BOROUGH OF POOLE

COMMUNITY SUPPORT OVERVIEW GROUP

10 JANUARY 2006

REPORT OF THE HEAD OF HOUSING & COMMUNITY SERVICES

PRIVATE SECTOR HOUSE CONDITION SURVEY
AND
RENEWAL PROGRAMME 2006-07

PART OF PUBLISHED FORWARD PLAN: YES

1. PURPOSE AND POLICY CONTEXT

1.1The purpose of this report is threefold; to advise members of the conclusions of the Private Sector Stock Condition survey completed in November 2005 and to note the consultants comments in addressing the issues raised from the survey, to finalise the Private Sector Housing Renewal Policy and Programme options for 2006/7 originally reported to members on the 10th May 2005, and for members to note proposed mandatory HMO licence requirements, fees and amendments to charging policy.

2. RECOMMENDATIONS

2.1 Members of the Community Support Overview Group are asked to note the details of the Private Sector House Condition Survey.

2.2.Members are asked to consider the elements of the Private sector renewal policy and programme as set out in section 4.

2.3. Members are also asked to consider the following proposed private sector programme allocations for 2006/7and again refer their decision to Cabinet :-

  • £ 68,000 for Health and Safety Grants, - maximum grant £1000
  • £150,000 for Equity Improvement loans ( Interest free)
  • £150,000 Repayable Loans – interest charged funded through prudential borrowing
  • £165,000 Landlord Incentive Grants – Decent Home Standard –Private Rented sector
  • £200,000 – 40% contribution for Disabled Facility Grants (includes £34,000 from PSR funding)

2.4. Members are further asked to recommend a House in Multiple Occupation Mandatory Licence fee referred to in the report in paragraph 4.12 and fully illustrated in Appendix 4. The minimum fee proposed for specified HMO`s is a minimum of £270 for five years and a maximum level of fee of £370 and refer to Cabinet for a decision.

2.5. Members are asked to consider charge of £75 per case for extra administration and legal costs of the loan programme and give further consideration to a £100 for advice and survey visits within the non vulnerable sector. This will allow for promotion of self help maintenance programmes to comply with ODPM guidance(see paragraphs 4.14 and 4.15 ) and refer to Cabinet for a decision.

3. INFORMATION/BACKGROUND

3.1The Private Sector House Condition Survey was carried out by Professional Partnership Services Ltd (PPS) from June until October 2005. A further survey was carried out on houses in multiple occupation (HMO) by the company at the same time.

3.2The Council was fulfilling its statutory obligation in examining its private sector stock every five years and with the introduction of the Housing Act 2004 being the biggest piece of housing legislation within the last twenty years, it was imperative that the existing stock be analysed at this time. Moreover, without information from the survey it would not be possible for the Council to establish whether it had met the national Public service agreement targets relating to vulnerable households and decent homes in the private sector.

3.3To fulfil their contractual obligations PPS Ltd will present to members detailed findings from the survey directly through a visual presentation, although early headline indicators can be examined in Appendix 1.

3.3 So as to fulfil the Council’s statutory obligations, address the issues from the survey and deliver its strategic objectives the Private sector renewal programme will be address the following matters:-

  • Tackling fuel poverty
  • Under pining the seven key aims of the corporate affordable warmth strategy
  • Enhancement of a multi disciplined referral scheme network
  • Achieving mid quartile targets for bringing empty properties back into use.
  • Licensing of high risk HMO`s
  • Enhancement of key funder partnerships i.e Fuel Suppliers, Credit Unions , Warm Front and the Royal British Legion
  • Under pining the successful Landlord Accreditation Scheme
  • Complimenting existing “staying put” initiatives
  • Widening the scope of quality control service for clients
  • Reducing accidents in the home
  • Ensuring good quality management standards in the private rented sector

4.PRIVATE SECTOR RENEWAL POLICY & FINANCIAL ASSISTANCE PROGRAMME 2006-07

4.2 Health and Safety Grants: The new Act has introduced a new Housing Health and Safety Rating System (HHSRS) and this needs to be incorporated into the existing health and safety grant programme next year and it will be used as the main benchmarking tool. There will be a need to enhance the working partnership with Help and Care and ensure the HHSRS is incorporated into their work practices.This programme will fully utilise the existing handy van service.

