Crisis Conference 2011

1. Crisis Conference 2011 Crisis Conference 2011Session 2: Coping with the cuts

2. Crisis Conference 2011 David HewittHead of Private Renting and Housing Development, Crisis

3. Crisis Conference 2011 Coping with cuts in the Private Rented Sector (PRS) • Background and overview of Crisis work with PRS • Outline the cuts and their likely impact • Consider what this means for landlords • What services will our clients require • Crisis support available • Practitioner example.

4. Crisis Conference 2011 Crisis and the PRS • Crisis launched Crisis SmartMove in 1997 • Wider remit from 2006 to provide training, events and guidance to statutory and voluntary sector agencies • Research into coverage, outcomes and costs of PRS access schemes • Campaigning and lobbying on policies that affect PRS access schemes, tenants and landlords • Partnerships with Department of Communities and Local Government and the Scottish Government.

5. Crisis Conference 2011 Crisis PRS Access Development Programme • Crisis led programme backed by DCLG • Funding available for new/expanded services to assist single homeless people into PRS accommodation • Local authority/voluntary sector partnerships • Crisis provide support from proposal through to operation • 48 schemes already; aim is to create 1,500+ tenancies this year • New application round now open; c. 80 more schemes to be funded in 2011/12.

6. Crisis Conference 2011 What are the challenges? • Already happening: • Housing benefit caps and move to 30th percentile • Extension of SAR to under 35s • Wider funding cuts including Supporting People • On the way? • Linking LHA rates to CPI • Threats to Social Fund • Universal credit and overall caps

7. Crisis Conference 2011 What will the effect be? • Increased difficulty finding and sustaining suitable PRS accommodation for people on benefits and low incomes • Throughout the UK people will face shortfalls, potentially leading to debt, arrears and homelessness • Many will find their current rent becomes unaffordable and need assistance to move home • Single people will get the least assistance • Costs to local authorities, as well as health, criminal justice etc, are likely to be considerable.

8. Crisis Conference 2011 How can service providers mitigate the negative impact?

9. Crisis Conference 2011 PRS and the HB sub-market • Approximately 3.2m PRS households. Around 13% of all households rising to over 20% in some areas (Rugg & Rhodes, 2008) • Over 900,000 households in the PRS in receipt of Housing Benefit (DWP Impact Assessment, 2010) • 22-24% landlords offer accommodation to HB tenants as main tenant type (BDRC market research 2010).

10. Crisis Conference 2011 PRS landlords and HB cuts • Current sources of information may be incomplete or misleading (1/3 in NLA survey understood cuts) • Service providers can build confidence in their competence by providing information that is sensitive, accurate and complete • Consider different methods of communication • Opportunity to highlight services.

11. Crisis Conference 2011 Landlords options post-cuts • Sell their properties • Let to non-LHA tenants • Let to different LHA tenants (i.e. 32 not 22 in shared) • Let to LHA tenants at same rates • Let to LHA tenants in line with new LHA levels. • Understanding local market is key…

12. Crisis Conference 2011 What do landlords want? • Processes and practices that will minimise risks: • Clear processes and standards of service • Tenant/reference checking service • Tenant preparation and training • HB liaison and expertise • Range of incentives (which need not be costly) • Access to ongoing support for both tenant and landlord.

13. Crisis Conference 2011 What should providers do? • Identify at risk tenancies and provide accurate information to current landlords and tenants • Work with LA and other agencies to maximise efficient use of resources – don’t try and do everything yourself • Forge close links with HB, use the new guidance on direct payments, and identify possible DHP usage • Articulate how your service will minimise landlord risks • Consult with and engage landlords throughout.

14. Crisis Conference 2011 What should providers do? • Full assessments including realistic affordability assessments and ‘sharing’ challenges • Pre-tenancy support including coaching to build confidence and ability to ‘sell’ and negotiate • Assure minimum property standards • Moving in-packs and local information • ‘Tenancy healthchecks,’ particularly following move-in • Ongoing support for landlords and tenants • Make links to local services including education, volunteering and employment.

15. Crisis Conference 2011 Crisis support available • Crisis PRS Access Development Programme • Best practice toolkit with comprehensive guidance and supporting documentation • Emerging best practice guidance (including specific work on youth homelessness and the PRS) • Research into sustainability in the PRS • Monitoring the impact of cuts • Ongoing campaigning.

