts set out above may, therefore, hinge on that factor.
123. Those forecasts have been formulated on a consciously pessimistic basis and, to that
extent, may be assumed to be reliable. Monitoring of progress will be critical in the year
and the Housing and Regeneration Overview and Scrutiny Committee will receive
updates at each and every meeting during 2016/17.
Asylum seekers and other destitute cases
124. At 31st March 2016, the Council had responsibility for 55 asylum seekers and other
destitute cases compared with 61 a year earlier. The number of cases supported at
year-end was just below the level forecast in Paper No. 15-198. This was due to the
success of the on-going programme of joint reviews between the Housing and
Community Services and Education and Social Services Departments and the Borough
Solicitor and to an increased number having their immigration status regularised by the
Home Office during the year.
125. It is forecast that by 31st March 2017, the Council will have responsibility for 66 (36
asylum seekers and 30 other destitute households) cases with numbers in future years
stabilising around this level.
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126. This forecast is recommended, as was the case in last years’ review, on the basis that
previous changes in both legislation and through case law will continue to be applicable.
Notably, recently enacted changes introduced by the Immigration Act 2014 intended to
prevent immigrants with no right of abode from being able to access accommodation or
work, will mean that private landlords or agents would need to carry out mandatory
immigration checks before granting private tenancies or rights of occupation. Failure to
undertake these checks carries a civil penalty for the landlord/agent under the new
rules. Furthermore, penalties for employers who employ illegal immigrants have
increased from the previous level of £10,000 to £20,000 – potentially affecting
households who have supported themselves albeit illegally over the years. This change
took effect late in 2015 and its effects, whatever they may be, may manifest themselves
in 2016/17.
127. As at present, the number of asylum seekers and other destitute households
accommodated throughout the year will be reported to the Housing and Regeneration
Overview and Scrutiny Committee at each of its meetings during 2016/17.
Council’s arrangements for financially supporting families and adults that have no
recourse to public funds (NRFP) by reason of their immigration status in the United
Kingdom
128. Responsibility for supporting families and adults with no recourse to public funds by
reason of their immigration status in the United Kingdom is the responsibility of local
authorities. Families are entitled to approach the Council for assistance if they are
genuinely destitute and have no accommodation and means of subsistence. Adults
should have care needs over and above destitution in order to be provided with
accommodation and subsistence. In addition, depending on immigration status, some
families/adults will require a Human Rights assessment.
129. The burden of that responsibility falls on two Council Departments: The Housing and
Community Services Department is responsible for undertaking an assessment of
housing needs for families and adults presenting as homeless; the Education and Social
Services Department is responsible for undertaking children in need assessments in
line with the national framework; and Community Care assessments for those with
physical and mental health problems. The Housing Department administers all the costs
associated with supporting these families and adults.
130. The Council’s position is that it pays subsistence based on support rates given to
asylum seekers in accordance with section 95 of the Immigration and Asylum Act 1999
and these rates have been reviewed regularly in keeping with these support levels. In
previous years it was based on a percentage of Income Support with various premiums
and as the current Council rate varies according to ages and household composition.
131. The Council currently pays subsistence based on pre August 2015 section 95 rates
(Appendix 6) with a premium for families placed in private rented accommodation to
take in to account utility bills (Section 95 pays all inclusive accommodation costs).
Currently adults with care needs who are provided with private accommodation receive
the standard rate and the utility costs are met by the Council; Council Tax is met by the
Local Authority in both circumstances.
132. All cases are subject to an individual financial assessment by a Caseworker and any
variation to the basic subsistence rates is at the discretion of the customer
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services/Ineligible cases manager. For instance; the basic rate will be lower if there is
additional income/support available and may in exceptional cases be higher if there are
substantial additional needs.
133. The Government introduced a new standard rate of section 95 Asylum Support of
£36.95 per person per week from 10th August 2015. This amount is considered to cover
all essential living costs. It is recommended that the council should follow these new
rates with a premium for private rented accommodation and that the current practice of
reviewing cases on an individual basis will continue. Subsistence will continue to be
paid fortnightly and checked for any change of circumstances which would require a
revised assessment.
134. The proposed new subsistence rates take into account the temporary nature of the
support for essential living costs only and it is expected that clients will only require this
support until a decision has been reached with their Home Office application or they
cease to be eligible for support. It is recommended that these rates be approved for
implementation from 1st August 2016.
Homelessness strategy
135. The Council is required to produce a homelessness strategy under section 1 (4) of the
Homelessness Act 2002. Previously, in the light of the Local Authorities Plans and
Strategies (Disapplication) (England) Order 2005, effective from 1st February 2005, the
Council was ‘excused’ this requirement by virtue of its ‘excellent’ performance rating
under the Comprehensive Area Assessment//Comprehensive Performance Assessment
framework. With the demise of those frameworks, the Council needs to have a
homelessness strategy and, as in previous years, it is recommended that the content of
the annual report as it relates to homelessness be adopted as the Council’s ‘strategy’
for 2016/17.
SECTION 2: RESOURCES AND LETTINGS REVIEW
2015/16 – the year in review
136. During 2015/16, a total of 1,071 dwellings from all sources became available for letting.
These comprised 698 Council dwellings, 332 housing association (registered social
landlord) dwellings and 41 from the private sector or via mobility arrangements. It
compares with a projected supply or resources forecast for 2015/16 of 1,044 dwellings
from all sources and is equivalent to 103 per cent of that forecast. The detail is provided
in Appendix 3 to this report.
137. As reported to the Housing and Regeneration Overview and Scrutiny Committee at
each of its meetings during 2015/16, there are various reasons behind the excess in
resources becoming available against forecast. In summary, within the Council’s own
stock there was a significant excess (157 dwellings) against forecast becoming
available during the year opportunistically as ‘casual vacancies’, for example dwellings
turning over within both the general and sheltered stock as a result of abandonment,
death, eviction etc. This offset various, smaller shortfalls against other reasons why
council homes become vacant e.g. as a result of transfer activity etc. The Council sector
had an overall excess of 102 dwellings against forecast.
138. Within the housing association sector, the forecast was almost exactly achieved in full
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with a small excess (thirteen properties) against forecast.
139. Lastly, within the mobility and private sector, and within an overall shortfall against
forecast of 88 dwellings, the main shortfall was in respect of private sector dwellings
becoming available under the PSHI, due to the reasons explained above. It will be
recalled that, throughout the year, it was noted in reports to the Housing and
Regeneration Overview and Scrutiny Committee that the PSHI in particular was falling
short, due to fewer landlords wishing to offer properties to the scheme.
140. In respect of the supply of properties by bed size, it will be noted that properties sized
three bed and smaller were at or very close to forecast whereas larger properties (4
beds and above) were in deficit. It will also be noted that the Assistant Director -
Housing Services’ overriding ability to ‘claw back’ properties from sale was exercised
during 2015/16, with 9 units, including 4 four bedroom properties ‘clawed-back’. All 9
properties were let to urgent cases by year end as shown in Appendix 3 as ‘sales
returns’.
