PKC Lets Opening Up the PRS to Low-Income Families

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1 PKC Lets Opening Up the PRS to Low-Income Families Tuesday 13 th March 2012 Martin Smith Private Sector Access Manager

2 The housing market PKC covers an area of 2,200 square miles Approx 33% of the population lives in Central Perth and around 67% live within Greater Perth or a commuter village Rural population centred on five former county towns P& K market is different to many others in Scotland. Housing tenure made up of : 72% owner occupied 16.1% social rented 12% private rented 3rd largest private rented sector nationally and growing Small number of intermediate homes through shared ownership and similar schemes 3% of all homes are 2nd homes ( 1:10 in the Highland market area)

3 Housing pressure in Perth and Kinross Popularity of area Reduced council stock since 1980 from 18,000 to 7,400 Demand for affordable housing outstrips supply Over 5,300 on the waiting list 1200 homeless presentations per year Around 600 lettings each year in all social rented stock. PKC re-lets approx 400 properties. Difficulty in developing new homes - reduction in Affordable Housing Investment Programme and problems of suitable land supply in areas of high demand Private sector rents unaffordable for many Need for 500+ units of affordable housing per year

4 Local Context - Assets The Council is committed to reducing homelessness and increasing the availability of affordable housing Effective partnership approach to allocating Council and Housing Association properties via our Common Housing Register Significant private rented sector which is dynamic and flexible Around 9,000 registered properties Around 5,000 registered landlords Provides housing for around 12% of all households in Perth and Kinross

5 Engaging with Private Landlords Landlords Forum launched in 2006 held twice a year and attracts around 80 landlords Landlord Training Programme 17 courses since early 2007 around 850 landlords have attended Perth and Kinross Landlord Accreditation Scheme Advice and assistance service for landlords not just their tenants Comprehensive information, advice and resources on PKC website 97 properties leased from private landlords through Private Sector Leasing we were offered more than 600 properties!

6 Recent Policy Initiatives Private Sector Access Team August 2009 Rent Bond Guarantee Scheme - September 2009 PKC Lets May 2010 New Housing Allocations Policy - 26 April 2010 Housing Options Service 26 April 2010

7 Rent Bond Guarantee Scheme Re-design of previous cash-led scheme funded by PKC and delivered by a charitable organisation New in-house scheme launched in September 2009 Provide a Bond Guarantee to the value of 1 month s rent Amended Safeguard Policy LHA payments direct to landlords Over 2,500 applications received from prospective tenants Facilitated >470 tenancies through the scheme Emphasis on sustainability Low claim rate against the Bond Guarantee

8 PKC Lets Letting & Property Management Professional letting and property/tenancy management services for private landlords Choice of services at competitive rates; Free initial consultation advice, information and overview of options for working in partnership Marketing only service (Free subject to conditions) Marketing & tenancy set-up service ( 90 or 120 inc VAT) Professional property and tenancy management ( 36 per month inc VAT) No specific target portfolio size operation is sensitive to concerns of private sector (currently 65 properties in full management) 100% crossover with RBGS

9 PKC Lets How Does it Work? Properties managed as if they are Council properties using Northgate system Properties and tenancies managed by specialist team providing a full range of management functions Private Sector Access Team is first point of contact for all enquiries Out of hours service for emergency repairs Rent collected on landlord s behalf with management fee and any repair costs deducted before payment transferred to landlord Repairs arranged through Council repairs service or via landlord s preferred contractor

10 Housing Options Portal Web portal product which is integrated into our corporate website Will be used to advertise all private sector housing opportunities including; Rent Bond Guarantee Scheme PKC Lets Agency Accredited Landlords Low Cost Home Ownership Inter-area mutual exchange Prospective tenants can search for available properties or create an account for automatic updates Accredited landlords and RSL s can manage their own portfolios

11 Housing Options Portal

12 PKC Lets Operational Considerations Resistance from private sector letting agents Administrative burden Conflict of interest considerations simultaneous representation of tenant and landlord Financial administration inflexibility of Council systems Unrealistic expectations if there are problems

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