Alternative MRS under localism – modelling options for costs and VFM, to determine feasibility of a local MRS homelessness prevention offer
Some activities an authority may wish to consider:
- Profile information based on MRS 2 costs to include:
- Profile of household types who went through MRS2 – identification of most vulnerable household types and mapping of those household types in the area – e.g. ex RTB, DFG recipients, larger households
- Map MOJ stats and CPR notifications in the area
- Average income of RTB against cost of a replacement
- Determine costs of MRS2 per unit to include:
- Unit cost to purchase property in the area – taken as an average depending on number of completions
- Cost of repairs to bring up to Landlord’s agreed property Standard eg. Decent Homes
- Costs of ongoing repairs per unit or as an average
- Cost of borrowing to purchase a property
- Value of property over a 25 year period
- Projected rental income based on market rent
- Average cost of HB to support rent payments
- Property management costs over a 25 year period
The above costs could inform the likely amount of money required to support a local MRS homelessness prevention offer. The cost of borrowing to purchase a property would need to assume 100% of value as no grant will be available
- Identification of most vulnerable households and associated costs of homelessness if a prevention offer is not in place:
Disabledmembers in the household:
- DFG investment already provided against the property
- Costs of DFG for new any accommodation sourced either in social or PRS
- Where accommodated in social sector – potential cost of Size Criteria penalties on household and any DHP required,if the correct size of accommodation cannot be sourced.
- Costs of care and support required for household to live in an alternative property or where relocated to another area
- Cost of residential accommodation where no suitable accommodation will allow the applicant to live independently –project residential care costs over a number of years( depending on age and condition of the applicant)
- Cost of homeless application, assessment & TA for household. Cost of TA will invariably be higher if a specialist unit is required and the stay in TA longer if waiting for an adapted permanent property.
- Costs of relocating household to another area via a PRSO – where placed in PRSO cost of LHA and any DHP top up which may be required
- Cost of relocating a household where the household has no disposable income to cover this
- Repeat homelessness cost 12 mths after original PRSO
Larger families:
- Costs of providing a suitable property by housing provider and or the LA
- Cost of homeless application and TA. Again TA will be more expensive and harder to source the larger it needs to be and the wait for permanent housing will be longer.
- Cost of sourcing property in another area (out of area placements)
- LHA costs in PRS
- Potential repeat homeless application costs 12 mths after PRSO discharge
- Loss of support or childcare for out of area placement – reducing household income and potential increased benefit claims
- Impact on education of children when placed out of area
Ex RTB households
- Calculate the discount provided to the household when RTB completed
- Valuation of the property at point of buy back and cost of the loan to buy back
- Cost of repairs
- Management costs
- Projected value of the property over a 25 year period
- Projected rental income over 25 years
- Costs of homeless application, TA and rehousing
- Cost of alternative accommodation e.g. PRSO, out of area placements
- Consideration of any special needs of the household which may increase cost of rehousing e.g. large household, disabled other special needs
Other options – older people
- Leasing property to use as TA and offering owner a smaller social home, which maybe hard to let or sheltered accommodation