Mark Prisk Blog - Involving Tenants in Home Improvements

While the Decent Homes programme makes radical changes to tenants’ homes day-to-day, tenants needn’t wait for their landlords to deal with the basic repairs that can make a real difference to their standard of living.  For example, the Tenant Cashback scheme offers residents with an eye for DIY a budget of up to £500 a year to tackle repairs, decorate their homes or hire a skilled professional to do it for them.  Some social landlords have already seen the benefit of the scheme and are training their tenants to take on simple fixes like leaky taps and fitting doors, and I hope that in time, this will be the norm instead of the exception.  And our new Community Cashback scheme paves the way for tenant groups to take over services in their shared spaces, such as gardening, cleaning, and security. They can then re-invest any savings they make into community projects to improve their area.

Landlords Liable For Injury Caused By Tenant Repairs

Landlords will have to carry out checks on their properties after a landmark court case ruled they are liable for injury caused by work carried out by tenants.  The ruling has cast further doubt on the viability of the government’s tenant cashback scheme, in which tenants carry out minor repairs in return for a cash reward. In the case, repairs and maintenance contractor T Brown Group sued Hillingdon Council after one of its contractors hurt his ankle after falling from a stairway where tenants had removed the banisters for aesthetic reasons.  The judge found that Hillingdon was responsible for the contract worker’s injuries, which left him unable to work, even though it neither sanctioned nor carried out the work. The council now faces a potential six-figure pay out, with the exact figure to be determined at a later date. Read more on Inside Housing.

Rewarding Positive Behaviour through Tenant Cashback

Together Housing Group (THG), one of the Tenant Cashback Scheme pilots, has developed a scheme with a focus on tenancy sustainment and rewarding positive behaviour. The scheme which was developed and piloted concentrates on rewarding positive tenant behaviour and developing basic life skills. Tenant groups and tenant board members were involved in designing the revised scheme and setting up the pilot. It was agreed to concentrate the pilot on those areas where intervention would be most beneficial, and two of THG’s more difficult to manage, high turnover estates were identified. Tenants were recruited to the scheme via meetings, briefing events and, most successfully, through door knocking individual properties. Read more on the Together website.

Social Rented Housing – Parliamentary Written Answer

Jack Dromey: To ask the Secretary of State for Communities and Local Government what consideration he has given to the potential loss of economies of scale of his Department's Tenant Cashback scheme.

Grant Shapps: Under Tenant Cashback, social tenants that take pride in their homes by taking on routine repairs and maintenance should be able to share in any savings made. Similarly, community groups that take control of communal services, saving the landlord money by delivering a more efficient service, should be able to decide how to reinvest the savings to fund improvements to the local area for the benefit of all residents.  Social housing should act as a springboard to help people make better lives for themselves. The experience of current pilot schemes is showing that Tenant Cashback can bring tenants an increasing sense of ownership over their homes and communities, together with real practical benefits such as new skills for tenants, while landlords are seeing a significant reduction in the number of repairs reported.  Our approach allows social landlords to design schemes in consultation with tenants. Landlords can consider the scope for economies of scale alongside the other benefits and efficiencies that can arise through enabling tenants to commission work or to carry it out themselves.  The scheme can help save money for landlords and allow local residents to earn extra cash.

‘Cashback’ Name Dropped From Tenant Repairs Scheme

One of the housing providers who have been piloting the tenant cashback policy is dropping the name ‘cashback’ from the title. Grant Shapps attempted to kick-start his plans to allow tenants to control their repairs budget last month. He urged landlords “not to deny” their tenants the opportunity to take it up when it comes in this month. As part of the plans, tenants can request to set it up with their landlord.  However, landlords have voiced concerns about the scheme and feel the policy has no “statutory backing” under the new regulatory regime where the regulator – a committee inside the Homes and Communities Agency (HCA) – will intervene only if there is “serious detriment” to the tenant.  One said: “It’s highly unregulatable as there is no statutory backing to this. If a landlord fails to offer the scheme is that ‘serious detriment’ to tenants?”  The Together Group had been piloting a ‘sustainable tenancies’ model but a spokesman said the word ‘cashback’ was misleading.  Read more on 24dash.

Tenant Repairs Scheme Risks Opening a Wasteful Black Market Free-For-All

The latest wheeze of our tireless housing minister Grant Shapps is to allow councils to pay tenants for carrying our routine maintenance work on their homes.  This clearly hasn't been fully thought through and there are some major pitfalls in Shapps's proposals. Firstly, the obvious safety and financial risks. What are councils going to do when tenants start injuring themselves carrying out work that they are neither trained nor properly equipped to do. The potential legal and compensation costs do not bear thinking about. Secondly, how will councils or social landlords ensure that work required has been completed to an acceptable standard? If a tenant fixes a leak with some gaffer tape and sends in their bill, the taxpayer will only pay again when the cheap contraption fails a few weeks later.   Thirdly, what position will insurance companies adopt towards these tenant maintained properties? Claims for damage resulting from water leaks and other problems could go through the metaphorical roof. Will insurers refuse to pay out where the government has tasked unskilled people to set about looking after their own maintenance work?  Read more of this opinion piece on the Guardian website.