141. The 2015/16 Allocations (or commitments) Plan was implemented as detailed in the
Table 9 below: The detail is shown in Appendix 4 to this report.
Table 9
Access Queue
2015/16
2015/16
(Forecast)
(Actual)
No
%
No
%
General needs queue*
174
17%
170
16%
Homeless**
500
48%
494
45%
Transfers (including Council interest queue)
182
17%
251
22%
Older persons (sheltered) housing queue***
145
14%
116
11%
Physical disability ***
14
1%
15
1%
Supported queues ***
22
2%
19
2%
Social care queue
7
1%
5
1%
Pan London Mobility scheme
0
0%
1
1%
Total
1,044
100%
1,071 100%
* Includes prevention of homelessness cases and lettings under the new generation scheme
** Includes all homelessness lettings
***Excludes all lettings to accepted homeless cases
142. As will be noted, although the total number of offers made was above forecast, the
proportionate split across the queues was managed in close compliance with the plan
approved last year. The only queues where there was significant variance were the
transfer and the Council’s interest queue and that was due to progress with decanting
tenants in the regeneration area(s) in advance of regeneration and, at the same time,
either relieving overcrowding or resolving under-occupation for the households
concerned. Properties released for re-letting in this way are thereafter used as
temporary accommodation for statutorily homeless households and 45 properties in the
regeneration area(s) were used in this way in 2015/16.
143. In conclusion, 2015/16 was another challenging year with an overachievement against
the approved forecast for the overall supply of accommodation for allocation across all
three sectors (Council, housing association and private rented).
144. However, as will be noted from the table above, and in general terms, the relative
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proportionate distribution of lettings across the major housing queues was very close to
forecast distribution approved last year albeit across a higher number of lettings
envisaged in the resources forecast.
145. In relation to outcomes delivered under the Allocation Scheme during the year, 494
households who were previously accepted as unintentionally homeless and in priority
need, had their homelessness resolved, accepting an offer made under the Allocation
Scheme.
146. 100 overcrowded households were moved to ‘right sized’ larger accommodation
including 23 families who were previously subject to severe overcrowding (lacking two
or more bedrooms) compared to 42 and 14 in the previous year.
147. Further, 80 households who were previously under-occupying Council housing that had
become too large for their household were assisted, on a voluntary basis, to move to
‘right sized’ smaller accommodation, thereby releasing dwellings for re-letting,
compared to 53 in the previous year and to 113 in the year 2013/14. Many of the
households downsizing during the year were older tenants.
148. Of the 80 households for whom under-occupation was resolved, 36 were previously
subject to a SSSC reduction in housing benefit received, and moving them into smaller
accommodation not only assisted them to resolve any financial pressure but also
protected the Council as landlord against the risk of future arrears.
149. Separately 130 households (mainly single people) moved into sheltered housing,
compared to 155 in the previous year. 16 of the 130 households moving into sheltered
housing during the year were previously under-occupying other social housing (within
and not additional to the 80 under-occupiers referred to above). The 2015/16 resources
and commitments full year position is contained within Appendices 3 and 4.
150. 2015/16 was notable in terms of a significant number of newly built social rented homes
becoming available for letting. In 2015/16, 6 new council hidden homes were let (Abbott
House) and 117 RSL/registered provider sector new built homes were completed and
let during the financial year. These 117 new homes were as follows: 15 new build RSL
properties at Arbour House (SW18), 18 at Knightley Walk (SW18), 39 at Enterprise Way
(SW18), 17 at Courtenay/Kilwardy/Bedford House (CR0), 16 at Otterburn (SW17) and
12 at Elmwood Court (SW11). 17 of these were located outside of the borough in
Croydon under sub regional nomination arrangements.
151. These properties provided 29 x one beds, 49 x two beds, 35 x three beds and 4 x four
beds. These were primarily let to tenants of the Council seeking transfer for one reason
or another but principally to resolve under-occupation (16 cases), overcrowding (41
cases), homeless/NGS (38 cases), decant (8 cases) and moves to adapted properties
(3 cases). They also facilitated subsequent chain lettings that released 7 x studios, 21 x
1 beds, 22 x 2 beds, 10 x 3 beds
152. Separately, 87 existing Council tenants exchanged tenancies under the mutual
exchange process during the year (excluding 33 that were cancelled/rejected by either
the parties involved or by the councils/RSL’s involved), compared to 104 in the previous
year. Such exchanges often resolve overcrowding and under-occupation issues.
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153. 48 of the exchanges were facilitated via the
homeswapper service to which the Council
subscribes and for which tenants can register at no cost and, at year end there were
Council 1,757 tenants (around 15% of tenants) registered with the
homeswapper
service.
154. In addition, there were another 23 putative mutual exchanges in progress/under
assessment at year end. Of the 87 mutual exchanges concluded during the year, 25
were between Wandsworth council tenants, 46 were between a Council and a
registered provider tenant and 35 involved an exchange leading to a move in and out of
the Borough. Further, 42 exchanges resolved either overcrowding or under-occupation.
Lastly, 45 of the 87 exchanges were between accommodation of the same size, for
example a two-bed to a two-bed etc.
155. The waiting times amongst those being rehoused under the Allocations Scheme in
2015/16 are detailed in Table 10 below. As will be noted, average waiting times for
those accepting an offer during the year generally increased compared to 2014/15,
albeit that the quantum of offers made and accepted was higher with the notable
exceptions of 1 and 4 bed offers and offers made against the general needs queue,
which decreased compared to the previous year.
Table 10 – Wait times
2014/15
2015/16
Average wait (all queues)
15 months
18 months
Average wait for 1-bed (all queues)
14 months
9 months
Average wait for 2-bed (all queues)
16 months
26 months
Average wait for 3-bed (all queues)
15 months
24 months
Average wait for 4-bed+ (all queues)
31 months
22 months
Average wait on general needs queue*
15 months
13 months
Average wait on homeless queue
13 months
14 months
Average wait on transfers queue
23 months
28 months
* This queue includes urgent and discretionary cases
156. Numbers waiting on the major housing queues at the close of the year are set out in
Table 11 below. It will be noted that numbers waiting on the queues mentioned, with the
exception of the older persons queue, increased over the year. Across all queues,
numbers went up from 4,526 at the 31st March 2015 to 5,090 on 31st March 2016. This
increase was as a result of rising demand to join the housing queues including from the
increased number of households joining the homeless queue(s) having been accepted
for the main homelessness duties.
