The Bulletin

Council Backs ALMO Opposition to Rent Rise

2012-02-07T09:37:00.002Z

Newcastle Council has confirmed it is backing moves by its ALMO to oppose sharp rent increases for its tenants. At a council meeting members endorsed a letter sent to the CLG protesting about the 8.2 per cent rise faced by tenants in 2012/13. Newcastle feels rise is too high, but that the potential loss of income prevents it from setting a lower rate. The debt Newcastle is set to take on as a result of the reform of the housing revenue account subsidy system has been increased by £42 million to reflect the rent rise, so setting a lower rent could leave it out of pocket. Read more on the Newcastle on Tyne website.

Councils Demand Risk-Free Borrowing

2012-02-07T09:34:00.003Z

Councils are holding detailed talks with the Treasury in a bid to prevent them falling foul of movements in the money markets when they raid government coffers for loans next month. The talks between the Local Government Association and Treasury officials centre on councils’ desire to borrow money based on a three-month average price of gilts - the price of government borrowing. Whitehall’s proposal, which councils fear could prove disastrous, would see the borrowing based on the price of gilts on a single day - 26 March - leaving them at risk of higher interest payments if prices rise in the days beforehand. Read more on Inside Housing.

Tenants Don’t Count Says Shapps

2012-02-07T09:31:00.001Z

Last week Metro carried an article about the rise in the number of people being forced out of their homes by mortgage lenders or landlords. 16,600 properties were repossessed in the third quarter of 2011, a rise of 20%. The article clearly pointed out that ‘nearly half of the repossessions were carried out on behalf of mortgage lenders, while 5,140 tenants were evicted for social landlords and another 1,627 on behalf of private landlords.’ They quoted an expert claiming that the numbers would continue to rise as unemployment continued to bite. So far no surprise, but the article provoked a little tantrum from our housing minister. It was ‘Inaccurate and misleading’ he said. And why? Well, it was because the article was ‘lumping together statistics of homeowners, social tenants and private tenants’. Now the original article was not about tenure but about people losing their homes, whatever their tenure and whatever their circumstances. Read more on the Red Brick blog.

Research Heralds New Era in Resident Empowerment

2012-02-07T09:29:00.001Z

Rewarding tenants who participate in resident involvement schemes results in a greater level of engagement, according to research. A study commissioned by the Hyde Group and Housing Quality Network also found large landlords are increasingly seeing resident involvement as necessary to justify public expenditure on their programmes. The study was led by Professor Hal Pawson of Heriot Watt University and looked at resident involvement in the UK, Belgium, the Netherlands and Denmark. Download a copy of the report from the Hyde Group website.

Labour Widens Attack on Household Benefit Cap

2012-02-07T09:26:00.001Z

Labour has widened its attack on the government's £26,000-per-household benefit cap and called on the Liberal Democrats to back plans to lower the housing benefit bill by regulating profiteering private landlords. Labour is backing a localised benefit cap in an effort to avoid alienating working class supporters that favour the principle of a cap. The shadow work and pensions secretary, Liam Byrne, has written to the deputy prime minister, Nick Clegg, asking for a meeting to discuss supporting reforms to tighten the housing benefit bill, notably tighter regulation of private sector landlords. Byrne argues that escalating housing benefit costs lie at the root of the mushrooming welfare bill and much of this increase has been caused by profiteering private sector landlords. Read more on the Guardian website.

Regulator Plans to Axe Landlords' Right to Appeal

2012-02-07T09:24:00.002Z

The social housing regulator is planning to scrap landlords’ right to appeal against its most serious decisions - forcing any challenges to the High Court. Under the move, disgruntled landlords would be left without any ability to question major decisions such as orders to transfer land or management of stock, forced mergers and the suspension of officers following a statutory inquiry. The TSA, in a board meeting, agreed to recommend that its internal appeals process be scrapped for such ‘heavyweight’ decisions. This would mean that in future landlords would only be able to challenge major decisions by launching costly and time-consuming High Court proceedings. The recommendation will go to the new HCA regulation committee, which takes over regulatory duties from the TSA after it is abolished on 31 March. Read more on Inside Housing.

HCA Empty Homes Programme Cut

2012-02-07T09:22:00.003Z

The HCA has revealed that £30million has been set aside for the Empty Homes Community Grants Fund, leaving no more than £70million for bids to the HCA's Empty Homes pot which are currently being assessed. Bidders for the HCA funding stream may be disappointed at the reduced sum of money, whereas those looking to support Community Grant Fund bids will be encouraged to learn that up to £30million is definitely available for the programme. Local auhorities sitll have until 17th April to develop partnerships with community groups and assist in bids to the Community Gant Fund. CLG Guidance states that up to £30million will available depending on the quality of the bids. Read more on the Empty Homes Network website.

Councils Forced To Meet Housing Benefit Shortfall

2012-02-07T09:20:00.001Z

Local authorities are having to dig into their own budgets to help people meet housing costs, according to government figures. Figures from the Department for Work and Pensions show that 165 councils used their own money to top up discretionary housing payments – a fund which is designed to help claimants with housing costs if their housing benefit does not cover it. Read more on Inside Housing.

Addressing Supported Housing Needs for Minority Ethnic Groups

2012-02-07T09:17:00.002Z

The recent debates on the proposed changes to housing benefit in the welfare reform bill raise concerns about the impact of such changes on vulnerable and disadvantaged groups. This will include those in supported housing accommodation and black and minority ethnic communities. Supported housing covers a range of accommodation types and support to address the needs of a range of people. In Better Housing briefing paper Meeting the supported housing needs of black and minority ethnic communities, the Race Equality Foundation draws attention to discrepancies in the experiences of groups within these communities of supported housing. Evidence shows that people from minority groups may be more likely to require supported housing services and this is demonstrated in the areas of mental health, homelessness, domestic violence, older people and young parents outlined in the briefing. Download a copy of the briefing from the Race Equality Foundation website.

Right to Buy and The '12,700 Lost Council Homes'

2012-02-07T09:15:00.002Z

Nearly 13,000 homes sold under the Right to Buy (RTB) up to 2015 will not be replaced, according to construction union Ucatt who says it has "exposed flaws" in the Government's one-for-one pledge. As part of the scheme the Government wants to replace every home sold with a new one. However, in a stinging response to the CLG, Ucatt has highlighted that nearly 13,000 homes will be sold between 2011-15 without the funds going towards new housing.
This is because the one-for-one pledge only covers additional homes sold under the Right to Buy scheme and not the 12,700 properties the Government had already estimated would be sold under the current arrangements between 2011-15. Read more on the Ucatt website.

Councils Fail To Spend £1m Earmarked For People at Risk of Homelessness

2012-02-07T09:13:00.003Z

Figures show that nearly £1m of the £20m set aside to help families who could not afford rent or other housing costs in 2010-11 was left untouched by councils. Six local authorities spent less than half the money they were allocated for these "discretionary housing payments" by the Department for Work and Pensions (DWP). In total, £990,272 remained unclaimed in England, Scotland and Wales. Yet some councils made the decision to top up the money they received from the DWP from their own coffers, taking the total awarded to £21.4m. Read more on the Guardian website.

Government Benefit Cap 'Based On Myths'

2012-02-07T09:10:00.002Z

The Government's proposed benefits cap is based on a set of myths, a leading charity has claimed. The Child Poverty Action Group (CPAG) published its myth-busting analysis of the Coalition's flagship welfare policy the day after MPs voted to overturn amendments made by Peers and reinstate the original policy proposals. Here are the 'myths' in full, read what the CPAG has to say about them on 24dash.
Myth 1: The cap is just for out of work claimants of benefits
Myth 2: Claimants have more money than working families
Myth 3: Families with a disabled member will not be affected
Myth 4: There will be no behavioural changes and social impacts
Myth 5: The cap will deliver fiscal savings
Myth 6: This is a new policy

High Rents Prompt Concerns over HRA Debt Figures

2012-02-07T09:07:00.002Z

Councils have objected to the rent figures used in the final calculations for the payments they will have to make or receive as part of the move to self financing. The government issued a final list of the payments councils must make to end the housing revenue account subsidy system yesterday. But in an accompanying summary of responses to the HRA consultation it emerged the majority complained about the way the sums were calculated. Councils are concerned about the high rent rises due in 2012/13, which are running at about 8 per cent due to a high inflation figure in September. Many called for the government to diverge from its rent setting formula to allow them to impose lower rises, but officials rejected their pleas. The rent figures are built into the complex calculations that determine how much of around £29 billion of housing debt each local authority must take on to move to self financing. Most respondents to the consultation said they would have to impose the full rent rise to get the funding needed for HRA reform. Read more on Inside Housing.

