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Crisis Conference 2011
Crisis Conference 2011
Session 2: Coping with the cuts
Crisis Conference 2011
David Hewitt
Head of Private Renting and Housing Development, Crisis
Crisis Conference 2011
Coping with cuts in the Private Rented Sector
(PRS)
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Background and overview of Crisis work with PRS
Outline the cuts and their likely impact
Consider what this means for landlords
What services will our clients require
Crisis support available
Practitioner example.
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Crisis and the PRS
•Crisis launched Crisis SmartMove in 1997
•Wider remit from 2006 to provide training, events and guidance to
statutory and voluntary sector agencies
•Research into coverage, outcomes and costs of PRS access schemes
•Campaigning and lobbying on policies that affect PRS access schemes,
tenants and landlords
•Partnerships with Department of Communities and Local Government
and the Scottish Government.
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Crisis PRS Access Development Programme
•Crisis led programme backed by DCLG
•Funding available for new/expanded services to assist single homeless
people into PRS accommodation
•Local authority/voluntary sector partnerships
•Crisis provide support from proposal through to operation
•48 schemes already; aim is to create 1,500+ tenancies this year
•New application round now open; c. 80 more schemes to be funded in
2011/12.
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What are the challenges?
Already happening:
•Housing benefit caps and move to 30th percentile
•Extension of SAR to under 35s
•Wider funding cuts including Supporting People
On the way?
•Linking LHA rates to CPI
•Threats to Social Fund
•Universal credit and overall caps
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What will the effect be?
•Increased difficulty finding and sustaining suitable PRS accommodation
for people on benefits and low incomes
•Throughout the UK people will face shortfalls, potentially leading to debt,
arrears and homelessness
•Many will find their current rent becomes unaffordable and need
assistance to move home
•Single people will get the least assistance
•Costs to local authorities, as well as health, criminal justice etc, are likely
to be considerable.
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How can service providers mitigate
the negative impact?
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PRS and the HB sub-market
•Approximately 3.2m PRS households. Around 13% of all households
rising to over 20% in some areas (Rugg & Rhodes, 2008)
•Over 900,000 households in the PRS in receipt of Housing Benefit (DWP
Impact Assessment, 2010)
•22-24% landlords offer accommodation to HB tenants as main tenant
type (BDRC market research 2010).
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PRS landlords and HB cuts
•Current sources of information may be incomplete or misleading
(1/3 in NLA survey understood cuts)
•Service providers can build confidence in their competence by
providing information that is sensitive, accurate and complete
•Consider different methods of communication
•Opportunity to highlight services.
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Landlords options post-cuts
•Sell their properties
•Let to non-LHA tenants
•Let to different LHA tenants (i.e. 32 not 22 in shared)
•Let to LHA tenants at same rates
•Let to LHA tenants in line with new LHA levels.
Understanding local market is key…
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What do landlords want?
•Processes and practices that will minimise risks:
•Clear processes and standards of service
•Tenant/reference checking service
•Tenant preparation and training
•HB liaison and expertise
•Range of incentives (which need not be costly)
•Access to ongoing support for both tenant and landlord.
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What should providers do?
•Identify at risk tenancies and provide accurate information to
current landlords and tenants
•Work with LA and other agencies to maximise efficient use of
resources – don’t try and do everything yourself
•Forge close links with HB, use the new guidance on direct
payments, and identify possible DHP usage
•Articulate how your service will minimise landlord risks
•Consult with and engage landlords throughout.
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What should providers do?
•Full assessments including realistic affordability assessments and
‘sharing’ challenges
•Pre-tenancy support including coaching to build confidence and
ability to ‘sell’ and negotiate
•Assure minimum property standards
•Moving in-packs and local information
•‘Tenancy healthchecks,’ particularly following move-in
•Ongoing support for landlords and tenants
•Make links to local services including education, volunteering and
employment.
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Crisis support available
•Crisis PRS Access Development Programme
•Best practice toolkit with comprehensive guidance and supporting
documentation
•Emerging best practice guidance (including specific work on youth
homelessness and the PRS)
•Research into sustainability in the PRS
•Monitoring the impact of cuts
•Ongoing campaigning.
