Committee Report: The Council's Housing Allocation Policy

Report to:

Exec Briefing

Overview & Scrutiny

Comm Prot Panel

Cabinet

Date:

2/11/06

6/11/06

13/11/06

16/11/06

Subject:

The Council's Housing Allocation Policy

Report of:

Director of Community Protection

Contact officer:

Debbie Emmitt (WALH) 01942 767341

Steve Sargent (CP) 01942 827702

Purpose / summary:

To seek approval to make amendments to the current Council Policy for the Allocation of Council Housing.

Alternative options considered and reason for selecting the one recommended:

Alternative Options have been considered within the review.

Recommendation / decision:

To recommend that the amendments to the Council Policy for the Allocation of Council Housing are agreed.

Key Decision:

This report involves a key decision within ground(s) 1.

The decision made as a result of this report will be published within 48 hours and cannot be actioned until five working days have elapsed after that (making a total of seven working days after the meeting) i.e. before 28 November 2006

This item is included in the Forward Plan.

Implications:

 

Financial:

None

Staffing:

None

Policy:

The Council’s Housing Allocation Policy

Equal Opportunities - Has a Diversity Impact Assessment been conducted? Yes

 

Wards affected:

All

Special Interest Members – Which have been consulted

N/A

Tracking/Process:

 

Consultation

Ward Members

Partners

 

-

-

7/11/06

Panel

Overview & Scrutiny

Cabinet

Council

13/11/06

6/11/06

16/11/06

-

There are no Background Papers to this Report within the meaning of Section 100D of the Local Government Act 1972.

Background

Following the introduction of new Government guidance and legislation on Council Housing Allocation Schemes, a review of policy was undertaken and a new Choice Based Lettings Scheme – A New Home The Choice is Yours was implemented in 2005. This involved significant changes in order to comply with the Government requirement for choice and to give greater weight to housing need. Given the extent of the changes especially at a time of a shortage of property it was agreed to evaluate the policy once it had been in operation to ensure it was meeting the needs of the Borough as intended.

The first phase of this evaluation was brought to Cabinet on the 20th October 2005 . This tackled the clearly problematical “First Come First Served” section and replaced it by allocating 20% of properties to applicants who had been on the register the longest and met the property criteria. These changes were implemented in January 2006 and the subsequent feedback seems to agree that it is now a fairer system. It also eradicated the need for people to queue outside Property Shops.

This report sets out the second part of this review which has looked at the detailed working of the policy. It recommends a significant number of further amendments to the policy, but it needs to be emphasised that these proposals are essentially to make the existing scheme work better and comply with the latest legislation. The changes don’t represent further fundamental change. Members are reminded that the allocation policy is the responsibility of the Council which is delivered by Wigan and Leigh Housing.

Recent Housing Trends

This update of the Allocation Scheme has been undertaken against a growing problem of a shortage of socially rented property. A review of the evidence shows that the major cause of the shortage is the drastic reduction in the numbers of socially rented housing becoming available to let. For example in 2000/01 some 3112 properties were available for new tenants and yet by 2005/06 this figure had reduced to 2058, a loss of well over a thousand lettings per annum.

Whilst the loss of stock through the right to buy has contributed to this position, the overwhelming reason for this massive reduction has been the major fall in the overall relet rate. For example if properties were now becoming available at the same rate as 5 years ago there would have been over 820 additional properties available for new letting over the last twelve months. Whilst this trend reflects well on greater stability in housing areas and the improved housing product, one of the main reasons for this is the inability of tenants to move to owner-occupation due to increasing prices and the consequent loss of flexibility in the local housing market.

It is against this stressful situation of housing shortage that this allocation scheme has to operate and it would be true to say that whatever system is in place problems of shortage will occur. An explanation of what the Council is attempting to do to relieve this situation is contained in the Affordable Housing Report.