3.3Equity Improvement Loans: The interest free equity loan programme in its first year proved very successful with nearly maximum take up of funding. Next year a ceiling of £10,000 per loan will be introduced. Any works costed out to be higher than that will trigger assistance through 4.4. This assistance will be for vulnerable client groups only to allow their properties to achieve decent home standard.

3.4Repayable “Interest Only” Loans. Appendix 2 outlines this model utilising prudential borrowing of £150,000 to match the capital programme funding to allow for a wider take up. In this instance interest is charged to part of the loan to meet the Council’s liability. It is intended to use this model in a twelve month pilot to evaluate this interest bearing scheme and to monitor council administration liabilities. A threshold of £10,000 will be a trigger for this type of assistance. Any loan of this type will have the appropriate prevailing fixed interest rate applied and again for vulnerable groups only

3.5 Private Rented and Empty Dwellings: The survey further indicates that the main percentage of private stock that fails the Decent Home Standard is in the private rented area. It is intended to introduce 70% grants that will give incentives to landlords to exceed their statutory obligations so that their properties achieve the decent home standard. There will a necessity to focus on the private rented sector because of the introduction of the Housing Act 2004 and ensure it remains a vibrant housing sector. If it is identified that these privately rented properties fail the decent home standard then a combination of enforcement notice(s) and grant aid will be served and/or offered attached to five year certification of letting.

3.6Enforcement, Prosecution and Default: The Housing Act 2004 places an emphasis on health and safety in the home and introduces new enforcement procedures which has similarities to the Health and safety at Work Act 1974. The existing private sector policy will need to be amended with the introduction of Prohibition Orders, Improvement and Hazard Awareness Notices. The new tool is the new Housing Health and Safety Rating System (See Appendix 3), all minimum statutory standards will be inspected using this risk assessed system. Last resort default procedures will also need to be examined and made more robust.

3.7HMO Licensing: A further policy change is needed to incorporate the new mandatory licensing scheme of three storey HMO`s .The survey results have confirmed that under the new definition within the Act Poole now has potentially 1637 HMO`s. However, only approximately 145 of these are three storey HMO`s that will require a licence to operate and will need to be inspected early. Consultation on a level of licence fee has been on going with other Dorset authorities along with the National Landlords Association (Dorset).

3.8The proposed licensing fee structure is illustrated in Appendix 4, this could generate a total fee income of about £50,000. Government instructions are that this income be ring fenced to facilitate self financing of the scheme.

3.9Disabled Facility Grants: GOSW have noted the high continual demand within Poole and have further noted the delayed payment scheme that is in operation to manage this demand. They have therefore indicated that increased subsidy will may be made available in 2006-07 of £300,000. The table below fully illustrates and members will need to note the increased 40% council contribution to match this increased subsidy. If the additional funding is received an extra 15 households will receive adaptations in the year.

TOTAL DFG BUDGET £ / GOVERNMENT SUBSIDY- 60%
£ / POOLE CONTRIBUTION 40% £ / NO. OF DELAYED PAYMENTS / ANTICIPATED GRANT COMPLETIONS
assumes an average grant of £4500
Current budget
£414,000 / 248,000 / 166,000 / 25 / 75
Proposed budget with GOSW injection
£500,000 / 300,000
If bid successful / 200,000*
*This is £34,000 extra than original HIP statement- this extra contribution will come from PSR allocation / 10 / 90

4.14Advice and Referral: The existing referral framework that currently exists with the Unit and Dept Work and Pensions, Social Services, Community Safety, Dorset Fire and Rescue, Help and Care will be widened to include Clinics, GP surgeries and PCT.

