Housing Waiting Lists Could Double Next Year

One in 10 households in need of housing are stuck on council waiting lists for over five years as a result of the chronic shortage of affordable homes. A new report, Building post-pandemic prosperity, commissioned by the LGA, ARCH, and the NFA, sets out the case for building 100,000 green social homes for rent each year as part of the recovery from COVID-19, to deliver net zero housing and “level-up” the nation. It also reveals that as a result of the pandemic, council housing waiting lists could almost double next year to as many as 2.1 million households, due to the impact of Covid-related support schemes winding down and a potential increase in homelessness. Read more on the LGA website.

https://www.local.gov.uk/about/news/housing-waiting-lists-could-double-next-year-one-10-stuck-queue-more-5-years-new 

Government Launches A Campaign To Empower Social Housing Residents To Raise Complaints

The Government's Social Housing White Paper promised to run an awareness campaign so that social housing residents know their rights to complain and are confident in navigating their routes to complain and are aware of how to escalate their complaints to get redress. The national campaign under the headline 'Make Things Right' will run adverts on digital and social media channels, as well as music streaming sites, to raise awareness of the complaints process and barriers to these being progressed. Read more on the ARCH website.

http://www.arch-housing.org.uk/news/latest-news/government-launches-a-campaign-to-empower-social-housing-residents-to-raise-complaints.aspx

 

Councils Still Face Numerous Barriers To Building Homes

Councils still face a number of obstacles to building more homes despite hopes that lifting the HRA cap would result in a development spree, new research has found. When the borrowing caps that restricted council house-building were lifted a year ago, the government said it heralded “a new generation of council homes,” but a new report by the Chartered Institute of Housing, National Federation of ALMOs and the Association of Retained Council Housing show councils still face obstacles to building more homes. Download the report from the CIH website.

http://www.cih.org/resources/PDF/Policy%20free%20download%20pdfs/LA%20New%20Build%20Report%20Jan20.pdf

Council Tenants On Universal Credit 16 Times More Likely To Abandon Tenancies

Council tenants on Universal Credit are 16 times more likely to abandon their tenancies and three times more likely to be evicted than those receiving housing benefit, a new report has indicated. A survey of local authority landlords by the Association of Retained Council Housing (ARCH) and the National Federation of ALMOs (NFA) also revealed that the new welfare system is costing councils hundreds of thousands of pounds in extra housing management spending. It showed that two-thirds (67%) of council tenants receiving Universal Credit are currently in rent arrears, owing an average of £564 – equivalent to seven weeks’ rent. In comparison, 21% of households on housing benefit are in arrears, owing £221. Download the report from the ARCH website.

http://www.arch-housing.org.uk/media/130243/arch_nfa_universal_credit_survey_2019_v4_web.pdf

Decent Homes Standard Review 'Threatens Council Business Plans'

Local authority housing business plans could be rendered unsustainable if the government revises the Decent Homes Standard, it has been claimed. That warning has come from the Association of Retained Council Housing (ARCH) after the Social Housing Green Paper proposed revisiting the standard, which was set in 2006. The green paper said the standard “should be reviewed to consider whether it is demanding enough and delivers the right standards for social housing alongside other tenures”. Any review would also look at whether the energy performance of social homes should be upgraded to at least Energy Performance Certificate Band C by 2030, where practical and cost effective. Read more on Inside Housing.

https://webcache.googleusercontent.com/search?q=cache:PF7gSO76V58J:https://www.insidehousing.co.uk/news/news/decent-homes-standard-review-threatens-council-business-plans-57678+&cd=2&hl=en&ct=clnk&gl=uk&safe=vss

Universal Credit Claimants Make Up 25% Of Council Rent Arrears, Report Finds

Universal Credit households now account for 25% of unpaid council rent despite representing just 4% of tenants, according to a new report. The study, published jointly by the National Federation of ALMOs (NFA) and the Association of Retained Council Housing (ARCH), found 72% of council tenants receiving Universal Credit are in arrears, compared with 26% of all households. And households using the new welfare system had also fallen further behind on rent than others struggling to pay – owing an average of £520 compared to £328 average arrears. Download the report from the NFA website.

