To seek the views of the committee of engagement undertaken with the housing sector and of proposed new strategic housing documents for Herefordshire, including homelessness review and strategy, allocations policy and housing strategy, in order to inform the recommendations to cabinet.

The chairman introduced the item stating that the provision of affordable housing was vital to all communities. It was noted that homelessness is a persistent problem so it was positive to note that bed and breakfast accommodation had not been used in three years.  The chairman expressed the importance of allocation policies and commented on the proposals for the SHYPP contract. 

 

The cabinet member for adult’s health and wellbeing explained that housing was of significant importance for young people. It was explained that the housing strategies would be received by cabinet in March and the comments of the committee would be welcomed.

 

The director of adult’s wellbeing addressed the issue of the SHYPP contract advising the committee of the process being undertaken.

 

The director introduced the report explaining that housing has become a central element of national government policy only very recently. While the housing strategy was being developed there were major policy statements by national government which needed to be reflected in the strategy. It was not clear that the changes to national policy had been completed and this meant the housing strategy was in a draft form in order to be adaptive.

 

The joint commissioning manager summarised a number of key areas of the report identifying the legal status of each of the strategies:-

·         The Housing Strategy is no longer a legal requirement but as it identifies key themes, including those requiring joint working with major parties, such as the NHS and Registered Providers (housing associations), its role was to prioritise areas of activity to meet required outcomes.

·         The Homelessness Review and Strategy is a statutory document which focuses on measures to prevent and relieve homelessness

·         The Allocation Policy is a statutory document which seeks to ensure that social and affordable housing is allocated to those in housing need in a fair and transparent manner.

It was explained that in developing the strategies there had been a considerable amount of joint working with various providers. There had been a number of workshops and a larger consultation event in the autumn which had been popular and very productive with 60-70 attendees at the Housing Strategy event. The Homelessness Strategy and the Allocations Policy had been discussed widely with service providers and partners.

 

A summary of the key national changes was provided. These included:

·         Statutory reduction in social housing rents by 1% per annum for four years from April 2016 limiting the revenue available to social housing providers.

·         Reduction in the obligations on housing developers to provide affordable housing on larger schemes

·         Reduction in the benefit cap to £20,000, extension of shared accommodation rates for housing benefit applicants to under 35 year olds and loss of automatic right to housing benefit for 18-21 year olds

·         Legislation now requires landlords to ensure that tenants have the right to remain in the country.  This is predicted to impact negatively on   the willingness of private landlords to house some households.

·         A central government scheme to build ‘one for one’ social houses lost under the right to buy was undersubscribed.

It was explained that these changes were likely to reduce the resources available to social housing providers. As a result social housing providers would be less likely to build new social housing in the near future.

 

It was noted that many of the legal changes simultaneously made the construction of private housing more attractive and social housing less attractive. As a result, social housing providers may instead invest in that sector.

 

Social housing rents remain affordable for the majority of service uses but the withdrawal of housing benefit entitlement was likely to have a consequent impact on those in the 18-21 age group who may face an increased risk of homelessness, particularly in the case of young people leaving care, pregnant mothers and those with children.

 

It was explained that the documents presented to the committee represented four separate strategies and that of the four, the Housing Strategy took a broader view and contained some broad analysis. A number of key priorities were identified:

-       support for housing development particularly  where social housing was provided

-       Ensuring Travellers’ sites had sufficient pitches (in cooperation with planning)

-       Considering the implications of the university project and having the ability to provide student accommodation as the project develops.

-       Improving housing quality, focusing on affordable  warmth  due to the significant impact of the quality of housing on the health of older people

-       Investigating joint working as a response to reduced resources.

The joint commissioning manager summarized key points of the homelessness review and strategy. It was noted that within the report a number of successes are identified:

·         Bed and breakfast accommodation for homeless households had not been used by the authority in over three years.

·         The provision of temporary accommodation had reduced by 67% representing a significant achievement.

·         Work had been done with street based interventions targeting rough sleepers and targeting individuals facing immediate homelessness on discharge from hospital.

·         National changes previously identified were presenting new threats to homelessness, notably new groups were becoming at risk of homeless.

·         Aimed to prevent homelessness through intervention at critical moments and to provide long term solutions.

The joint commissioning manager summarised key issues in the draft Allocation Policy, which also included the Tenancy Strategy.

 

It was explained that policy had been revised previously reducing the number of people on the housing register from 5000 to 500. This had subsequently increased to over 900. While the intention had been to reduce the numbers on the register to reflect housing need more adequately it had not been expected to have such a significant effect.

 

Many of the changes in the draft policy reflected the requirements of the 1996 Housing Act and the technical difficulties involved was stressed.