MPs Block Lords Welfare Challenge

2012-02-06T12:23:00.002Z

MPs have overturned a series of defeats inflicted on the government's welfare reform bill in the House of Lords. The coalition won seven key votes in the Commons, rejecting amendments made by peers and reinstating their original proposals into the legislation. These include plans for a £26,000 annual limit on total household benefits, including child benefit. Ministers say they will use a rule known as "financial privilege" to ensure Parliament approves the cap.
This will mean the Lords cannot send the same amendments back to the Commons when they re-consider the bill for a final time, preventing what is known as "ping pong" between the two chambers and effectively ending parliamentary opposition. The measure, which the government says it will also apply to Lords amendments on employment and support allowance (ESA), relates to the principle that the Lords cannot oppose tax and spending decisions agreed by the Commons. Read more on the BBC website.

Families to Get Nine Months to Adapt to Benefit Cap

2012-02-03T15:49:00.002Z

The work and pensions secretary, Iain Duncan Smith, will give families affected by the government's £26,000 welfare cap at least nine months to adapt to the loss of benefits, thereby allowing them more time to find a job or move house before the limit is imposed. It has been suggested that as many as 200,000 people on housing benefits will have to move from areas of high rents as a result of the change, but the government says the actual figure is 67,000. That number, it is claimed, will be reduced if the cap is not imposed as soon as benefits are claimed, or when the claimant is forced into expensive temporary accommodation. A discretionary fund will also be available to local authorities to ease difficult cases, and ensure families are not forced to move during critical points in a child's schooling. Read more on the Guardian website.

Tenants Demand Protection from Welfare Cuts

2012-02-03T15:47:00.001Z

Campaigners are calling on social landlords not to evict tenants who fall behind on rent payments because of housing benefit cuts. Defend Council Housing has issued a seven-point list of demands, and is stepping up its campaigning action, claiming the government is ‘fuelling a housing emergency’. As well as opposing welfare reforms it is also hitting out at rent rises, affordable rent, tenure reform, and the ‘scapegoating’ of social tenants. Read more on Inside Housing.

MPs Urged To Support Bedroom Tax Amendment

2012-02-03T15:45:00.003Z

MPs have come under pressure to accept an amendment to the government’s plan for a ‘bedroom tax’. More than 70 family, disability and housing groups have written a joint letter urging MPs to accept the amendment to the Welfare Reform Bill. Under the government’s plans, 670,000 households – two-thirds containing a disabled family member – would lose an average of £670 a year in housing benefit because they are deemed to have one or more additional bedrooms. In December members of the House of Lords voted in favour of a cross-party amendment to exempt the ‘bedroom tax’ from families with just one additional bedroom where there are no alternative properties available. Read more on the NHF website.

Council Outlines Plans for Tackling Homelessness

2012-02-03T15:43:00.002Z

A council has launched a new strategy for tackling homelessness which includes putting expert domestic violence workers into housing advice centres. Birmingham Council has launched the 2012+ homelessness strategy after completing a review of homelessness in the city. The authority said that the new proposals not only deal with council services but also those provided by other organisations that work with people who are homeless. The strategy will focus on preventing homelessness and enabling those without a home to secure settled accommodation. Read more on Inside Housing.

ALMO Teaches Tenants to Maintain Their Homes

2012-02-03T15:33:00.001Z

An ALMO is offering DIY training to tenants to help them improve their homes. Bury ALMO Six Town Housing has started the sessions and is planning to expand its offering. The training covers basic repairs as well as painting and decorating, and plastering. The ALMO said it handles major repairs but tenants are responsible for some basic work, and the free training should help them to do this. Read more on the Six Towns website.

Councils Bite into New Homes Bonus

2012-02-03T15:30:00.001Z

More than 70 per cent of councils in England have not spent their share of £200 million new homes bonus cash on rewarding their communities. The bonus, which sees the government match the council tax on any new properties for the first six years, was designed to incentivise communities to support development by providing or improving local facilities. However, following freedom of information requests to all 349 councils which received the bonus last April, just 29 per cent are using the cash to support housing development or other community projects. Of the 331 local authorities that responded, 54 per cent said the money had been allocated to the general council fund and 18 per cent had not made a decision on how it would be spent. Read more on Inside Housing.

Councils Fail To Spend Thousands Earmarked For Housing Poor Tenants

2012-02-03T15:28:00.002Z

Local authorities are failing to spend thousands of pounds earmarked by the government for needy families that cannot afford rent and other housing costs. New figures show that nearly £1m of the £20m set aside for discretionary housing payments in 2010-11 by the Department for Work and Pensions (DWP) was left untouched by councils. Six authorities spent less than half the money they were allocated. Discretionary housing payments (DHPs) are available to people facing financial hardship who are entitled to housing benefit or council tax benefit, but need further help paying rent or other housing costs. Most DHP claims are made by private renters who receive housing benefit in the form of local housing allowance (LHA), although the payments can also be awarded to council and housing association tenants. Read more and find details of all DHP underspends on the Guardian website.

Labour Wants Benefit Cap to Be Set Locally

2012-02-03T15:24:00.002Z

Labour has called for the proposed total benefits cap to be set locally rather than at the national limit of £26,000. Liam Byrne, shadow work and pensions secretary, told the BBC that the cap on benefits for working age households would work better if it differed in different parts of the country. He said: ‘If you want to send a signal that you are better off in work than on benefits, wouldn’t it make much more sense to have localised caps in different parts of the country because we know there are different levels of housing benefit in different parts of the country?’ Mr Byrne said Labour backs the principle of having a cap despite the party’s peers voting last week to exclude child benefit from the cap. Read more on the BBC website.

Benefits Cap Concessions Expected To Win Support for Welfare Reform Bill

2012-02-03T15:22:00.003Z

The government is expected to make a series of concessions on its controversial £26,000 household benefits cap to win over wavering Liberal Democrat MPs. Iain Duncan Smith, the work and pensions secretary, is expected to agree that a discretionary fund should be established to ease the burden on families who could be made homeless at a sensitive time in their children's education. The move comes as Labour seeks to work with the Lib Dems - whose former leader Lord Ashdown voted to exempt child benefit - on agreeing a local rate for the cap. In a letter to Nick Clegg, the shadow work and pensions secretary, Liam Byrne, says a local cap could ensure that 20,000 people avoid being made homeless by the changes. Read more on the Guardian website.

Social Rented Housing – Parliamentary Written Answer

2012-02-03T15:19:00.003Z

Mr Betts: To ask the Secretary of State for Communities and Local Government what estimate he has made of the cost to the public purse of social rated housing which is illegally sub-let; and how that cost is calculated.
Grant Shapps: The National Fraud Authority estimates that housing tenancy fraud in England costs around £900 million a year. This figure is based on the Audit Commission's estimates that it costs an average of £18,000 per year to house a family or individual in temporary housing and that 50,000 properties are unlawfully occupied in England (which would otherwise be available for occupation). Recent research by housing fraud specialists HJK Investigations has suggested that the level of such fraud could be far greater. Replacing the social homes that are being unlawfully occupied—to house those who have effectively been displaced by tenancy fraudsters—would cost several billion pounds.

Regulator Will Not Define ‘Serious Detriment’ Clause

2012-02-03T15:16:00.002Z

The social housing regulator has said there will be no clear definition of the ‘serious detriment’ that will see it intervene in consumer regulation cases. Deborah Ilott, strategic regulation manager at the TSA, said: ‘We can’t define precisely what serious detriment means because it will vary from case to case. But generally speaking it will involve a breach of one of the consumer standards and some action that is likely to cause harm to tenants. The most obvious examples are in relation to gas safety.’ From April, when responsibility for regulation shifts from the Tenant Services Authority to the Homes and Communities Agency, the regulator will only intervene on consumer regulation cases where there is serious detriment. Read more on Inside Housing.

Stunell: Government Takes Next Step on Zero Carbon Homes

2012-02-03T15:06:00.003Z

Zero-Carbon Homes are a step closer after new proposals were announced to cut carbon emissions in new and existing buildings by Communities Minister Andrew Stunell. Mr. Stunell said changes to the country's building regulations would make new homes, shops and offices warmer and cheaper to run, support growth and take England a step closer to meeting its bold low carbon commitments. The ambitious measures, developed together with the construction industry, will help reduce the regulatory cost for businesses, and pave the way for the introduction of zero-carbon homes from 2016. The proposals will also help with the roll out of the Green Deal this Autumn whilst helping to cut both carbon emissions and energy bills for householders. Homeowners will also save money with an extension to the range of simple, electrical DIY jobs that can be carried out without the need for a building inspector, reducing costs for both consumers and installers and the burden on local authorities who inspect work. Read more on the CLG website.

