A round-up of the latest news from Community Housing Cymru looks at Value for Money, the LHA cap, resources and the new Assembly.
Value for Money – the sector leads the approach
The Independent Regulatory Board for Wales has identified Value for Money (VFM) as a priority area to focus on during this financial year. The Welsh Government Housing Regulatory Team has been tasked with proposing an approach to the board and is keen for the sector to take the lead on identifying a coherent and strategic approach to VFM.
Community Housing Cymru is therefore working with the sector to agree on a set of principles and approaches to VFM which will be developed with Welsh Government and key stakeholders. We are working with HouseMark to undertake the research and consultation to develop an approach due to the expertise it has acquired from its successful Scottish publication, Defining, managing and demonstrating Value for Money in Scotland. The production of a Welsh research publication will provide intellectual underpinnings and high level principles on what VFM means for the Welsh social housing sector and this will be launched at our One Big Housing Conference on October 6.
An update on the local housing allowance cap
The Chancellor of the Exchequer announced in his Autumn Statement that housing benefit and housing costs within universal credit for social housing tenants will be capped at the relevant local housing allowance (LHA) rate. The change will apply to any new or renewed tenancies signed from April 2016, but tenants will not see a reduction in their housing benefit until April 2018.
In order to identify the impact that this will have on the sector, CHC has surveyed its membership and found that one in every three properties will have a rental charge above the appropriate LHA rate in 2018. This falls to one in five when assessing general needs stock. CHC has estimated that, based on the current LHA rates, over 10,000 tenants will face a shortfall in rent in April 2018 with numbers increasing year on year after that. The policy does not exclude any age groups and Lord Freud has confirmed to social landlords that the removal of the spare room subsidy (RSRS) or ‘bedroom tax’ will continue. The highest deduction from either the relevant LHA cap or the RSRS reduction will apply.
The shortfall experienced by tenants as a result of the cap will potentially have a severe impact on the business plans of many social landlords. On April 21 we held a one-day conference to inform the sector of the potential impacts and to discuss how to mitigate the impacts of the cap. Prior to this event, we produced a briefing paper for the sector with further information which can be found on our website.
The overwhelming interest in the event and subsequent high attendance led to in-depth discussions on a number of policy areas that will be impacted on as a result of the LHA cap, including:
- How do we provide housing solutions for young people under 35?
- How will the cap impact on supported housing provision and what is the future for supported housing?
- How can we review how we approach the setting of rents and service charges?
- How can pre-tenancy support mitigate the impacts of welfare reform?
As a result of the discussions that took place at the event, we will be working on a number of projects over the next few months to inform the sector and mitigate the impacts of the cap. These will include a research study on how to provide housing solutions for young people, a case study review on approaches to setting service charges and a collaboration with the National Housing Federation to identify a new supported housing model. We will also continue to press the Department for Work and Pensions (DWP) for a wider exemption from the shared accommodation rate (SAR) for people under 35 so that vulnerable people can continue to afford to live in social housing. We will keep members updated on next steps.
Hayley MacNamara, policy and programmes manager
The Road to Change, July 7/8
The Welsh capital is this year’s location for our annual Resources Conference. Representatives from human resources, information technology and finance departments will attend an action-packed two days of informative and inspirational sessions aimed at organisational and cultural change. The focus of this year’s conference will be forward thinking and solution orientated in order to address changes and challenges that our members will face in the coming years.
Headline speakers and sessions include:
- An English perspective on reclassification and the potential effects on Wales from David Orr (National Housing Federation)
- Entrepreneurial approaches to risk attitude by the ‘Risk Doctor’
- An insight into what the workplace will look like in 20 years’ time, and what changes we need to make to be prepared for it by Julie Dodd (Digital for Good)
- Demonstrations of how easy it is for an organisation’s IT system, financial transactions and data to be taken control of and how to prepare for this from Jason Hart (Safenet)
- Understanding of data protection and how to make the right decisions on collecting, storing and distributing information from the Information Commissioner’s Office
- The inspiring and motivating story of success through adversity and the need to change attitudes and perspective from Anna Hemmings, MBE
- A debate on Value for Money from the perspective of a tenant, lender and housing association.
In addition to these sessions, delegates will have access to workshops on a wide range of topics ranging from Welsh Language Standards to understanding resilience and mental toughness.
Also, a date for your diaries – we are currently planning our One Big Housing Conference which will stay in its customary venue of the Metropole Hotel in Llandrindod Wells and will take place on October 6/7.
For further information on our conferences or to book your place, please contact: Rhian-robinson@chcymru.org.uk.
Adele Harries-Nicholas, member services and business development manager
Housing in the Fifth Assembly
It’s about two years since one of Wales’ foremost economists, Gerry Holtham, said that Welsh politics was too boring and predictable. Although it was hard to disagree with him at the time, those of us who thought Welsh politics needed an injection of life have certainly got what they wished for in the first couple of weeks of the Fifth Assembly.
Going into the election, it was pretty difficult to envisage a situation whereby, in the space of two weeks, Labour would lose Rhondda (and no other seats), Leanne Wood would tie for a vote for First Minister with Carwyn Jones, and we would have a Lib Dem education secretary in Wales. A few weeks on from May 5, and this is where we find ourselves. I find myself sympathising with presiding officer Elin Jones who, upon the conclusion of the tied vote for First Minister, was heard asking: ‘What happens next?’
In housing, at least, the picture appears relatively clear (for now).
The Homes for Wales campaign was successful in gaining cross-party consensus on housing need in Wales, and this was reflected with Labour, Plaid and the Lib Dems all committing to build 20,000 extra affordable homes.
With house building also forming a significant part of the Welsh Conservatives’ manifesto, it now seems fairly sure that this figure will form part of the Programme for Government even in the now unpredictable world of Assembly politics.
We also see the return of a familiar face to many in Welsh housing with the news that housing will sit within the communities and children brief at cabinet, with Carl Sargeant the cabinet secretary responsible. The long-time minister was a popular figure during his time as housing and regeneration minister, casting a spotlight on good governance and housing’s role in tackling domestic abuse. Also, perhaps most notably, Carl was responsible for signing the housing supply pact with Community Housing Cymru, which set the previous affordable housing target of 10,000, which the sector exceeded.
Doubling that target would be something the sector would welcome, but it brings challenges. We need funding, land supply and planning to all work. But perhaps most importantly for the sector, we need to retain our independence. After England’s reclassification as public sector, it was inevitable that ONS would look at Wales.
In the long term, reclassification would hand control over Welsh housing associations’ borrowing to Treasury and impact significantly on the sector’s ability to build. We know legislation is needed and, with a consensus in the Assembly on ending the Right to Buy, this seems an opportune moment for a piece of housing legislation that will send a clear message that the Welsh Government supports social housing across the piece.
Our new cabinet secretary took big decisions to support the sector last time he held the housing brief, and steered significant and complex legislation through the Fourth Assembly. We will be working closely with Carl Sargeant to ensure that he can do the same in this new-look Fifth Assembly.
Aaron Hill, public affairs manager