Policy developments in other parts of the UK
Westminster pledges new funding regime for supported housing
The UK government announced a new funding regime for supported housing but a written statement from work and pensions secretary Damian Green raised as many questions as it provided answers.
Introduction of both the LHA cap and the shared accommodation rate is now deferred until 2019/20 for supported housing. Refuges, hostels and other very short-term accommodation could still be exempted.
However, it emerged a week after the statement that the new regime will apply to all tenants from 2019. Under the original proposal the cap would only have applied to new tenants.
After 2019, funding will be devolved to Scotland and Wales and to English local authorities to top-up payments to providers to reflect the extra costs of providing supported housing over general needs.
For England that could mean re-inventing Supporting People, which was rapidly cut once the ring-fence was removed in 2010. Wales retained its Supporting People programme and should be able to use local arrangements that are already in place.
Green also confirmed that England’s 1% a year rent cut for social housing will now apply to supported housing in England as well.
It remains unclear what the funding will be for top-up payments. Green said that the new funding regime would ensure that ‘the sector continues to be funded at current levels, taking into account the effect of Government policy on social sector rents’.
That form of words sounds like there is no guarantee that funding will increase with inflation and could even fall in line with social rents in England. The Westminster government remains determined to achieve efficiencies in supported housing.
More details are expected to emerge when a consultation document and evidence review are published shortly.
Stuart Ropke, chief executive of CHC, said: ‘Long term funding certainty will ensure existing schemes can remain open and new schemes can progress. We will work closely with Welsh Government on the details of the devolved scheme to get the best outcome for those who require supported housing across Wales.’
ONS reclassifies housing associations as public sector
The Office for National Statistics (ONS) confirmed that housing associations in Wales, Scotland and Northern Ireland are now classified as public non-financial corporations rather than private sector bodies.
The decision was widely expected following reclassification of English associations as part of the public sector last year. Devolved governments are now expected to follow England with legislation to deregulate associations and persuade the ONS to change its decision.
Failure to do so would have major implications for the national debt and for associations’ ability to raise private finance and operate independently.
Reclassification is backdated to years of significant housing legislation: 2001 in Scotland, 1996 in Wales and 1992 in Northern Ireland.
The Scottish Government pledged a Bill to adjust the powers of the Scottish Housing Regulator to allow the ONS to reclassify associations to the private sector. This would ensure they could carry on borrowing money privately as well as receiving public investment.
The Northern Ireland Executive said it would seek a reversal of the ONS decision including amending legislation where appropriate. Finance minister Máirtín Ó Muilleoir said social and affordable housing faced an annual shortfall of almost £100 million if the decision was not addressed.
Welsh Government said it was exploring a legislative solution to reclassification and that housing associations could be confident that the issue would be resolved.
ENGLAND
Barwell softens line on home ownership
New housing minister Gavin Barwell has signalled that the Conservative government will look to support other tenures as well as home ownership.
Policy since the election has been dominated by manifesto commitments to extend the Right to Buy to housing association tenants and build 200,000 starter homes to be sold to first-time buyers at a 20 per cent discount.
Following the Housing and Planning Act Right to Buy discounts will be financed by the forced sale of higher-value council homes and starter homes are set to take the place of affordable rented homes financed through the planning system. Meanwhile most of the affordable housing budget will be spent on starter homes and shared ownership.
Those plans remain in place but much of the key detail and regulations have not yet been published.
And Barwell signalled a change of emphasis in his first few speeches as housing minister. He told the National Housing Federation conference in September: ‘The truth is we need more homes for sale, more homes for private rent and more sub-market homes for rent.’
SCOTLAND
Sturgeon pledges Scottish social security system
First minister Nicola Sturgeon announced a Social Security Bill to take advantage of Scotland’s new powers over benefits as part of the new Programme for Government.
The Bill will set out an over-arching legislative framework for social security in Scotland and establish a new Social Security Agency. A wide-ranging consultation is underway.
A Housing (Amendment) Bill will ensure that housing associations continue to be classified as private sector (see UK news) by amending the powers of the Scottish Housing Regulator.
The Programme for Government also includes Bills on child poverty, domestic abuse and gender balance on public boards.
NORTHERN IRELAND
Minister makes housing pledge
Communities minister Paul Givan has pledged that his new department will bring positive change to individuals and communities across Northern Ireland.
The Department for Communities was created in May with responsibilities including housing, regeneration and social security.