Housing Association Tenants’ Right to Buy – Parliamentary Written Answer

2012-02-03T15:02:00.002Z

Lord Kennedy of Southwark: To ask Her Majesty's Government what plans they have to extend the right to buy scheme.
The Parliamentary Under-Secretary of State, CLG (Baroness Hanham): We have announced our intention to revitalise the right to buy scheme by significantly increasing discounts. In our consultation paper Reinvigorating Right to Buy and one for one replacement, published on 22 December 2011, we propose to raise the upper limit on the right to buy discount entitlement to £50,000 throughout England. The proposal applies to those tenants who currently have a right to buy or preserved right to buy. There are no plans to extend the right to buy to housing association tenants who have the right to acquire or to tenants without a right to purchase.

Council's Plan to Licence All HMOs - 5,000 Homes Targeted

2012-02-03T14:55:00.002Z

A council's plan to licence all houses in multiple occupation (HMO) has begun. Oxford City Council says that from 30 January 2012, every landlord who owns a property in the city where three or more unrelated tenants live and share facilities will be required to get a HMO licence. The first phase of the roll-out - thought to be the first of its kind in the country - started last year. The council says it has now issued nearly 1,000 HMO licences. Landlords who don't come forward and licence their HMOs could be prosecuted and fined up to £20,000, it warns. It estimates that the entire licensing scheme will cover 5,000 properties in total. Read more on the Oxford City Council website.

Council Approves Rent Rise Of Almost 10 Per Cent

2012-02-03T14:52:00.001Z

Rotherham Council has approved a recommendation for an inflation-busting rent rise of 9.45 per cent - one of the biggest hikes anywhere in the country. Dave Richmond, director of housing and neighbourhoods at Rotherham Council, said the borough’s traditionally low rents - which before last year’s rise of 8.69 per cent rise averaged £60 a week - forced it to apply the maximum increase allowed in order to comply with CLG criteria aimed at bringing council rents into line with those charged by housing associations. ‘For us to get to convergence there’s no way we cannot apply that [formula],’ he said. But local tenants’ federation Rotherfed said many residents would be unable to afford a second year of steep rent rises. ‘We have had low rents and that’s coming home to roost,’ said Steve Raffle, development manager at Rotherfed. ‘But the convergence doesn’t have to be so quick; we are very worried about the impact on tenants.’ Read more on Inside Housing.

Housing Analysts Warn On Future Homelessness

2012-02-03T14:49:00.002Z

In the midst of fierce debates over the controversial Welfare Reform Bill, new analysis from CIH shows that the government’s welfare reforms and cuts in investment are bound to impact on the homelessness figures. The 20th annual UK Housing Review shows that across the UK statutory homelessness rose in 2010 for the first time since 2003. The report says big differences have emerged in approaches to dealing with homelessness across the UK. In England, two-thirds of homelessness is now dealt with outside the statutory rules, while in Scotland cases accepted under the statutory rules are actually growing. Partly as a consequence, England has made big cuts in its use of temporary accommodation while in Scotland the number of temporary housing placements has doubled since 2003. Read more on the CIH website.

Welfare Reform Bill: MPs Urged To Accept 'Bedroom Tax' Exemption

2012-02-03T14:47:00.003Z

More than 70 family, disability and housing organisations have written a joint letter to MPs urging them to back an amendment to the Welfare Reform Bill that would exempt families with only one 'spare bedroom' from housing benefit cuts in 2013. The National Housing Federation - who has launched a campaign opposing the cuts - wants MPs to back the Lords amendment as the Bill returns to the House of Commons. Read more about the campaign on the NHF website.

Real Cost Of the Bedroom Tax

2012-02-03T14:44:00.002Z

Social landlord Riverside is continuing to pressure MPs to give up the bedroom tax and cites new research by the Housing Futures Network (HNF), a collection of leading housing groups, to support its case. The research, carried out for Riverside in Wirral’s Tranmere and Rock Ferry neighbourhood, found that one in four tenants would be affected by housing benefit cuts, if they are of working age and deemed to be under occupying their home by just one bedroom. This is in accordance with very strict criteria to be introduced by the Department of Work and Pensions. The cuts would not only affect tenants, but could have an impact on the local economy, which stands to lose £65,000 per annum just from Riverside tenants. For all social housing tenants affected in the area, the annual local economic impact could be as much as £400,000 per year. Read more on the Riverside website.

Stunell: Communities Have a Chance to Revive Their Neighbourhoods

2012-02-03T14:42:00.003Z

Communities Minister Andrew Stunell has invited community and voluntary organisations to apply for a share of £100 million that will help revitalise communities and bring the empty homes blighting their areas back into use. Mr Stunell said that the Government cash would help tackle this national scandal, creating more affordable housing and giving a new lease of life to homes and communities. The minister appointed fund manager Tribal - who have a wealth of experience in dealing with voluntary and community groups - to manage distribution of funding to successful applicants. Tribal will also assess applications and report back to the Department according to the criteria set out in the guidance. Mr Stunell encouraged innovative and ambitious applications, expressing his hope that successful projects would not only bring much needed empty homes back into use but also provide extra opportunities for local jobs and training. Read more on the CLG website.

Commission to Shape Future of Council Housing

2012-02-03T14:39:00.002Z

Eminent housing lawyer Jan Luba QC is to lead a commission into the future of council housing in Southwark which is likely to have a major influence on local authority thinking across the country. The commission, which will also include former Tenant Services Authority chief executive Peter Marsh and Kate Henderson, chief executive of the Town and Country Planning Association, will be the first of its kind to examine the current council housing system's medium and long-term prospects. It will also explore options for the financing, ownership and operation of Southwark’s council housing stock, which is the largest in London, comprising 39,000 council rented homes and 16,700 council leasehold properties. The commission is expected to attract attention from other councils facing long term funding concerns over investment in council housing. Read more on 24dash.

Battle for ‘Right To Own’ Heats Up

2012-02-03T14:36:00.002Z

Frustrated tenants’ groups have called on the government to publish a consultation on ‘right to own’ regulations - after a delay of almost a year. The CLG said it will be publishing a long-awaited consultation ‘shortly’ on new regulations which would make it easier for tenant groups to take ownership of their estates - and force councils to co-operate with them. The regulations could trigger a wave of tenant-led stock transfers. The CLG originally said it hoped to launch the consultation in February 2011, but it has been delayed. The plans are likely to oblige councils to arrange a feasibility study to examine tenants’ transfer proposals and provide financial support. Read more on Inside Housing.

Lords Reject Plan for Welfare Cap to Include Child Benefit

2012-01-24T11:37:00.001Z

The government's welfare reforms took another battering when a cross-party alliance, including many Liberal Democrat peers, voted to exclude child benefit from plans to impose a blanket £26,000 cap on household welfare benefits. In the fifth significant government defeat on the bill, peers voted to temper the cap by 252 to 237. Conservatives are convinced the cap, due to come into force next year is hugely popular, and lambasted Labour for talking tough on welfare and then voting against the proposals. But the coalition assault was weakened by the number of senior Lib Dem peers, including Lord Ashdown, backing calls by bishops that child benefit should be excluded from the cap. Ashdown for the first time voted against the coalition government, intervening in the debate to ask what justification a minister could give morally or otherwise to withdraw a universal benefit for those on £26,000 but not for those earning £80,000. The government will now have to decide whether simply to reinstate child benefit in the cap when the bill returns to the Commons or instead propose some clearer transitional relief. Read more on the Guardian website.

Benefits Cap: Government Survives Labour Amendment in Lords Vote

2012-01-24T11:23:00.001Z

An amendment to exempt vulnerable people at risk of homelessness from a £26,000 a year benefit cap has been defeated in the House of Lords. Peers voted by 250 to 222 against the plans. Labour's amendment would have exempted vulnerable individuals and adults with children if they were considered at risk of becoming homeless. Read more on 24dash.

Landlords Dismiss Cameron Rent Claim

2012-01-24T11:20:00.001Z

The leading trade body representing 1.2 million private landlords in the UK has dismissed David Cameron’s claim that rents are falling in the sector as a result of the coalition government’s welfare reforms. The claim has been disputed by housing sector professionals, including the Chartered Institute of Housing and by the National Landlords Association (NLA), the largest trade body for private landlords in the UK. Chris Norris, policy manager at the NLA, said: ‘We are not aware of any evidence that landlords are reducing their rents in return for direct payment of LHA on any significant scale.’ Instead he said the association’s research showed that 77 per cent of landlords who have tenants in receipt of LHA are being forced to consider reducing their involvement with tenants on housing benefit ‘as they cannot absorb the effects of these cuts’. Read more on Inside Housing.

