OSC15-065 1

Agenda Item No. 5

OVERVIEW AND SCRUTINY COMMITTEE - 23 FEBRUARY 2015

HOMELESSNESS IN WOKING

Summary

There was an increase in the number of homeless households placed in Bed & Breakfast accommodation in September 2014. In order to understand the increase the Overview and Scrutiny Committee have asked for information on the current Homelessness situation in Woking. We will look at some of the causes of homelessness, whether the applicants are from Woking, the processes which are in place to help homeless households and the costs involved.

Recommendations

The Committee is requested to:

RESOLVE That the report be noted.

Background Papers:

None Sustainability Impact Assessment Equalities Impact Assessment

Reporting Person:

Catherine Butler, Housing Needs Manager Ext. 3249, E Mail: Catherine.Butler@woking.gov.uk Mark Rolt, Strategic Director Ext. 3002, E Mail: Mark.Rolt@woking.gov.uk

Contact Person:

Catherine Butler, Housing Needs Manager Ext. 3249, E Mail: Catherine.Butler@woking.gov.uk

Date Published:

12 February 2015

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1.0 Introduction

1.1 In order to understand Homelessness we need to look at how we try to prevent it happening in the first place. The non-statutory Good Practice Guidance for local housing authorities in England defined homelessness prevention as “Activities that enable a household to remain in their current home, where appropriate, or that provide options to enable a planned and timely move and help to sustain independent living”.

1.2 Housing Advice became Housing Options in September 2004. The aim of the Team was to prevent homelessness with a range of options. These options included Family Mediation, Home Visits, help with Deposits and rent in advance for applicants who were being advised to seek a solution to their impending homelessness in the private rented sector. The Council expanded its own Private Rented Scheme (PRS) and used properties taken on as Private Sector Leases (PSLs) to house families and single people who would otherwise have been placed into Bed & Breakfast accommodation (B&B) out of the Borough, or Temporary Accommodation (TA) (one or two rooms with shared kitchens and bathrooms). Negotiation with landlords and their agents, Debt advice and Floating Support all produced a reduction in the number of homeless applications being taken.

1.3 In 2003/04 Housing Advice took 307 Homeless Applications. By the end of 2004/05, following the restructure and set up of the new Housing Options Team, that figure had fallen to 146; with just 46 taken in 2005/06. This reduction continued until 2009/10 when just 17 homeless applications were taken. The number of preventions peaked in 2007/08 at 280 and was 128 at the end of December 2014. See Appendix 1

1.4 Applicants approached with a range of reasons for their impending or actual homelessness: Discharged from hospital, s21 notices from private landlords who wanted their properties back for a variety of reasons; Domestic Violence; Relationship breakdown, people moving out of Tied accommodation; Overcrowding, Notices to Quit from parents or other family members; the Benefit Cap and emergencies such as fire or flooding.

1.5 However, by 2010/11 the number of homeless applications began to increase: 29; 36; 49; 46 and stood at 63 by mid January 2015. This in turn led to an increase in B&B placements which saw 18 households placed in one month (September 2014) with a total of 27 households in B&B at the end of October although this had reduced to 16 by the end of December 2014. Possible reasons for the increased number of homeless applications includes an increase in s21 notices being issued by landlords wanting their properties back together with a decrease in available properties in the private rented sector for the Council’s clients including the Council’s own Private Rented Scheme (PRS); even though nationally, the private rented sector has seen a period of growth over the last ten years.

1.6 Over the last three years the number of PRS new tenancies has fallen: 33, 30 & 18 this year. The number of Bonds (where applicants have found a property to let in the private sector) has also decreased over the same period: 70, 50 & 20. See Appendix 2

1.7 Over the same three year period 26 PRS tenancies were ended (2012/13); 42 tenancies were ended during 2013/14 (11 properties sold and 6 sold through probate) and 37 tenancies ended during 2014/15 for various reasons, including 6 properties where the landlord discontinued working with the Council due to tenants’ rent arrears There are currently 104 properties on the PRS.