http://www.almos.org.uk/include/getDoc.php?did=8190&fid=9679

RTB Sales Decrease But Replacements Fall Short Of 1 For 1 Target

The latest government figures  show that sales of council housing under the Right to Buy (RTB) fell in the quarter to 31 March 2018 by 18% over the previous quarter, but the government continues to fall short of the promised one for one replacement of homes sold under the reinvigorated RTB from 2012. In Quarter 4 (January to March 2018), councils sold an estimated 2,772 dwellings under the RTB scheme compared to the 3,313 sold in the same quarter of 2016-17 this is a decrease of 18%. The average capital receipt per dwelling sold in quarter 4 2017-18 was £83,000. Under the government's one for one commitment made under the Reinvigorated RTB introduced in 2012, local authorities have 3 years from the date of the sale of each additional home to provide a replacement home, but can only use RTB receipts to a maximum of 30% of the cost of providing a replacement. Read more on the ARCH website.

http://www.arch-housing.org.uk/news/latest-news/rtb-sales-decrease-but-replacements-fall-short-of-1-for-1-target.aspx

Over 2 Million Fewer Council Homes

The latest local authority housing statistics illustrate the continuing decline in the numbers of council housing, revealing that councils in England owned 1.6 million dwellings on 1 April 2017 - a decrease from the 3.67 million homes owned on 1 April 1994 due to Right to Buy sales, large scale voluntary transfers and demolitions. The council housing stock in England fell from 1,612,319 on 1 April 2016 to 1,601,565 on 1 April 2017. 99.2% of the council owned stock is let at social rents with 0.8% let at affordable rents (up to 80% of market rent).  Read more on the ARCH website.

http://www.arch-housing.org.uk/news/latest-news/over-2-million-fewer-council-homes.aspx

Budget Must Let Councils ‘Take Back Control’ Of Housing Assets And Revenue

Next month’s budget must let Councils ‘take back control’ of their housing assets and revenue by committing to the principles of HRA self-financing for council housing, a new paper says. The paper sets out key asks on allowing councils to lift the HRA debt caps for new build purposes and relying instead on prudential borrowing rules to enable investment in new homes – paid back from rental income. Where government can’t or won’t commit, the paper offers a get out option – approve a number of bespoke deals as quickly as possible to create a group of “market leaders” who could share experience and good practice with others. Read more on the ARCH website.

Households In Temporary Accommodation Up Again

Latest figures from the CLG show that 78,180 households were living in temporary accommodation on 30 June 2017 (these households included 120,170 children or expected children). This is up 7% on a year earlier, and up 63% on the low of 48,010 at 31 December 2010.  Between 1 April and 30 June 2017 local authorities accepted 14,400 households as being statutorily homeless - i.e. households owed a statutory duty to secure accommodation as a result of being unintentionally homeless and deemed to be in priority need. This was down by 1% on the previous quarter and down 5% on the same quarter last year. Local authorities also took action to prevent and relieve some 54,270 households between 1 April and 30 June 2017. Read more on the ARCH website.

Households In Temporary Accommodation Up Again

Latest figures from the CLG show that 78,180 households were living in temporary accommodation on 30 June 2017 (these households included 120,170 children or expected children). This is up 7% on a year earlier, and up 63% on the low of 48,010 at 31 December 2010. Between 1 April and 30 June 2017 local authorities accepted 14,400 households as being statutorily homeless - i.e. households owed a statutory duty to secure accommodation as a result of being unintentionally homeless and deemed to be in priority need. This was down by 1% on the previous quarter and down 5% on the same quarter last year. Read more on the ARCH website.

Consultation On Rent Policy Due “Very, Very Soon”

Secretary of State Sajid Javid is reported as saying that housing associations and councils can expect consultations the government's rent policy post 2020 "very, very soon". The government's previous 10 year social rent policy introduced in May 2014 was scrapped by George Osborne in the Summer Budget of 2015 and there has been a huge reduction in rental income as a result of the 4 years of mandatory year on year 1% rent reductions up to 2020 imposed by the Welfare Reform & Work Act 2016 with ongoing uncertainty about future rent policy. However the government's Housing White Paper promised to set out a rent policy for housing associations and local authorities for the period beyond 2020. Read more on the ARCH website.

Councils Losing £6.7m In Universal Credit Arrears

A new survey from the NFA and ARCH has revealed the total shortfall in rent from tenants claiming Universal Credit is £6.68m. That represents a significant chunk of the £68.5m total value of council rent arrears from landlords surveyed, despite Universal Credit claimants only making up 2.6% of tenants. A report accompanying the survey said the roll-out should be stopped or slowed “to prevent further distress and financial hardship to many families, as well as unprecedented levels of rent arrears and demand for support from landlords”. Almost three-quarters of Universal Credit claimants – or 73% – were in arrears, owing an average of £772.21, up from £611.73 a year earlier. Read more on Inside Housing.