Benefit Cut Raises Housing Concerns For U'25s

2012-01-24T11:18:00.001Z

Homelessness charities have raised concerns about the ability of young people to access housing in the private sector following housing benefit cuts brought in this month. The Government has extended the threshold for the Shared Accommodation Rate (SAR) from age 25 to 35. Alice Evans, head of policy at Homeless Link said “It has always been hard to get young people into shared accommodation because you had to convince landlords they were a good proposition as a tenant. Now they’re competing with people who are over 25, potentially in full time work and with a history of managing a tenancy.” The Shared Accommodation Rate (SAR) extension has come in this month for new claimants. Existing claimants will be affected nine months after their claim is reassessed. Read more on 24dash.

Private Sector Rents Fall In London for First Time in a Year

2012-01-24T11:15:00.002Z

Private sector rents fell across England and Wales for a second successive month in December, according to new figures. The latest data from LSL Property Services shows the average rent in England and Wales fell by 0.8% in December to £711 per month. But despite the monthly fall, annual rental inflation increased to 4% from 3.5% in November, as tenant demand in December surpassed that of a year ago. And there is concern over the state of tenants' finances with more than 10% of rent paid late or not at all. On a monthly basis, rents fell in seven regions, with the biggest declines in the South East and North East, where they fell by 1.9% and 1.4% respectively. Rents in London fell for the first time since December 2010, with rents falling by 0.9%, compared to a drop of 2.3% a year ago. Download a copy of the report from the LSL website.

Stock Transfer Councils in Plea over RTB Receipts

2012-01-24T11:13:00.003Z

Councils are calling for the government to adapt the new right to buy policy, amid fears authorities that have transferred properties to housing associations will be unable to pay for replacement homes. Government proposals to increase the discount available to council tenants looking to buy their homes apply to around 600,000 people with preserved right to buy, living in homes owned by large-scale voluntary transfer organisations. However, agreements made between councils and LSVTs at the time of transfer over how future right to buy sales are distributed mean councils that have transferred stock will be in a much worse financial position than those that have not. While LSVTs tend to retain a set amount of sales receipts to offset loss of rents, councils are left with the remaining sale price. Large discounts of up to 50 per cent will reduce this receipt, casting more doubt on the ability of some councils to deliver the one-for-one replacement housing promised by the coalition government. Read more on Inside Housing.

Direct Payment Pilot Landlords Revealed

2012-01-19T15:41:00.002Z

Local authority and housing association partnerships have been named as the successful volunteers the Government plans to work with on pioneering demonstration projects that will see claimants in the social rented sector directly receiving monthly housing benefit payments and paying rent to landlords themselves for the first time. The demonstration projects, which will take place from June 2012 until June 2013, will test how claimants can manage housing benefit monthly payments ahead of the introduction of Universal Credit from October 2013. The projects will also look at the appropriate level of safeguards needed to help secure landlord income streams if tenants fall behind on their rent. The local authority and housing association partnerships named for the demonstration projects are:
*Southwark Council and Family Mosaic, London
*Oxford City Council and Oxford Citizens, (part of the) Greensquare Group, Southern England
*Shropshire Unitary County Council and Bromford Group, Sanctuary Housing and The Wrekin Housing Society, West Midlands
*Wakefield Metropolitan Borough Council and Wakefield and District Housing, Northern England *Torfaen Borough County Council and Bron Afon Community Housing and Charter Housing, Wales
Each will be involved in testing out different elements of the project, including testing different trigger points when social landlords should receive direct payments if tenants fall into specified levels of arrears. The projects will also inform how best to communicate the changes to claimants, provide assistance with budgeting to successfully pay their rent, and support claimants and landlords experiencing financial difficulties. Read more on the DWP website.

Government Propose New FIT Cut Date

2012-01-19T15:39:00.002Z

The government has moved to address the uncertainty surrounding the feed-in tariff by proposing a cut from 3 March if the government loses its legal battle. In a ministerial statement to parliament, Energy Secretary Chris Huhne said that the government stood by the proposals in its consultation that saw the FIT slashed from 43p/kWh to 21p/kWh from 12 December. However, Mr Huhne said that to provide certainty, in the event the government loses its legal appeal against a High Court ruling that the cut was unlawful, he would introduce a cut from 3 March to 21p/kWh. Admitting the government was unsure when the Court of Appeal decision would be made, Mr Huhne said: ‘I know that the uncertainty while we await the court’s decision is difficult for the industry.’ Read more on Inside Housing.

Housing Association Chiefs Debate Right to Buy Extension

2012-01-19T15:36:00.002Z

Calls to extend the Right to Buy to all housing association tenants have been greeted with a mixed response. Housing association Home Group, which owns more than 50,000 homes, argues the measure could inject "£68 million into the economy", while others have warned it's "not the right solution to the current housing crisis." Read what HA Chief Executives have to say on 24dash.

ALMO Offers Up To £2,000 for Tenants to Downsize

2012-01-19T10:12:00.002Z

An ALMO which manages some 3,500 homes in Cumbria is providing up to £2,000 for tenants to voluntarily downsize. South Lakes Housing is hoping the introduction of a downsizing scheme this month will free up some much needed family-sized homes in the district to enable families who are waiting to be housed to move into houses that suit their requirements. The Downsizing Incentive Scheme will provide a mix of financial and practical help with a maximum payment of £2,000. Read more on the South Lakes website.

Housing Benefit Claims on the Rise

2012-01-19T10:09:00.002Z

The number of housing benefits claimants in Great Britain has risen by more than 130,000 to 4.9 million. Statistics released by the Department for Work and Pensions show that as of October 2011 there were 4.92 million people receiving housing benefit - 132,430 more than the same time the previous year. Of the total, 68 per cent were social tenants and three-quarters were aged under-65 with the average weekly amount of £87.03 being paid. Single people made up the largest category of claimants with 3.89 million of them receiving housing benefits – almost two thirds of who were female. According to the figures, 79 per cent of tenants in the private sector received local housing allowance. Read more and download a copy of the figures at the DWP website.

Families Cut Back On Food and Fuel to Pay Housing Costs

2012-01-19T10:07:00.003Z

More than one in five people have cut their spending on gas and electricity to help pay their rent or mortgage in the last 12 months – a 60% increase since 2008. A new survey from Shelter also reveals that just over one in three of us have spent less on food to pay our housing costs, a rise of 44% over the same period. Shelter is urging anyone who is struggling with housing costs to seek help early to try to avoid losing their home. Read more on the Shelter website.

Welfare Amendments Face Government Fight

2012-01-19T10:04:00.002Z

The government will seek to overturn all amendments to the Welfare Reform Bill when it returns to the House of Commons later in the year. The government was defeated in December over plans for financial penalties for social housing tenants with spare rooms. An amendment tabled by Lord Best, which allows tenants one spare room if there is no other suitable accommodation was passed by the Lords in December. The government also lost three votes last week over plans to restrict Employment and Support Allowance. A Number 10 spokesperson said the cabinet has now agreed to seek to overturn the amendments in the Commons. Read more on Inside Housing.

Housing Co-Op Planning To Tackle Empty Homes

2012-01-19T10:02:00.003Z

A housing co-operative is looking to remedy the problem of empty houses in its area by transforming unused buildings into affordable housing. Phoenix Housing Co-operative has almost completed the renovation of a disused property to provide studio flats for some of its members. Under the co-op’s Housing Plus project the property, which was left empty for over five years, has been converted into nine studio flats for single people on low-incomes. Phoenix is now looking to speak to owners of private property who would be willing to offer a 10-year lease in return for the co-op renovating the building and providing much needed affordable accommodation. Phoenix are currently planning to put in a bid for the Community Grants programme within the HCA’s Empty Property Fund. Read more about the Housing Plus project on the Phoenix website.

ALMO Takes On Extra Council Services

2012-01-18T10:13:00.004Z

A North London ALMO is set to become the first in the country to take on additional council services following a landmark agreement with Barnet Council, which will also see it take on additional housing services. Barnet Homes will take responsibility for housing needs and resources services from 1 April 2012 and will also set up a new subsidiary to take on adult social care services from the council. Under the agreement, Barnet Homes will become responsible for advising customers on housing issues and assessing whether those who have, or about to, become homeless are eligible for housing in the private or social housing sector. They will also become responsible for maintaining the supply of these properties and for managing temporary accommodation. The switch of responsibility means that people will deal with one organisation only from the point of becoming homeless through to being housed. It will also cut costs by reducing duplication of tasks between Barnet Council and Barnet Homes. Read more on the Barnet Homes website.

New Eco-Friendly Extra Care Housing Complex Opens In Nottingham

2012-01-18T10:10:00.001Z

The Department for Health and the HCA have provided funding for a state-of-the-art extra care complex in Nottingham. The social rent apartment complex for the over 55s is one of the most environmentally friendly in the country incorporating whole house heat recovery systems, rainwater harvesting, a bio-diverse green roof. The building is also connected to the district heating system. The extra care complex caters for residents over the age of 55 and includes 71 one-bedroom apartments, as well as communal facilities including a restaurant, lounge, hairdressers and activity room. The scheme is being run by Leicester-based social housing group LHA-ASRA, after the land was provided by Nottingham City Council on a 125-year lease. As part of the complex, LHA-ASRA has built a 60-place day service centre, which replaces a former City Council facility. Albany House has replaced an unpopular block of 34 apartments for the elderly. Residents were offered apartments in the new complex. Read more on 24dash.

