Agenda item

The Committee received a report of the Corporate Director of Regeneration Economy and Growth and presentation which provided an update on the Supported Housing Improvement Programme (SHIP) working with non-commissioned supported housing providers across County Durham (for copy of report and presentation slides, see file of minutes).

The Housing Team Leader provided Members with a detailed presentation that focused on: the background to the programme; context for County Durham and providers operating in County Durham; SHIP Funding; Objectives and Outputs of the scheme including detail of reviews and inspections undertaken with initial findings, added value, social impact including case studies and what next including details of priorities until March 2026 and the government consultation on the Supported Housing (Regulatory Oversight) Act 2923.

The Housing Team Leader explained that there is currently no regulator of non-commissioned supported accommodation with providers being able to set up provision in the county without Local Authority approval. She continued that some providers often set up for commercial gain, buying cheap properties often in deprived locations. She highlighted that this housing supports the most vulnerable and that both nationally and regionally there is an increase in this type of accommodation being provided together with an increase in reports of substandard accommodation. As the tenants require support above and beyond what normal housing providers would provide, if the support is not of the required standard then this type of housing provision can have a detrimental impact on communities, the health and wellbeing of the tenants and public services.

The Housing Team Leader provided detail of the providers operating in the county confirming that there are 600 properties across the county providing this type of accommodation with some having multiple tenants with shared space. She continued that within County Durham there are 20 providers with a total of 754 units with the largest number of units in East Durham, Mid Durham followed by North, North West and South Durham with far fewer properties providing this type of accommodation in Durham City, South East Durham and West Durham.

In relation to funding of the scheme, the Housing Team Leader reminded members that the national scheme had a funding pot of £20m to address poor quality supported housing, improve standards of support and accommodation.  She confirmed that Durham was awarded £578,795 to implement the SHIP with funding lasting to March 2025.  This funding had been used to establish a multi-disciplinary team consisting of six posts.  Concerning the objectives of the scheme

The Housing Team Leader confirmed that a review is being undertaken by the team of the existing provision with 17 of the 20 providers having been reviewed. This involves property inspections being undertaken with 168 to date being completed.  In addition, 336 tenant reviews have been completed to validate Housing Benefit decision and ensure tenants are receiving the correct levels of support. These reviews have resulted in 18 claims suspended/cancelled and 4 claims amended. The Housing Team Leader continued by informing members that supported housing is for a maximum period of two years during which support is provided for the tenant to move to independent living, again the review process had resulted in 48 tenants signing up for Durham Key Options with 5 being moved onto their own tenancy and 6 in band 1 waiting for a property. Concerning property inspections, it was confirmed that 168 had been inspected with 154 failing the first inspection with 83 improving to meet the necessary standards.

The Housing Team Leader then highlighted other activity undertaken by the Team in relation to housing benefit subsidy loss. She explained that subsidy loss is the shortfall in housing benefit payment made to local authorities from the DWP, when the provider is not registered with the Regulator for Social Housing and is set up as a charity, community interest company etc. This had resulted in a £1.6m subsidy loss for DCC on non-commissioned housing in 2023-2024. The SHIP team is actively working to encourage providers to become registered with the Regulator for Social Housing or partner with an existing registered provider to help tackle this issue. As a result of the work of the SHIP it is expected that the subsidy loss has increased at a slower rate in 2024-2025.

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In relation to the Gateway approach used by the SHIP Team, the Housing Team Leader explaining that this is the approach used by DCC to manage new and existing providers with processes in place to enable the Council to scrutinise costs, referrals, governance, support and procedures together with the mapping of properties geographically. She continued by highlighting that 25 new approaches had been made since January 2023 with only 2 progressed to provide supported housing in the County. She confirmed that potentially the Gateway approach had saved £114k. Concerning added value and social impact, the Housing Team Leader commented that the training provided by the programme had resulted in better partnership working and collaboration, health and wellbeing support provided at the correct standard, the development of the Non-commissioned Supported Housing Charter which had been co-produced with providers and collaboration with the ASB Teams and police to understand trends and promote initiatives to reduce both ASB and crime. Members were then provided with detail of two case studies.

The Housing Team Leader concluded by highlighting to members a government consultation on the Supported Housing (Regulatory Oversight) Act 2023. The Act  had been initiated in response to the challenges linked to the non-commissioned supported housing sector to give local authorities greater control within the sector.  The act had come into force in August 2023 with a consultation on the Act expected in early 2025. It was confirmed that as a result of the positive work undertaken by the SHIP, the Corporate Management Team had agreed to fund the programme until March 2026.

The Chair thanked Officers for the report and detailed presentation. He commented that 168 properties had been inspected with 154 failing, 83 had improved to the required standard and 5 properties had been returned to the landlord. He asked as to whether there was further information regarding those that failed and had not improved to the required standard. The Housing Team Leader advised that further inspections would be carried out and enforcement action taken in relation to some of the providers. She confirmed that further detail would be provided at a future meeting.

