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Annual Review of the Housing Allocations Policy

Cllr Tristan Robinson, Cabinet Member for Homes and Housing Regeneration

Report to: Scrutiny Committee

Meeting date: 21 September 2021

Ward(s): All

Key Decision: N/A

Appendix 1: Annual Review Document

Appendix 2: Assessing Strategic Relevance

Appendix 3:

Papers relied on:

Foreword - Cllr Tristan Robinson, Cabinet Member for Homes and Housing Regeneration

Helping providing opportunities for residents at all stages in life is a key priority for this Council. Our Housing Allocations Policy forms the basis for ensuring we help those most in need access safe and secure accommodation, and I look forward to discussing the last year's achievements with Scrutiny Committee.

Over the past year, I welcome the fact that the Council oversaw delivery of 383 new affordable homes, well in excess of the 300 target. In spite of the significant impacts of COVID, a total of 795 homes for rent were advertised on our Choice Based Lettings system. The significant pre-COVID new affordable home delivery achievements have however paid dividends, ensuring reduced waiting times for many residents looking to find a property. I would however highlight that the greatest area of need continues to be for single occupancy and would encourage members’ views on the role of well-run HMOs in ensuring a suitable supply of accommodation for all in society. I am also reassured to see that a large number of all properties advertised were at social rent levels.

Committee is asked to note the report

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Background, corporate objectives and priorities

The Council’s delivery of its statutory housing allocation scheme directly supports achievement of key Council Plan priorities and strategic objectives within its newly adopted Housing and Homelessness Strategy 2020-24. It does this as follows:

Council Plan 2020-24 Housing and Homelessness Strategy 2020-24

Priority: How? Priority: How?

Strengthening Communities: Delivering high quality services

The allocation scheme requires delivery of a customer-focussed, transparent, single point of access choice based lettings scheme

Preventing Homelessness

Enabling housing applicants to plan and make informed choices in order to avoid becoming homeless.

Improving Safety: Supporting Our most Vulnerable Residents

Bespoke support is available for those vulnerable applicants unable to use the CBL system

Housing Choice and Quality

Enabling low income households to exercise choice and secure affordable housing

Place Shaping

Facilitating local lettings schemes to address specific community needs

Glossary of terms

Term Definition

CBL Choice Based Lettings

HHC Hampshire Home Choice

HMO House in Multiple Occupation

RP Registered Providers

Main considerations

1 Executive Summary

1.1 Scrutiny Committee has undertaken an annual consideration of the Council’s housing allocations scheme reviews since 2017. This report presents scrutiny with the review for 2020/21.

1.2 On 31 March 2021 there were almost 5,000 applicants on the housing register. Less than 1,000 social housing properties for rent will become available for letting each year. The Council’s allocations scheme, which is a blend of statutory rules and locally determined policies, therefore aims to ration the social housing resource that becomes available for letting between competing applicants as fairly and openly as possible.

1.3 The report notes the main conclusions of the 2020/21 review, in particular:

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- The marginal downturn in available properties for letting as a direct result of COVID

- The Allocations scheme demonstrably continuing to support key strategic priorities of the Council and its partners and positively meets objectives required of it – no consideration of major changes are therefore identified or recommended.

- The cumulative impact of successfully exceeding new affordable housing targets each successive year since 2018/19 has demonstrably reduced waiting times for applicants waiting for most property types.

- The clear exception to this achievement remains for single people. The gap between the supply of suitable homes compared to demand for single people has widened during 2020/21. Unsurprisingly, individual housing crises brought about by COVID impacted single people disproportionately harder in terms of homelessness and use of emergency B&B than for families and couples, with single people accounting for 92% of all days booked in B&B during the pandemic year of 2020/21.

- The report notes a number of innovative housing initiatives the Council has taken along with partners to combat levels of single homelessness and rough sleeping. These include proposals for a substantive and new supported housing scheme at Culver Road alongside delivery of a range of smaller, managed Houses in Multiple Occupation (HMO’s) in a variety of locations within the town. The potential to advertise a small number of 2 bed flats to single people can also be explored as an additional option for plugging the supply gap for single people, and will be discussed further with Registered Providers.