 

It was noted that the allocations policy reflected the reduction in direct responsibility and resources of local authorities with regard to affordable rented housing.  It was noted that the local authority was limited in some instances to trying to influence the behaviours of social housing providers rather than being able to require specific actions.

 

A Representative of the Marches Local Enterprise Partnership (LEP) provided a number of observations on the provision of social housing:

·          Welfare reform is ongoing at a national level and that it was positive to see practical changes in this regard. However it was explained that this would have consequences for the work of social housing providers.

·         The ability of local authorities to influence and direct private social housing providers was decreasing

·         There was expected to be a 17% reduction in the income of social housing landlords.

·         Welfare reform was expected to increase the demand for social housing, however this was also expected to reduce the supply of social housing available which was a major concern.

·         As Housing Associations were facing difficulties in building new social housing, and rents for social housing were being reduced by central government it was argued that social housing providers would retrench and offer a reduced service.

·         It was unlikely that housing associations would build new social housing in the near future, and as a result social housing targets would need to be reviewed and an additional increase in homelessness be considered.

·         Welfare reform was likely to reduce the amount of money available for families using social housing and the introduction of universal credit was likely to negatively impact on the ability of housing associations to provide social housing.

·         It was concluded that due to the extent of these changes and their negative impacts on the housing associations it was likely that housing providers would instead invest into other sectors.

In response to a query from the chairman, the representative of the Marches LEP argued that it was unlikely that there would be additional funding given by central government to support social housing as this did not meet their current priority of generating starter homes for purchase.

 

Members of the committee noted that average weekly wages were low in Herefordshire, and that the county was low in rankings for the availability of rental homes which could mean that Herefordshire would be adversely affected by changes in social housing.

 

The Chairman queried how the housing strategies would influence the services provided by the Supported Housing for Young People Project (SHYPP). In response the director of Adults Wellbeing explained that in light of reductions in central government funding, every service commissioned by Herefordshire Council was being scrutinised and reviewed. This included the services provided by SHYPP. It was explained that by investigating the SHYPP contract, it was identified that areas of the service should be funded by the Department for Work and Pensions, not Herefordshire Council and so an administrative change in the way this service was provided was being considered. This would not represent a budget cut for the SHYPP service. Discussions with SHYPP and the organisation of which they were a subsidiary were ongoing.

 

The chairman queried how the strategies affected asylum seekers and refugees. In response it was explained that Herefordshire council had made a proposal for a small number of individuals under the category of Syrian refugees to be housed in Herefordshire. Refugees would be coming from refugee camps in the middle-east as opposed to those who had travelled to Europe independently.

 

It was clarified that Syrian refugees would be likely to come in family groups. Work was being done to identify suitable housing in Herefordshire to facilitate this.

 

It was noted that accepting refugees would be criticised for reducing the amount of housing available for non-refugees.

 

The chairman queried the work being done to generate student accommodation. In response it was explained that discussions with planning were ongoing.

 

The chairman thanked contributors and invited members of the committee to ask questions.

 

A member of the committee noted the extent of technical complexities presented by recent national changes.

The vice chairman queried the inclusion of council owned housing stock in the strategies. In response it was explained that Herefordshire council itself is not a holder of housing stock. While large social housing providers are worked with closely, Herefordshire council housing strategies do not directly affect them.

 

There was discussion of the housing of refugees. It was noted that while it had been stated that accommodating refugees was likely to draw criticism this would also receive support from many residents of Herefordshire. In response the joint commissioning manager noted that criticism had also been received for not doing enough in this regard. Members of the committee also noted that a number of groups had offered to support the council in housing refugees.

 

A number of members queried issues relating to fuel poverty and housing.

-       It was queried to what extent were issues of fuel poverty linked to low levels of income in Herefordshire, and in addition how much of this was linked to poor quality housing stock. In response it was explained that as well as housing stock, the rural nature of Herefordshire was also an issue. It was noted that in rural areas, access to mains gas can be limited, leading to increased fuel prices.

A member of the committee queried the extent to which mental health and other related services were working in cooperation with social housing providers. In response it was explained that there were structures in place to facilitate close cooperation, notably joint working had been undertaken with Addaction on drug use and homelessness.

 

A member of the committee queried the distribution of temporary accommodation over the county. In response it was explained that the majority of temporary accommodation provided was in Hereford, but that there was accommodation in market towns which had been acquired more recently. It was agreed that a written response would be given to additional queries from a member of the committee.

 

A member of the committee queried the type of starter homes which would be likely to be generated as a result of changes in government policy. It was explained that in large part this would depend on the choices of the developer, there was not likely to be a standardised product offered.

 

It was agreed that a written response would be provided regarding a member of the committee’s query regarding the spread of social housing, and also the projected impact of imposing a community infrastructure levy on housing developments across Herefordshire.