WLHP Housing Conference January 2014
Developing Temporary Housing Solutions – Mark Meehan, AD (Housing Demand)
Ealing background–
History of developing new types of TA – Temp. to Perm (Safe Haven), leasing for prevention.
Alternatives to B&B needed– traditional PSL suppliers touting their wares elsewhere, want higher rates
Pressures - Increased demand, welfare reform, decreasing supply of social lettings (down from 1000 to 700-800 a year), overheated PRS market, financial pressures, legal challenges, LGO findings – had to pay compensation to two families in B&B for > 6 weeks
Property Purchase Scheme
Cabinet approval in Sept. to buy 83 properties, within 10 miles. Borrowing to fund, business case based on B&B savings. Focus on ex RTB properties on regeneration estates to buy properties up to 10 years ahead of when needed for scheme, independent agents to negotiate with leaseholders and make other acquisitions. Will manage themselves. Quicker than building, gives them assets, should increase in value. Flexible and simple to exit. Potential problem – prices going up rapidly, need to buy quickly
Conversion of commercial units on housing estates
Disused commercial units on housing estates – as of 16 Dec., 7 refurbished and let as TA. HRA funded, generates revenue for HRA. Low cost TA at affordable prices, some empty for 3 years. Large portfolio. Using a shop fitting company, could convert back.
Use of Empty Properties on Regen. Estates
Minimum 1-year life, saves security costs, safer for residents. Leasing – refurb.costs covered by lease rent. Have to decant very quickly.
Increasing Hostel Portfolio
Large former Social Services building – 28 units; ex-B&B – leasing
Economies of scale, affordable rents low enough to avoid capping, no 6-week limit, builds capacity for local lettings agency
Aim is to have no families in B&B by end of financial year
Decommissioned SP Schemes
Burlington House – RP owned. Self-contained flats. Leased from Catalyst
Another 10 unit scheme scheduled
Modular Homes
Cabinet approval in October. Looking for suitable site. Opportunity to buy units. Consultant looking at pricing and supplier options. £1.55 M. capital investment – HRA – buy or lease.
Self-contained Nightly
Short term solution to shared B&B. Looking to move people on, as it distorts the market & makes it harder to procure affordable leased accommodation. W.London conversation with suppliers? Considering incentives to convert nightly to leased.
HA Purchase Scheme
Emergency TA to permanent scheme (Network)
Rose Lodge – 10 year leases, break clause taken out. GLA funding, dependent on ASTs, so 10 year TA scheme changed to permanent. Network bought 16 units.
What Next?
Out of London. ASTs out of London?
Legal challenges – robust in dealing ?
WL Social Lettings Agency?
Laurence Coaker (Brent) - difficult to get PRS in-borough, mainly due to the LHA caps. Discharging duty in the PRS, mainly in the home counties. 26 PRSOs a month. 18 moving; 8 refusing. No legal challenges, all have backed down. Legal Aid cuts. Lot of preparation – suitability tests. Will need interim accommodation – B&B or hostel, assessment unit for 70-80 families; negative decision – evict, positive decision –PRSO or TA
Trevor Pask (Ealing, recently Haringey, now Ealing) annexe prices increasing, another borough would always pay the rate. To hold prices need to include North London
Lynne Duval (Ealing) using s/c B&B and nightly paid annexes (self-contained), losing about £200 subsidy a month
Nick Caprara (Genesis) boroughs asking them for nightly rates, not what they do
Debby Weller (Hillingdon) lot of families households in B&B. Political issues. Leader turned down oneInvesigating possibilities for hostel proposalprovision but no approved plans at present, have got approval for Purchase & Repair scheme with Paradigm and leasing. Buying back ex-RTB, looking at in-house PSL scheme. Long way to go, not part of PSA. Have large families in B&B . Providers going for nightly rates.
Chris Scott (K&C) sees nightly lets as a rival scheme to PMA/PLA. Are getting PLA from select providers, not sure why. Have offered incentives to provider by increasing rates when they reach a certain level. 2 or 3 providers. PLA providers are taking properties back to move into other boroughs’ schemes which are more lucrative.
Mark – blank sheet of paper. What can we do collectively?
Laurence – tackle gazumping
Trevor – we have a common procurement process (PMA, PSA), need a common lettings process
Nick – response time needs improving, for out of London. Properties not being taken up, difficult to let
Ieuan ap Rees (WLHP) – providers need to consider affordability. Some large properties procured outside London at similar rents to properties in Hillingdon. Properties need to be affordable as well as in the right place. We have told providers.
Out of London locations – follow transport links
Chris – several teams have to be on board for out of London placements to work – front-facing teams TA placements, all have to sell it
Nick – refusals being accepted by LAs.
Jennifer Dack (Harrow) – affordability is key. Assessments done before offers made
TA Solutions - possible sub-regional projects
Brent (Laurence Coaker)
Lettings agency (2 or 3 boroughs)
Institutional investment in the PRS (Social Finance)
Harrow (Jennifer Dack)
Annexe prices (none in Harrow)
Hillingdon (Debby Weller)
Not been able to sign up to some sub-regional work previouslystruggling to get political agreement to work sub-regionally e.g. PSA. Interested in considering other opportunities but would need political approval
K&C (Chris Scott)
Nightly lets – pan-London
Brent framework – varying terms. more money? more providers?
Ealing (Lynne Duvall)
Working more pro-actively with RPs on schemes like the one Network are developing, start as nightly paid, then lease and then AST
Genesis (Nick Caprara) clarity around needs – where, what management model boroughs want, they are flexible and committed
David Hennings (consultant)
NHS key worker property – lot empty
Disposal of former Children’s homes; one too big for Ealing, might be a shared resource
GLA (Peter Fletcher)
Can fund P&R (purchase and repair) could help make it work or keep it in-borough; also empty properties programme can fund conversion of shop units, buying industrial premises, only need to be empty for one month