- Whilst consideration of no new significant changes to the allocations scheme are recommended, the report notes that a Portfolio Holder report will be brought forward in due course to facilitate the necessary scope and provision within the allocations policy to enable regeneration proposals (most notably currently being developed at Winklebury) to progress.

1.4 The report provides a comparative analysis of waiting times for social housing for Hampshire Home Choice and BDBC. Hampshire Home Choice is a sub-regional CBL scheme for social housing vacancies for let within Eastleigh, East Hampshire, Test Valley, Winchester and Havant Councils. The comparison shows that waiting time for social housing is lower in BDBC for general needs accommodation compared to the average across the five districts in Hampshire Home Choice.

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2 The Report

2.1 Background to the Report

2.2 Allocation Schemes

2.2.1 The Housing Act 1996 (as amended by the Localism Act 2011) requires local housing authorities to have an allocations policy and procedure in place. The Council also has a duty to maintain a housing register under the Housing Act 1996 (Part 6) as amended by the Homelessness Act 2002. The Council’s housing allocations scheme sets out the policies and processes for determining how and to whom scarce social housing for rent may be allocated – in essence, “who” can be offered “what”.

2.2.2 Housing Allocation schemes must include the following:

- A statement of priorities, aims and objectives - Details of how the scheme supports other key Council strategies - A list of eligibility and qualification criteria (i.e. who can be allocated

social housing and who can qualify to be included on the register) - Details of what categories of applicants might be considered for certain

types of properties - Details of how decisions are made between competing applicants for

social housing

2.2.3 It should be emphasised that allocation schemes for housing authorities who do not hold their own social housing stock will only govern nominations made to housing association vacancies. Housing Associations / Registered Providers (RP’s) are independent organisations and are required to approve and adopt their own allocation, nomination acceptance, exclusion and qualification / eligibility schemes. Notwithstanding the provisions of individual nomination agreements held between local authorities and housing associations (which may vary from scheme to scheme), it is the housing association who takes the final decision regarding which applicant will ultimately be offered a tenancy, as long as this is in accordance with its own adopted policies.

2.2.4 The Council’s full scheme of allocations can be found here: https://www.basingstoke.gov.uk/content/page/50684/Allocations%20Scheme.pdf .

2.2.5 A summary of the scheme and answers to frequently asked questions can be found here: https://www.basingstoke.gov.uk/housingallocations

2.2.6 Given allocations schemes inevitably contain an abundance of statutory and policy rules, criteria and processes, they may be perceived as complex and unclear. For applicants keen to secure social housing as quickly as possible, this may lead to perceptions of unfairness.

The diagram below seeks to simplify the key elements of the allocations policy and process:

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The 5 Key “Need to Knows” about the housing register and lettings

Key Fact What does this mean?

1 Allocations schemes are predominantly statutory

The main rules are set out in national laws and guidance – there is scope for local discretion and these are set down within an adopted local policy.

2 Housing Registers are not open – applicants have to meet certain criteria to be able to join

In general these include:

- Relevant immigration status - Having a Local connection - Having a “housing need” - Ensuring income / savings do not exceed

certain limits

3 BDBC uses a 3 priority banding system and date order within bands

For the vast majority (95%) of applicants (in Band 2), priority is in date order. This is generally perceived as being the fairest way of allocating scarce resources.

4 Rules are applied to match / restrict certain household types to suitable vacancies

These are referred to as “eligibility criteria”. Examples include:

- Which households can apply for certain size / type of properties

- Prioritising ground floor and adapted properties for disabled households

- Additional local connection rules applied to rural areas / parishes

- Bespoke local lettings arrangements for certain schemes / locations

5 Allocation schemes cannot guarantee an allocation will be made to a particular applicant

The scheme sets out who will be nominated for RP vacancies, but RP’s hold their own adopted allocation policies, lettings plans and policies for excluding applicants or rejecting nominations

https://www.basingstokehomebid.org.uk/

Brought together through

…

…

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2.3 Choice Based Lettings

2.3.1 Alongside the allocations scheme, the Council operates a Choice Based Lettings (CBL) service. CBL schemes are key in enabling applicants to exercise choice by bidding for available vacancies for which they are eligible rather than have those decisions made for them by allocations systems and / or housing officers. Vacancies are advertised on a weekly basis.

