A changing context for local authorities and tenants New challenges and opportunities 19 September 2012 Paul Downie Department for Communities and Local Government
Local authority sector a major player Number of local authority rented housing, per region (as 31 March 2011) 450 400 Households (thousands) 350 300 250 200 150 100 50 0 North East North West Yorkshire and the Humber East Midlands West Midlands East London South East South West
Social Housing Pressures and challenges Housing Benefit bill Increasing waiting lists Overcrowding & underoccupation Focusing help where it s most needed
Housing Benefit 30 billions, cash terms, 2010/11 prices 25 20 15 10 5 In cash terms, expenditure has risen from 11bn ten years ago to an expected 23bn this year. It is forecast to remain at 23bn in 2014/15, but w ithout reform w ould reach 25bn. 0 2003/04 2004/05 2005/06 2006/07 2007/08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 Expenditure with reforms Expenditure without reforms
Social housing in high demand Number of households on local authority waiting lists, England Households (millions) 2 1.5 1 0.5 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Year (as at 1 April)
Rising overcrowding
Overcrowding and Underoccupation Households (thousands) 450 400 350 300 250 200 150 100 50 0 Number of overcrowded / underoccupied homes in England, 2008-2009 Number of overcrowded & underoccupied social homes in England (3 year averages 2008/09 to 2010/11) Overcrowded Underoccupied
Mutual exchanges Dwellings let to existing local authority tenants through mutual exchanges 14,500 14,000 13,500 13,000 12,500 12,000 2008/09 2009/10 2010/11
Government s response Broad aims: Reforms: Value for money Welfare Localism Local authority finance Fairness and transparency. Social housing
Welfare Reform Universal Credit standard allowance simplifies the system; encourages employment; Direct payment housing costs paid directly to individuals in the social rented sector; Size Criteria housing benefit based on size of accommodation appropriate to the needs of the household; Benefit Cap relates to working age benefits from April 2013.
Financial flexibility for local authority landlords Self-financing for council housing from April 2012; Council landlords retain rental income and decide how to use it to locally; More to spend on managing and maintaining council homes; More scope to borrow for investment in existing stock or new homes; Some London councils building new homes.
Social housing reform key themes More effective use of existing housing; Fairness for new and existing social tenants; Better regulation of social housing; Encouraging tenants to play a bigger role.
More flexibility for council landlords Flexibility to offer fixed-term tenancies to new tenants; More scope for councils to manage allocations, including setting qualification criteria; Greater flexibility to offer private rented accommodation; Enhanced powers to tackle anti social behaviour; More power to tackle sub-letting.
and strong protection for existing tenants continued security of tenure; clear standards for landlords; independent regulation of landlords economic activities; greater role for tenants to hold landlords to account.
More opportunities for tenants to take control HomeSwap Direct encouraging mobility Tenant Cashback - controlling repairs and management Community Cashback - managing communal services Streamlined Right to Manage
Tenant Panel opportunities Opportunities to improve local services by: - monitoring & scrutinising performance; - getting involved in decision making; - handling complaints; - shaping local services. Panels must be accountable, accessible & transparent; Underpinned by Localism Act 2011 and Regulator s Standard; Sector-led good practice guide available.
Capacity support for tenants Residential training at Trafford Hall Training for groups to exercise their Right to Manage Launched a 1.3m competition to support: tenant panels tenant empowerment and Community Cashback Landlords must also support tenants
Conclusion Unprecedented pressures and challenges Fairer for everyone More flexibility for local authorities Strong protection for existing tenants Support for tenants to take control Important to seize opportunities