Aims of the Review / Consultation

Set against this background, the aims of the review were to:

  1. Ensure in a climate of limited affordable housing, reduced void turnover and reducing stock levels due to Right to Buy that best use is made of vacancies that arise.
  2. Ensure re-housing priority is given to those in greatest housing need and statutory responsibilities are fulfilled.
  3. Reduce delays in re-housing clients from temporary accommodation and minimise the use of bed and breakfast accommodation in order to achieve statutory responsibilities and best value for money.
  4. To take into account any legal challenges that have arisen since Choice Based Lettings schemes have been in operation.
  5. To clarify operational working practices to increase transparency, and be easier to understand for customers and stakeholders.

The consultation on the Choice Based Lettings Scheme has been extensive and involved key stakeholders such as the Federation of Tenants and Residents, the Homelessness Forum and the Allocations Steering Group which involved customer and external agency representation.

The key issues coming out of this consultation were:

Proposed Changes

To address these issues within the existing system, the proposals for change are outlined in detail in Appendix A and B. Whilst these appear to be extensive they do consist largely of smaller improvements to try to improve the system rather than look for more radical change.

Changes in the Banding System

Within the current Choice Based Lettings system there are four bands of housing need, namely:

These Bands are designed to distinguish between those whose need is an emergency or urgent and those with little immediate need. The proposed new scheme retains these four categories but makes a number of detailed recommendations to make the system fairer and more effective. In general the changes tighten definitions, thus aiming to reduce numbers in the highest categories. This reflects the continued very high demand for property and to tackle key problems mentioned earlier in the report, eg too many applicants in Band 1 resulting in higher levels of temporary accommodation. An example of this, is the Urgent Need category has been tightened so that only homeless applicants who are roofless or within emergency accommodation are within this band.

Other examples of this general tightening of categories of need also include ensuring homelessness applicants have been issued with a decision and requiring a greater level of evidence from people in need of their situation, eg supported housing.

Further changes in the Bandings are as a result of changes in legislation or simply because they are not now required. Examples of this include references to Key Worker Accommodation and the Homes Mobility Scheme which are not now required due to the open register.

Changes in Wider Allocation Policies

Besides these changes in Bandings there are also a considerable number of proposed detailed changes in the wider allocation policy. Key examples of this include:

In addition to the above there is also an important proposal within the Local Lettings Scheme within the multi-storey flats at Scholes. The recommendation is to increase the age criteria from 30 to 40, this being the result of extensive consultation and research within this area.

Legal Comments

The proposed changes have been shared with the Council’s Director of Legal and Property Services.

In general it is acknowledged there is an inevitable tension between choice based letting and meeting the needs of particular groups. It is also acknowledged that delivering an allocation scheme in times of high demand is very difficult. Government guidance has been promised, is needed and still awaited in this area. In the meantime there have been challenges in the Courts during 2006 to Choice Based Lettings schemes operated by both the London Boroughs of Waltham Forest and Barnet. In summary the Court found in these cases that the schemes being operated were unlawful as they did not acknowledge the composite needs of a household to be recognised. It was found the bands to be too narrow and restrictive, not taking into account the whole range of the households needs.

It needs to be noted that there is a risk of legal challenge of a scheme which is not sensitive enough to assess multiple needs. Wigan’s scheme is more sensitive than the ones challenged above but it needs to be kept under review in the light of any Government Guidance and further case law on any aspect of the schemes.

Applicants with Housing related debt

The proposed changes in relation to applicants who have housing related debt including rent arrears owed to a private landlord or a registered social landlord amount to reducing an applicant’s preference on the basis of behaviour affecting their suitability to be a tenant. This is legally permissible as the legislation does give power to an authority to prefer good tenants to bad. The opportunity proposed for an applicant to make payments from the debt over an agreed period gives the applicant the opportunity to show that his preference should not be reduced. A recent legal case has dealt with an applicant whose preference was to be reduced as a result of rent arrears. Whilst the policy itself was not challenged in this case the Court acknowledge the principle of requiring an applicant to make an acceptable arrangement to clear housing arrears as being reasonable.