2.3.2 The Council’s CBL scheme is called Basingstoke and Deane Homebid

and can be seen here https://www.basingstokehomebid.org.uk/

2.3.3 During 2020/21 the housing team procured and rolled out an upgraded version of the website, which provides a significantly enhanced customer offer, including the following:

- A more user friendly experience - Additional security with the introduction of a Password - The ability for Users to reset their passwords - A “Mobile View”, enabling users to use and view the site on mobile devices

and tablets

- “Count down” for current/next bidding cycles. - News feed for important updates

2.4 Annual Reviews

2.4.1 The Council’s current allocations scheme was overhauled and approved by Cabinet in December 2014. The policy was designed on the basis of changing statutory provisions at the time, as well as outcomes from a broad and comprehensive consultation. Given the inevitable scarcity of social housing vacancies which are outstripped by levels of demand, the Council reviews the impact of the policy annually to ensure it meets strategic needs, and those of our customers, in the most optimal way. Minor modifications have subsequently been incorporated into the scheme since 2014 in order to ensure compliance with any statutory provisions.

2.4.2 In accordance with good practice the Council publishes and distributes the annual reviews as widely as possible. The Annual review for 2020/21 can be found here: https://www.basingstoke.gov.uk/housingallocations and at Appendix 1.

3 Key Points for Consideration

3.1 Assessing the strategic relevance and performance of the Allocations Scheme – 2020/21

3.1.1 The Council’s housing allocations and Choice Based Lettings schemes are fundamental tools in delivering key aspects of the new Council Plan 2020-24 and Housing and Homelessness Strategy 2020-24.

3.1.2 A detailed analysis of the strategic relevance is set out in Appendix 2 of the report. It offers a firm evidence base to demonstrate the allocations scheme is delivering the strategic objectives set for it.

3.1.3 Although no major changes to the allocations policy are highlighted from the 2020/21 review, the following key points should be noted:

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a) Recommendations will be brought forward during 2021/22 (by way of a report for the Portfolio Holder for Homes and Housing Regeneration) to ensure tenants living in areas where regeneration schemes are being delivered receive sufficient priority to transfer to alternative accommodation. This will ensure that supplementary measures which reflect the bespoke needs of regeneration schemes will be expressly incorporated into the Council’s Allocations Scheme.

b) Given the disproportionate levels of unmet needs for single people in housing need, together with significantly reduced waiting times for applicants bidding for 2 bedroom flats (see sections 3.2.3 and 3.3.4 below), consideration should be given to enabling some single person households to bid for a proportion of 2 bedroom flats. This would have to be subject to affordability and the willingness of RP’s to permit under occupation in their stock. It will therefore depend on close partnership working and discussions with them.

3.2 Key Headlines from 2020/21 Review

3.2.1 COVID Impact – Supply and Demand

a) The cessation of all lettings activities during Quarter 1 as a result of Covid unsurprisingly led to a reduction in properties being made available for advert during 2020/21, as demonstrated below:

b) Unsurprisingly this resulted in a slightly accelerated growth in total numbers of housing applicants on the register at the end of the year:

582

715

823

966

795

2016/17 2017/18 2018/19 2019/20 2020/21

Rented vacancies advertised under CBL 2015/16 - 2020/21

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c) Numbers of vacancies and numbers on the housing register are critically impacted by rates of new affordable housing delivery which were also impacted by Covid:

3.2.2 Waiting times for applicants

As a result of exceeding annual new affordable housing delivery targets year on year since 2016, however, average waiting times for rehoused applicants over the last 5 year period are now lower across all property types – (NB with very clear exceptions being for 1 bed flats), as demonstrated below:

3037

3675

4251 4507

4923

2016/17 2017/18 2018/19 2019/20 2020/21

Register Applicants at end of Year (March)

109

271

414

494

383

445

2016/17 2017/18 2018/19 2019/20 2020/21 2021/22

New Affordable Housing Delivery

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These waiting times compare favourably to other CBL waiting times, as demonstrated below in relation to Hampshire Home Choice *:

* Hampshire Home Choice is a sub-regional CBL scheme for social housing vacancies for let within Eastleigh, East Hampshire, Test Valley, Winchester and Havant Councils.