157. However, and to be seen in proper context, this remains much reduced compared to
numbers registered prior to 2014; at the 31st March 2013 there were 7,267 applications
registered across the queues and the reduction over the last two full years was the
direct result of amendments approved to the Housing Allocation Scheme through 2013,
especially those around who qualify to join, or to remain upon, the housing queues. It
will be recalled that, for example and save for in exceptional circumstances, applications
are no longer accepted from people living outside of the Borough or who have lived in
the Borough for less than two years. Other criteria relate to income, equity and capital.
158. As also shown in Table 11 below, numbers on the homeless queue have increased over
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the year, as would be expected given the higher number of cases accepted for the full
homelessness duty. Numbers on the older persons queue decreased as did numbers
on the transfer queue, whereas numbers on the physical disability queue remained
stable and numbers of under-occupiers seeking a down-sizing move increased as
shown in Table 11 below.
Table 11: housing access queues
2014/15 Actual
2015/16 Actual
Applicants on general needs queue
2,292
2,526
Registered under-occupiers (various 275 309
queues)
Applicants on homeless queue
767 1,075
Applicants on transfers queue
794 816
Applicants on the older persons
322 226
housing queue
Applicants on physical disability
45 46
queue
159. Lastly, in respect of 2015/16, it will be recalled that the housing allocation scheme was
amended with effect from the 1st of September 2014 to facilitate accepted homeless
households comprising of a single parent or couple with one child, (provided that child
would be under 2 years and 9 months old), to be offered 1 bed properties in the
cessation of the main homelessness duty, instead of the previous policy of offering such
households 2 bedroom properties. During the year just closed, this resulted in 74
accepted homeless applications to be housed into 1 bed properties belonging to either
Wandsworth Borough Council or other RSL accommodation.
160. This in turn freed a number of temporary accommodation units for allocation to other
homeless households including those in B and B. All of these offers were accepted at
the first offer, with an average age of the child at acceptance at 1 year 7 months years
old.
161. At the start of 2016/17, such households number 235 applications requiring 1 bedroom
with the average age amongst the dependant child(ren) being 1 year and 1 month.
2016/17 – the year in prospect
162. The 2016/17 draft resources forecast is attached within Appendix 3 for consideration
with a recommendation that it be approved.
163. For 2016/17, the supply of dwellings becoming available from all sources is predicted to
comprise 1,216 dwellings across all sources of supply, so an increased number
compared to the actual supply seen in the previous year (1,071), and compared to the
forecast for that year (1,044). The forecast is made up of 791 Council dwellings, 297
housing association dwellings and 128 private sector and OOB mobility dwellings.
164. The resources forecast for 2016/17 is notable not least because of a significant number
of new build social housing provision expected to become available for letting during the
year, with a total of 88 new homes (82 general needs and 6 wheelchair adapted)
anticipated to be let in the year. This is similar to the number seen in 2015/16.
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165. By way of context, 2012/13 was something of a high water year in that nearly 200 new
build units were delivered and let followed by 27 new units in 2013/14, 38 units in
2014/15 and 129 in 2015/16. New build units let in the current year will, as per long
standing policy, be mainly directed towards under-occupying tenants, whether or not
subject to the SSSC, in order to (a) resolve under-occupation and by so doing (b)
release, through created chains or cascades of lettings, family sized units for offer to
other high priority cases, including to statutory homeless households.
166. Matters in respect to purchase and new affordable housing development are covered in
the affordable housing update report elsewhere on this agenda (Paper No. 16-279).
167. The 2016/17 resources and commitments forecasts have been drawn up to reflect the
realities seen within 2015/16 and in earlier but still recent years such as rising
homelessness demand and the increased use of temporary accommodation including B
and B and to cater for, insofar as is possible within finite resources, challenges
expected in 2016/17 such as continued high levels of homelessness demand, the need
to reduce B and B use for families with children so as to comply with the suitability order
and a need to maintain a reasonable level of transfers activity, especially for under-
occupation transfers in view of challenges presented by the SSSC and decants within
the regeneration areas, and the need to recycle larger units to meet rising large family
homelessness demand.
168. In view of the significant new build supply this year, the number of offers by way of
transfer forecast, including transfers to resolve under-occupation, to be made and
accepted has, within a increased resources forecast overall, been increased compared
to the level seen in the previous year. In past years the majority of transfer activity
involved moves from smaller to larger housing. However, following the introduction of
the SSSC in April 2013 it has proved to be the case that more under occupying tenants
will wish to move and thus the ratio of transfers completed will now involve a significant
number of larger to smaller moves. This in turn is welcome as it would release larger
properties to meet the housing needs of other priority groups including the homeless
and the overcrowded but may also mean that the number of one bed lettings to the
specialised queues comes under more pressure.
169. Accordingly, the 2016/17 resources forecast at Appendix 3 includes, out of the 1,216
properties predicted to become available overall, 329 dwellings becoming available as a
result of transfer activity. This represents around just over one quarter of the total
forecast and is indicative of the predicted volume of transfer activity proposed for the
year.
170. The remaining major supply lines within the forecast foresee 497 social housing general
needs dwellings becoming available by way of casual vacancies within both the Council
and registered provider stock, along with a further 143 vacancies becoming available by
way of casual vacancies within the Council’s sheltered housing stock. Similarly, the
forecasts for resources becoming available in the PRS via both the PSHI and OOB
schemes have been reduced and/or kept in line respectively with the forecasts
approved last year.
171. For these reasons, the draft resources forecast is recommended for approval as a
realistic and credible forecast in which Members can have confidence, noting the
accuracy of the overall forecast in 2015/16 and the fact that resources were slightly
above forecast in that year. This is because the forecast is increased by a relatively
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Annual housing resources and commitments for 2016/17
modest amount compared to the one approved last year and the essential assumptions
are that the actual supply seen in 2015/16 will be replicated in 2016/17 and that the 88
new build homes expected in the year will be let, with additionality achieved through the
recycling of units released via transfer, and especially under-occupation transfers.
172. The 2016/17 draft commitments forecast (hereafter referred to as the ‘Allocations Plan’)
is set out in Appendix 4 for consideration with a recommendation that it be approved.
173. The draft Allocations Plan has been shaped with regard to the need to provide a
reasonable preference for allocation to those entitled to it, within the framework set out
in the Council’s Housing Allocations Scheme. It is anticipated that the overwhelming
majority of allocations made during the year will be made to households falling into one
(or more) of the reasonable preference groups set out in Part VI of the Housing Act
1996 (as amended).
174. The Housing Allocations Scheme, adopted by the Council in January 2003 and subject
to amendment in subsequent reviews most recently through 2013 (Paper No. 13-265
(April 2013) and Paper No. 13-373 (June 2013)), takes account of the need to provide
‘reasonable preference’ to certain manifestations of housing need, as identified in
Section 166A of the Housing Act 1996. This is done either through the banding and/or
points scheme(s) or the creation of the special queues. The principal consideration each
year is to balance the Council’s statutory rehousing responsibilities to homeless
households against other rehousing priorities such as assisting adult social care clients
to move on from temporary supported housing and accommodating those with physical
disabilities in adapted accommodation.