ALMO Moves Back In-House

2012-01-17T13:09:00.002Z

Plans for Redbridge Council to directly manage its housing stock have been given the go-ahead after tenants and leaseholders backed proposals to take the ALMO back in-house. The move will mean landlord services for tenants and leaseholders, currently provided by Redbridge Homes, will again be provided by the Council and will result in annual savings of almost £400,000. Just 17 percent of affected residents responded to the survey. Of those, 63 percent backed the council's plans with nine percent against. The management agreement with Redbridge Homes will end on 31 July 2012. Read more on the Redbridge Council website.

Shapps: Councils Should Help Older People Live At Home For Longer

2012-01-17T13:05:00.002Z

Housing Minister Grant Shapps and Communities Minister Andrew Stunell have called on councils to use every opportunity under the New Deal for Older People to give elderly people more choice and control over where they live, so they are not pressured to sell their home or move into residential care. Mr Shapps said councils should learn from the Government-backed FreeSpace project piloted by the London Borough of Redbridge, where elderly homeowners will be helped to downsize to rented accommodation that better suits their needs, but without requiring them to sell their home. Under the scheme the council will arrange for elderly people to move into rented accommodation, and take responsibility for maintaining and letting their property at an affordable rate. Homeowners will benefit from the rental income from their home, which will be passed back into their estate at an agreed date. Ministers have hailed the win-win project as a future model for councils across the country - helping the elderly keep their homes while living in more comfortable accommodation, and at the same time increasing the availability of affordable family homes. Read more on the CLG website.

Dromey Questions Cameron Over Rent Claim

2012-01-17T13:03:00.003Z

Jack Dromey is considering asking questions in the House of Commons about David Cameron’s controversial claim that rents are falling. The Prime Minister told the House of Commons that rents are falling as a result of his government’s welfare reforms. The claim was immediately disputed by housing professionals. The shadow housing minister has written to the prime minister asking him to justify his claims in the house or correct his statement. Number 10 has since said there are cases of private landlords reducing their rent in return for direct payment of local housing allowance, but it has not provided evidence to back this up. Read more on Inside Housing.

Council Calls for Government Rethink On Rent

2012-01-17T13:01:00.003Z

The government is coming under increasing pressure to cap rent increases for council tenants after local authorities warned that 8 per cent hikes are likely to affect the most vulnerable residents. Cambridge Council has written to the CLG urging it to adjust the formula that dictates how much councils should add on to tenants’ rents. The letter to CLG said that the proposed increases for 2012/13, which will be more than 8 per cent in many parts of the country, including Cambridge, could increase the housing benefit bill at a time when government policy is focused on moving people away from welfare dependency. Download a copy of the letter from the Defend Council Housing website.

Historic Powers in the Localism Act Pass Down To Communities

2012-01-17T12:58:00.002Z

A host of new powers to put communities back in charge of their own affairs has become a reality as the Coalition Government's localism agenda takes another major step forward. Exactly two months on from Royal Assent of the Localism Act, a parliamentary measure, known as a commencement order, has officially brought into effect much of this flagship legislation. The key new measures to hand back control, include:
*Reform of social housing regulation
*Preparations for HomeSwap Direct
*Increased accountability on local pay
*New planning enforcement rules
Read more on the CLG website.

Private Landlords Snubbing Tenants on Benefits

2012-01-17T12:55:00.002Z

More than half of private landlords are refusing to accept tenants on benefits with many claiming people not receiving welfare support were more reliable. Flat and house share website SpareRoom.co.uk said that a survey of more than 1,000 UK landlords showed that 59 per cent were stating ‘no housing benefit tenants’ on their adverts. Landlords were asked why they would not rent out their property to housing benefit tenants and 30 per cent said non-benefit tenants were more reliable, while 47 per cent said they did not want the hassle of dealing with payment problems. SpareRoom.co.uk called for changes to the way Local Housing Allowance was paid, saying that moving back to a system of direct payments to landlords could increase the number of homes being let to tenants on benefits. Read more on Inside Housing.

Tenants Face 8 Per Cent Rent Hike

2012-01-16T12:27:00.003Z

Just four of England’s 50 largest social landlords are planning to protect tenants from significant rent increases next year. Of the 21 largest stock-owning councils that responded to an Inside Housing survey, just three said they would not impose the maximum increase allowed, based on the retail price index as it stood last September, when it peaked at 5.6 per cent. As a result, tens of thousands of council tenants will face eye-watering rises of more than 8 per cent. Rents on Newcastle’s 29,000 homes will go up by 8.2 per cent, while residents in Camden’s 23,000 homes will face a hike of 8.1 per cent. Local authorities will take control of setting rents from central government this year as part of self-financing reforms. Read more on Inside Housing.

Housing Scheme Launched For Low Wage Workers

2012-01-16T12:25:00.003Z

A London council has launched a pilot programme for low wage workers who have not previously been prioritised for social housing. Westminster Council will allow workers earning below a certain threshold – likely to be set at around £30,000 - to apply for affordable rent accommodation, with rents around a third cheaper than they would find in the private sector. The initial pilot will involve around 25 homes in London’s west end but could be extended if it is successful. Read more on the Westminster City Council website.

Liberal Democrats Voice Fears on Housing Benefit Reform

2012-01-16T12:22:00.002Z

The deputy leader of the Liberal Democrats has attacked the government’s plans to cap benefits as part of its overhaul of the welfare system. Simon Hughes told members of the party that the proposed cap ‘will break up families, as it will provide a financial incentive to be apart’. Mr Hughes added: ‘Under the plans as they stand, a couple with four children will see their benefits limited to £500. But if the parents live separately they will be able to claim up to £1,000. How will that support families? I call on the government to make clear, at the latest before the Welfare Reform Bill comes back to the House of Commons, what it intends to do to prevent the planned benefits changes from breaking up families and damaging the lives of literally hundreds of thousands of children.’ He told the BBC that, while he supported the principle of curbing spending on benefits, the current proposals were unfair. Read more on the Guardian website.

Illegal Sub-Letting Will Be Hard To Prove

2012-01-16T12:19:00.002Z

Landlords could struggle to prove sub-letting tenants are acting illegally, making proposed new powers difficult to enforce, sector figures have warned. Housing minister Grant Shapps announced plans to make sub-letting of social homes a criminal offence, punishable by up to two years in prison and a maximum fine of £50,000. Currently, landlords can apply to a civil court to evict tenants found to be sub-letting but cannot pursue a criminal case. Under the proposals, council landlords would be able to request data from banks, building societies and utility companies in order to prove sub-letting and recoup any profit made by the sub-letting tenant. But in order to achieve a criminal conviction there is a higher burden of proof for landlords to meet than that required in a civil case. Read more on Inside Housing.

Audit Office to Probe Affordable Homes Programme

2012-01-13T15:46:00.002Z

The National Audit Office is to probe the risks the Affordable Homes Programme poses to the financial viability of housing associations. The study will look at the role played by the Department for Communities and Local Government (DCLG), the Tenant Services Authority (TSA) and the Homes and Communities Agency (HCA). The examination will determine whether the HCA and the TSA are “effectively addressing risks to the financial viability of the social housing sector, while optimising taxpayer interests”. The report is aimed to be published in Spring 2012. Read more on the NAO website.

Social Housing PV Unviable Unless FIT Rates Double

2012-01-13T15:44:00.002Z

Incentive payments for electricity generated from solar panels need to be set at nearly double the proposed rate for installations to remain viable for social landlords, according to research. Figures produced by consultancy Camco for the National Housing Federation show feed-in tariff payments would need to be set at 32.4 pence per kilowatt hour to remain attractive to the sector. The government is currently proposing to cut FIT payments from 43.3p/kWh to 16.8p/kWh for social landlords from April, although its plans are subject to legal proceeding, with a key appeal being heard in the High Court. Camco’s research has found the 16.8p/kWh rate would be too low to make schemes viable for social landlords, mainly because they depend entirely on the FIT payment to justify investment as the energy savings that also result are passed on to tenants. Read more on Inside Housing.

