Agenda item

Durham Key Options - Progress

(i)         Joint Report of the Director of Transformation and Partnerships and the      Corporate Director of Regeneration and Local Services.

(ii)        Presentation by the Housing Manager, Regeneration and Local        Services.

Minutes:

The Chairman introduced the Housing Manager, Housing Solutions, Marie Smith who was in attendance to give an update on Durham Key Options(for copy see file of minutes).

 

The Housing Manager explained she was presenting the report on behalf of the Housing Team Leader, John Kelly and that it would look at the Durham Key Options (DKO) Lettings Policy Review 2017.

 

Members noted the background to the item, with DKO being the choice based lettings (CBL) scheme for County Durham, with one policy operated by partners.  It was added that it had been reviewed and changes implemented in April 2017, and feedback now followed from a 6 month review.

 

The Housing Manager noted that there were around 11,000 people registered on the scheme and the previous “Manchester Model”, with quotas for each of the band, had been removed making the scheme more user friendly, with a reduced number of complaints.  It was noted that there had been no negative comments in terms of the removal of the quotas.

 

It was explained that there were now 4 bands, with 1 representing the highest need, with allocations made in date order.  It was added that while there were 11,000 registered, not all were active, the latest figures per band being: 1 – 382; 2 – 3,516; 3 – 1,044; and 4 – 4,245.

 

The Housing Manager explained that the second change looked at within the review was the new medical framework, which had involved Occupational Therapists.  It was noted that this had moved from 3 categories to 2, “High Need” and “Need”.  It was noted that there had been a positive impact with a 26% increase in house moves by those assessed with a medical need.

 

Members noted the time-limit for Band 1 applicants and the removal of the threatened with homelessness priority and the removal of the wanting larger accommodation, with overcrowded applicants continuing to be assessed under their needs and given Band 1 or 2 depending upon the severity.  Councillors learned that there were no new transfers (where there was no housing need) for those that had previously moved in the last 12 months.  It was added that all rent arrears were being assessed, not just those over 8 weeks, resulting in an increase of 56% in terms of applicants being disqualified due to arrears.  It was noted that the refusal letter now included information as regards further support from partners in terms of managing debt and arrears.

 

The Housing Manager noted that in respect of affordability, in the past this had not been part of the checks carried out in the public sector, now a software tool was used in order to determine whether people could afford to move to a larger property.  It was noted that there were some exceptions, such as: fostering/adoption families; applicants with a medical need where a bedroom cannot be shared; pregnant applicants; and applicants requiring a carer to stay overnight.

 

Members noted that the DKO Board had set up three subgroups to look at the affordability procedures, DKO website and the application form.

 

The Chairman thanked the Housing Manager and asked Members for their comments and questions.

 

Councillor J Atkinson noted that when looking at the figures in terms of those disqualified, the number varied across the organisations, and asked why some were performing better.  The Housing Manager noted she would check with the Housing Team Leader as in could be in connection with numbers of people being contacted again.  Councillor J Atkinson also asked as regards a standard partnership approach in terms of telephone call handling, noting difficulty in contacting Livin.

 

Councillor L Maddison asked if there had been an increase in rent arrears.  The Housing Manager noted that those via DKO had not seen a large increase, though other changes, such as welfare reform had impacted with a slight increase.  Councillor L Maddison asked whether it was possible to know as regards those applicants from outside of the area, how many had required adjustments to the property in order to meet a medical need, and whether this had increased. 

 

The Housing Manager noted she would check, though she noted around 3-4 months ago the number was very small, with the majority of those with medical needs coming from within our area.  It was added that there was a summary annually giving a breakdown and this could be provided to Members.

 

 

Councillor L Maddison asked as regards the affordability check and whether this was in place for all partners, as stated, not excluding those applicants that need the most help.  The Housing Manager noted that this was now in place, no one had been refused and that it was one tool used to help applicants.

 

Councillor P Jopling noted 500 exemptions in terms of rent arrears and asked if this could lead to more homelessness, adding she had spoken to Officers who had noted that rent from new housing was more expensive and therefore she worried as regards the provision of affordable homes.  The Housing Manager noted that there was a broad policy statement in terms of arrears; however, each partner had their own procedure, interviews and assessments.  It was explained that if not the fault of the tenant then a plan could be developed for that person.  She added that again each partner had their own processes in terms of disqualified applicants, with Housing Solutions having a referral mechanism in place.  The Housing Manager noted there were discussions with housing providers in terms of policy moving forward.

 

Councillor E Adam thanked the Housing Manager for her presentation and asked if the data would be better analysed independently to ascertain what changes were beneficial.  The Housing Manager noted that Durham County Council (DCC) looked in-depth at the data, with the providers having the front facing aspect with the customers.

