Agenda item

Report of the Corporate Director of Regeneration and Economic Development – presented by the Housing Project and Service Improvement Manager, Regeneration and Economic Development.

The Chairman asked the Housing Manager, Regeneration and Economic Development, Marie Smith to give an update as regards Durham Key Options (DKO) (for copy see file of minutes).

The Housing Manager reminded Members of the background to the DKO choice based lettings scheme adding that currently there was a 5 band system in operation, with Government having set out a number of reasonable preference groups that must be awarded priority under any lettings scheme.  Councillors noted statistics in terms of the number of applicants on the DKO register, with the trend of reducing numbers being in part from an improved re-registration process to ensure those applicants registered still require housing and were suitable. 

The Committee noted that in terms of housing need and the reasonable preference/statutory priority groups, the County Durham percentage of 42% of applicants being from within those groups was in line with the national average of 43%.  Members noted other statistic showed there was not an issue in terms of overcrowding for those in County Durham.  It was added that while nationally around 1 in 5 applicants from the reasonable preference groups were assessed as having their housing need as a result of a medical or welfare issue, the statistic for County Durham was around 4 in 5 for those priority groups.

The Housing Manager noted approaches taken by other Local Authorities, citing an example in Manchester where those in employment would be prioritised, and added this would be looked at in terms of the next review of the DKO Policy in 2016.  Councillors noted statistics in terms of the income bracket of applicants to DKO and numbers from those brackets.  Members also noted statistics in terms of bidding for properties via DKO with an average reduction in bids across all properties types being around 25-30% since 2013, across the various providers. 

Councillors learned of the split of property types in terms of lettings for the first 9 months of 2015/16: 22 1-bedroom; 52 2-bedroom; 25 3 bedroom; and 1 4-bedroom.  The Committee noted that nationally the percentage of lets to single applicants with no children was around 13%, however, the percentage for County Durham for the same 2014/15 period was 42%.  It was noted this was likely to be due to differences in lettings policies across the country, where many schemes do not allow under-occupation, namely singles would be expected to accept 1-bedroom properties only.

With reference to a question to the previous agenda item, Members were referred to paragraph 44 of the report that noted that of 79 applications from those with an armed forces connection in the last 5 years, 49% had been housed, 39 applicants.  It was added that of those 39 applicants, 36 had been housed since the amended Policy from April 2013 which awarded armed forces applicants with Band C, instead of Band D.

In terms of termination of tenancies, the Housing Manager noted that this had greatly reduced in 2015, and Members were reminded of the Private Landlord Accreditation Scheme and how this linked to DKO.

The Housing Manager concluded by noting the priorities agreed by the DKO Board for 2016 were: low demand areas; to simplify the policy, partnership review; and to improve the marketing of DKO.    

The Chairman thanked the Housing Manager and asked Members for their questions, and asked whether the move to online applications had been an issue for those bidding for properties.

The Housing Manager noted there had not been a change in the proportion received online, and noted that the ability to apply via a hardcopy form was still available, though would check and report back to Members on this issue.

Councillor J Clare noted the reference to the Manchester model prioritising those in employment and also at paragraph 62 with reference to stricter criteria in terms of arrears and asked whether there was a move from a need model to a market model.  Councillor J Clare added that he felt there could be a risk that if tenants perceived as being “problematic” were not supported that they could become victim to the poorer quality private landlords if they were the only people that would offer them a property.  The Housing Manager noted there was a number of products that could be offered, within the constraints of Government policy, and that the Council had to address both need and issues raised by providers.  It was added that there was a number of services we did offer to help support people, and that the Authority would be bound in terms of its statutory duties.

Councillor M Davinson noted that Paragraph 5 of the report explained Accent were no longer part of DKO as it was too expensive, however at Appendix 3 to the report Accent were listed within the table of information on partners.  Councillor M Davinson asked questions in terms of: a view as regards the income brackets of those applying via DKO; the Private Landlord Accreditation Scheme (PLAS) and DKO, was 50 an upper limit; of 153 referenced PLAS applicants, 87 were “red”, 50 “amber” and 15 “green” and asked whether this had an impact in terms of forcing people to choose private landlords, dispersing people.  Councillor H Nicholson noted concern as regards the social impact of people being dispersed and the cumulative impact upon communities.

The Housing Manager noted further information on the Private Landlords may be available via Shirley Janes, the Council’s Private Sector Housing Manager and that in terms of Accent, they had been a 100% DKO partner, however, had now moved to be a 50% partner.  It was added that the number of private landlords within DKO was 50 at this time.

Councillor R Ormerod noted the table setting out the areas with the highest percentages of Band E lets and added that it would be useful for the Committee to have the associated numbers in addition to be able to give some perspective.  Councillor O Temple noted that the reference to simplification of the DKO policy would be welcomed, and asked what the end of quotas would mean in real terms and also whether the inability to access the internet was a barrier in terms of the use of DKO.  The Housing Manger noted that quotas had been in place within the bands for around 10 years, adopted and adapted from successful models elsewhere in the country in order to give a balance so that those that did not necessarily have the greatest need still had a chance to bid successfully for a property. 

It was added that as the housing market had changed, there may be a move to 4 Bands, though Members would be consulted on any changes.

Resolved:   

(i)              That the report be noted.

(ii)             That the Economy and Enterprise Overview and Scrutiny Committee, receive a further report at a future meeting on the proposed changes to DKO Lettings Policy together with the new DKO Application Form.