175. Table 12 below provides a summary of how the Council proposes to do this in the
current year with the full detail being shown at Appendix 4: -
Table 12
Access Queue
2016/17
(Proposed Forecast)
No
% (rounded)
General needs queue*
143
12%
Homeless**
532
44%
Transfers (including Council interest queue)
289
24%
Older persons (sheltered) housing queue***
159
14%
Physical disability ***
18
1%
Supported queue ***
54
4%
Social care queue
21
2%
Total
1,216
100%
* The general needs queue includes cases rehoused under the PSHI to prevent homelessness and
discretionary offers, for example converting an existing sole tenancy to a joint tenancy
** The homeless figure excludes lettings achieved through other registers/queues and now includes offers
of PRSOs
***Lettings to the sheltered housing, physical disability and special queues include general needs, transfer
cases and moves under the pan London mobility scheme
176. In considering this distribution of properties, the Director of Housing and Community
Services
has, as previously in conducting such annual reviews, taken account the latest
SHMA the Director of Housing and Community Services considers that the proposed
allocations to the general and special queues reflect a reasonable balance between the
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competing groups.
177. He considers that they correctly reflect the other considerations set out in this report,
particularly the need to mitigate rises in the use of temporary accommodation in the
context of increased homelessness demand in 2010/11 through 2015/16 and of the risk
of continuing pressure in the current year. Further, he has considered the improved
anticipated supply of new build units coming forward this year and the need to boost
resources created by transfer activity in light of both the continuing challenges and
opportunities resulting from the introduction of the SSSC.
178. The draft Allocations Plan, therefore, provides for the 584 homeless rehousings during
2016/17 discussed above, provides for 340 allocations by way of transfer across all the
queues and provides for 143 allocations across the general needs queue as a whole.
159 allocations of sheltered housing are planned to older applicants, with 93 allocations
to other vulnerable (mainly single) households across the physical disability, supported,
social care and pan London mobility scheme housing queues (including to homeless
and transfer cases). Further, it will be noted that the proposed allocations plan includes
significantly increased numbers of offers against the social care queue; 21 compared to
7 in the previous year. This is to assist the Council generally, and the Children Services’
department specifically, meet the objectives of the improvement plan approved in the
light of the Ofsted report into care leavers and children’s specialist services published
earlier in 2016.
179. The plan anticipates that 28 per cent of total resources be directed towards existing
Council tenants by way of transfer with 72 per cent being directed towards other
applicants, principally towards accepted homeless households.
Service specific issues and recommendations
Housing Allocation Scheme – Proposed major amendments.
180. The current Housing Allocation Scheme was adopted by the Council in January 2003
and subject to amendment in subsequent reviews most recently through 2013 (Paper
Nos. 13-265 (April 2013) and 13-373 (June 2013)) and was also subject to amendment
a year ago via Paper No. 15-198.
181. As mentioned below, recent guidance provided by the Courts necessitates amendments
to the Allocation scheme but also, during 2016/17, the shared staffing arrangement
(SSA) with the London Borough of Richmond-upon-Thames will come into effect,
following approval of staffing structures in Paper No. 16-138 (F&CROSC 13th April
2016). To assist the implementation of the SSA, bringing the respective Allocation
schemes into closer harmony will be helpful to officers responsible with administering
the scheme(s) and, for Wandsworth, the main changes are as set out in the following
paragraphs. Generally speaking, there is already considerable overlap between the
current schemes in each borough, and, again for Wandsworth, the existing scheme is
retained in the most part.
182. Firstly, the qualification criteria approved in the current scheme date from 2013,
following the return of wider discretion to Councils to set such criteria. However, it is
now necessary to amend them to reflect subsequent case law which has made clear
that excluding applicant households who fall within the reasonable preference
categories from consideration entirely, by way of rules around qualification (for example
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by using a minimum period of (past) residence in the district) is unlawful, with
exceptionality being insufficient to remedy such unlawfulness.
183. It will be recalled that, when framing an allocation scheme, s166(A) of the Housing Act
1996 requires that the Council ensures that the operative scheme must result in
reasonable preference being according to those entitled to it. Reasonable preference
has been described in case law as a `reasonable head start’ towards an actual offer of
housing and a scheme must differentiate between those entitled to it and those who are
not, prioritising the former over the latter.
184. The groups entitled to reasonable preference are: those homeless and/or those owed
one or other duty under homelessness provisions, those occupying
insanitary/overcrowded/unsatisfactory housing, those needing to move on medical or
welfare grounds and those needing to move to a particular locality of a district to avoid
hardship.
185. The more recent case law concerned LB Hammersmith and Fulham’s decision to not
regard accepted homeless households as qualifying persons under their scheme,
providing the household was in suitable temporary accommodation and, more recently
still, LB Ealing’s decision to refuse an applicant otherwise falling within the reasonable
preference categories as not being a qualifying person because they did not have the
minimum period of previous residence in Ealing. The Court of Appeal and the High
Court respectively ruled that the scheme in each borough was unlawful.
186. The draft scheme at Appendix 7 has been amended to ensure that the qualifying person
rules, generally speaking, do not apply to those entitled to reasonable preference. As
such, the qualification rules will in future relate mainly to those who are not entitled to
reasonable preference and that would continue to prevent a significant number of
applicants being able to join the queues. The amended rules around qualification also
relate to a limited number of scenarios encompassing persons entitled to reasonable
preference but on a strict case by case assessment basis.
187. It should be noted that the recent case law is very likely to cause, over time, rises in the
number of households admitted to, and remaining upon, the housing queues. This will
be monitored and reported as necessary going forward.
188. Further, within the points scheme, points awarded for sharing facilities such as WCs,
kitchens and living rooms have been combined into a single points award, for greater
simplicity and transparency.
189. Lastly and again within the points scheme, it is proposed that differential priority be
awarded between those applicant households with significant previous residence in the
borough, set at a minimum period of three continuous years, compared to those who do
not, by placing such applications in Band D. This will ensure that allocations are
directed towards applicants with stronger connections to the Borough, although and
again case by case, exceptions may be made by senior officers and the capacity to do
so is included within the scheme.
190. Under the Housing Act 1996 Sections 166A and 168, it is a statutory requirement for the
local authority to consult when making an alteration to the Allocations Scheme reflecting
a major change of policy, which this clearly will be, with all registered housing providers
(housing associations) to whom the council has nomination rights and to take
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reasonable steps to bring the effect of the alteration to the attention of those likely to be
affected by it.