4.15 Charging It is proposed to introduce a £75 charge for the extra administration that will occur from the proposed loan programme and £100 charge for surveys and site advice visits for non vulnerable groups all in the owner/occupied sector, this will allow for promotion of the self help maintenance programmes. Charges within the enforcement regime see Appendix 4 will also be introduced i.e fit and proper person checks.

Simon Hendey

Head of Housing and Community Services

Key Contact

Trevor George, Private Sector Housing Manager

01202 633427

Housing Act 2004

Private Sector Housing Renewal Policy 2003

Regulatory Reform Order 2002

Prosecution & Default Policy 1999

Housing Renewal Guidance 2002 -ODPM

APPENDIX 1

PRIVATE SECTOR HOUSE CONDITION SURVEY

HEADLINE INDICATORS

57,700 / Total Private Stock
6,300 / Total private rented stock
11.5% / Private Stock constructed before 1919
1070 / Vacant Properties
250 / Long term vacant
1637 / Houses in multiple Occupation
145 / HMO`s required to be mandatory licensed from April
691 / HMO`s with one or more problems
14,100 / Households in receipt of income related benefits
12,020 / Dwellings with at least one resident with a disability
15,990 / Adaptations required
£260,600 / Average value of owner/occupied dwelling
£62,100 / Average mortgage levels
£198,500 / Average Equity levels
13,600 / Non decent properties in private sector
9300 / Properties fail decent home standard through inadequate heating and thermal comfort
3.1% / Private Sector Dwellings unfit under Housing Act 1985
8.8% / Private Sector dwellings have category 1 hazards under new Housing Act 2004
Pre 1919 Houses / Highest rates of both unfitness and hazards

APPENDIX 2

PRIVATE SECTOR RENEWAL – CAPITAL PROGRAMME

GOSW 2006 PRIVATE SECTOR RENEWAL ALLOCATION= £417,000

TYPE OF ASSISTANCE / HOW FUNDED / COMMENTS / VULNERABLE HOUSEHOLDS ASSISTED
Equity Improvement Loans
Interest Bearing Equity Loans / Capital programme
£150,000
Prudential Borrowing
£150,000 / Threshold loan of £10000 or more will be split with 50% of this bearing a current interest rate to cover council borrowing i.e 4.5% on £5000 repayable as “interest only” i.e £18 per month. All principal repayable on death or sale. Loans below £10,000 will be on equity release only. Administration and legal fees will be added to loan amount. / Anticipated increase in client assistance – 30 households assisted rather than 15
Health and Safety Grants / Capital Programme
£68,000 / Works up to a maximum of £1500 which can cover Lifeline subscriptions , security, emergency repairs, trips , falls and associated hazards, mainly from referrals but not exclusively. Underpin loan schemes / 60 approx households
Landlord Incentive Grants / Capital Programme
£165,000 / 70%Grants to private rented sector to achieve Decent Home Standard in this stock. Not for statutory works. Certificates of 5 year letting required. / 30 private rented households assisted
Totals / £417,000 / Grant and loan programme / 120 vulnerable households assisted

Private Sector Leverage:-

Warm Front Grants / EAGA / Central Government / None / Vulnerable groups / 400
Out House Equity Loans / Help and Care / Royal British legion / Secured repayable low interest loan / Vulnerable Groups / 20
Repayable loan / Dolphin Credit Union / Subscription / Monthly Repayable / Anyone / 35
Heat Dorset / ENACT energy / Fuel Suppliers /

None

/ Anyone / 100
Landlord(New Build) Inc. / ODPM / Homelessness funding / 5 Year Nomination periods / Families on register / 24
APPENDIX 3

HOUSING ACT 2004

HOUSING HEALTH & SAFETY RATING SYSTEM

What is it?

The Housing Health and Safety Rating System (HHSRS) is the Government's new

approach to assessing potential risks to health and safety in all tenures of

accommodation.

The HHSRS becomes effective in April 2006. It is a risk assessment system, the fitness standard that has always looked at the bricks and mortar of the building will be repealed.

How will It work?

The council assesses the condition of the whole, or part of the dwelling under the HHSRS, and note the housing standards.

