Croydon council Part 7 accommodation supply policy

The Part 7 accommodation supply policy sets out the council’s policy for the provision of temporary accommodation and Private Rented Sector Offers (PRSOs), made to bring that duty to an end (Part 7, Housing Act 1996, s.193(7AA)-(7AC)). The policy feeds into the Part 7 accommodation supply action plan.

  1. Policy objectives:
  2. Ensure a sufficient supply of accommodation to meet the council’s statutory duties and to exercise its powers towards homeless applicants including its power to end the homelessness duty through a Private Rented Sector Offer (Part 7, Housing Act 1996, s.193(7AA)-(7AC))
  3. Ensure a supply of accommodation to prevent or relieve homelessness
  4. Provide a range of accommodation to meet different needs
  5. Accommodation will be provided within the LA area unless it is not reasonably practicable to do so.
  6. Provide accommodation that is of suitable, affordable to residents, that provides the best value to the London Borough of Croydon and does not unduly distort local housing markets
  7. Legal and policy context:
  8. All Local Authorities have a statutory duty under the Housing Act 1996 Part VII, (as amended by the Homelessness Act 2002) to provide emergency temporary accommodation for homeless applicants pending investigations into their application. This is known as the ‘interim duty’.
  9. Local Authorities also have additional statutory powers to provide help and assistance to other categories of people, often this means providing accommodation to some of the most vulnerable members of the Community including for example people with mental health issues, physical disabilities and learning disabilities.
  10. Local Authorities are also bound by statute to provide suitable temporary accommodation to applicants who are then assessed as homeless, in priority need and not intentionally homeless until a homeless household can obtain a settled housing solution. This is referred to as the ‘main housing duty’.
  11. The Localism Act introduced a power to cease the main housing duty by means of a Private Rented Sector Offer (s193 7AA - 7AC) Part VII Housing Act 1996 as amended by s.148 (5)-(7) Localism Act 2011). The London Borough of Croydon has set out its intention to use this power in our PRSO policy.
  12. The London Borough of Croydon is committed toprovide a decent, safe and affordable home for every local resident who needs one through our strategic priority Ambitious for Croydon. Preventing homelessness is one means of achieving this. Usually prevention will be through support to enable the household to remain within their existing home. Sometimes this is not achievable or the best course of action for the household. Even so, homelessness may still be achieved through a planned move to alternative accommodation.
  13. Implementation of the policy will be monitored by the Supply and Demand Board The policy may also be reviewed at any time, in line with any relevant changes in legislation or guidance issued by relevant government departments and amended by the Director of Housing Need through delegated authority.
  14. Suitability:
  15. Section 206 of the Housing Act 1996 provides that where a housing authority discharges its functions to secure that accommodation is available for an applicant the accommodation must be suitable. Suitability is determined considering the applicant and his or her household’s particular needs.
  16. Suitability requirements are prescribed in statutory Suitability Orders, statutory guidance and case law, including: the Homelessness Code of Guidance for Local Authorities, issued by the Secretary of State under s182 (1) of the 1996 Act in 2006, generally and paragraphs 16.7 and 17.41 specifically. The Homelessness (Suitability of Accommodation) (England) Order 2012 (SI 2012/2601) generally and article 2 specifically. Supplementary Guidance on the homelessness changes in the Localism Act 2011 and on the Homelessness (Suitability of Accommodation) (England) Order 2012 generally and paragraphs48 and 49 specifically.

2.7.3.Any housing authority must also have regard to its duty to safeguard and promote the welfare of any children in the household when discharging its statutory duties or exercising its powers (Children Act 2004, s11). Authorities must also have regard to the Public sector equality duty (Equality Act 2010, s149).

