Making the private rented sector really work for you in operating prevention and Options services

1
Making the private rented sector really work for
you in operating prevention and Options services

• Chris Hancock - Housing Needs Manager Exeter
  City Council

2
Focus of Workshop

• This workshop will focus on joint initiatives to
  improve access to the private rented sector,
  focusing on Exeters 3 schemes,
• ExtraLet Lettings Agency
• Smartmove Non Stat Homeless

3
Key Questions

• What are the benefits to your organisation?
• What are the barriers to operating this within
  your organisation?
• How can we encourage full engagement from all
  Partners?

4
Barriers

• Research from the National Landlords Association
  published in January 2006, suggested that only a
  minority of landlords (31) are aware of schemes.
• The Research also found that only 35 of
  landlords were willing to let to people getting
  Housing Benefit and of those who did, 78
  reported greater problems than with other
  tenants.

5
Barriers cont..

• 82 of private sector lettings require a deposit
  and 70 require references
• Shelter reported that its "housing advisers are
  raising concerns about the approach to practice
  in some areas where, for example, vulnerable
  applicants are being pushed into private rented
  tenancies without support".

6
SoWhy Bother?

• Improved standards of accommodation
• More choice for tenants
• Reduction in the need for temporary
  accommodation
• Fewer homelessness acceptances
• Increased number of homelessness preventions
• Empty properties brought back into use

7
ExtraLet Tenure in Exeter
8
Landlord Consultation

• Landlords indicated that they
• would like
• Higher rents for more difficult clients
• Assistance with eviction
• Rent deposit
• Rent guarantee
• Regular inspections
• Fast track Housing Benefit

9
Landlord Consultation cont..

• Any malicious damage rectified
• Assistance with upgrading the property
• Floating support for tenants
• Referencing
• An opportunity to meet prospective tenants
• Responsible tenants
• A detailed inventory
• Management of utilities
• An accreditation scheme
• . . to name a few

10
Options Appraisal

• Accepting that a range of services to landlords
  were
• required, four options were considered as the
  vehicle that
• could deliver such services
• Using an existing letting agent
• Using an existing charity or Registered Social
  Landlord
• Establishing an arms length company able to trade
  at a profit
• Providing a service in-house on a cost-recovery
  basis.

11
Pilot

• Given the pressure of demand, it was considered
  appropriate to
• establish a pilot Direct Lettings scheme using
  existing in-house
• resources.
• The scheme encompassed
• Publicity for the scheme
• Assessing the physical suitability of a property
• Facilitating the use of Private Sector Renewal
  Grant
• Negotiating with landlords to let to families in
  housing need
• Offer rent and deposit guarantees
• Producing comprehensive inventories with digital
  recordings

12
Pilot cont..

• Referral procedure for the Housing Advice Team
• Assessing the suitability of potential tenants
• Setting up tenancy agreements
• Writing to utilities
• Being the first contact for tenants
• Manage rent arrears, damage to property and
  unacceptable behaviour
• Completing regular management inspections
• Handling the payment of rent
• Arranging repairs
• Dealing with claims against guarantees

13
For Landlords

• A rent and damage deposit guarantee to the value
  of 6 months rent
• Guaranteeing 50 of the rent during void periods
  up to 2 months
• Arranging and paying for annual gas safety checks
• Arranging and paying for the initial electrical
  safety check
• Arranging and paying for the asbestos survey
• A fast tenant referral system
• A free referencing service
• Regular management inspections
• A comprehensive inventory together with digital
  recording
• One years membership to a landlords association
• Access to Private Sector Renewal Grant

14
Grants

• Rewiring
• Installation of hard wired smoke alarms
• Adequate heating system
• Cavity wall and loft installation
• Kitchen and bathrooms
• Decoration and carpets
• Asbestos checks and works

15
Renewal Funding Bids

• Housing Renewal Teams bidding for capital funding
  in support of Housing Options colleagues work
• Home repair/improvement grants or loans at
  preferential rates to landlords who sign up to
  direct lets/accreditation scheme
• Grants/loans targeted at removing Category 1
  HHSRS hazards, achieving Decent Homes Standard,
  tackling fuel poverty, and bringing empty homes
  back into use

16
Resources

• The main financial costs were
• Advertising and publicity material
• Legal costs
• Rent and deposit guarantees
• Incentive payments
• Staff time
• There was approximately 70,000 of revenue
  funding available
• from Second Homes Council Tax sources. This was
  an ample
• Amount to cover these costs for the first 12
  months.

17
Questions to Consider for your Scheme

• Who will manage the scheme?
• Who will be the tenant?
• How will you encourage landlords to join the
  scheme?
• What type of property is suitable?
• Who will manage repairs and maintenance?
• What factors will influence your agency?

18
Smartmove

• Non Stat Clients
• Outsourced better placed to develop
  relationships with landlords
• Bond Scheme
• Financed partly from CLG Grant, partly as a
  Charity

19
Common Features

• Property Procurement - shared
• Feedback
• Flexible Approach to legislation
• Not Homeless Decisions?
• Qualifying Offers
• Section 195

20
Support for Tenants?

• Supporting People involvement
• Within existing Floating Support Contracts
• Is Private Sector Support a specialism?

21
Devon Home Choice

• Up and running by end of 2009
• All 10 authorities in Devon and all RSLs
• Shared Adverts
• Shared IT systems
• Opportunity to piggy back

22
Enhanced Housing Options

• Bid in with the CLG
• Worklessness
• Mortgage Advice
• A Full Housing Options Package for applicants and
  officers

23
Key Questions

• What are the benefits to your organisation?
• What are the barriers to engagement within your
  organisation?
• How can we encourage full engagement from all
  Partners?