 

Councillor M Wilkes asked if all individuals in arrears were sat down with in terms of discussions relating to them being disqualified from DKO.  The Housing Manager noted Housing Providers do this, and there was an expectation to do so.  It is noted that if an individual wished they could be referred to Housing Solutions, and often clients were willing to be referred.  Councillor M Wilkes asked of the 541 disqualified for rent arrears, what proportion were then referred to Housing Solutions.  The Housing Manager noted she did not have that information to hand and would check as regards this.  Councillor M Wilkes asked if all partners were audited and checked to ensure they were all operating the same. He added if it was possible to see what proportion against the number of properties as his worry was that most of those rejected came from private rent with higher arrears and he did not want to see people stuck in private rent.  The Housing Manager noted that partners were audited in terms of application forms, bids, lets, however she would look for more information in terms of policing compliance.  Councillor M Wilkes noted recent press articles referring to Durham as being near the top in terms of having the most empty homes, and he had noted from Officers that there were around 1,600 that were social housing, and while he understood in terms of the difficulty of renting some properties in certain areas, there needed to be a look to try and bring these properties back into use.  The Housing Manager noted at the Council’s Housing Manager, Shirley Janes had been looking at those figures and a number were not available to let for a number of reasons and therefore the latest figures were low.

 

Mr T Batson noted that some affordable rent properties that were new build would likely be more energy efficient and therefore have lower energy bills; however, this could be reflected in higher rents for such quality.  The Housing Manager noted she was not sure; however it could be an area to be looked at.

 

 

 

Councillor J Clare noted he felt that DKO was wonderful and asked if all Local Authorities had a similar overarching lettings policy in their areas.  The Housing Manager noted that CBL as an option was brought in across the country in 2007, with a number of Local Authorities setting up such as policy, however, some dropped out, leaving a mix nationally.

 

Councillor J Clare asked if some people are not allowed to reapply for a period of 12 months, how were void costs avoided, where people are not allowed to move to a larger property.  The Housing Manager noted each provider would have a cost for a void in terms of inspection and repairs to make the property fit for rental.  Councillor J Clare noted he did not understand void costs, and those described seemed to be change costs, not void.  Councillor J Clare noted the changes had been well received by customers, however, the change were for the benefit of the providers, not the customers.  He asked as regards Universal Credit and rent arrears, the number active on the register, and that as 3-4 bed properties were the more difficult to rent then was there not a self-perpetuating issue in terms of affordability and rental of these larger properties, again with a fear of forcing people into unsuitable private rental.  The Housing Manager noted that the biggest impact was on the customers in terms of the removal of the quota system.  She added that in terms of where Universal Credit had been introduced and there were delays, there were arrangements in place to ensure no one who was awaiting an overdue payment would be evicted if that was why they had fallen into arrears.  In terms of demand for types of property, the Housing Manager noted there had been shifts in types, with a number of those looking to rent being single people and therefore innovative solutions, perhaps including shared tenancies for example, maybe required, with the County Durham Housing Group having piloted this.

 

Councillor P Howell asked why the target of 60 empty homes back into use was chosen given there were thousands and noted it would be interesting to see the geography and house type for those empty properties.  The Housing Manager noted that the number brought back into use was 120, double the target, and assured Members that getting empty homes back into use was high on the agenda.

 

Councillor P Jopling noted that she had attended a local office with a resident in terms of rent being paid directly to a provider from benefit, and ask if this something providers should be pushing for.  She also asked as regards the health bandings and wondered if two bands were sufficient.  The Housing Manager explained that in terms of direct payment from Universal Credit, there had to be arrears first and then there would be a conversation with providers.  In relation to the health bands, these were developed in conjunction with colleagues from Occupational Health.

 

Councillor J Atkinson noted that while the Council had transferred its housing stock, public perception was that they were still “Council housing” and accordingly Members would face queries.  He added that there needed to be a more consistent way to communicate with the Providers in order to help assist Members and residents with their queries. 

The Housing Manager noted she could not speak for all providers, but could raise the issue as regards Member engagement at the next DKO Board meeting.

 

Councillor J Clare noted many registered providers had good communications with their Local Members, however added there was no consistency.

 

 

Resolved:       

 

(i)            That the Economy and Enterprise Overview and Scrutiny Committee note the progress report and presentation.

(ii)          That the Economy and Enterprise Overview and Scrutiny Committee includes in its work programme for 2018/19 a further report monitoring the progress of Durham Key Options

(iii)         That the concerns highlighted by the Committee regarding the need for a more consistent way for Councillors to communicate with the Providers in order to help assist Members and residents with their queries be passed to the County Durham Housing Forum and the Durham Key Options Board.

 

Supporting documents: