Agenda item

(i)         Joint Report of the Assistant Chief Executive and Corporate Director of          Regeneration and Economic Development.

(ii)        Presentation by Andrew Burnip, Core Team Manager, Housing Solutions, Regeneration and Economic Development.

The Chair introduced the Core Team Manager, Housing Solutions, Andrew Burnip who was in attendance to speak to Members in relation to Durham Key Options (for copy of presentation see file of minutes).

The Core Team Manager reminded that the last time the Committee had heard from Officers as regards the review of Durham Key Options (DKO) by the Housing Quality Network (HQN) and that now 100% of formal partner organisations advertised their properties via DKO.

Members were reminded of the Band system running from A to F, with A being the highest need, and F being a reduced priority and figures were set out within the presentation for the letting according to each band, which housing types these represented and which providers were letting in each band.  The Committee noted that most lets were within Band C as per the quotas set out in policy, although Band B did not have many lets in comparison to its quota.  Councillors noted 20,973 lets in total, with Derwentside homes being the single largest provider.  It was explained that there were several methods for DKO bids to be submitted and that via the internet was the most used, followed by the telephone line and the Abritas automated system being the third most utilised, giving in total around 103,071 bids for the period April 2011 to March 2012.

The Committee noted the HQN Review of DKO had set out five main actions:

·        Review and evaluation of the administration of DKO.

·        Review the performance management framework.

·        Ensure that policy complies with legislation and addresses local housing need.

·        Extend the DKO scheme.

·        Raise awareness and promote equal access.

In relation to the first action, The Core Team Manager explained that a Steering Group had been established, a mapping of functions had been completed and Options Report with cost analysis had been reported to the Housing Forum and the Forum had noted that no further actions were required in this regard, other than to ensure consistency across all partners such as in the Banding of applications.  Members noted that the HQN noted that there could be scope to make improvements via centralisation of some administration tasks.

The Committee learned that a Project Group was established as regards Performance Management and that a Performance Framework was agreed with 13 DKO PIs, as set out within the presentation document. 

The Core Team Manager explained that the third action related to the changes in Government legislation in respect of Localism and Welfare Reform and that the main issues were Tenure Reform; affordable rents; restricted access (Department for Communities and Local Government, DCLG criteria, i.e. if earning over £40,000 per annum); exclude transfers; inclusion of additional groups where skills were identified for economic growth; the exclusion of those registered on DKO, but who were not in housing need (approximately 8,000); homelessness duties and; the many complex issues associated with Welfare Reform.  

Members were reminded that Welfare Reform would include reductions in Housing Benefit for those with “spare” bedrooms, with this to come into effect in April 2013, though it was known several private landlords had already begun to write to tenants as regards moving them so not to face a shortfall in the rents they were able to collect.  Accordingly, DKO were making customers aware that changes were coming in relation to benefits and that they should be prepared in respect of how they may affect their circumstances.

The Core Team Manager noted that there would be consultation in the summer as regards a revised banding system that would run A – E, be simplified and would see the “underoccupiers” go into a new Band B.  Members were asked to note direction from Government as regards preference for members of the Armed Forces and the potential to delete people from DKO if they did not bid within a 12 month period.  Councillors noted that that there would be consultation on a new Tenancy Strategy and that some changes may be brought forward in order to help customers that maybe facing issues associated with under-occupancy as described.

In relation to the extension of the DKO scheme, a pilot scheme will be ran from 1 April 2012 with Accent in the east of the County, approximately 1,700 properties, representing 100% of the allocations for Accent.  Members noted a private sector pilot was being developed and would aim to stimulate the private sector in line with demand.  The Core Team Manager explained that in respect of the fifth action, there was an update Equality and Diversity Impact Assessment and a review of the options for the weekly DKO paper was being undertaken to improve value for money and customer service.  The Committee noted that via a Digital TV channel and a “smart phone” application, DKO had received over 17,500 hits and had received 552 bids, with 5 people being re-housed.

The Core Team Manager explained that DCC received £150,000 from DCLG to tackle under-occupancy by “older people” and that the funding had been used to help 45 “assisted moves” since August 2011, with help in moving furniture and appliances being part of the assistance offered.

The Chair thanked the Core Team Manager and asked Members for their questions. 

Councillor M Wilkes noted he was impressed with how the various issues were being addressed and asked whether the large volume of telephone calls as stated, over 6,000, was a drain on staff time and if Officers had any ideas of how Members could help.  The Core Team Manager thanked Councillor M Wilkes and noted that the figure of 6,000 included partner providers and therefore was not a direct drain on DCC resources as such.  Members were also informed of plans to move a number of services, including DKO to the “Looking Local” digital channel for ease of reference for the public.

Councillor P Stradling noted that several of the changes that were taking place were imposed by central Government and there was a need to be careful in handling issues so that the Authority’s reputation was not tarnished.  The Core Team Manager agreed that there were several challenges facing housing, especially with matching the housing stock we have to the future demands and the transitional arrangements in moving to new legislation.  Members were reminded of proposals for people to take in a lodger, however they were informed that some groups were exempt from some of the changes, such as pensioners.  The Committee learned that should customers “stay and not pay” in larger properties there was potential lost income for providers, citing around £750,000 for East Durham Homes, perhaps leading to a return to the days of Rent Collectors going door-to-door.

Councillor J Hunter expressed concern as often older family members with a large property take on the role of child care for grandchildren in later life and changes may affect how they provide support for their children, allowing them to go to work.  The Core Team Manager admitted that there were a number of scenarios in which people may be negatively impacted.  An example was given where a divorced man in a rented 2 bedroom property, who has visits from his 2 daughters at weekends would have only approximately half-rent being paid to the landlord.  It was noted that if the landlord suggested a lodger to be taken in to balance out the rent, the ex-wife could question whether her daughters should be staying in a house with a stranger possibly affecting custody arrangements, or affecting whether the father may be able to work and so on.

The Chair asked whether there would be any legal redress made available to people should changes have such negative impacts.  The Core Team Manager explained that Courts would be in a difficult position as if Tenancy Agreements are in place, they are effectively a contract.

Councillor M Wilkes asked how the loss of income for providers as described would come about.  The Core Team Manager explained that the figure as noted was a worse case scenario on the basis of from April 2012 not 1 person were to pay to make up any rent shortfall.  Councillor M Wilkes asked what measures were being undertaken as regards the preparing and bolstering the DCC response to homelessness.  The Core Team Manager explained that the issue had been raised and was now an item on the Risk Register, with Officers looking at the areas that would have the highest impact from Welfare Reform.  Members noted that Officers from the Welfare Rights Section and Housing Solutions were liaising with the Citizens’ Advice Bureau (CAB) as regards options that may be available to help people that may be negatively affected by Welfare Reform changes.  Councillors were also made aware of a discretionary fund that may be available via Revenue and Benefits for a defined period; £170,000 for DCC, increasing to £380,000 from April 2012 including a contribution from Housing Solutions of £100,000. 

Councillor M Wilkes asked whether there was potential for migration to the County from other areas in the country.  The Core Team Manager noted that the figure for under-occupancy was 52% for the Registered Social Landlords (RSLs) in the North East compared to 30% in the south East, and 29% in London.  It was added that while there was potential for such migration, the issues of lack of family, friends and a support network could be a factor preventing such migration and that areas such as the East of the County and on the areas bordering other Authorities there could be a potential for a more transient population.

Resolved:    

That the report be noted.