Agenda item

(i)              Joint Report of the Director of Transformation and Partnerships and the Corporate Director of Regeneration and Economic Development.

(ii)             Presentation by the Housing Manager, Regeneration and Economic Development.

The Chairman introduced the Housing Team Leader, John Kelly who was in attendance to give an update as regards Durham Key Options (DKO) consultation (for copy see file of minutes).

The Housing Team Leader thanked the Committee for the opportunity to provide an update and reminded Members that the Housing Manager, Marie Smith had been in attendance in the summer to speak to Members in terms of the proposed changes to DKO.

Members noted that key changes included: the under occupancy charge or “bedroom tax”, with 14% for one spare bedroom and 25% for two spare bedrooms; affordability issues; greater competition from the private rented sector; housing stock not matching need; the introduction of Local Housing Allowance (LHA) rates from April 2018, for all new tenants post-April 2018, noting pensioners were not exempt.  Members were referred to figures in terms of LHA rates and average rents in Durham and Sunderland for comparison, highlighting the deficits in terms of LHA and average rent.

The Housing Team Leader noted in terms of the impact to DKO from 2018 that: 45% of lettings in 2015-16 were to single applicants (2062 from 4622); 1 in 3 of the total lets to single people were to under 35s; 43% of lets to 16 to 24 year olds were single; 29% of lets to 25-34 years olds were single; 600 single, under 35s on the register receive housing benefit; and one-third of register are pensionable age. 

Members were reminded of the rationale behind the proposed changes in order to: have fewer bands; remove quotas; have only two medical tiers; have time limits in terms of 12 months for Band 1; remove the low award for “threatened with homelessness”; remove “wanting larger accommodation” outside of overcrowding criteria; prevent those adequately housed from moving on DKO within 12 months of a move; assess all arrears and not just those above the 8 week guideline: and align size eligibility with affordability of rent.  Councillors noted the reasons highlighted in the presentation and were referred to a graph showing those in favour of the changes as set out within the consultation, with more than 74% in favour of all the proposed changes.  Members were referred to comments made during the consultation in terms of the voluntary sector noting that the proposed changes would make the process easier for vulnerable groups to navigate and in relation to rent arrears staff would be able to look at each case in its own right and discretion would still be used to assess genuine reasons for arrears. 

Members were informed that other points to note included: the advertising of low demand properties; 5 weekly bidding cycles beginning each working day; and the proposed improvements to the application form, reducing it from 32 pages to 20, and also the removal of the cover sheet.  The Housing Team Leader took Members through the current DKO’s application form highlighted where possible amendments may be made and asking members for comments.  It was confirmed that the form would be circulated to committee members following the meeting providing an opportunity for them to suggest possible amendments.

The Chairman thanked the Housing Team Leader and asked the Committee for their comments and questions.

Councillor O Temple noted concern as regards “any arrears”, rather than the existing 8 weeks and added that while there may be discretion, a number of tenants may find themselves in “technical arrears” due to how their rent is paid and therefore felt that perhaps a 4 week arrears level was perhaps better, with the reduction to zero being counterproductive.

The Housing Team Leader explained that information from landlords reference forms would include information on past arrears and that at this point there was not an intention to look into further investigations in terms of an individual’s rent arrears and it was not to try and disqualify people from eligibility, rather to help understand the reasons behind arrears and therefore be in a position to provide advice and identify any support available.  It was added that there would be a 6 month review of the revised policy and if any issues in terms of arrears came through this would be looked at.

Councillor J Clare referred to the LHA rates and noted pensioners were not exempt and asked whether everyone would be affected post-April 2016.  The Housing Team Leader noted that it would affect all new tenants post-April 2016.  Councillor J Clare noted he feared this had the potential to drive people towards private landlords and was pleased that there were triggers in place to be able to help tenants.  Councillor J Clare asked in terms of what was the process should a person fall into arrears when in receipt of full housing benefit, and also what the situation was in terms of the demand for bungalows.  The Housing Team Leader noted that in the past where people could afford 2-bedroom bungalows, these were the preference; however, in the future this may change as a result of LHA changes.

In relation to the proposed changes to the application form the Chairman asked if the proposals to remove the additional language panel from the application form had been looked at by the Council’s Equalities Team.  The Housing Team Leader noted that colleagues from Equalities and Legal Services were being asked in terms of what could be possible in terms of providing a supplement as and when required.  The Overview and Scrutiny Officer noted should Members have any additional comments on the application form they could forward them to her by 10 October so that they could be taken into account when considering the content of the new DKO application form.

Resolved:

(i)       That the presentation and report identifying the proposed DKO Policy changes to be         considered by Cabinet at the meeting on 19 October be noted.

(ii)      That comments made by the Economy and Enterprise Overview and Scrutiny           Committee on the content of the new DKO Application Form be fed into the           revision process.