191. It is recommended therefore that Appendix 7 be approved in principle and that
consultation be undertaken through the usual mechanisms for a period of 6 weeks with
a further report setting out the results of that consultation with any applicable
amendment to the policy coming to the September 2016 cycle for further consideration
and approval. When considering whether to support this particular recommendation,
members are asked to take account of the Equalities Impact Assessment attached at
Appendix 8. That assessment has been carried out in accordance with the terms of the
Equality Act 2010 which requires that the Council when exercising its functions must
have "due regard" to the need to eliminate discrimination, to advance equality of
opportunity between persons who share a relevant protected characteristic and persons
who do not share it and to foster good relations between persons who share a relevant
protected characteristic and persons who do not share it. As such an
Equality Impact
Assessment (EIA) has been undertaken on the proposed changes to the allocation
scheme. This EIA is attached as an appendix to this report. This EIA has identified that
any changes to the Housing Allocations may impact more on BME and female residents
as these groups are represented on the list at levels above the Borough average.
However, in order to mitigate any impact a number of actions have been identified
including management discretion in the scheme for exceptional circumstances to those
who do not meet the new three year residency criteria and are placed in Band D until
such a time that the criteria is met. The EIA will be subject to consultation.
192. Once the final policy is approved it will be necessary to set an implementation date and
officers will include recommendations in the September 2016 report as to when and
how the revised scheme may be implemented, as well as an updated EIA.
National housing mobility
193. The Mayor of London’s policy objective of providing increased opportunities for cross-
borough, pan-London mobility amongst social housing tenants for work opportunities or
otherwise have continued during 2015/16 via the
housingmoves scheme (initially
reported to the Housing Overview and Scrutiny Committee and the Executive in Paper
No. 12-66). That report recommended that the Council participates in the scheme with a
commitment to contribute some five per cent of lettings (around 30 to 50 properties per
year).
194. During the last two years, the volume of the Council’s participation has been lower than
was planned/expected by the Greater London Authority (GLA) and it can be fairly said
that the scheme overall got off to a slow start and has continues to move at a slow
pace.
195. During 2015/16, the Council had advertised two properties on the
housingmoves
website: a one bedroom property and a three bedroom property. The one bedroom
property received four bids but was not accepted by any of the nominees who viewed it,
whereas the three bed received 33 bids and was let to a tenant of the London Borough
of Lambeth.
196. In terms of moves the other way, no Wandsworth tenants moved via the
housingmoves
scheme in the year, although, separately, three Council tenants moved out of the
Borough via the Seaside and Country Scheme, releasing a one bed, a two bed and a
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four bed property respectively.
197. Further, two other Wandsworth households, both owed the full homelessness duty,
moved elsewhere but this time via the
Homefinder scheme. They moved to a one bed in
Kensington and Chelsea and to a two bed in Croydon respectively, with one other move
(a two bed homeless household moving to Southwark) completed during April 2016.
198. Again separately, and in relation to the Council’s own Out of Borough scheme (formerly
know as the out of London or LAWN scheme), at year end, 12 households had been re-
housed under the scheme, against a full year target of 25, and compared to seven in
the previous year, with one more move in progress at the date of drafting this report.
199. As will be recalled, whilst the scheme when it was originally set up was expected to
provide access to social housing units in the regions, the reality over more recent years
has been that most movers have moved into the PRS, often to elsewhere in south-west
London or around the A3 corridor. In 2009/10, a high of 79 moves was achieved and the
reasons behind the reversal are believed to be largely the same as those affecting the
supply of private sector lettings under the homelessness prevention schemes described
elsewhere in this report.
200. It would be reasonable to forecast that the number of moves that might be achieved
would be again no more than 25, as reflected in Table 12 above.
Performance targets
201. Lastly, when considering forward targets for homelessness and lettings related activity
in 2016/17, Members are referred to Paper No 16-274 elsewhere on this agenda on
'setting targets for the Council’s top line performance indictors etc.’, which contains
recommendations for targets across all departments and will be considered by the
Executive on 4th July 2016.
SECTION 3: HOUSE SALES ACTIVITY
Former acquired properties
202. The Council has a policy of selling former acquired properties if they become vacant
and they are either:-
(a) the last remaining unsold flat in a former acquired house (Select Sales Policy
Paper No. 97-481); or
(b) for the purposes of ‘good estate management’, the Director of Housing can refer
the last remaining unsold flat in an infill or estate block (Paper No. 12-353); or
(c) following a financial appraisal carried out by the Director of Finance that shows that
it is in the Council’s financial interest to dispose of the property. (Paper No. 04-
498).
203. These policies are subject to the Assistant Director – Housing Services’ overriding
ability to ‘claw back’ certain properties from the sales pipeline if she/he needs them for
the urgent re-housing of applicants from the housing registers or for a homeless family
and this is done under the Standing Order No. 83(A) procedure.
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204. In 2015/16, a total of 24 properties were initially released for sale and nine of these
properties were ‘clawed-back’ by the Assistant Director - Housing Services under the
Standing Order No. 83(A) procedure, compared to five in the previous year. All nine
properties clawed back were let by year end (as shown in Appendix 3 as ‘sales returns’)
and comprised 1 x 1 bed, 2 x two bed, 2 x 3 bed and 4 x 4 bed.
205. The receipts achieved from the completed sales of nine of the 16 properties not clawed
back was £7 million. This is a direct benefit to the HRA with these receipts in turn being
ring fenced to support HRA capital expenditure that could include new build and
purchase among other competing priorities. As mentioned in paragraph 228 below,
monies generated through such sales are re-invested into the fund for the purchase of
accommodation, gaining additionality over time.
206. Under the current policy framework, given demand trends during the year, it is
reasonable to anticipate that there will continue to be claw back of particularly larger
family units to meet identified and urgent demand continuing with the revised policy
framework around how best to do so that was approved in Paper No. 15-198. That
revised approach more closely links a sale to re-provision on the basis that sale would
provide the equivalent, better or indeed additional housing to meet demand. During
2015/16, some 19 properties, within and outside of the Borough, as detailed at
paragraph 114 above and at paragraphs 231 and 234 below, were purchased for
£7 million at an average of £370k per property.
207. However, it should be noted that following the enactment of the Housing and Planning
Act 2016 (“the Act”) three broad housing commitments in the Parliamentary Majority
Party’s manifesto for the May 2015 General Election - which were based on the sale of
high value council housing assets to fund them - have now been put on statutory
footing. These are: the extension of the Right to Buy discount to housing association
tenants, setting up of a £1bn fund to support regeneration initiatives with funding to be
available to replace high value council homes sold in the local area where that home
was sold.
208. The Act saw some changes in approach and emphasis and the current position is that
councils will no longer be required to sell housing assets but will be expected to make a
contribution to meet the Government’s housing commitments on an assumed
contribution derived from the anticipated receipts arising from high value units that fall
vacant. Additionally, a return was required to the Department for Communities and
Local Government identifying the market value by unit of council housing stock which
included stock which might effectively be excluded from any a contribution that might
need to be made. This included identifying stock in regeneration areas and also
supported housing including sheltered accommodation and, lastly the requirement to re-
provide high value assets assumed sold was further defined and now includes a
requirement on councils to re-provide two affordable homes for every one sold.
209. Whilst the broad parameters of this policy have been set out, councils have yet to be
provided with detailed requirements including what will be the assumed level of sales
and in turn contribution and importantly what level of resources the councils would be
left with to support re-provision. It is expected that draft guidance/guidance will be
published shortly and this is expected to be reported to committee and the Executive in
the September cycle. Until this guidance is provided it would be speculation as to the
impact of this policy and indeed whether any sales would be required or if a contribution
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could be made through other means (e.g. through the sale of other assets such as
land).
210. Finally, it should be noted that the Council is in a relatively strong position to re-provide
given that it already has an active programme of Council development and therefore
delivery infrastructure with a pipeline of almost 300 units due to be delivered over the
next 3-5 years.
211. However, it is clear that the detailed requirements of these national policy initiatives may
have consequences for the Council sales policy and/or the re-provision through
purchase of sold units as at present and/or on HRA balances going forward. As such
further detail emerges, it will be reported to the committee but, until that point, it is
proposed that current policies around consideration for sale and acquisition, etc. remain
unchanged. Further, in order to confirm current arrangements, it is proposed that the
Director of Housing and Community Services (and successor posts under the Shared
Staffing Arrangement with Richmond-upon-Thames Council), be given delegated
authority, in consultation with the Assistant Director of Finance (Property Services), to
purchase accommodation in accordance with those policies and it is further proposed
that a positive capital budget variation of £5.3million, within the Housing Revenue
Account, be approved, to fund further purchases to include temporary accommodation
to meet homelessness duties, to assist in the successful delivery of regeneration
policies and plans and to replace properties sold.
SECTION 4: LEGAL ISSUES
212. Summaries of the main legislative provisions are set out in Appendix 5 to the report,
including the main provisions of the current Code of Guidance issued by the Secretary
of State in 2006 and the Supplementary Guidance issued in 2012. The Council must, of
course, comply with the relevant legislation. There is no absolute obligation to follow the
Code, but Members must pay proper regard to its contents, and should only depart from
its recommendations if there is some considered and rational basis for doing so. A
‘suitability order’ to end the long-term (defined as more than six weeks) use of B and B
accommodation as temporary accommodation for homeless families with children or
where a member of the household is pregnant was made in 2003. This ‘suitability order’
also effectively forbids the use of B and B accommodation for families, even for periods
of less than six weeks, unless no other accommodation is available.
213. As will be seen from Appendix 5, the Council may come under a duty to secure
accommodation for homeless persons in a variety of circumstances. However, the most
important such duty for present purposes is that contained in Section 193 of the 1996
Act. Currently, this duty applies where the Council is satisfied that an applicant is
homeless, eligible for assistance and has a priority need, and is not satisfied that the
applicant became homeless intentionally, or that the case falls to be referred to another
housing authority. In those circumstances, the Council’s duty is to secure that suitable
accommodation is available for the applicant. The duty is not time-limited and normally
begins when the Council accepts the existence of the duty through service of a “Section
184 Notice”.
214. In discharging its Section 193 duty, the Council must either secure for the applicant
suitable accommodation which it provides itself, or secure that the applicant obtains
suitable accommodation from some other person, or give the applicant such advice and
assistance as will secure that suitable accommodation is available from some other
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person (Section 206). Subject to the 2003 suitability order regarding families in B and B
accommodation, there is no absolute requirement that the accommodation which the
Council secures for the applicant should be available for any particular length of time in
order to be considered suitable. It is all a question of what is reasonable in the
circumstances, having regard to the applicant’s needs and other relevant
circumstances.
215. The High Court held in 1999 (
R v Newham LBC ex parte Begum and Ali) that the local
authority must in principle discharge its duty to secure suitable accommodation as soon
as it arises. However, it is necessary to bear in mind the flexibility of the concept of
suitability as explained above. In particular, whilst accommodation cannot be suitable
unless it meets certain minimum standards having regard to the applicant’s individual
circumstances, it will be much easier to treat accommodation as suitable if it is only to
be occupied for a short period. So the Council might, for example, discharge its duty to
secure suitable accommodation for an applicant by providing B and B accommodation
for a short period, followed by a leased flat. In the same case, the High Court held that,
even if suitable accommodation could not be provided straightaway, the Court would not
normally make any order against the local authority if it were taking all reasonable steps
to secure such accommodation (although this would be a stringent test to meet).
216. The Court of Appeal held in 2000 (
R v Newham LBC ex parte Sacupima) that, in terms
of individual circumstances, the location of short-term temporary accommodation was
relevant in determining the accommodation’s suitability; accordingly, educational needs
and any medical needs must be taken into account. This was subsequently
strengthened by the Homelessness (Suitability of Accommodation) Order 2012, which
requires authorities to take location into account when determining suitability, including
the potential disruption a move could have on the household. In the recent case of
Nzolameso v Westminster City Council (2015) (referred to at paragraph 47 above) the
Supreme Court considered how the statutory duty on authorities under section 208 of
the Housing Act 1996 to accommodate applicants within their own district so far as
“reasonably practicable” relates to individual households who are offered an “out of
borough” placement. The Court held that “reasonable practicability” imports a stronger
duty than simply being reasonable. If it is not reasonably practicable to accommodate
“in borough” authorities must generally, and where possible, try to place the household
as close to possible to where they had previously been living. The Court also held that
the duty on housing authorities under s.11 of the Children Act 2004 to carry out their
functions in a way which takes into account the need to safeguard and promote the
welfare of children, applies to the question of whether accommodation is “suitable” for
the applicant and each member of their household. “The decision-maker should identify
the principal needs of the children, both individually and collectively, and have regard to
the need to safeguard and promote them when making the decision.” The Court gave
guidance as to how authorities should go about explaining their decisions as to the
location of properties offered. Ideally, each local authority should have a policy,
reflecting the statutory obligations under the 1996 and 2004 Acts, for procuring sufficient
units of temporary accommodation to meet the anticipated demand and a policy for
allocating those units to individual homeless households. Where there is an anticipated
shortfall of in-Borough units, the policy would explain the factors that would be taken
into account in making offers of accommodation and which would make it suitable to
accommodate a household further away. The Council adopted a policy last year
designed to address these issues (Paper No. 15-198).
217. Similar considerations as to suitability apply where the Council’s duty to secure
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accommodation arises under Section 188 or Section 190 of the 1996 Act (the interim
duty pending a decision and the short-term duty to accommodate those found to be
intentionally homeless but in priority need). The accommodation must be suitable, but
suitability must be judged in the light of the temporary nature of the occupation.
Accommodation which it is not reasonable for an applicant to continue to occupy (that
is, in which that applicant satisfies the definition of homelessness) cannot be suitable for
this purpose, even on a temporary basis.