Councillor Wood referred to the 40% of non-commissioned supported housing, not to the required standard with the Team having currently reviewed 17 of the 20 providers. He asked if there were any concerns regarding the tenants with the remaining three providers that had not been reviewed and what could be done with regards to ensuring that those providers engage with the Council. The Housing Team Leader confirmed that the relevant officers were carrying out further inspections and that a firmer approach was being undertaken, including enforcement action. She added that they continued to work with landlords and providers to bring properties up to the required standard. She confirmed that by the end of March 2025 the Team would have worked with all 20 providers and from April 2025 onwards reinspection’s would be ongoing.

Councillor Wood asked for clarification that the measures available via the SHIP programme were separate from Selective Licensing Scheme measures.

The Housing Team Leader advised that some properties providing non-commissioned supported housing fall within Selective Licensing areas and as part of the property inspection the Team work closely with the Selective Licensing Team to ensure that landlords had a licence. The Assessment and Awards Manager added that the SHIP programme was voluntary, however there were opportunities to apply pressure from a financial point of view.  He highlighted that under Housing Benefit regulations, DCC has the power to review active Housing Benefit claims, so the Council would be able to conduct a review of a live Housing Benefit claim and ensure sufficient care/support etc is in place and progress is being made and if not cancel/suspend any Housing Benefit claim. This wouldn’t be the full remit of a SHIP review but is a disincentive should providers refuse to work with the local authority.

Councillor Crute commented that there were worrying parallels with this sector and HMOs with regards to how providers were regulated and held to account and the potential detrimental impact on neighbourhoods surrounding these schemes. With regards to the Government consultation on the Supported Housing (Regulatory Oversight) Act 2023, he acknowledged the tight timescales, however felt it was imperative that the consultation comes back to the Economy and Enterprise Overview and Scrutiny Committee so that Members have an opportunity to feed into the consultation and raise concerns.

Councillor Crute then highlighted the need for Local Authorities to be given powers to require that providers were registered and asked whether there were any opportunities under Supplementary Planning Documents (SPDs) in relation to the County Durham Plan. In relation to the Supported Housing (Regulatory Oversight) Act 2023, should the Act not provide Local Authorities the necessary powers to require that providers were registered then the County Council needed to develop the appropriate measures/policy to hold providers to account, ensure the standard of accommodation and quality of support was provided, regulate the number of providers and units available and value for money.

The Housing Team Leader responded that the information coming forward with regards to the consultation and what it would include was limited. The Strategy and Delivery Manager explained that it was a licensing issue and not within the scope of the County Durham Plan. He clarified that with regards to SPDs, there must be a link to something already included within the existing plan and highlighted that SPDs were being abolished as part of the new development plan process.

Councillor Crute commented that he was concerned with loopholes in relation to either the national legislation or any resulting local powers that would provide the opportunity to convert a property or house being used as an HMO to non- commissioned supported accommodation. He continued that the necessary ‘checks and balances’ needed to be in place to prevent this from happening and allowing landlords to move from one model to another.

Councillor Manchester made reference to the Panorama documentary which had focused on a national organisation operating within the County and commented that whilst My Space no longer provided accommodation in Tow Law, he was aware that they provided accommodation in Crook area. He was under the impression that Durham County Council were no longer making referrals to this provider and asked for clarification. He then asked whether the Team were aware of the Compassionate Care Group that operated in the County. The Housing Team Leader confirmed that referrals to My Space were from outside the County and more intense work had been undertaken in relation to the 3 properties that My Space had within the County. She added that through the Charter, they were asking providers to keep referrals within the County Durham area and only take referrals from Housing Solutions or recognised organisation within the County, this provides more background in relation to individuals, ensures a more controlled process and reduces the impact on other services. She confirmed that the Team were in contact with the Compassionate Care Group who provide accommodation and support for individuals leaving hospital care.

Councillor Shaw commented that 40% of provision was in the East Durham area because of the low property values and highlighted that these areas were in special measures, noting that the poor quality of the housing in these areas and the transient population were adding to the existing issue, which was having a significant impact on local communities. He commented that housing providers build up an evidence base of people who have been excluded from social housing and asked where Local Lettings Agencies sit within this provision. The Housing Team Leader responded that historically the Authority did not have the oversight in relation to this type of provision. The Gateway approach and the introduction of the strategy now provided this oversight and provided a guidance tool for more informed conversations and engagement with new providers coming forward with regards to diversifying away from hotspots and the more densely populated areas. In terms of the Local Lettings Agencies, she confirmed that there were over 100 properties that solely take referrals from Housing Solutions which was the stepping stone to independent living.

Responding to a query from Councillor Currah with regards to new providers and engagement with Durham County Council, the Housing Team Leader advised that a lot of providers do engage with the Authority on a voluntary basis at which point they would be directed to the Gateway process. She confirmed that providers do not have to participate as this is not regulated, however if they choose to go forward without the approval of the Local Authority, then pressure could be applied via the Housing Benefit system.

Resolved:

i)             That the contents of the report and presentation be noted.

ii)            That the Economy and Enterprise Overview and Scrutiny Committee are engaged within the Government consultation process in relation to the Supported Housing (Regulatory Oversight) Act 2023.