In his first appearance at Stormont at the end of June, the minister said he was determined to provide access to good quality housing at reasonable cost. The social housing programme will be expanded and the department will also ‘look to the needs of existing tenants and helping our most vulnerable.’
WELSH GOVERNMENT
First minister commits to 20,000 affordable homes target
Carwyn Jones unveiled a new Programme for Government in September committing his administration to a target of an extra 20,000 affordable homes between 2016 and 2021.
The total is double the 10,000 affordable homes target achieved in the last Assembly term but it includes 6,000 homes to be delivered through Help to Buy.
Other housing pledges in the Programme for Government include the introduction of a new ‘rent to own’ model, exploration of options to end land banking and continuation of long-term collaboration with housebuilders.
The programme also includes a Ministerial Taskforce for the valleys, delivery of the Cardiff City Regional Deal and development of a similar deal for Swansea and a Growth Deal for Wales.
The legislative programme includes a Bill to abolish the Right to Buy and a Land Transaction Tax Bill that will replace stamp duty land tax with the first Welsh tax in almost 800 years.
Positive first year for homelessness prevention
Statistics covering the first 12 months of the new system introduced by the Housing Act 2014 showed successes in preventing and relieving homelessness. While care is needed interpreting the data and it is not directly comparable with previous years, the signs are positive:
– 7,128 households were assessed as threatened with homelessness within 56 days in 2015/16. Homelessness was successfully prevented for at least six months for 4,599 of them (65%).
– 6,891 households were assessed as homeless and owed a duty to help secure accommodation. Of those, 3,108 (45%) were successfully relieved of their homelessness and helped to secure accommodation likely to last for at least six months.
– 1,563 households were assessed to be unintentionally homeless and in priority need and qualified for the duty to have accommodation secured for them. Of those, 1,245 were ‘positively discharged’ and accepted an offer of permanent accommodation.
The full data is available at gov.wales/statistics-and-research/ homelessness/?lang=cy.
Registration deadline looms for private landlords
Private landlords have until November 23 to register themselves and their properties with Rent Smart Wales.
Landlords and agents who are involved in letting and management activities also have until then to become licensed. By the end of August 20,000 private landlords had registered and 34,000 landlords or letting agencies had opened accounts (the first step in the process). However, there are estimated to between 70,000 and 130,000 private landlords operating in Wales.
Communities and children secretary Carl Sargeant urged landlords to register as possible and added: ‘The law requires all landlords to register and agents and self-managing landlords to obtain a licence. From 23 November 2016 anyone who has not complied with the law can be issued with a fixed penalty, or if taken to court, can be fined.’
For more information see www.rentsmart.gov.wales
Funding for money advice
Communities and children secretary Carl Sargeant has approved funding of more than £320,000 to enable Citizens Advice Cymru to continue to provide face to face money advice.
The minister said Citizens Advice Cymru provided invaluable debt advice and financial guidance to people across Wales. ‘Without financial support the service could not continue, which means around 400 people would not receive face to face help each month.’
Fran Targett, director of Citizens Advice Cymru said: ‘We are delighted that Welsh Government have understood that it is essential to continue to support the delivery of face to face money advice to help people to make the most of whatever money they have and plan for the future. As a result of this decision we are able to offer free support to help vulnerable people across Wales understand and manage their money better. The free, unbiased money advice can help them feel more confident, get on top of their finances, understand their options and make decisions that are right for them.’
PUBLICATIONS: 10 TO LOOK OUT FOR
1) The Economics of Housing and Health: The role of housing associations
The King’s Fund and NHS Alliance for National Housing Federation, September 2016
www.kingsfund.org.uk/publications/economics-housing-health
2) Making welfare work for Wales: Should benefits for people of working age be devolved?