New Build Indemnity Scheme

2012-01-13T15:42:00.003Z

The new build mortgage indemnity scheme aims to assist buyers who have a deposit of at least 5 per cent to buy a new build home. This is a smaller deposit than is normally required. The scheme will allow more borrowers to secure up to a 95 per cent Loan to Value mortgage on new build properties (houses and flats) from participating builders in England. All mortgage lenders and house builders will be welcome to join the scheme. The initiative has been developed jointly by the Home Builders Federation and Council of Mortgage Lenders. The Government is supporting the scheme to help those home buyers who have found themselves excluded from sections of the market because they do not have a large enough deposit. Read more on the CLG website.

Shapps Backs Tenant Takeover Campaign

2012-01-13T15:38:00.001Z

Housing Minister Grant Shapps is backing a campaign alerting council and housing association tenants of ways to achieve control of their homes. He has pledged his support to the '1000 Communities Campaign', to be launched later this month, which will present new research into tenant self-management. The Government recently reaffirmed its commitment to streamlining the Right to Manage (RTM) regulations at a tenant scrutiny event. It first announced plans to do so last February. The campaign argues that most council and housing association tenants do not know about the opportunities that exist for them to take more control of the homes they live in. Read more on 24dash.

Developers Invited To Give Views on Red Tape

2012-01-13T15:33:00.002Z

Social housing developers are being invited to tell the government what regulatory and administrative burdens they would like to see axed. The government has launched the housing and construction theme of its ‘red tape challenge’, seeking views on regulations affecting the private rented sector, social housing, construction, and building regulations. The red tape challenge is intended to allow regulation to be as light touch as possible ‘whilst maintaining the necessary safeguards, and ensuring that the industry continues to provide high-quality homes and builds safe, sustainable and accessible buildings’. Read more on the CLG website.

Shapps: Powers over Regeneration Will Remain With Communities

2012-01-13T15:30:00.002Z

Grant Shapps has insisted that communities will be kept firmly in the driving seat and able to determine the future of their local areas. In his response to a report from the CLG select committee, Mr Shapps rejected the committee's call for a top-down national strategy for regeneration, insisting that decisions on regeneration activities and schemes should rest with local people. He has published a refreshed regeneration toolkit, highlighting the range of powers and tools devolved from Whitehall to Town Halls, businesses and residents themselves to drive the regeneration they want and need in their areas. New tools introduced over the past year include:
*greater freedoms for cities - bespoke "City Deals" to help England's eight core cities to create new jobs and generate economic growth
*boost for housing development - including a £420 million Get Britain Building scheme which will help get stalled developments back on track; and over £150 million to help bring empty homes back into use
*The Localism Act, including new community rights, neighbourhood planning, the general power of competence, and discretionary business rate discounts
Download a copy of the toolkit from the CLG website.

Dromey Calls on Cameron to Correct Rent Claim

2012-01-13T15:25:00.002Z

Shadow housing minister Jack Dromey has called on David Cameron to correct a statement he made in the House of Commons where he claimed that housing benefit cuts brought in by the Government have brought down rent levels across the country. The claim is contrary to current evidence which suggests rents across the country are soaring. Mr Dromey said: "What planet does David Cameron live on. There is no evidence that rents are falling. On the contrary, every survey including that conducted by Shelter demonstrates that private rents continue to soar. We will be asking No 10 to correct the statement made by the Prime Minister to the House of Commons which is clearly wrong." Read more on 24dash.

Government Urged To Re-Think Welfare Changes after Crushing Lords Defeat

2012-01-12T10:35:00.001Z

The Government has been urged to re-think its welfare reform plans after they were dealt a crushing blow in the House of Lords. Peers voted in favour of ensuring young disabled people continue to be eligible for employment support allowance (ESA). They would have lost their entitlement under Government plans. The Government was also defeated on plans to means-test ESA payments for disabled people after only a year and to time-limit ESA for those undergoing cancer treatment. Shadow work and pensions secretary Liam Byrne urged ministers not to try to reinstate the measures in the House of Commons. Read more on 24dash.

Up To Two Years Behind Bars Proposed For Tenancy Cheats

2012-01-12T10:32:00.004Z

Housing Minister Grant Shapps has set out proposals to help ensure tenancy cheats who deny social homes to families in need - such as through unlawful subletting and key-selling - will face a possible two year jail sentence. He said the plans could free up thousands of homes for housing waiting lists. Tenancy cheats currently face no greater penalty than losing their tenancy. Mr Shapps wants to see much greater legal consequences for these cheats - and so is consulting on proposals that would introduce specific criminal offences for tenancy fraud, such as those which already exist for social security fraud. Some estimates suggest that between 50,000 and 160,000 social homes are currently being unlawfully occupied across the country. The Minister said the plans would also strengthen councils' legal rights as landlords to help them detect and prosecute tenancy fraud more effectively and return lost revenue back to local coffers. Read more on the CLG website.

Social Housing Fraud – Consultation

2012-01-12T10:30:00.001Z

The CLG have issued a consultation document containing proposals that would help landlords reduce the prevalence of tenancy fraud within the social housing stock. It includes measures that would greatly increase both the deterrent to tenants to commit fraud and landlords' ability to detect and prosecute those who do. It would also extend local authorities' powers of prosecution, allow for restitutionary payments to be made to landlords and remove the loopholes that allow those abusing their tenancies to retain them. These proposals would be in addition to, rather than in place of, landlords' existing powers. The consultation ends on 4 April 2012. Download a copy of the consultation paper from the CLG website.

Council to Help Buyers Purchase Home With 5% Deposit

2012-01-12T10:27:00.002Z

Hastings Borough Council is the latest local authority to team up with bank Lloyds TSB to help first-time buyers purchase a home with just a 5% deposit. The initiative, announced in March last year, was initially being piloted by four other local authorities. Hastings said the The 'Local Lend a Hand' product will be available in local branches of Lloyds TSB from 10 January 2012. The normal deposit required by most lenders is around 10%. Under the deal - and subject to Lloyds TSB's usual lending criteria - borrowers are able to select a property within the local area, up to a maximum loan size of £150,000. First time buyers will put down 5% of the property price, and the council will provide a cash backed indemnity of up to 20% as additional security. The local authority then earns interest on this amount. Read more on the Hastings Borough Council website.

Cameron Claims Housing Benefit Cuts Have Slashed Rents

2012-01-12T09:56:00.003Z

Prime Minister David Cameron has claimed that the Government's housing benefit cuts have brought down rent levels across the country, despite evidence to suggest that they are continuing to reach record highs. Mr Cameron was quizzed in the commons by Labour MP Joan Ruddock about plans to extend the Shared Accommodation Rate (SAR). This will see those aged 35 or under receive only the lower shared room rate rather than the full rate for a one-bed flat. In response, Mr Cameron said that since the Coalition had implemented some of its housing benefit reforms, rent levels had come down. He said: "All parties are committed, as I understand it, to reform housing benefit…it was unacceptable and it had to change and what we've seen so far, as housing benefit has been reformed and reduced, is that actually we have seen rent levels come down. So we've stopped ripping off the taxpayer." Read more on 24dash.

Disabled Vent Anger at 'Sham' Welfare Consultation

2012-01-10T10:51:00.004Z

A report, based on consultation responses to the Government's Disability Living Allowance (DLA) reforms, has claimed the Government "misled" MPs and peers over the "hostility" to disability benefit reforms. The damning report - written by disabled people themselves - has labeled the DLA reforms as "disastrous" for sick and disabled people. It will be presented to Parliament today (10 January) amid anger that the views of disabled people have been ignored. Only seven per cent of organisations that took part in the consultation were fully in support of plans to replace DLA with a Personal Independence Payment (PIP), the report claims. Read more and download a copy of the report from the Ekklesia website.

Number of 'Reluctant Landlords' In Private Rented Sector on the Rise

2012-01-10T10:48:00.001Z

The number of homes coming onto the rental market because they cannot be sold is increasing in some parts of the UK, causing a rise in the number of 'reluctant landlords', according to new research from the Association of Residential Lettings Agents (ARLA). During the third quarter of 2011, nearly half (47 per cent) of ARLA member agents surveyed reported a rise in the number of 'unplanned' lettings as homeowners turn to the private rented sector because they are unable to sell their property, or holding off until a higher price is achievable. This figure has risen from 40 per cent at the beginning of the year. Read more on the ARLA website.

Factory Built Houses to Help Cut Waiting Lists

2012-01-10T10:46:00.002Z

The first homes to roll off the production line at a new timber home manufacturing hub are being erected in Walsall as part of a £10 million housing development. More than 100 new homes have been partly funded by the Homes and Communities Agency (HCA) which awarded the scheme a £2 million grant. The energy efficient homes, which will cost less to run than more traditional houses, are being manufactured under the name LoCaL Homes. Homes will be available for people to rent affordably or to buy through shared ownership. Read more on the Accord Group website.