1.8 Although Woking has a buoyant private rental sector, the number of landlords willing or able to provide accommodation to homeless households or those threatened with homelessness has reduced. It seems that households who can no longer obtain a mortgage have had to move into the private rented sector thus taking away properties

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from the Council’s client group. Other reasons for this increased demand for private rentals include employment mobility and lifestyle changes.

1.9 Recent figures show that there have been increases which take average rents above the Local Housing Allowance (LHA) rates in this area e.g. one bedroom properties are £46 per week above the LHA; two bedroom properties are £83 per week above it and three bedroom properties are £106 per week above the LHA level. LHA levels have reduced compared with 2009/10 levels by about 2% and have been negatively affected by welfare reform e.g. now linked to the 30th percentile rent levels where it was previously the 50th percentile. Local lettings agents report that the LHA is not keeping up with the rise in rents.

1.10 We have seen a large increase in the number of landlords selling their properties which has resulted in an increase in approaches from those households who have been issued with a s21 Notice. Where these applicants have been unable to find an alternative home in the private rented sector they have had to be placed into Bed & Breakfast or the Council’s own Temporary Accommodation.

1.11 In September 2014, there were 18 households placed in B&B during the month. This resulted in a total of 27 households in B&B at the end of October 2014. (This had fallen to 12 by the beginning of February). Households spend an average of six weeks in B&B and an average of 64 weeks in Temporary Accommodation. This sharp increase in B&B placements coincided with the opening of the Council’s own B&B, the Thameswey Guesthouses Limited and Maybury Lodge. This accommodation has been fully occupied since September by households placed by Woking Borough Council. It is hoped that other Local Authorities will also use it to place their homeless households in the future as there has been a national increase in homelessness which is reflected in our own figures and also in those of the other Surrey Boroughs and Districts. See Appendix 3 and Appendix 4

1.12 Before the opening of the Maybury Lodge, households were placed in a number of B&B establishments outside of this Borough; in Slough, Kingston, Portsmouth, Guildford and Gatwick. There will be households who must still be placed outside the Borough, usually on grounds of safety but it is hoped that the majority of households who need to be placed into B&B will go into the Maybury Lodge.

1.13 B&B strains financial resources and can also have significant, disruptive impacts on other aspects of a homeless household such as employment, health and education. In order to help mitigate the effects of homelessness the Council decided to open its own B&B in the Borough (The Maybury Lodge).

1.14 There is evidence that demonstrates that investment in local homelessness prevention services saves significant amounts of public money across statutory agencies including housing, health, criminal justice and community safety. The Government published a report in August 2012 which brought together the costs of homelessness. This can be found at: https://www.gov.uk/government/publications/costs-of-homelessness-evidence-review.

1.15 The top five reasons for new approaches to the Housing Options Team between April and December 2014 are:- Advice/Options/Housing Register enquiries (93 households); s21 notices (75); People wanting to move to Woking (43); Overcrowding (36) and those with No Fixed Abode/Sofa surfing (34). See Appendix 5

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1.16 Other causes of homelessness include leaving hospital, leaving Care, leaving prison/remand, leaving HM Forces; mortgage repossession, rent arrears, property condition, relationship breakdown, Domestic Abuse and rough sleeping.

1.17 Since September 2014 we have taken homeless applications for the following reasons: s21 Notice, Notice to Quit from parents/family member/resident landlord, Domestic Violence, relationship breakdown, approach from family leaving accommodation provided under s95 of the Immigration & Asylum Act 1999 formerly known as National Asylum Seeker Service (NASS) accommodation, overcrowding and a Care Leaver. See Appendix 6

1.18 Young People aged 16/17 who are homeless, are normally the responsibility of Surrey County Council. We work very closely with the Youth Support Service, the Leaving Care Team and the Looked After Children’s Team to prevent homelessness for these young people.