218. It should be noted that although the homeless are entitled under Section 166A (3) to a
“reasonable preference” in the allocation of housing by the Council, they are not entitled
to first priority over everyone else. Also, the Council may balance the advantages of
maintaining (by buying or building, or refraining from selling) a larger housing stock of its
own – which might, all other things being equal, make it possible to provide homeless
people with better accommodation sooner – against the disadvantages, such as cost
and the lost opportunity to promote owner-occupation. Although such considerations
cannot absolve the Council from performing its duties to the homeless, within limits they
can be taken into account in deciding what accommodation may reasonably be
considered suitable.
219. Members’ attention is drawn in particular to paragraphs 16.7, 16.9, 16.10, 16.12, 16.28,
17.25, 17.26, 17.29, 17.34, 17.35, 17.36, 17.37, 17.2, 17.4, 17.5 and 17.6 of the (2006)
Code of Guidance (see Appendix 5). Amongst other matters, the Code seeks to
discourage the use of B and B accommodation other than in limited circumstances.
This advice applies especially but not solely in the case of families. In addition to the
2003 suitability order mentioned above, joint statutory guidance issued in April 2010 by
the Secretaries of State for Children, Schools and Families and for CLG makes clear
the joint view of the Secretaries of State that the use of B and B for 16/17 year-old
homeless people is considered to be unsuitable.
220. However, even where the 2003 suitability order and the joint statutory guidance
mentioned above do not apply, Members should bear in mind that the Code advises
against the use of B and B accommodation for families, other than as a last resort and
for the shortest time possible. In the case of homeless persons other than families, the
Code suggests that there will be very limited circumstances in which it is the most
appropriate option for the applicant, although it recognises that B and B may have a role
to play, for example, where emergency accommodation is required at very short notice,
or as a last resort where no better alternative is available. It is important for the Council
to have regard to the extent of the use of B and B accommodation for non-family
occupants and for those to whom the April 2010 joint statutory guidance does not apply,
and to satisfy itself either that such usage is consistent with the Code, or that any
departure is proper having regard to (for example) the problems that confront the
Council as an inner London Borough, and what possible means there might be of
reducing the use of B and B accommodation and at what cost.
221. In the context of considering the voluntary sale of the relatively modest number of
properties mentioned in the report, Members must consider carefully the differences
which could be made to its obligations to the homeless and other groups by different
sales policies. Subject to Members giving full and proper consideration to all the legal
advice and the information and advice from officers contained in this report, the Council
could, in principle, decide to continue with a relatively modest number of voluntary
property sales.
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222. Members of the Council are reminded that they must give proper consideration to the
following matters: -
(a) the target times which families spend in B and B accommodation (see paragraph
17.25 of the current (2006) Code of Guidance); whether the Council is in a
position to comply with the 2003 ‘suitability order’, relating to families with children;
and the extent to which any use of B and B for 16/17-year-old homeless persons
complies with joint statutory guidance on this area issued in April 2010 by the
Secretaries of State for Children, Schools and Families and for CLG;
(b) whether the Council is in a position, where it owes a duty to do so, to secure
accommodation for homeless persons which is suitable, having regard to their
individual circumstances and to the length of time for which that accommodation is
to be occupied; and, in addition, to comply with Section 208 of the Housing Act
1996 (see paragraph 87);
(c) the important contribution which can be made to achieving reasonable target
times for the homeless etc. by empowering the Assistant Director - Housing
Services to seek the selective release (‘clawback’) of sales properties (see
paragraph 203 and 204 and
(d) the financial implications, as summarised in Section 5 of the report.
SECTION 5: FINANCIAL IMPLICATIONS
223. The Director of Finance comments that:
Homelessness, asylum and homelessness prevention
224. The 2015/16 outturn position in respect of homelessness, asylum seekers and
homelessness prevention in both the General Fund and the HRA is shown in the table
below:-
General
HRA
Fund
£’000
£’000
Homelessness
4,119
644
Homelessness Prevention
449
1,090
Asylum Seekers
654
n/a
Total Expenditure 15/16
5,222
1,734
Approved Budget 15/16
5,355
1,695
Variance
-133
+39
225. The average forecast unit costs per household per year of each form of accommodation
for 2016/17 are as follows:-
General Fund
Unit Cost (p/m)
Homelessness:
Bed and breakfast – Singles
£204
Bed and breakfast – Small families
£582
Bed and breakfast – Large families
£1,132
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Licenced Nightly Paid – Small families
£674
Licenced Nightly Paid – Large families
£962
Private Sector Leases
£173
Asylum seekers:
Other destitute – Singles Accommodation - Private
£985
Other destitute – Singles Accommodation - B and B
£820
Other destitute – Singles Subsistence
£128
Other destitute – Families Accommodation - Private
£1,330
Other destitute – Families Accommodation - B and B
£1,156
Other destitute – Families Subsistence
£516
UASC – Accommodation – Pangea
£1,266
UASC – Accommodation – Supported Hostels
£1,322
UASC – Subsistence
£244
226. The current overall approved budget for homelessness, asylum seekers and
homelessness prevention in the General Fund for 2016/17 is shown in the table below:-
General
HRA
Fund
£’000
£’000
Homelessness
4,615
606
Homelessness Prevention
434
1,082
Asylum Seekers
596
n/a
Total Budget 16/17
5,645
1,688
227. The actual level of homelessness and unit costs will need to be kept under review
throughout 2016/17 to ensure that forecasts remain in line with approved budgets with
future budget variations considered for approval if necessary should the forecast prove
to be significantly different. The impact of the possible reforms of homelessness duties
will be considered once more detail is known.
228. There is a risk that the requirement to contribute significant sums to fund the
Government manifesto housing commitments might have a detrimental impact on
housing supply and increase homelessness pressures in the Borough. Under the
Housing and Planning Act 2016 the Council will no longer be required to sell housing
assets, which was the original expectation, but will now be expected to make a financial
contribution to meet the Government’s housing commitments based on an assumed
contribution derived from the anticipated receipts arising from high value units that fall
vacant. Until further guidance is provided it would be speculation as to the impact of
this policy and indeed whether any sales of housing stock would be actually required, or
if a contribution could be made through other means either through the sale of other
assets such as land or borrowing.
229. There is a further risk that with the roll out of Universal Credit, currently restricted to
single claimants placed in Croydon where the housing benefit element is paid directly to
the claimant and not to the Council, that rent arrears may increase. Currently it is too
early to estimate the financial impact of this but the level of arrears will need to be kept
under review. If collection rates drop then this financial burden would fall to the General
Fund therefore early identification of cases with the potential to build up arrears is
necessary so to mitigate the risk as far as practicable possible.