  1. The context - housing and homelessness within the London Borough of Croydon:
  2. The need for Part 7 accommodation is driven by homelessness demand. The causes of homelessness are complicated and interlinked, and there is no one factor that triggers it or is necessary for it to occur. Factors relating to an individual, their relationships, housing and employment play a part. Housing market trends and policies have a more direct impact on homelessness, whereas economic and labour market factors have a less direct impact, are subject to delay and can be mitigated by welfare policies. Individual factors including vulnerability, mental and physical health, support needs, addiction and substance misuse also play a part, and can be exacerbated by poverty and disadvantage. Family and other relationships, which help support people and prevent homelessness, can also be strained by economic circumstances and result in relationship breakdown and loss of accommodation.
  3. Homelessness started to increase in England from 2010 onwards, and this increase impacted on London Borough of Croydonearlier and harder than other London Boroughs. This is the result of a combination of local factors which include Croydon’s comparatively small social housing stock, household incomes in London Borough of Croydonbeing lower than the London average, London Borough of Croydonresidents being employed in occupations more vulnerable to the economic downturn and reductions in public expenditure, and the important role played by local private landlords in helping to meet housing need. Structural factors, including the economic depression, austerity measures and an increasingly unaffordable housing market in London and the South East, all played a part in driving up homelessness, and put pressure on vulnerable individuals and families further contributing to the increase.
  4. In Croydon, the number of households approaching the Council for assistance with homelessness increased from 1680 in 2009/10 to 2520 in 2014/15. The number of households accepted as homeless increased over the same period from 425 households to 880, and the number living in interim or temporary accommodation increased from 1267 to 2766.
  5. Within that increase, homelessness from the private rented sector, in common with regional trends, has risen sharply to be the largest single cause of homelessness.
  6. The borough is affected by the national cap on local housing allowance LHA levels (set at a maximum of £400 PW[1] regardless of property size) and has significant numbers of households affected by the cap on total welfare benefits (currently set at £26,000 PA[2], or £500PW regardless of household size).
  7. Local housing allowance rates have failed to keep pace with rent levels in recent years. The Council has seen very significant reductions in government support grant and needs to reduce expenditure further by another £100million between 2015 and 2018.
  8. Of the 2446 households accommodated in temporary accommodation by the London Borough of Croydon on 1st April 2015:
  9. 139 in shared B&B
  10. 2307 in other forms of temporary accommodation, 1091 of whom occupying London Borough of Croydon accommodation on a temporary basis
  11. 162 homeless households were accommodated outside London Borough of Croydon between 1st April 2014 and 31st March 2015, 134 within other London boroughs.
  12. Current Arrangements for supply of Part 7 accommodation:
  13. A range of different accommodation is needed in terms of length of lease, size and location to meet the needs of homeless households. Longer term temporary accommodation is required due to the lengthy waits[3]that households can expect, due to the limited availability of social housing and of private sector rented accommodation within LHA levels.
  14. The council’s temporary accommodation is procured through a variety of supply streams, including: working with known accommodation providers/letting agents for nightly properties, arrangements with third party suppliers for the provision of longer term temporary accommodation on licensed arrangements, individual properties secured on longer term leases, either by the council or via a housing association, Assured Shorthold Tenancies arranged by the Council. The council owns a number of self-contained properties and hostel accommodation solely let as temporary accommodation. Additionally, the council has access to a number of specialist hostels for young single people and vulnerable adults. Finally, vacant council stock may be used as temporary accommodation.
  15. Arrangements for meeting future need for temporary accommodation
  16. The London Borough of Croydon’s arrangements for meeting future need are based on an annual forecast of temporary accommodation demand. The forecast methodology and analysis is set out in the Supply and Demand Board Homelessness Projections Report. The forecast is kept under review by the Supply and Demand Board.
  17. The forecast will be published annually on the London Borough of Croydon website.
  18. This forecast informs a review of affordability and supply within and outside the borough. The review projects the profile of households likely to require temporary accommodation and the affordability of accommodation within the borough and in surrounding boroughs for the profiled households. The review is used to identify how reasonably practicable it will be to procure accommodation for forecast homeless households within London Borough of Croydon and within surrounding boroughs.
    The methodology and analysis is included in the Supply and Demand Board Homelessness Projections Report.
  19. The review of affordability, in turn informs an Accommodation Action Plan. The analysis contained in the Supply and Demand Board Homelessness Projections Reportis applied to the current temporary accommodation portfolio to provide guidance for procurement of Part 7 accommodation. The Accommodation Action Plan is reviewed annually and monitored by the Supply and Demand Board.
  20. Procurement of Part 7 accommodation will take the following factors into account:
  21. The policy objectives set out in Section 1.
  22. London Council’s Pan London NRA and IBAA agreements.
  23. Statutory legislation, adhere standards and guidance. In particular, checks will be carried out: to ensure that the council’s duties under s210(1) Housing Act 1996 are met; and that any property procured is free from Category 1 hazards; and on electrical safety, fire and gas safety; andon the “fitness” of the landlord to act in the capacity of landlord.
  24. Implementation of the Accommodation Action Planwill be kept under review by the Supply and Demand Board.

Part 7 Accommodation Supply PolicyFinal.v1

[1]April 2015

[2]April 2015

[3] 5009 households on the waiting list as at 31st March 2015 compared with 807 lettings in 2014/15