1. To advise the committee of lettings activity in 2017/18.

Transcription

1 ITEM 17 Report to Customers and Communities Committee 2 July 2018 Title: Lettings Annual Report 2017/18 Report of: Executive Director of Operations Purpose of Report 1. To advise the committee of lettings activity in 2017/18. Background 2. Lettings activity covers management of the housing register and letting of vacant properties, and is carried out in line with Gateshead Council s lettings policy. Available properties are advertised first through the Tyne and Wear Homes lettings scheme. Eligible applicants can bid for properties using either their award of housing need or length of waiting time, depending on the type of advert. Other marketing is considered for low demand properties that do not attract successful bids. Direct letting of properties (without advert) is also carried out in some circumstances. 3. Along with ourselves and Gateshead Council, other original partners to the Tyne and Wear Homes lettings scheme are: Newcastle City Council Your Homes Newcastle South Tyneside Council South Tyneside Homes North Tyneside Council 4. A number of registered providers are also members of the scheme, including Home Group, Places for People, Thirteen Group, Karbon Homes, Anchor, Bernicia and Riverside. 5. The Tyne and Wear scheme is unusual in that although there is one shared Housing Register, each local authority has its own lettings policy. In practice this means a single application may be assessed differently if the applicant is interested in more than one council area. Priority in one area does not automatically transfer to another. 6. In recent years our annual reports have described issues of low demand for an increasing number of properties. Levels of vacant properties have also been increasing, with a significant proportion of the vacancies being flats.

2 Housing Register 7. Twelve months ago, we reported a large reduction in the number of applicants requesting Gateshead on the housing register (from 10,179 in April 2016 down to 6,724 at end of March 2017). This year there has been a small increase up to 7, Appendix 1 contains a breakdown of the applicants requesting housing in Gateshead at the end of March 2018 along with data for the previous two years. Out of the total of 7,429 applicants, 683 (9.2%) have been assessed as having a priority housing need. 9. 1,235 of the Gateshead applicants are demoted for rent arrears, anti-social behaviour or poor property condition. Those demoted can still bid and be rehoused, but will always rank below anyone on the list not demoted. In 2017/18 we rehoused 55 demoted applicants. This was less than the previous year when we rehoused 108. We work with those who are demoted, setting up repayment plans and encouraging payments to be made before rehousing. 10. During the year, the lettings team: Registered 5,171 applications Processed 3,141 ID/Refence checks and 410 changes of circumstance Assessed 776 requests for medical priority Rehoused 241 vulnerable tenants with the support of a medical award Carried out 94 Occupational Therapy (OT) assessments Carried out 510 specialist OT property viewings Delivered 213 new furniture packs and processed 356 pack changes; collected 242 packs no longer required and arranged 92 replacement packs Demand and Lettings 11. There were fewer properties let in 2017/18 than in previous years. This is partly a result of the increasing impact of low demand for some property types, but is also linked to adapting to new ways of working in the expanded company, and shortterm resource issues for the shortlisting role within lettings team. 1,468 properties were let in 2017/18, compared to 1,831 in 2016/17. Appendix 2 summarises the types of property let, and whether they were let by advert or by direct let. Appendix 3 breaks down the direct lets and shows reasons % of lettings were to existing tenants, 71% were to new tenants, and 5% were agency lets. Appendix 4 shows this within a property breakdown. 13. To let the 1,468 properties, 5,306 offers were recorded, with 3,838 refusals. Overall refusals reduced from 5,205 in 2016/17 to 3,838, although 363 fewer properties were let. The most common reasons given were: -

3 Refusal Reason 2016/ /18 Failed to attend viewing 1, Did not respond to offer Does not want area Wrong property type Property too small - general Change in circumstances Property too small bedrooms Unable to move at present (ill health) Unable to move at present (financial) The reduction in numbers not turning up for a viewing, and the overall reduction in refusals can be attributed to the work of the viewing team which was set up this year. The team have focused on individual viewings rather than multi-views which were not popular with some customers. Vacant Properties 15. The number of vacant properties increased from 502 to 648 during the year. The property types vacant as the end of March 2018 were: 404 flats (298 last year) 138 houses (134 last year) 81 bungalows (46 last year) 16 maisonettes (14 last year) 9 sheltered (10 last year) 16. Vacancies in Felling at Crowhall Towers (19 vacant flats) and Sir Godfrey Thomson Court (21 vacant flats/maisonettes) are being held pending the outcome of a consultation exercise on the future of these blocks. 17. Just under a quarter of all vacancies are found in four tower blocks: 49 vacancies at Redheugh Court 46 vacancies at Eslington Court 37 vacancies at Warwick Court 26 vacancies at Regent Court 18. In the report for 2016/17 presented to Committee in July 2017 we described some of the history of these four blocks and the challenges associated with high turnover and relatively low demand. Major work to improve Regent Court, including new district heating commenced during the year and is scheduled to be completed in the first half of the current year. 19. The high levels of vacant properties and the reduction in properties let in 2017/18 present a difficult challenge, but there are some grounds for optimism that progress can be made in reducing void levels in most locations. 20. Twelve months ago, tenancy terminations were increasing and demand was falling in many locations. Nearly all tower blocks had vacancies that we were struggling to let and new instances of vacant properties were being held back