230. Based on the levels of subsistence support paid to in 2015/16 the adoption of the new
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standard rate of Section 95 Asylum Support, which is generally the same or lower than
those rates currently paid by the Council, would save in the region of £30,000 per
annum. This would reduce the pressure on the Other Destitute budgets within the
Housing and Community Services department which overspent in 2015/16.
Purchase of temporary accommodation
231. Due to the pressures facing the Council around the supply of large units of temporary
accommodation a programme of acquisition, both in and out of the borough, was
approved in 2014/15. Initially a £5 million HRA capital budget variation was approved
with an additional £10 million in both 2015/16 and 2016/17 approved as part of the HRA
capital bids process (Paper No. 15-10). To date 29 properties have been purchased
both in and out-of-Borough totalling £10.4 million. The units are acquired in consultation
with the Director of Finance and the Assistant Director of Finance (Property Services) to
ensure that the properties purchased represent value for money. The purchase of the
units utilises one for one Right to Buy receipts retained by the Council. Under the terms
of the revised Right to Buy agreement only 30 per cent of the acquisition costs can be
met from the retained receipts with the balance being met through borrowing or S106
funds.
Sales policy - sale of vacant former acquired properties
232. The financial effects on public funds of allocating vacant Council dwellings for sale,
instead of re-letting, cannot be fully and precisely quantified in advance and some
elements can only be conjectural even with the advantage of hindsight. There are
financial effects on both the HRA (with potential impact upon tenants’ rents) and the
Council’s General Fund (with potential impact upon council tax bills) that need to be
considered. Current capital finance Regulations mean that 100 per cent of the capital
receipts from such sales are freely available for re-investment in the HRA or the
repayment of debt, or in the General Fund for the provision of affordable housing or
regeneration. If used for other General Fund capital expenditure, the General Fund will
bear the continuing cost of an interest adjustment to compensate the HRA.
233. Former acquired properties that demonstrate a net financial advantage to the Council
from sale should be confirmed in each case before proceeding where the justification for
sale does not rely on any housing policy objective as the decision is therefore based
purely on financial advantage. Currently the General Fund bears the long run present
value cost of replacing a sold property with a private sector lease without any
compensating gain from the disposal. The recommendation to proceed with sales which
may demonstrate a financial advantage and confer other identified housing policy
advantages would imply an additional cost to the General Fund based on the cost of the
replacement temporary accommodation as shown above.
234. Under the current vacant sales policy the Assistant Director of Housing and Community
Services (Housing Services) has the ability to claw back, under the Standing Order No.
83(A) procedure, those properties referred for sale subject to urgent housing need. 9
properties were clawed back in the year with a further 9 properties being sold at auction
realising total capital receipts of £7 million. Under the revised policy approved in July
2015 (Paper No. 15-198), £5.3 million of these capital receipts should be invested into
stock reprovision. This will be through the purchase of replacement larger units aimed at
increasing the supply of larger family units to help to meet rising demand or through the
purchase of decant units in and around the regeneration scheme areas for which a
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positive HRA capital budget variation is recommended for approval in 2016/17.
235. The Council takes an annual decision on the continuation of the former acquired sales
policy and as a result the 30 year HRA Business Plan relies only on capital receipts
from the sale of former acquired properties in the current year and does not rely on the
continuation of the scheme to maintain a viable business plan. The approval of the £5.3
million capital budget variation will have no detrimental impact on the viability of the
HRA as this will be funded from the capital receipts from disposals not previously
recognised in the business plan.
236. This sale and reinvestment policy will continue into 2016/17 but will be subject to it still
being affordable within the HRA business plan when considered alongside the
requirement to contribute towards the cost of the implementation of the Housing
Association Right to Buy policy introduced under the Housing and Planning Bill 2016.
Details of the sums the Council are expected to contribute towards this have still to be
received but considering the relatively high stock values in Wandsworth it could have a
material impact on forecast HRA reserves and the overall 30-year business plan and
may require mitigating actions. Subject to further detail being known the financial impact
of this will be included in the September 2016 HRA business plan update.
SECTION 6: REPORT SUMMARY AND CONCLUSIONS
237. Sections 1 and 2 of this report set out the homelessness position, the progress during
2015/16 and the key issues that need to be considered to manage the position during
2016/17. After several years of a reducing trend in homelessness demand, the last six
completed years have seen significant increases in numbers being admitted into
temporary accommodation and being accepted for the full duty overall that period,
although in the year just closed numbers may have begun to plateau.
238. Again, for 2016/17 there are grounds to assume that that this numbers will remain at
significant levels and accordingly to plan for the increased use of temporary
accommodation over the year. Section 1 forecasts that any increase in use can be
contained to 175 more placements over the year which may prove challenging. Careful
monitoring by the Housing and Community Services Department and by the relevant
Committees will continue to be essential during the year.
239. In terms of the allocation of social housing, the resources forecast is for 1,216 dwellings
becoming available in the year from all sources and the 2016/17 Allocations Plan seeks
to deliver a significant number of homeless rehousings and a significant number of
moves by way of transfers so as to continue to address the issues connected with
under-occupation, building on significant progress in recent years, and to create more
resources whilst providing reasonable preference in addressing other manifestations of
housing need.
240. This year, the Council’s activity in, and plans for, promoting home ownership in the
Borough under various initiatives is reported separately in the affordable housing update
report (Paper No. 16-279), to all which all Members, when considering this report and
deciding whether to support its recommendations, are referred.
241. Lastly, 2016/17 will see the implementation of the Shared Staffing Arrangement with
Richmond-upon-Thames Council in the areas of the Department responsible for the
matters covered in this report. It is expected that, following appointment processes
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through summer 2016, arrangements on the ground will go live early in 2017.
The Town Hall,
BRIAN REILLY
Wandsworth,
Director of Housing and Community Services
SW18 2PU.
27th June 2016
Background Papers
There are no background papers to this report.
All reports to Overview and Scrutiny Committees, regulatory and other committees, the
Executive and the full Council can be viewed on the Council’s website
(www.wandsworth.gov.uk/moderngov) unless the report was published before May 2001, in
which case the committee secretary (Thayyiba Shaah – 020 8871 6039; email
xxxxxx@xxxxxxxxxx.xxx.xx) can supply if required.
Appendices:
Appendix 1 –
2015/16 homelessness demand and assessment
Appendix 2 –
2015/16 temporary accommodation and permanent rehousing
Appendix 3 –
2015/16 resources forecast and actual and 2016/17 resources
forecast
Appendix 4 –
2015/16 commitments forecast and actual and 2016/17
commitments forecast
Appendix 5 –
Housing Act 1996, Children Act 2004, Homelessness Code of
Guidance (2006) and Supplementary Guidance (2012)
Appendix 6 –
Proposed NRPF rates effective 1st August 2016
Appendix 7 -
Draft revised Housing Allocations Scheme
Appendix 8 -
Equalities Impact Assessment re Appendix 7
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