MPs Urge Government To Drop LHA Cap Plan For Supported Housing

MPs are calling on the government to abandon plans to base supported housing funding on Local Housing Allowance (LHA) rates. A joint report by the CLG and DWP Committees on the future of supported housing finds LHA rates are an “inappropriate starting point” for a new funding model. It argues instead for a new supported housing allowance, banded to reflect the actual cost of different types of provision.  The government plans to cap housing benefit for supported housing at the LHA rate from April 2019, with local authorities providing top-ups for costs above this rate. But the committees found that, unlike the LHA rate, the cost of provision is largely consistent across the country so some areas will rely on top-ups more than others. Read more on the ARCH website.

Council Rents After 2020

The government has promised further discussions with the housing sector before setting out a new rent policy for the period beyond 2020 "in due course". The policy will help raise borrowing against future income. The recent Housing White Paper confirmed the government will continue with its policy of reducing council and housing association rents by 1% a year for the next three years but promises an announcement "in due course" on a rent policy for social housing landlords (both housing associations and local authorities) for the period beyond 2020. The earliest likely date for an announcement on a new social rent policy is this year's autumn Budget. Read more on the ARCH website.

Universal Credit Tenants In Arrears Increases To 86%

The percentage of council tenants on Universal Credit in rent arrears has increased to a “critically high” 86% over the last year, sparking “extreme concern” among councils. The National Federation of Arms’-Length Management Organisations (NFA) and the Association for Retained Council Housing (ARCH), which together represent more than one million council homes in England, carried out annual research into Universal Credit claimants and found the percentage of council home tenants in receipt of Universal Credit who are in rent arrears has increased by seven percentage points – from 79% in March last year to 86%. This compares to 39% of tenants in arrears who do not receive Universal Credit. Download a copy of the research from the Housingnet website.

Councils Won’t Pay HVA Levy In 2017/18

ARCH has learned that stock retained councils will not be required to make high-value asset (HVA) payments in 2017/18. This comes as news following the announcement of an expanded pilot for the voluntary Right to Buy for housing association tenants. In his Autumn Statement on 23 November, the Chancellor announced that following the initial pilot of the voluntary Right to Buy for tenants with five housing associations, the government will launch an expanded regional pilot in 2017-18. This pilot will be funded by the Exchequer to the tune of £250million over four years from 2017-18 to 2020-21. More information on the timing will follow once the detail has been developed with the housing association sector. Read more on the ARCH website.

Government Issues Commencement Order For Pay To Stay

The government issued the Housing and Planning Act 2016 (Commencement No. 3) Regulations 2016 on 3 October 2016. These Regulations bring into force various provisions of the Housing and Planning Act 2016 on 1 October 2016. Regulation 2(a) brings into force the part of the Act covering Pay to Stay which makes provision relating to rents for high income social tenants of local housing authorities and private registered providers of social housing. Publication of this Commencement Order has caused concern among some ARCH members as the government is yet to set out detailed Regulation and Guidance on how the scheme will operate. Read more on the ARCH website.

Delay Likely On Key Housing Act Regulations

Publication of the Higher Value and Pay to Stay Regulations is likely to be delayed. CLG had expected the Regulations and Guidance to have been available this month (July) but could give no firm date by when local authorities could expect to see them indicating that a decision on the Regulations and Determinations on the definition of higher value voids and RTB levy was now unlikely to be made until September this year - although there was a possibility that some information on the draft Determination may potentially be available for informal consultation beforehand.  With the regulations on higher value voids subject to scrutiny by both Houses of Parliament, timing is crucial. At this stage there is a possibility that the first payments from local authorities may not be levied until 2017/18 or later. Read more on the ARCH website.

'Three In Four Universal Credit Tenants In Arrears'

Social housing representative bodies are calling on the government to review Universal Credit as new research finds more than three quarters of tenants are in rent arrears. The NFA and ARCH have published the findings of their latest survey of councils and ALMOs which found one year on from the rollout of Universal Credit across England 79% of around 3,000 tenants that are on UC are in rent arrears compared to 31% of other tenants.  The NFA and ARCH will call for the government to abandon the seven day waiting period for Universal Credit, review the in-arrears policy to see if this is causing “unnecessary hardship and long term disadvantage” for UC entitlement and speed up the UC assessment process to three weeks. Download the report from the NFA website.