1.19 There are 13 providers of supported accommodation for young people in Surrey. These include Step by Step, Guildford YMCA, Transform, LIFE, A2, Moving On and Homegroup providing 280 bedspaces. When Grove Court became family accommodation, the young people who had been living there were accommodated in other supported projects or housed through Housing Registers throughout Surrey.

1.20 There are 4 applicants aged 16/17 and 267 applicants aged 18–25 years on the Housing Register. Of those aged 18-25, there are 114 single people; 27 couples (no children); 80 lone parents and 43 couples with children or expecting a child. See Appendix 7

1.21 Since November 2012 we have taken 20 homeless applications from young people under 25 of which 3 were single (no children); 5 couples expecting or with child(ren) and 12 lone parents expecting or with child(ren). See Appendix 8

1.22 All applicants must have a local connection with this Borough except those fleeing DV and those families coming out of NASS accommodation. Local connection includes living in an area for six out of the previous twelve months or three out of the previous five years; employment and close family member who has lived here for at least the last five years.

1.23 The processes in place to help prevent homelessness include:

• Bond Scheme

• Private Rented Scheme

• Private Sector Leasing

• Floating Support

• Liaison/negotiation with landlords/parents/Housing Benefit Departments

• Discretionary Housing Payments (DHP)

• Housing Register Offers of accommodation

• Refuge/Supported Accommodation placement

• Deposit/Rent in Advance

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• Low Cost Home Ownership/Help to Buy

• DCLG Funding e.g. Mortgage Rescue Scheme (no longer available); Refuge funding (bid currently in progress); Single Homeless funding (cross-Borough) and Homelessness Alliance Funding

• Housing Advice

• Joint working with other statutory services

• Homelessness prevention fund (spend to save initiatives)

• York Road Project (helping Rough Sleepers)

• CAB Court Desk

• SWEP (Winter weather provision)

• Improving housing standards

1.24 There are plans to review the Council’s PRS and Bond Scheme and to try and encourage private landlords to work with the Council. This is likely to include financial incentives to landlords to accept those households who are homeless or threatened with homelessness.

1.25 The new development at Kingsmoor Park with 224 social rented properties should create some movement in the Council’s Housing Register and help us to move people from Temporary Accommodation (TA). This in turn should help us to move people out of B&B into TA.

2.0 Implications

Financial

2.1 The more households placed in B&B, the more impact there is on financial resources. Rates range from £40 - £110 per night depending on the size of the room and the size of the household.

2.2 There are financial risks associated with the Council’s Bond Scheme and PRS. Six properties were withdrawn by landlords from the PRS due to tenants’ rent arrears. Other tenancies end due to rent arrears and abandonment which results in a bond claim. The average amount of a bond claim on the PRS is £900. Any bond claims are recharged to the tenants but there is always a risk that they will not repay the debt.

2.3 It will always be more cost effective to prevent homelessness than to deal with homelessness. There are also wider impacts on a homeless household such as employment – difficulties getting to work; disrupted education and health.

Human Resource/Training and Development

2.4 None associated with this report.

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Community Safety

2.5 None.

Risk Management

2.6 There are no risk management implications.

Sustainability

2.7 None

Equalities

2.8 There are no Equalities issues in respect of this report.

3.0 Conclusions

3.1 There was a large increase in the number of B&B placements in September 2014. This appears to have been a spike rather than a long term trend as subsequent months have seen the number fall to nine placements during January (@29/01/15) and this includes three Winter weather (SWEP) placements.

3.2 Although there has been an increase in the number of homelessness applications and acceptances since April 2014 it appears to be because the number of preventions has fallen. Overall we are still dealing with fewer applicants than in previous years.

3.3 There also appears to be a reduction in private rented accommodation for this client group and this will be reviewed to see whether more can be done to encourage private landlords to work with the Council. It is always more cost effective to provide a Bond or rent in advance to prevent homelessness than to place people in B&B.