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For further information
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CRIAS Services
Coping with cuts in the Private Rented Sector (PRS)
A Practitioner Perspective
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CRIAS PRS Services
CRIAS
• Established 1993 and has housed over 2000 people in the PRS
• Currently funded by Croydon Council and Supporting People
• Client group single homeless with support needs, aged 18-60, most
clients are referred by supported housing projects, also referrals from
Mental health and drug and alcohol services.
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CRIAS Light
• Funded by Crisis Private Rented Sector (PRS) Access Development
Programme
• Service funding started March 2011
• Focussing on prevention
• Clients aged 18-24, low or no identified support needs
• Support required: Help finding affordable accommodation, financial
assistance, help with HB
• 12 People housed to date , target of 50.
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CRIAS Light Accommodation
• Registered HMO Accommodation
and Additional HMO licensing
where applicable
• Lodgings
• Joint tenancies
All accommodation must have:
•Gas Safety Certificate (if
applicable)
•EPC and ideally a electrical safety
certificate
•HMO Registration (if applicable)
•Must meet HHSRS Standards
•Pass Environmental Health and
Tenancy Relations checks if in
Croydon
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CRIAS Flat share
• Starting July 1st 2012, Funded by Croydon Council
• New service created as a result of planned age related HB changes
(January 2012)
• 2 unrelated people sharing a 1 bed flat
• Flat must have separate lounge, not a walk through kitchen
• Sharers matched up in whilst in supported housing, intensive
resettlement support prior to moving into a joint tenancy
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Adapting PRS services to meet local and
national conditions
Nationally
• 30 Percentile LHA rates
• Accommodation standards
• Affordability
• HB age related changes, under
35 shared rate
Locally
•Limited supply of HMO properties
•Additional HMO licence
requirements; more than 2
unrelated tenants sharing
becomes an HMO
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Being positive is the only option
• PRS services must work creatively and develop innovative services that
achieve its targets
• Use the tools you have: HMO Register,
internet;spareroom.com,findaproperty.com
• Local authorities / voluntary organisations working together joined up
thinking.
• Giving the clients the tools and confidence to find their own
accommodation.
• Managing time and resources: Landlords with large property portfolios
V landlord with one flat
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Joint Tenancy & One bed Flats
Key Requirements
• Lay out of flat, lounge separate
room
• Sharers know to each other
• Understanding the concept of Joint
and Several Liability
• Deposit Guarantee Bond
attractive to landlord
Must Be:
• Affordable: SRR x 2 = One bed
rate
• Not classed as an HMO from a
council tax view point (no locks
on bedrooms)
Must Have:
• Tenancy sustainment available
if required
• Effective procedures if tenancy
breakdown.
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Existing tenants that will affected by
January 2012 HB Changes
• Local Authorities to identify everyone affected with the help of
housing Benefit
• Breakdown numbers to a monthly basis based on the anniversary
of their tenancy
• Write to landlords and tenants as much info as possible, continue
to keep them fully informed
• Get more detailed information from tenant regarding their personal
circumstances
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Reducing Tenancy Breakdowns
• Circumstances that might avoid the tenant from having to leave
their home:
• Does the tenant have a partner? Can the partner move in
• Is the flat suitable for two unrelated people sharing, if yes would
the tenant agree to this
• Is there 35 birthday within 3 months of their anniversary of their
tenancy (DHP)
• Will their personal circumstances change soon?
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Managing Landlord Relationships
• Understand if the current tenant has no option but to leave their flat
because of their age, then there might be an opportunity for your
service to fill the vacancy with an older tenant.
• Keep landlords informed through out the whole process
• Advice them on what action to take to reduce any rent arrears that
might accrue
• Only support reputable landlords who follow the proper procedures
when ending a tenancy
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January 2012 HB Age Related Changes:
Key Points
• Local Authorities must take the lead
• Short term funding must be identified to work with the newly
homeless under 35’s
• LA’s and Voluntary Organisation’s should work together to avoid
wasted resources and duplication
• Plans / Strategies should be in place by October at the latest