4 from relet works until others had been let first. 225 vacancies in total were held back in this way. 21. During 2017/18 progress has been made with releasing vacant properties at nine tower blocks in Low Fell and Wrekenton, as well as most blocks in Central Gateshead, so that (other than the blocks in Felling under consultation) only the four blocks highlighted above now have vacancies that are held back from work. 124 vacancies were held back from work at the end of March 2018, with more properties now active in the letting process. 22. There are also signs that tenancy turnover is starting to slow down after being high for several years. Tenancy terminations reduced in 2017/18, although there was a spike in the final quarter. Tyne and Wear Homes 23. The Tyne and Wear Homes lettings scheme has been in operation since September The scheme is based on an IT platform developed by thirdparty provider Abritas. 24. Partly due to the complex build of the Tyne and Wear system (one register, but multiple policies) there have been difficulties and delays in developing and improving the IT system, and accommodating policy changes. Partners to the scheme are keen to establish whether the system is still fit for purpose, and have agreed to commission a research project to look at options for the future of the Tyne and Wear scheme. It is expected that this will commence during the first half of the current year. Link to Values 25. This report relates to the company values of being: fair customer focused open and honest accountable Impact on tenants 26. Lettings to existing tenants accounted for 24% of all lettings in 2017/18. Risk Management Implications 27. Low demand for properties has been identified as a risk for the company and for the Housing Revenue Account. Financial Implications 28. There are no direct financial implications arising from this report. Increases in vacant properties have a negative impact on vacant property rent loss which reduces potential income to the Housing Revenue Account. Equality and Diversity Implications

5 29. The lettings advice team help ensure that all applicants are able to access the Tyne and Wear Homes scheme, by way of advice, support and auto-bids. Information gathered at the application stage helps with this. Value for Money Implications 30. The awarding of additional priority on medical grounds and assistance with rehousing helps reduce potential expenditure on adaptations. An estimated saving of 937,828 was made in 2017/18. Health Implications 31. The Gateshead lettings policy includes a range of priority awards to recognise medical conditions and other housing needs that may otherwise affect health. Environmental Implications 32. Making best use of housing stock by tackling under-occupation and overcrowding has positive environmental implications. Consultation carried out 33. There has been no specific consultation for this report. Recommendation 34. The views of the committee are sought on whether it is satisfied with the information on lettings activity in 2017/18. Contact: Jackie Armstrong, Customer Services Manager Tel No: (0191) Kevin Johnson, Head of Customer Services Tel No: (0191)

6 Appendix 1 Housing Register (applicants requesting Gateshead) Category Award Reason 31/03/16 31/03/17 31/03/18 Critical Need (Single Awards) Urgent Need (Two awards) Urgent Need (Single Award) Substantial Need (Two awards) Substantial Need (Single Award) Medical Child protection Total Critical Need (Single Award) Medical & Best use of stock Total Urgent Need (Two awards) Homeless Homeless Prevention Domestic Violence Single Gateway Medical Leaving Care Demolition Best use of stock Overcrowding Imminent Tied Tenants Imminent Armed forces Total Urgent Need (Single Award) Children in flats & Overcrowding Children in flats & Under Occupation Overcrowded & Medical Medical & Under Occupation Total Substantial (Two awards) Medical Non-Priority Homeless Overcrowded Tied Tenants Children in Flats Leaving armed forces Intentional homeless Under-occupation Total Substantial (Single award) General Needs (No qualifying additional need) 7,630 4,915 5,511 Demoted Demoted (arrears / ASB / property condition) 1,713 1,135 1,235 Total applicants requesting Gateshead 10,179 6,724 7,429 Applicants with a priority need award 836 (8.2%) 674 (10%) 683 (9.2%) Total applicants on Tyne and Wear scheme 36,276 29,163 33,387

7 Appendix 2 Properties Let 2017/18 Adverts with priority to housing need or waiting time Property Type Bed rooms Total lets (including direct) Let via advert Advert based on housing need (Let to applicant with priority) Advert based on waiting time Bedsit (68) 64 Bungalow (61) (2) 0 Bungalows (131) 76 Bedsit (0) 14 Flat (39) (21) (0) 8 Flats (60) (2) 6 House (84) (98) (12) (1) (0) 0 Houses (197) (0) 4 Maisonette (1) (0) 1 Maisonettes (1) 17 Sheltered (5) (4) 1 Extra care N/A* N/A* N/A* Sheltered / Extra Care (9) 15 TOTAL 1,468 1, (398) 709 * Letting of extra care flats follows a different selection process, carried out by Adult Social Care team.

8 Appendix 3 Direct Lets 2017/18 Property Type Bed rooms Direct Lets Bedsit Bungalow Bungalows 20 Bedsit 7 Flat Flats House Houses Maisonette Maisonettes 4 Sheltered Extra care 2 2 Sheltered / Extra Care 5 TOTAL 302 Reason for Direct Lets Emergency (fires, floods etc) Number 12 Exceptional Circumstances 28 Homeless 157 Release of adaptable property Threat or fear of life 8 Social care preventative letting Discretionary succession, transfer to other property Agency Lets 85 Total 302 Reason for Exceptional circumstances Number Medical 6 Thirteen care and support 4 Looked after child 2 Safeguarding 2 Refugee resettlement 13 DV 1 Total 28

9 Appendix 4 Properties Let 2017/18 Transfers and new tenants Property Type Bed rooms Transfer List (existing tenants) Waiting List (new tenants) Agency Bedsit Bungalow Bungalows Bedsit Flat Flats House Houses Maisonette Maisonettes Sheltered Extra Care Sheltered / Extra Care TOTAL % 71% 5% 100%