Agenda item

Report CS18052

The Committee considered a report providing an update on the use of temporary accommodation and housing support to meet current housing need and homelessness pressures across the Borough.  The report also set out key actions being undertaken to mitigate the growing pressures on housing supply and requested approval for Officers to progress a number of schemes to assist in addressing the current pressures

In common with all London Boroughs, Bromley had experienced a significant increase in the number of households at risk of homelessness or requiring temporary accommodation in recent years.  This was expected to continue to increase as further welfare reforms were introduced and in light of increased duties that would be placed on all local authorities when the Homelessness Reduction Act 2017 came into force.  To address this, the Local Authority had undertaken a wide range of work including early intervention measures to prevent homelessness and significantly increasing temporary accommodation stocks within Bromley and the surrounding area.  The Local Authority continued to work closely with developers and housing associations to maximise the supply of affordable housing in new development schemes.  A number of housing providers and developers were also committed to working with the Local Authority to bring forward property acquisition and refurbishment schemes, for which ten proposed core principles had been developed to assist in the timely progression of schemes which could then be reported Members for their consideration.

The Committee noted the following core principles had been developed to enable proactive engagement with the market:

1)  The Council will commit to a nomination agreement for a fixed period on the basis that rents do not exceed Local Housing Allowance levels (plus management allowances for any supported accommodation). The initial rents may need to be subject to annual inflation increase, if required, to meet external funders requirements;

2)  The Council will not be responsible for the collection of rents and the provider will need to make allowances for any bad debt and any reasonable void levels;

3)  In having full nomination rights the Council reserves the right to place residents on behalf of other local authorities or use some of the units for alternative private sector market tenants;

4)  The accommodation must be suitable for meeting the Council’s housing needs and is required to meet Decent Home Standards during the period of the nomination agreement;

5)  The Council will normally seek for the properties to be returned to the Council under its full ownership which may require the final repayment of any external borrowing towards the project;

6)  A Special Purpose Vehicle arrangement will normally be required recognising that the Council will not have direct sole control on the accommodation;

7)  The Council will only work with providers who have experience in property development and management;

8)  Any planned acquisition of property must not be in direct competition with the existing arrangements with More Homes;

9)  The Council would seek alternative management arrangements, in the event that the management of the accommodation failed to meet the Council’s standards;

10)  The location of the accommodation must be suitable to enable occupants nominated by Bromley to be no more than one hour travelling time from Bromley.  

Members requested that more detail be provided to the Committee around disparities between rents changed by private landlords and levels of housing benefit in addition to an update on the Early Intervention Team.  A Member highlighted the importance of ensuring that there was sufficient levels of affordable housing in the Borough.

A Member stressed the need to urgently address the problem of the lack of housing supply, especially in light of the increase in the population of the Borough.  It was suggested that there was an obvious need to increase the supply of housing in order to meet the increasing demand for housing.  The Member stressed the importance of ensuring that the policies of the Council adequately supported and delivered an increase in the supply of housing.

The Director of Housing confirmed that benchmarking exercises against other London Boroughs were undertaken and it was agreed that this data would  be appended to the minutes at Appendix B.

The Committee noted that the Homeless Reduction Act would have an impact on resources and that a bid for funding wold be submitted as it would not be possible to contain any financial impact within existing resources.

A Member noted that the average rental price for a 2 bedroom property in the Borough was £450 per month more than the maximum housing benefit payable to assist with housing costs.  The Member stressed that this was an unachievable amount for individuals on a low income.  The Director of Housing confirmed that financial advice was provided jointly with the Department for Work and Pensions (DWP) at surgeries held in Job Centre Plus.

The Committee thanked the Director of Housing for an excellent report and requested that the Committee’s thanks be passed on to the staff working within the Housing Teams.  Members noted that the proposals would be reported to the Council’s Executive on 13^th September 2017 for final approval.

RESOLVED that the Council’s Executive be recommended to:

1)  Note the updates provided regarding the current homeless pressures and actions being undertaken to address these pressures;

2)  Agree the core principles identified as an option in seeking alternative accommodation provision from providers; and,

3)  Agree that Officers proceed in investigating and reporting back on any proposal from a provider that meets the core principles following the necessary due diligence arrangements.