Benefit Cuts to Inflict 'Irreversible Damage' to Country's Poorest

2012-01-10T10:44:00.002Z

The Government has been urged to rethink cuts to housing benefit before it inflicts “irreversible damage” to the poorest in the country. From this month, housing benefit caps come in for existing claimants in the private rented sector where people face losing some £12 a week. In the Government's own impact assessment for Local Housing Allowance reform, it put the estimated number of those losing out at 936,960. However, the most severe housing benefit cut, Crisis warns, will be the extension to the Shared Accommodation Rate (SAR) which will hit 62,500 households. This will see single 25 to 35-year-olds become only eligible for housing benefit that covers the cost of a shared room in a house. A research report commissioned by Crisis says this group faces the prospect of trying to find shared houses that in many areas just do not exist. It adds that such accommodation isn't suitable for vulnerable and disabled people. Crisis expects many will end up on the streets. Download a copy of the report from the Crisis website.

Council Rejects Move to Bring ALMO in House

2012-01-09T14:28:00.002Z

A council has decided to keep its ALMO rather than bringing its work back in house. Tower Hamlets Council made the decision to maintain Tower Hamlets Homes as the housing management provider following a housing stock options appraisal in late 2011. As part of the appraisal, tenants, councillors, contractors, the Homes and Communities Agency and the Greater London Authority were all consulted. From this consultation, a list of 37 different models for delivering housing was considered before a shortlist of two was produced - bring housing in house or maintain THH with changes to improve accountability, performance and value for money. Read more on Inside Housing.

Council Seeks ALMO Switch

2012-01-09T14:26:00.002Z

Shropshire Council is looking to set up a new ALMO to manage its housing stock. The council have announced plans in response to the Government's reform of the housing revenue account subsidy system, which it believe will give it more freedom to manage the revenue from its 4,000 homes. If councillors agree with the proposals at a Cabinet meeting on January 11, a consultation will take place later this year with the new organisation being set up by April 2013 if tenants are supportive of the plans. Staff currently employed in the housing team at Shropshire Council would be transferred to the new organisation, which would be run by a management board which will include councillors and tenants. Read more on 24dash.

HCA Announces Funding For 600 New Traveller Pitches

2012-01-09T14:23:00.002Z

Thirty-three housing associations, local authorities and other providers are set to deliver around 600 new traveller pitches, after the Homes and Communities Agency (HCA) named successful organisations for Traveller Pitch Funding. A total of £47m funding will be allocated to 71 projects around the country, and will support the provision of new traveller sites and new pitches on existing sites, as well as the improvement of existing pitches. A further £13m remains available from the Traveller Pitch Funding Programme for additional allocations where schemes are progressed and are able to deliver, and provide good value for money. These will be operated on a rolling basis under which offers will be considered for their value for money, deliverability and meeting local need, as they are developed. Interested providers should contact their local HCA area office to discuss their proposals. Read more on the HCA website.

Housing Chiefs Slam Shapps’ Allocation Comments

2012-01-09T13:39:00.002Z

Senior housing figures have hit out at Grant Shapps for controversial comments about social housing tenants. The housing minister recently said: ‘For years the system for social housing has been associated with injustice – where rewards are reaped for those who know how to play the system best. Despite this terrible image a lazy consensus in social housing has ensured that, for an entire generation, no-one has bothered to do anything about it.’ Mr Shapps’ comments angered a number of chief executives, who said there was little evidence for the minister’s claim that there is injustice in the allocations system. Keith Exford, chief executive of 55,000-home Affinity Sutton, said: ‘To make sweeping generalizations about four million people is pretty uncalled for.’ Read more on Inside Housing.

Economy Could Gain £68bn from Right to Buy Extension

2012-01-09T13:35:00.002Z

The Government could inject more than £68 billion into the UK economy by extending Right to Buy opportunities to housing association tenants, according to one of the UK’s largest registered landlords. Home Group - which owns more than 50,000 properties - has released figures which show the construction sector could widely benefit from a change in legislation. The housing group says that one fifth of housing association tenants currently prevented from buying their homes would be ready to make the move – representing around 200,000 sales. Home Group says that with the promise by the Government to see a new home built for each property sold – and with the average new housing association property costing £120,000 to build – £24 billion would directly be spent in the construction sector. Read more on the Home Group website.

Councils Fear RTB Won’t Deliver Homes

2012-01-09T13:32:00.001Z

Government plans to increase right to buy discounts will fail to deliver replacement homes, local authorities fear. A consultation on plans to revitalise the right to buy was released before Christmas, proposing a new maximum discount of £50,000. The previous maximum discount varied but was as low as £16,000 in some areas. The consultation reiterated the government’s commitment to providing a new affordable rent home for each council home sold. However, some authorities have claimed government caps on borrowing would restrict their ability to replace stock. The CLG’s impact assessment shows councils would need £40,000 to £50,000 in receipts from each home to fund a replacement. The average council stock price in some parts of the north is less than £70,000, which could leave councils with less than £25,000 in receipts to replace a sold home. Read more on Inside Housing.

'Right to Buy' Should Be Unlocked For Housing Association Tenants – MPs

2012-01-09T13:28:00.003Z

A million housing association tenants should be given the ‘right to buy’, according to leading backbench MPs David Davis and Frank Field. The think tank IPPR is publishing a paper by Davis and Field arguing for ‘Right to Buy 2.0’. In their paper, Davis and Field show that since the Government introduced ‘Right to Buy’ in 1980, much of the remaining council stock has been transferred to housing associations. They argue that a million tenants who live in housing association properties should be given the right to buy their homes, with all of the funds generated being reinvested in new social housing. Download a copy of the report from the IPPR website.

Housing Tenants Set To Benefit From New Credit Union Powers

2012-01-09T13:25:00.002Z

From 8 January, housing tenants and employees will begin to benefit from new credit union powers to reach many more members, communities and housing organisations. The new powers are the result of legal changes which will give credit unions more flexibility to choose who can access their services. This means that new partnerships will allow all of a housing organisation’s tenants and employees to join one credit union, no matter where they live or work. For the first time, housing and other community organisations will be able to join a credit union and use the services it provides, and credit unions will now be able to pay interest on deposits, instead of a dividend, helping to mobilise community savings. Although many housing providers already work with credit unions in their communities, up to now they have been hampered by outdated restrictions which meant all of a credit union’s members had to have something in common – such as living in the same geographical area or working for the same employer – and only individuals were able to become members, not companies, community groups or social enterprises. Credit unions no longer have to prove that all the eligible members have something in common. Read more on the Housingnews website.

Insurance Concerns Threaten Cashback Scheme

2012-01-09T13:22:00.002Z

Questions over liability for injury or damage are threatening to derail a government scheme to reward social tenants who carry out their own repairs. The government is arranging last ditch meetings between insurers and housing providers in a bid to ensure its tenant cashback scheme launches in April as planned. The scheme, due to be rolled out across England, allows tenants to commission or carry out repairs on their homes and keep savings made by their landlord. Housing minister Grant Shapps believes the scheme will empower tenants by allowing them to keep a proportion of the average £1,000 per property spent by landlords annually on repairs and maintenance. But pilot projects have been delayed or scaled down as insurance companies raise concerns about liability in case of accidents, such as falls, and home contents insurance in case of water damage or breakages. The insurers’ concerns have led to confusion about the insurance status of tenants who carry out repairs and whether new policies need to be arranged by landlords or tenants. Read more on Inside Housing.

Allocation of Accommodation – Consultation (ends 30/03/2012)

2012-01-09T13:19:00.001Z

The Government is consulting on new draft statutory guidance on social housing allocations for local authorities in England. The new guidance is intended to assist authorities to take advantage of the provisions in the Localism Act 2011 which give back to local authorities the freedom to manage their own waiting lists, and make it easier for them to move existing social tenants to more suitable accommodation. It also encourages authorities to make use of the existing flexibilities within the allocation legislation to ensure that social homes go to people who need and deserve them the most. Alongside the guidance, the Government is consulting on two sets of draft regulations relating to the Armed Forces. Find all documents on the CLG website (or check the Consultations page in this blog).

Council Concerns over ALMO Delay In House Move

2012-01-03T15:03:00.003Z

A council has delayed plans to bring its ALMO back in house after concerns were raised about its performance. Northumberland County Council is instead going to make changes to the board of 8,500 home ALMO Homes for Northumberland after considering a confidential report on the body. Northumberland agreed in principle to take its housing management work back into the council two months ago after a report found scrapping the ALMO would save the council money. A consultation with tenants on a move back to direct council management has now been delayed until after improvements to the ALMO have been made. Read more on Inside Housing.