Initially three judgements are required:

  • the likelihood of something happening to harm the occupiers
  • the possible outcomes of such an occurrence
  • how it will affect vulnerable groups

Each fault, hazard or deficiency will be considered and risk assessed separately. These will be noted and assessed against terh most vulnerable group of occupants. The risk assessment will produce a score which place the hazard into one of the following 10 bands:

Band (hazard score range)

The 10 bands are arranged from A to J.

  • Hazards falling into bands A - C are Category One hazards.
  • Hazards falling into bands D - J are Category Two hazards.

Category One is the most serious. The council has a duty to take action to deal with

Category One hazards. It has general powers to take action to deal with Category Two hazards

What new powers will the council have?

If action is to be taken the currentoccupants of the property will be taken into consideration.

The council have the following powers to deal with these hazards:

  • serve a Hazard Awareness Notice (a notice advising the person on whom it is served that a hazard exists)
  • serve an Improvement Notice
  • make a Prohibition Order (similar to the current Closing Order provision)
  • take emergency remedial action
  • make an Emergency Prohibition Order (these two emergency provisions are a new concept which will be welcomed to deal with imminent risks to occupiers)
  • serve a Suspended Improvement or Prohibition Notice
  • make a Demolition Order
  • declare a clearance area

The council will take the most appropriate course of action available depending on the hazard and the practicality of remedying it.

The HHSRS lists 29 potential hazard areas that could be evident. These are:

  • damp and mould growth
  • excess cold
  • excess heat
  • asbestos
  • biocides
  • carbon monoxide and fuel
  • combustion products
  • lead
  • radiation
  • uncombusted fuel gas
  • volatile organic compounds
  • crowding and space
  • entry by intruders
  • lighting
  • noise
  • Domestic hygiene, pests & refuse
  • Food safety
/
  • personal hygiene, sanitation and drainage
  • water supply for domestic purpose
  • falls associated with baths etc
  • falls on the level
  • falls associated with stairs and steps
  • falls between levels
  • electrical hazards
  • fire
  • hot surfaces and materials
  • collision and entrapment
  • explosions
  • ergonomics
  • structural collapse and falling elements

APPENDIX 4

PROPOSED FEE STRUCTURE FOR MANDATORY HMO LICENSING

Fee based on average time, using appropriate scale officer salary.
Applicant invoiced after application process is complete. Issue licence after fee received
Administration Fee / £150 / 3 hours @ £50/ hr / Standard Fee based on average time taken to check paperwork, input data and send invoices. Plus assessment and approval by Private Sector Team
Additional Administration Fee / £10 / ½ hour each time / If application is incomplete and Council have to chase for more information
Fit and proper Person check / £20 / 1hr@ £20/hr / Only one per licence holder per licensing round, where multi portfolio. NOT NEEDED for accredited landlord
CRB Check / £10 plus cost / ½ hr@ plus cost of check / If necessary
Licensing visit fee / £60 / 2hrs@
£30/hr / Only to check licensing info and add conditions. No HHSRS carried out but deficiencies noted at time of inspection
Additional visit fee / £30 / 1/2hr@ £30/hr / No access, tenant issues, further request by landlord
Revisit fee / £60 / 2hrs@
£30/hr / If necessary to check compliance. One revisit will be assumed in advance for non accredited landlords. If no revisit is made this fee will be deducted from next licence fee for that property.
Minimum Total Licence fee payable / £270 / Total up after admin and visit process.
Send invoice when application is approved. When fee received issue licence for required period with receipt
Maximum Licence fee payable / £370 / Which includes further admin checks including CRB and fit and proper checks
Discount for Early Application / £20 / Applications received within first month
Variation fee / £40 / 2hrs@
£20 /hr / If new licence needs to be issued to same licence holder due to changes in property. Further issue for remaining period
Change of Details / £20 / 1hr@
£20/hr / If new licence needs to be issued to same licence holder due to changes in personal details. Further issue for remaining period
Change of Ownership / £20 / 1hr@ £20 /hr / If just the licence holder changes

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