Applicants with current Equity over £120,000

At present an applicant with equity in their current property over £80,000 would go onto the register only after approval by an authorised officer. The proposal is to increase this limit to £120,000. The legislation does not specifically provide for an applicant to be treated as ineligible save on the grounds set out in the Act. However an applicant’s financial resources can be taken into account in determining a person’s priority. The key point here is that the equity figure cannot be a blanket ban on eligibility. It must be one of the factors only in determining priority. If the change is introduced it will be necessary to look at all the applicants who may be affected and to reassess their priority taking into account all relevant factors. During consultation concern has been expressed at raising the level at a time of housing shortage, but the Land Registry advises that £120,000 is now the average price in Wigan.

Ineligible Groups

The proposal is to keep in suspense applications from ineligible groups for example prisoners, members of the armed forces or asylum seekers. It is proposed to treat the date the applicant first went onto the register as the registration date. For example, if an asylum seeker, until granted refugee status is one of the groups ineligible for social housing, if they are granted a positive decision to remain their application would be made active. The proposed change is legally sound as long as it is applied equally to other ineligible groups, eg Accession State citizens without work. This group would also be ineligible but could become eligible by obtaining work.

Advertising

When the Choice Based Lettings scheme was introduced as many options as possible were pursued to ensure properties were advertised and the information easily accessible to all applicants and stakeholders. Properties are currently advertised in the Wigan and Leigh Reporter, in the Property Weekly sheet, the Libraries, on the Property Shop Website and Housing Offices. As part of the ongoing monitoring of the scheme, and having regard to value for money, it is proposed to no longer advertise properties in the Wigan and Leigh Reporter. This is because research has shown that 86% of customers contact the Property Shops or obtain the weekly property sheet and the annual cost of advertising is in the region of £37,000. It should also be stressed that the Reporter is not received by all households and the weekly sheets is circulated to various networks such as the Islamic Centre , Age Concern etc.

Timetable

Once approved, the changes will be introduced in early 2007. Letters to all applicants notifying them of the changes will be sent out. All customer information will be revised and re-issued.

Housing Options

Besides progress on reviewing the allocation process two further related issues are reported for information.

Registered Social Landlord Update

Building upon the success of the existing agreement with Arena Housing Association whereby 50% of their vacancies were allocated via the Council’s Choice Based lettings scheme, from August 2006 all their voids have been forwarded for allocation from Wigan Council’s housing register. Arena have closed their waiting list and any existing or new applicants wishing to live in the Borough of Wigan have to apply and be assessed under Wigan Council’s allocation policy. It may be necessary for Arena to withhold a small number of voids, for example if they need to re-house one of their tenants due to an emergency such as fire, or a specific management reason. The scheme is being piloted and will be re-evaluated in the new Year. If successful other Registered Social Landlords in the Borough will be approached to join so looking to maximise the number of properties available to applicants on the Housing Register.

Regional Choice Based Lettings Update

In order to increase mobility and choice the Government 5 year Housing Plan, outlined a desire that local authorities should consider joining together to form sub-regional Choice Based Lettings schemes and to look for wider choices locally by involving registered Social Landlords and Private Landlords within their Choice Based Lettings schemes. We are moving forward quickly on local choice shown by our partner relationships with local RSLs, Private Landlords and our planned initiatives emerging from the Council’s Affordable Housing Strategy.

However as regards the Sub Regional development our position is more guarded.
The Greater Manchester Authorities (with the exception of Wigan) submitted a bid in the Autumn of 2005 to become a Sub Regional Choice Based letting pilot. The bid has been successful.

Our decision to remain outside this group has been largely guided by the research carried out and held in the document “Wigan’s Changing Housing Markets” which showed very limited links to Greater Manchester in regard to housing migration patterns. Stronger links can be shown to exist with authorities like St Helens and Warrington. As a result we don’t currently see the advantages of joining this scheme, although we continue to monitor progress carefully.
Conclusions

The Council’s allocation policy needs to be constantly evaluated and updated to meet Government Guidelines, legal challenges and the changing housing market demands. Further reports will be brought back periodically as the need for change is identified.

The proposed changes attempt to balance stakeholders needs with legislation and local demand.

It is recommended that the proposed amendments to the Allocation Policy are approved

Appendix

  1. WALH Banding Scheme – Phase II Review - October 2006 - Appendix A Adobe Acrobat PDF (102kb)

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