Sector Split over Shapps' Tenant Cashback 'Re-Announcement'

Grant Shapps' "re-announcement" of a scheme to allow social tenants to control their repairs budget has divided opinion in the sector. Home Group is offering its tenants tailored DIY courses at a B&Q training centre and is running three pilot projects called ‘Customer Rewards’. Rosemary Du Rose, executive director of customer service, said: “The people taking part say the Customer Reward Scheme gives them a sense of ownership for the upkeep and maintenance of their homes. There is a real appetite among our customers to take part in our Customer Rewards scheme." However, others in the sector aren’t embracing the tenant cashback scheme. Keith Exford, chief executive of Affinity Sutton, said he thought the scheme was "ill-advised", that it would "cost landlords more" and that it appears to involve jobs that aren't even in the landlord's remit. He added the new tenant cashback scheme would also create opportunities for "fraud and coercion". Read more on 24dash.

Shapps: "Apprenticeships in the Home" For Tenants

Housing Minister Grant Shapps has offered wannabe decorators and carpenters the opportunity to become "an apprentice in the home" - and get paid to hone their skills. Under the Tenant Cashback Scheme, responsible residents will have the chance to tackle everyday DIY dilemmas like leaky taps, fitting doors and painting and decorating. Those who sign up to the scheme could not only receive cash for their efforts - those who get a taste for DIY could also get on the career ladder with the opportunity of basic training programmes to help them develop their skills even further. Mr Shapps said the Tenant Cashback scheme offers the opportunity:
*For tenants to earn extra cash - up to £500 a year for those who sign up and agree to undertake minor repairs in their homes; and
*For communities to come together to take on repairs for their area, pooling their money to improve the local area and help neighbours who can't do the work themselves.
Read more on the CLG website.

Insurance Concerns Threaten Cashback Scheme

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.

Tenant Cashback Scheme - Impact Assessment

This impact assessment has been prepared to accompany the consultation on Directions to the social housing regulator (see posting immediately below this one) and relates specifically to the Government's Tenant Cashback proposal. Download a copy of the Impact Assessment from the CLG website.

Impact Assessment Shows Health Concerns With Tenant Cashback Scheme

The government has admitted that a new scheme to let tenants control their repairs might lead to health and safety problems. The tenant cashback scheme, introduced by housing minister Grant Shapps in April, will allow tenants to carry out repairs themselves or choose a local company to do the work. Their landlords will then reimburse them. An impact assessment for the scheme, published by the CLG, said extra costs to landlords could be incurred through ‘poorer quality building work being carried out, thus reducing the value of social housing’. Individual landlords will decide how to administer their repairs budget under the scheme, which the government says will save money and increase tenant choice. Gas and electric repairs are not included in the plans. Download a copy of the Impact Assessment from the CLG website.

Legal Warning over Tenant Repairs Scheme

Landlords could end up in court if tenants are injured after hiring cowboy builders to carry out repairs under plans to hand them responsibility for maintaining their homes. The tenant cashback scheme, introduced by housing minister Grant Shapps last week, will allow tenants to carry out repairs themselves or choose a local company to do the work. Their landlords will then reimburse them. But lawyers this week warned that social landlords would be legally responsible for injuries sustained by tenants following botched repairs. The only way to avoid liability would be to redraft existing tenancy agreements or check every repair job themselves. Read more on Inside Housing.

Tenant Cashback Set to Reward House Proud Council Tenants

Housing Minister Grant Shapps has offered tenants a Cashback deal worth billions to take control of their own homes. Launching Tenant Cashback, Mr Shapps said there are millions of social housing tenants who take great pride in looking after their homes - and that he thinks "it's about time we make it worthwhile for many more tenants to show this kind of responsibility". Social housing landlords responsible for England's more than 4 million social homes spend an average of £1000 per property annually on repairs - maintenance that tenants could, very often, do themselves, saving landlords money in the process. Tenant Cashback will allow residents to take more control of their repairs budgets for their homes, for example carry out their own DIY, or commission it locally and pocket any savings made. Cash they could use however they want - for example, towards a deposit on their own house. The move could see a bonanza for small businesses - local painters, plumbers or carpenters - as more of the money is spent locally. The scheme will be piloted by housing associations before legislation will give all tenants the option to request it from their landlord. Read more on the CLG website.