Housing Benefit Cuts Will Put 800,000 Homes Out Of Reach

2012-01-03T14:59:00.003Z

A further 800,000 homes will be put out of reach of people on housing benefit because of government welfare cuts – leaving low income families the choice of cutting spending on food to pay the rent or moving out, according to a study by housing experts. The Chartered Institute of Housing has found there will be thousands more claimants than properties that are affordable on benefits alone, raising the possibility that the poor will migrate to "benefit ghettoes" in seaside towns or the north of England. From this month, the government has capped housing benefit payments to, for example, a maximum £250 a week on a two-bedroom home. The cut is compounded by the allowances being scaled back by pegging them to the bottom third of rents in any borough. The result is that in many towns and cities there will not be enough affordable homes to rent for those claiming local housing allowance. The problem is most acute in central London but the effect will be felt not just in south-east England. Before today, Birmingham had more than 37,000 homes with rents affordable on welfare. Now 34,500 housing benefit claimants will be chasing 23,000 low-cost houses. On the Mersey, 21,000 people collecting local housing allowance will only be able to afford 12,000 homes in Liverpool. Read more on the Guardian website.

Shapps to Launch Crackdown on Sublet Social Housing

2012-01-03T14:57:00.003Z

Council tenants who sublet their homes could face prosecution and potential prison sentences as part of a new year crackdown on abuse of social housing. Housing Minister Grant Shapps said the current system was a "scandal", that the coalition aims to end. Mr Shapps is to launch a consultation process ahead of possible legislation. Up to 160,000 council tenants are estimated to illegally sublet their homes, making thousands of pounds a year in the process. Subletting is currently not a criminal offence. The worst tenants currently face is eviction. A small number of tenants who earn more than £100,000 a year - estimated to be around 6,000 by Government - will also be asked to pay higher rent or face eviction. Shapps said such social housing abuse was costing between £5 and £10 billion a year. He said the money saved as part of the new measures would go towards new social housing. Read more on 24dash.

Shapps: New Deal Will Help Older People Live At Home For Longer

2012-01-03T14:54:00.002Z

Housing Minister Grant Shapps has launched a new deal to help older people to continue living comfortably in their own homes - with particular support for those leaving hospital. With nearly one in five of the whole population expected to be aged 65 or over by 2020, Ministers are determined to ensure elderly, vulnerable people get the help they need to live independent lives, and can be safe in the knowledge that they won't get ripped off by dodgy dealers and fraudsters. So Mr Shapps has given £51 million towards Home Improvement Agencies, who will provide help and advice. These agencies also offer hospital discharge services - ensuring older people leaving hospital care are given the support they need to be able to recuperate in the comfort of their own homes. For those needing adaptations to their homes, Grant Shapps has also confirmed an additional £20 million for Disabled Facilities Grants. Read more on the CLG website.

Shapps Hits Back At IPPR

2012-01-03T14:51:00.001Z

Grant Shapps has hit back at a report warning that the Government's Housing Strategy is likely to lead to 'subsidised stagnation', unless the housebuilding industry is reformed. The Institute for Public Policy and Research (IPPR) said fundamental reform of the housebuilding industry was necessary for the Government to get more bang for the taxpayers' buck. However, the housing minister Grant Shapps said the IPPR's plans "just don't stack up". He said: "It seems they've missed the fundamental point of the Housing Strategy which is designed to get much better value for money. As a result we will push developers and builders harder than ever before to play their part to deliver new homes quickly, securing excellent value for each taxpayer's pound. For example, our new Affordable Housing programme will cost the taxpayer far less per home by stretching builders and housing associations to contribute on average 25 per cent more towards the costs.” Read more on the CLG website.

Reform Needed To Halt ‘Lost Decade’ Of Housebuilding

2012-01-03T14:49:00.003Z

The UK is at risk of a ‘lost decade’ of housebuilding unless the development industry is reformed, a think-tank has warned. In a new report, the Institute for Public Policy and Research (IPPR) warns that the past two British house building recessions, starting in 1974 and 1990, both resulted in a ‘lost decade’ for housing output. It says there are good reasons to believe the current trajectory of the building sector is “following a similar path to deliver another lost decade for market housing output”. The IPPR says we currently have a housing industry which looks to make large incomes off small volumes of houses. It says if things don’t change housebuilders are likely to use the money, land and guarantees - laid down in the Government’s Housing Strategy - not to build more homes but to build homes in different places. Download a copy of the report from the IPPR website.

Right to Buy: Future Council Tenants 'Set for Higher Rents'

2012-01-03T14:45:00.002Z

An expert has warned that the Government's reinvigorated Right to Buy (RTB) scheme is good for current tenants - with attractive discounts on offer - but will leave future tenants paying more expensive rents. Grant Shapps says he is committed to replacing each home sold through the programme with a new one let at a higher rent. This is so councils and housing associations can borrow against future revenue streams to replace the sold stock, as the cash received per sold home will only be a fraction of the build cost of a new one. Responding to the RTB consultation, former Housing Corporation boss Steve Douglas warned the deal would leave future tenants with higher rents. He said: "The policy is more 'buy cheap now, and rent more expensive later. It’s clear, the sold one build one pledge only works if local authorities and housing associations are prepared to play ball and increase their borrowing against future rental streams on the one hand and discount land receipts on the other.” Read more on 24dash.

Tenants Say No to House Transfer

2012-01-03T14:42:00.003Z

Council tenants in Swindon have rejected a move to transfer their homes to a new housing association. In a ballot of tenants carried out during December, just 2329 (27.7%) voted in favour of the transfer, with 6073 (72.3%) voting against. The turnout was 65.6%. This means that plans to create a new Swindon Housing Association to own and manage the council’s homes will not go ahead. Cabinet member for Housing, Communities and One Swindon, Councillor Russell Holland said: “Right from the start, the council’s view was that there were benefits to transfer, but that it was up to tenants to decide how to vote.” Read more on the This is Wiltshire website.

Ballot Underway For Stock Transfer

2011-12-23T14:37:00.002Z

Thousands of tenants are set to decide the future of a council’s housing stock as a ballot for transfer takes place. Swindon Council is currently balloting 12,600 tenants on their thoughts on transferring the authority’s 10,500 homes to a housing association. If agreed, ownership of the homes will be transferred to Swindon Housing Association – a new not-for-profit landlord.
The council said it wanted to explore the option of transferring stock as under the new self financing funding arrangements, it would have to take on £139 million of debt. Read more on Inside Housing.

Announcement on Direct Payment Pilots Delayed Until New Year

2011-12-23T14:35:00.003Z

The Government has put back the date it is to formally announce the six housing association and councils who will road test direct benefit payments to tenants next year. The measure - which will come in with Universal Credit in 2013 - will see tenants paid their benefits directly, a move which landlords fear could increase their arrears and preferential borrowing rates from banks. The pilots will test how to support tenants and landlords on the introduction of direct payments – such as offering budgeting advice to tenants and placing a trigger which switches the housing payment to landlords if the tenant gets behind with their rent. The Department for Work and Pensions (DWP) had hoped to inform successful organisations before Christmas, but a spokesperson confirmed today the announcement will now be made next year; understood to be early January. Read more on 24dash.

Right to Buy Discounts to Treble

2011-12-23T14:34:00.002Z

The government will treble the discount available to council tenants looking to buy their homes in some parts of the country as details of the reinvigorated right to buy scheme have emerged. The Communities and Local Government has unveiled its consultation paper on the right to buy, announcing proposals to increase the cap on discounts to £50,000. The new cap would double the maximum discount available in much of the country, while trebling it in most parts of London. CLG said that the consultation will consider the different methods in which the receipts can be used to deliver replacement affordable rent homes on a one-for-one basis, as pledged by the government. Download a copy of the consultation from the CLG website.

Social Housing Co-Op Given Thumbs Up

2011-12-23T14:32:00.002Z

Tenants have given Rochdale Council the go-ahead to create England’s largest social housing co-operative. Rochdale tenants voted overwhelmingly in favour for the transfer of 13,700 homes to arms-length management organisation Rochdale Boroughwide Housing last night, with more than three quarters of those who voted agreeing to the move. The homes will officially transfer to RBH in March 2012. Membership of the co-operative will be open to all tenants and employees of RBH and a representative body will be established to work with the board and decide on major strategic issues, including future development plans. Read more on Inside Housing.

Shapps: Fund Will Offer £20million Support for Single Homeless People

2011-12-23T13:11:00.003Z

Housing Minister Grant Shapps has announced a further £20 million to provide single people facing homelessness the help they need to get back on their feet and ensure that they don't have to spend time on the streets. Mr Shapps said that under homelessness legislation, single people are often not classed as "priority need" cases because they have no dependents. Most local authorities do not therefore offer as much support for single homeless people. This means they can often be left with fewer housing options - forced to spend nights 'sofa surfing' at friends' houses, in their car or even on the street. The minister wants to ensure that nobody is turned away when they are most in need. This extra £20 million will help councils to provide a helping hand to single homeless people in their areas. Read more on the CLG website.