The following can also be seen from the comparative data:

- Waiting times for all general needs property types are lower in BDBC

0 1 2 3 4 5 6

SHELTERED/ EXTRA CARE HOUSING

1 BEDROOM FLAT

1 BEDROOM BUNGALOW

2 BEDROOM FLAT

2 BEDROOM HOUSE

2 BEDROOM BUNGALOW

3 BEDROOM HOUSE

4 BEDROOM HOUSE

Average time taken to rehouse in years - Band 2

2017/18 2020/21

0 0.5 1 1.5 2 2.5 3 3.5 4 4.5

1 bed flat

2 bed flat

2 bed house

3 bed house

4 bed house

Average waiting times (years) by property type - BDBC and Hampshire Home Choice

BDBC Hampshire Home Choice

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- Lengthiest waiting times for both schemes are for 4 bed houses

- Waiting times for 2 bed flats are approximately half the waiting times for 2 bed houses across both schemes

- Waiting times for 3 bed houses in BDBC are half than in Hampshire Home Choice

3.2.3 Issues for Single People

Single person households still remain the largest unmet needs group on the housing register – making up 60% of all applicants. Over 2/3 of single applicants (66%) are aged under 35, and therefore likely to face greater financial difficulties securing alternative options in the housing market.

In 2020/21 the ratio of available applicants to properties was 14:1, compared to less than 3:1 for families. The tables below demonstrate how the gap between demand and supply has, in spite of increased delivery of new affordable housing, continued to grow:

In the circumstances it was therefore unsurprising that, in terms of homelessness and need for emergency accommodation during 2020/21, the

20

10

24

54

28

43

31

47

34

71

26

6

23

7

27

6

30

0

24

8

2016/17 2017/18 2018/19 2019/20 2020/21

NUMBERS ON REGISTER COMPARED TO VACANCIES

Numbers on Register (singles / couples) 1 bed vacancies

0

500

1000

1500

2000

2500

3000

3500

2017/18 2018/19 2019/20 2020/21

Absolute numbers - Demand and Supply Shortfall - 1 bed accommodation

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impact of COVID on single people and homelessness was starkly disproportionate than for other households. This is demonstrated below:

Some of the policy and initiative mitigations to deal with the housing and homelessness pressures for single people being taken by the Council include:

Progressing proposals for a new supported housing scheme for single people at Culver Road https://www.basingstoke.gov.uk/culver-road

Developing new, well-managed, Houses in Multiple Occupation (HMO’s) and converted housing schemes in partnership with RP’s – at Cheviot Close, Chineham House, Blackdown Close and Lehar Close. Viables Farm Cottages is scheduled for delivery in 2021/22.

Successfully securing MHCLG funding for specialist rough sleeper support services and additional self-contained “housing first” units (self-contained accommodation with bespoke “wrap-around” support packages).

Delivering innovative Council initiatives such as Own Home Loan. https://www.basingstoke.gov.uk/own-home-loan Whilst not earmarked specifically for single people, Own Home Loan is designed to assist first time buyers seeking properties under £250k, so therefore more likely to be single person / smaller households:

88%

12%

2020/21 Use of B&B (Cases)

Single Person Household

Other households

93%

7%

2020/21 - Use of B&B (days)

Single Person Household

Other households

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Of the 5 approved Own Home Loan households with offers on properties accepted, 4 are single.

3.3 Other Key Headlines:

3.3.1 Key RP’s: Over 80% of vacancies let during 2020/21 were by Sovereign or VIVID Housing Associations, who therefore clearly remain the Council’s key strategic RP partners in terms of lettings and nominations:

3.3.2 Rural Housing Issues: During 2020/21, 28% of vacancies advertised where in rural areas, which is comparable with levels in previous years. Similarly, however although the allocation policy affords priority for vacancies in rural areas to applicants with local connections, over half (52%) of properties advertised were ultimately let to households without a rural connection as a result of applicants with relevant priority connections failing to bid.

