Agenda item

Purpose:

This is a follow up to the report received by the Committee on 12th September 2017 and advises that the Council’s contract with Melin Homes to manage the Private Leasing Scheme (PLS) will end in June 2018. The report updates the Committee on the due diligence findings and considers the options for the future scheme management. The report also provides an update on Welsh Government temporary accommodation funding and its relevance to the PLS.

Key Issues:

1. Under the Housing (Wales) Act 2014, the Council has a duty to both respond to

homelessness and to prevent homelessness. The Act also provides the power to

discharge the associated duties into the private rented sector. Strengthening prevention activity is an on-going priority, including engaging with private landlords to enable access to private accommodation as a key option for the Council to discharge its homeless duties and minimise over reliance on social housing and the need to utilise bed & breakfast.

2. A PLS has operated for over ten years. It was initially established due to the lack of social housing and supports the Council to discharge its statutory duties and helps to minimise bed & breakfast use. The PLS was transferred to Melin Homes in 2009 under contract, which ends in June 2018. A decision now needs to be made about the future of the PLS and the Council is actively preparing for the end of the contract and undertaking a process of due diligence. Melin no longer wish to

manage the scheme, in part, due to Welfare Reform changes. Of relevance is the

Department of Work & Pensions decision from April 2017 to remove the ability to claim a £60 pw per property temporary accommodation management fee subsidy, through housing benefit. Welsh Government have replaced with additional Rate Support Grant.

3. Although the Council continually seeks to access private rented opportunities, the ability to deliver the required number of properties is limited for a number of reasons including:

·         Homeless applicants typically are low income households and in receipt of benefit.  Lettings agencies and landlords are often reluctant to accept households on benefit.

·         Many households cannot afford to meet local rents and upfront private sector costs.

·          Vulnerable households are often perceived, often incorrectly, as a risk to landlords

·         Some households with complex needs are difficult to accommodate in any sector

An update was provided that since the report was compiled, the forecasted overspend of £127,000 has reduced to £98,000. The projected overspend in 2018/19 has reduced from £229,000 to £150,000.  For 2018/19, this is due to properties reducing e.g. going back to landlords and not being returned to Monmouthshire.  A review of house share properties leading to their re-designation to hostel status means that a management cost can be charged, covered by housing benefit and will provide income.  It was added that the Minister is due to announce that authorities that lost out from the removal of the management fee will be reimbursed for 2016/17 only and this should reduce pressure on budgets for this year.

Member Scrutiny:

A Member asked what standards a person housed in a hostel could expect and also queried the length of stay.  In response, it was clarified that hostels are based on the shared housing stock.  There are 16 residential units which have been checked by Environmental Health. The properties are used as long term accommodation and prevent homelessness.  They are mainly for single persons with family accommodation available in Monmouth.  It was explained that there are shared bathroom and kitchen facilities, and locks on individual doors. In response to a question, it was confirmed that shared accommodation is only for single persons.

A Member asked how UC (Universal Credit which has been put back to June) will affect interaction with landlords.  It was confirmed that its introduction will impact on the team managing house share.  The team will work with Department of Work and Pensions to get benefits paid to us direct for more vulnerable individuals.  It was explained that UC payments are very slow which makes management of rent accounts harder. The situation is being monitored. Concern was expressed at the possibility that anyone on UC was automatically in rent arrears. 

A member asked for further information about the decrease in housing stock due to some landlords not proceeding and asked how the shortfall will be dealt with.  It is projected that Monmouthshire Letting Service (MLS) properties, which are currently being advertised for, will make up the shortfall plus the housing register.  The Officer is monitoring properties returning to owners, tenants, bids, looking for alternative accommodation options and offering other practical help e.g. with bonds etc. Initial feedback regarding MLS is that landlords are interested.

A Member questioned the approach to empty properties noting that whilst many are family or second homes, some are just empty.  It was queried if there was a way to liaise with the owners to bring these properties into use.  It was confirmed that twice yearly liaison (Letter drops) is undertaken to ascertain if there is a willingness to work with the Council and to offer assistance.  It was suggested that an advantage of the removal of the bridge tolls is that more people may be persuaded to sell their empty properties.

It was queried how other authorities deal with homelessness and confirmed that most use the same schemes and practices.  Regular network meetings are held to share best practice e.g. MLS and how extra funding will be utilised.  It was added that all authorities attempt to engage with the private rental sector but that Monmouthshire is struggling more than most because of property prices.  It was suggested that Elected Members could assist in advertising for new landlords in e.g. ward newsletters. 

The Chair asked about arrears from the previous landlord and it was confirmed that these will be handed back to the authority if not settled.  It was estimated that this would be in the region of £4,000. It is hoped that Melin will deal with them before the handover.

A general point was made about freezing the headings of columns of information in reports so they are available on each page for ease of reading.