Bevan Foundation, June 2016
www.bevanfoundation.org/publications/making-welfare-wales-benefits-people-working-age-devolved/
3) Assessing and sustaining social tenancies: exploring barriers to homelessness prevention
Shelter Cymru, October 2016
4) Devolving Stamp Duty and Landfill Tax to Wales: Mitigating the Budget Risks after ‘Switching On’ Wales’ First Home-Grown Taxes
Wales Governance Centre, Cardiff University, July 2016
sites.cardiff.ac.uk/wgc/files/2013/10/Devolving-Stamp-Duty-and-Landfill-Tax-to-Wales.pdf
5) UK Poverty: Causes, costs and solutions
Joseph Rowntree Foundation, September 2016
www.jrf.org.uk/report/uk-poverty-causes-costs-and-solutions
6) Wales after Brexit: An agenda for a fair, prosperous and sustainable country
Bevan Foundation, August 2016 (see p8)
www.bevanfoundation.org/publications/wales-brexit-agenda-fair-prosperous-sustainable-country/
7) Feasibility study of the prospect of developing a viable housing model for those entitled only to access the shared accommodation
Cambridge Centre for Housing & Planning Research for CHC and WLGA, June 2016 (see p36-37)
8) Homelessness
Communities and Local Government Committee, August 2016
www.publications.parliament.uk/pa/cm201617/cmselect/cmcomloc/40/40.pdf
9) Homes for All
Renewal, September 2016
www.renewalgroup.org.uk/wp-content/uploads/2014/11/DSKJ4421_Homes_for_All_Report_010916.pdf
10) The economic circumstances of different generations
Institute for Fiscal Studies, September 2016
www.ifs.org.uk/publications/8583
WALES
First for Trivallis
Trivallis has launched its first development under its new name. The former RCT Homes rebranded in July.
Staff and consultant partners came together to celebrate the opening of Springfield Court, a large housing development made up of 40 properties in Church Village.
In 2014, Trivallis made the decision to redevelop Springfield Court because of the high demand for affordable housing in the area.
Julie Vellucci, business development director at Trivallis explained: ‘This is the first social housing scheme we’ve delivered as Trivallis. We’ve created high quality homes that are energy efficient and that can be adapted to meet the needs of our customers, if their circumstances change.’
Jehu Project Services worked alongside Trivallis to build the 40 new affordable homes made up of different sized flats and houses.
One of the houses has been adapted to accommodate a family who has a young child with special needs.
During the opening representatives from RCTCBC, Hugh James Solicitors, Tony King Architects, Austin Partnership, Asbri Planning, Strongs, and Trivallis Board came along to take look around the newly completed site.
New boss for United Welsh
Lynda Sagona has been appointed as the new chief executive of United Welsh.
She is currently director of housing and communities at the Caerphilly- based housing association, which has more than 5,500 homes across 11 local authority areas in South Wales. Lynda will replace outgoing chief executive Anthony Whittaker who announced he was standing down earlier this year.
She said: ‘I have thoroughly enjoyed my time here and have always said I have one of the best jobs in the world so to be entrusted with the role of chief executive of an organisation I so admire is both humbling and very exciting.’
Associations merge
Tai Cantref completed its merger with Wales & West Housing in September following approval by shareholders.
The Newcastle Emlyn-based housing association had been seeking a merger partner after a Welsh Government review into its operation and governance, although the deal faced criticism before it was ratified.
Wales & West chief executive Anne Hinchey said: ‘WWH have an excellent proven track-record for engaging residents and improving and maintaining resident satisfaction year- on-year. We are driven by the needs of our residents and the local community. The merger of our two organisations provides a fabulous opportunity to make a difference in meeting housing needs in West Wales.’
Social housing evictions
More than 500 children were made homeless last year after their families were evicted from social housing, according to a report by Shelter Cymru. The homelessness charity estimates that social landlords evicted 914 households in 2015/16. Almost a third of them (301) were of families with children.
The report estimates that the evictions cost Welsh social landlords £7.9 million in direct costs and cost the Welsh economy as a whole £24.3 million.
The most common reasons for evictions were rent arrears and anti-social behaviour. Arrears were most often triggered by problems with housing benefit and unmet support needs that interfered with tenants’ ability to engage with their landlord. Shelter Cymru found excellent prevention work by some landlords but is calling for regulation to ensure that all tenants get fair and equal treatment.
The report is available at bit.ly/2dmvRcv
New funding for co-operative homes
The Nationwide Foundation is giving additional funding of £130,000 to the Wales Co-operative Centre, which it will use to significantly increase the number of housing co-operatives and affordable housing options across Wales. The money will support 40 co-operative groups as they become established over the next three years.
The new funding follows the success of an initial grant awarded in 2014. The previous Nationwide Foundation grant, along with money from the Welsh Government, has led to the completion of three new co-operative housing schemes, with four other co-operative housing schemes nearing completion and six further schemes at various stages of development.
Cymorth Cymru appoints interim director
Katie Dalton takes over as the interim director of Cymorth Cymru when Auriol Miller, the outgoing director, becomes director of the Institute of Welsh Affairs.
A former NUS Wales president, Katie Dalton is seconded from Gofal, where she has been policy and public affairs manager at Gofal since 2011. She said: ‘Working for a member of Cymorth I have seen the influence and impact they have had on our behalf and I am excited to have the opportunity to do the same.’