Bedroom Tax Impact on Grant Allocations

Housing providers have warned that the government is ‘storing up future problems’ because more than three-quarters of its grant funding programme will be used for the development of one and two-bedroom homes. Of the 62,000 homes to be developed with the 2015-18 affordable housing grant allocation, 77% will be one and two-bedroom properties after the government requested that providers focus on smaller-sized properties. The allocation has been widely interpreted as a reaction to under-occupying tenants needing to downsize to avoid the bedroom tax. Housing providers told Inside Housing that civil servants from the CLG had contacted them to scrutinise why they had included bids for funding to build family-sized homes. Read more on Inside Housing.

Council Flats to Be Rented Privately

High-Rise council flats and family homes are set to be offered for rent to professionals – because tenants do not want to live there. Stoke-on-Trent City Council could become a private landlord to bring in rent for dozens of properties it has been unable to match with people on its council house waiting list. There are also a number of empty three-bed houses which could be rented out privately. If the 'intelligent letting' scheme is approved by cabinet, the homes will be rented out on a first-come-first-served basis. Potential tenants must prove they:

·         Can afford the rent;

·         Have no history of causing anti-social behaviour;

·         Don't currently own a home;

·         Work or live in the city;

Read more on the Thisisstaffordshire website.

Council to Bring Thousands of Empty Homes Back Into Use

Salford City Council is taking action to bring around 3,400 empty properties back in to use. The council is offering access to grants of up to £34,000 to private landlords to make their vacant properties habitable.  As part of the Empty to Plenty scheme, launched during Greater Manchester empty property week, the council’s empty property team is appealing to landlords to get advice on turning disused properties into family homes. Read more on 24dash.

Idea to Sell-Off Council Houses In Nottingham 'A Complete Non-Starter'

The idea that councils should sell expensive social housing to fund the building of cheaper homes has been described as a "complete non-starter" by Nottingham City Council's lead housing councillor.  Councillor Dave Liversidge, portfolio holder for housing, adults and the community sector, said that the theory, which was published by a think tank called Policy Exchange yesterday, would not work in Nottingham. The report, called Ending Expensive Social Tenants, claims that selling the most expensive council houses could raise £4.5 billion a year, allowing 170,000 affordable homes to be built.  However, Mr Liversidge said there are not a significant number of council houses in Nottingham that are worth much more than the average house price.  And it would mean getting rid of good quality family housing, which the city needs.  He said: "I don't believe there'll be more than half a dozen houses that could be sold at a better than average price.”  Read more on the Nottingham Post website.

Welfare Cuts: Housing Benefit Claimants Not Welcome Here

Only a fraction of private rented homes in the London borough of Hackney are affordable under welfare reforms, and many landlords are actively refusing to let to housing benefit recipients.  Hackney Citizens Advice Bureau (CAB) put together a team of five volunteers on 15 June to carry out a "mystery shopping" exercise to see what the private rental market looked like for people on housing benefit in the east London borough.  The findings are remarkable and depressing. They found 1,585 properties for rent in Hackney on that day. Of these, only 143 were affordable within housing benefit limits. But they also found that of these properties just 14 - or under 1% of the available pool of homes - had landlords who were willing to rent to people on housing benefit.  But that was not all. As the CAB explains:    When we looked at just the family-sized properties (properties with two bedrooms or more), the picture was even worse. Out of 1,090 family-sized properties (from two to five bedrooms), there were just 36 properties (3%) within the limits and five of those (0.5%) with landlords willing to rent to someone on housing benefit.  Read more on the Guardian website.

Council Agrees Downsizing Pot

Richmond Council has agreed a pot of £150,000 to offer tenants a cash incentive to downsize after their children have left home.  The cabinet decided to put the cash towards its Sponsored Moves scheme, which is already up and running and has so far made more than 200 family-sized homes available.  It awards tenants who move to a smaller property £2,500 for every bedroom they lose as a result of the move, up to a maximum of £7,500.  The council may also provide help with the cost of removals and redecoration.  Read more on the Richmond Council website.

Council Tax Changes to Increase Housing Supply

The government is considering scrapping extra council tax on granny annexes to help increase the supply of family homes.  In an announcement Eric Pickles said ministers were planning to support people who wanted to have a live-in annexe for immediate relatives, such as teenagers or elderly grandparents.  The reforms, which are expected to need legislation, form part of the government’s plan to increase the number of family homes.  Some discounts for the elderly living in annexes already exist. However, when part of a house has been adapted as a granny annexe, it continues to be counted separately for council tax, even if it is not occupied.  The government also said it would see how planning red tape could be removed to support the conversion of existing outbuildings, such as garages, into family annexes.  Read more on the CLG website.