3.4 The provision of new housing developments e.g. Kingsmoor Park should also help reduce homelessness and B&B placements. As Housing Register applicants are housed, this frees up Council/PRS properties which can then be used to house people from TA, which in turn can be used to move people out of B&B.

3.5 It will always be more cost effective to prevent homelessness than deal with the consequences of it.

REPORT ENDS

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OSC15-065 1

APPENDICES 1

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APPENDICES 2

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APPENDICES 3

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APPENDICES 4

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APPENDICES 5

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APPENDICES 6

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APPENDICES 7

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APPENDICES 8

1

Equality Impact Assessment

The purpose of this assessment is to improve the work of the Council by making sure that it does not discriminate against any individual or group and that, where possible, it promotes equality. The Council has a legal duty to comply with equalities legislation and this template enables you to consider the impact (positive or negative) a strategy, policy, project or service may have upon the protected groups.

Positive impact?

Negative impact?

No specific impact

What will the impact be? If the impact is negative how can it be mitigated? (action)

THIS SECTION NEEDS TO BE COMPLETED AS EVIDENCE OF WHAT THE POSITIVE IMPACT IS OR WHAT ACTIONS

ARE BEING TAKEN TO MITIGATE ANY NEGATIVE IMPACTS

Elim

inate

discriminatio

n

Advance

equality

Good

relations

Gender

Men x

Women x

Gender Reassignment

Race

White x

Mixed/Multiple ethnic groups x

Asian/Asian British x

Black/African/Caribbean/ Black British

x

Gypsies / travellers x

Other ethnic group x

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APPENDICES 6

Positive impact?

Negative impact?

No specific impact

What will the impact be? If the impact is negative how can it be mitigated? (action)

THIS SECTION NEEDS TO BE COMPLETED AS EVIDENCE OF WHAT THE POSITIVE IMPACT IS OR WHAT ACTIONS

ARE BEING TAKEN TO MITIGATE ANY NEGATIVE IMPACTS

Elim

inate

discriminatio

n

Advance

equality

Good

relations

Disability

Physical x

Sensory x

Learning Difficulties x

Mental Health x

Sexual Orientation

Lesbian, gay men, bisexual x

Age

Older people (50+) x

Younger people (16 - 25) x

Religion or Belief

Faith Groups x

Pregnancy & maternity x

Marriage & Civil Partnership x

Socio-economic Background x

The purpose of the Equality Impact Assessment is to improve the work of the Council by making sure it does not discriminate against any individual or group and that, where possible, it promotes equality. The assessment is quick and straightforward to undertake but it is an important step to make sure that individuals and teams think carefully about the likely impact of their work on people in Woking and take action

to improve strategies, policies, services and projects, where appropriate. Further details and guidance on completing the form are available.

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Sustainability Impact Assessment Officers preparing a committee report are required to complete a Sustainability Impact Assessment. Sustainability is one of the Council’s ‘cross-cutting themes’ and the Council has made a corporate commitment to address the social, economic and environmental effects of activities across Business Units. The purpose of this Impact Assessment is to record any positive or negative impacts this decision, project or programme is likely to have on each of the Council’s Sustainability Themes. For assistance with completing the Impact Assessment, please refer to the instructions below. Further details and guidance on completing the form are available.

Theme (Potential impacts of the project) Positive Impact

Negative Impact

No specific impact

What will the impact be? If the impact is negative, how can it be mitigated? (action)

Use of energy, water, minerals and materials x

Waste generation / sustainable waste management x

Pollution to air, land and water x

Factors that contribute to Climate Change x

Protection of and access to the natural environment x

Travel choices that do not rely on the car x

A strong, diverse and sustainable local economy x

Meet local needs locally x

Opportunities for education and information x

Provision of appropriate and sustainable housing x

Personal safety and reduced fear of crime x

Equality in health and good health x

Access to cultural and leisure facilities x

Social inclusion / engage and consult communities x

Equal opportunities for the whole community x

Contribute to Woking’s pride of place x