16. Crisis Conference 2011 For further information

17. Crisis Conference 2011 CRIAS Services Coping with cuts in the Private Rented Sector (PRS) A Practitioner Perspective

18. Crisis Conference 2011 CRIAS PRS Services CRIAS • Established 1993 and has housed over 2000 people in the PRS • Currently funded by Croydon Council and Supporting People • Client group single homeless with support needs, aged 18-60, most clients are referred by supported housing projects, also referrals from Mental health and drug and alcohol services.

19. Crisis Conference 2011 CRIAS Light • Funded by Crisis Private Rented Sector (PRS) Access Development Programme • Service funding started March 2011 • Focussing on prevention • Clients aged 18-24, low or no identified support needs • Support required: Help finding affordable accommodation, financial assistance, help with HB • 12 People housed to date , target of 50.

20. Crisis Conference 2011 CRIAS Light Accommodation • Registered HMO Accommodation and Additional HMO licensing where applicable • Lodgings • Joint tenancies • All accommodation must have: • Gas Safety Certificate (if applicable) • EPC and ideally a electrical safety certificate • HMO Registration (if applicable) • Must meet HHSRS Standards • Pass Environmental Health and Tenancy Relations checks if in Croydon

21. Crisis Conference 2011 CRIAS Flat share • Starting July 1st 2012, Funded by Croydon Council • New service created as a result of planned age related HB changes (January 2012) • 2 unrelated people sharing a 1 bed flat • Flat must have separate lounge, not a walk through kitchen • Sharers matched up in whilst in supported housing, intensive resettlement support prior to moving into a joint tenancy

22. Crisis Conference 2011 Adapting PRS services to meet local and national conditions Nationally • 30 Percentile LHA rates • Accommodation standards • Affordability • HB age related changes, under 35 shared rate • Locally • Limited supply of HMO properties • Additional HMO licence requirements; more than 2 unrelated tenants sharing becomes an HMO

23. PRS services must work creatively and develop innovative services that achieve its targets Use the tools you have: HMO Register, internet;spareroom.com,findaproperty.com Local authorities / voluntary organisations working together joined up thinking. Giving the clients the tools and confidence to find their own accommodation. Managing time and resources: Landlords with large property portfolios V landlord with one flat Crisis Conference 2011 Being positive is the only option

24. Key Requirements Lay out of flat, lounge separate room Sharers know to each other Understanding the concept of Joint and Several Liability Deposit Guarantee Bond attractive to landlord Crisis Conference 2011 Joint Tenancy & One bed Flats Must Be: • Affordable: SRR x 2 = One bed rate • Not classed as an HMO from a council tax view point (no locks on bedrooms) Must Have: • Tenancy sustainment available if required • Effective procedures if tenancy breakdown.

25. Local Authorities to identify everyone affected with the help of housing Benefit Breakdown numbers to a monthly basis based on the anniversary of their tenancy Write to landlords and tenants as much info as possible, continue to keep them fully informed Get more detailed information from tenant regarding their personal circumstances Crisis Conference 2011 Existing tenants that will affected by January 2012 HB Changes

26. Circumstances that might avoid the tenant from having to leave their home: Does the tenant have a partner? Can the partner move in Is the flat suitable for two unrelated people sharing, if yes would the tenant agree to this Is there 35 birthday within 3 months of their anniversary of their tenancy (DHP) Will their personal circumstances change soon? Crisis Conference 2011 Reducing Tenancy Breakdowns

27. Understand if the current tenant has no option but to leave their flat because of their age, then there might be an opportunity for your service to fill the vacancy with an older tenant. Keep landlords informed through out the whole process Advice them on what action to take to reduce any rent arrears that might accrue Only support reputable landlords who follow the proper procedures when ending a tenancy Crisis Conference 2011 Managing Landlord Relationships

28. Local Authorities must take the lead Short term funding must be identified to work with the newly homeless under 35’s LA’s and Voluntary Organisation’s should work together to avoid wasted resources and duplication Plans / Strategies should be in place by October at the latest Crisis Conference 2011 January 2012 HB Age Related Changes: Key Points