Agenda item

Context:

The Housing and Regeneration Manager was welcomed to the meeting to present a report to provide an update on the pilot joint Housing Solutions Service with Torfaen County Borough Council that started in March 2015. The report seeks to both highlight the achievements secured and key conclusions of the progress.

Members Scrutiny

Members recognised the drive for greater engagement with the private sector to increase the number of houses available to let within a context of the UK Government seeking to limit private landlords’ ability to provide private rental properties through a 3% increase in stamp duty on second property purchases and the discontinuation of the ability to offset income from private rental properties against mortgage interest payments, from tax year 2017/18.

Members asked how it was intended to increase engagement with landlords.   It was explained that this was a less successful area of the pilot and would require a dedicated resource to engage with them and to market working with the Council. This continues to be a challenge and there is much work to do which still might not eliminate the risk.  Feedback from the Landlords Forum is that the sector is being squeezed and that letting properties is becoming a less attractive prospect. It was reported that the level of prevention work has improved which is linked to engagement with private landlords.  It was suggested that default to social stock was the fall-back position but there are limited numbers of vacancies unfortunately, and it would be preferable to increase stock. Members spoke of the need for more affordable housing and identified the 30-35% percentage of such housing included in the Local Development Plan noting that it is difficult to achieve the percentage when developers seek profits of 20%.

It was queried if the pilot highlighted cultural differences between the two counties.  This was not thought to be the case.  

Members asked what HR involvement there had been to support staff. It was confirmed that staff had received support for six months. It was confirmed that the problems have diminished and that a temporary member of staff has been appointed to provide cover. In response to a question, it was confirmed that it was not a geographical problem but that staff felt isolated from the Council and its priorities.

Members referred to the Financial Inclusion Officer post and queried if there was duplication with similar posts provided by the Citizens Advice Bureau (CAB) and Monmouthshire Housing Association (MHA) comparing the higher volume of referrals dealt with by CAB, and querying if it might be more efficient to use the CAB dedicated officer instead.  It was explained that the services of each Financial Inclusion Officer are quite distinct.  The Financial Inclusion Officer is funded by a Welsh Government grant to prevent homelessness.  The CAB offers a wider service; a differing role.  MHA has invested in a similar post to maximise its rental income.  The Chair sought assurances that the three sources of advice collaborate, that any differences are clarified and opportunities for rationalisation are explored.

Members asked if there were any funding issues.  They were informed that there were some financial benefits to the partnership e.g. access to the Torfaen furniture store and a joint out of hours service.  It was added that there was an allocation of grant funding from Welsh Government last year and this year.  This year’s is suspended in relation to statutory returns.  There are issues with the IT system e.g. the need to align with new legislation and financial responsibility will return to Monmouthshire for this.

The Chair concluded that there had been problems with the pilot and a proposal to withdraw in favour of reintegration to Monmouthshire.  The disadvantages identified were access to Torfaen accommodation and vice versa which provided useful flexibility for the provision of emergency accommodation for Monmouthshire residents and noted that this could possibly continue.   It was possible that the shared IT system could continue and options are being explored.  There will also be short term reintegration costs mostly related to IT provision.

Recommendations:

• Consider the achievements of the service, how the service has benefited the

Council and community and the ongoing issues and risks identified

• To consider the proposal to end the pilot and withdraw from elements of the joint

Housing Solutions service that are not delivering added value and to agree an exit plan with Torfaen.