3.3.3 Affordability - Social Rent : Affordable Rent

Housing Associations are able to offer properties at Social rent (rents set at approximately 40% - 55% of market rent levels) or Affordable Rent (rents set at up to 80% of market rent levels).

54%

17%

29%

Own Home Loan Enquiries by household type

Singles

Couples

Families

Sovereign 42%

VIVID 39%

Clarion 5%

Guinness 4%

Others 10%

PROPERTIES ADVERTISED BY RP 2020/21

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In 2020/21, 79% of all properties advertised were at social rent compared to 21% at affordable levels. This is comparable to levels in previous years and is a welcome indication that social housing for rent remains affordable for those in need.

3.3.4 Flats : Houses

In order to ensure households have the widest choice of options on the housing register the allocation scheme enables households with younger children (i.e. under 10) to place bids on upper floor flats where the landlord considers that the property is suitable for a young family. Households on the register are indeed positively exercising choice when bidding for properties – the average wait for a 2 bedroom flat (1.3 years) was almost half the 2.2 years wait for a 2 bedroom house in 2020/21. Whilst the levels of 2 and 3 bedroom flats to houses was broadly similar during 2020/21:

For smaller 2 bed units, more than 2/3 of properties were flats compared to houses:

The Council’s Allocations policy sets out a general approach which seeks to make best use of housing stock whilst addressing housing need, including balancing competing levels of demand between different household types. Given the continued outstanding levels of unmet need for single people on the housing register at a time when waiting times for 2 bed flats is otherwise falling significantly, the provisions of the allocations policy can enable consideration be given to earmarking a proportion of 2 bed flats [arguably no more than 10% of available 2 bed flats per annum] as eligible for single people in addition to families with children and couples. In such cases, priority for nomination would be given to the household waiting the longest and demonstrably able to afford the rent.

Houses 53%

Flats 47%

2 OR 3 BEDROOM FLATS : HOUSES

2 bed houses 32%

2 bed flats 68%

2 BED VACANCIES

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It should be noted that any change to the current nomination and lettings practices of earmarking 2 bed units only for couples and families, no matter how proportionately small, would require discussion with and agreement of the stock holding RP.

Corporate implications

4 Legal

4.1 Section 166A of the Housing Act 1996 (as amended by the Localism Act 2011) requires local housing authorities to have an allocations policy and procedure in place for nomination or allocation of social housing.

5 Financial

5.1 There are no new financial implications associated with this report.

6 Risk management

6.1 A risk assessment has been completed in accordance with the council’s risk management process and has identified no significant (Red or Amber) residual risks that cannot be fully minimised by existing or planned controls or additional procedures.

7 Equalities

7.1 When considering the annual review of the Housing Allocations Policy in relation to the Public Sector Equality Duty, and the impact of this work on the protected characteristics groups (under the Equality Act 2010), it can be concluded that the policy is still positively supporting a wide range of vulnerable people to address their housing needs.

7.2 This housing register work should continue to be monitored to ensure that any unforeseen impacts on any groups are addressed.

8 Consultation and communication

8.1 A communications and marketing plan supports the allocations policy to raise awareness with residents who wish to apply for the housing register, promoting a range of housing options in the borough.

9 Climate change

9.1 There are no climate change implications as a result of this policy.

10 HR

10.1 None

11 Conclusion

11.1 The Council’s scheme of allocations, delivered through provision of the housing register and Choice Based Lettings Scheme, is a fundamental contributor the Council’s strategic priorities within its Council Plan and Housing and Homelessness Strategy 2020-24.

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11.2 The annual review of allocations and housing register activity for 2020/21 demonstrates the continued value and strategic relevance of the scheme.

11.3 In the circumstances no major changes to the current scheme are recommended for consideration.

21 September 2021

Lead officer Kate Randall, Head of Housing and Social Inclusion

Report author Kate Randall

Sue Alozie, Housing Needs and Homelessness Manager

Version Final

Dated 10 September 2021

Status Open

Confidentiality

It is considered that information contained within this report (and appendices) do not contain exempt information under the meaning of Schedule 12A of the Local Government Act 1972, as amended, and therefore can be made public.

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