Allocations Scheme 2015 and Lettings Plan (Cabinet decision 4 March 2015)

The Call-in report from the Overview and Scrutiny Committee meeting held on Tuesday 7 April 2015 was tabled. The Lead Member responded to the report and after considering the issues the Mayor:

RESOLVED

1.    That the original decision be confirmed subject to an amendment to retain the existing 10% quota for Band 3 applicants for a further 12 months to be reviewed at that time.

Action by:

CORPORATE DIRECTOR, DEVELOPMENT AND RENEWAL (A. DALVI)

(Service Head, Housing Options (C. Cormack)

Allocations Scheme 2015 and Lettings Plan (Cabinet decision 4 March 2015)

The Call-in report from the Overview and Scrutiny Committee meeting held on Tuesday 7 April 2015 was tabled by Councillor Joshua Peck, Chair of the Overview and Scrutiny Committee and Councillor Marc Francis.

The concerns of the Overview and Scrutiny Committee were reported and the Mayor was asked to reconsider the decision to reduce the Band 3 quota to 5%.

Councillor Rabina Khan, Cabinet Member for Housing and Development, responded to the report highlighting that the 10% target had only been intended to be for a short period and that moving to a 5% target would be reverting to the original.

The Mayor thanked all who had been involved in the discussions around this issue. He stated that having considered the matter he had decided to retain the 10% target for another year and to then review it.

RESOLVED

1.    That the original decision be confirmed subject to an amendment to retain the existing 10% quota for Band 3 applicants for a further 12 months to be reviewed at that time.

5.1         Allocations Scheme 2015 and Lettings Plan

The Committee heard that the Allocations Scheme 2015 and Lettings Plan had been considered by the Mayor in Cabinet on 4 March, 2015 and “Called In” in respect of the recommended reduction in the quota of lettings to be allocated to applicants in Band 3 from 10 per cent to 5 per cent.

It was noted that this will have a serious impact on the likelihood of those who are deemed to be “adequately housed” making a successful bid for re-housing.  The main points of the discussions may be summarised as follows:

The Committee:

• Heard that as a result of the combination of a reduction in the number of lets to homeless households, the scarcity of available accommodation and the high levels of rent charged to the Council, significant budgetary pressures are being faced. This particularly effects the Housing Benefits budget where a growth bid has been submitted as part of the 2015-16 budget process to set aside additional funding of £1.6 million to finance the pressures that arise from the effects of welfare reform, together with the impact that high rents have on the Benefits Subsidy received by the Council. Although the Council has a statutory duty to pay benefits, the level of subsidy that is recouped from the DWP is capped.
• Noted that the proposals set out in this report were intended to help to mitigate some of these costs through reducing the numbers of homeless applicants that are placed in bed and breakfast accommodation.
• Felt that this policy would not address that situation and increase the time that some young families will have to live with their parents.
• Expressed concern that some families were currently having to be house outside of London and thereby taking away from their families and communities.
• Heard that this was considered to be a pragmatic temporary measure as the supply of suitable properties is currently severely restricted.  Therefore, this proposal is aimed at freeing up properties to address the level of homelessness and keep as many LBTH residents living in the Borough. 
• Heard that often those living in temporary accommodation are in properties of good quality and therefore some are unlikely to bid for the available properties waiting for their ideal property even though they have sufficient priority for a move.

As a result of consideration of this report the Chair Moved and it was:-

RESOLVED that:

It is recommended that the Mayor agrees to the retaining of the existing 10 per cent quota for Band 3 applicants for at least a further 12 months.

DECISION

1.      To agree to amend the Allocations Scheme to provide capacity to place homeless applicants on autobid in the circumstances set out in section 4.10 – 4.14 of the report.

2.      To authorise the Corporate Director Development Renewal to set quotas for the proportion of lets to be made to homeless households.

3.      To agree the revised priority target groups for the Lettings Plan set out in section 5.3 of this report.

Action by:

CORPORATE DIRECTOR, DEVELOPMENT AND RENEWAL (A. DALVI)

(Service Head, Housing Options (C. Cormack)

Councillor Rabina Khan, Cabinet Member for Housing and Development, introduced the report. She highlighted the changes since the last time the plan had been agreed. She also noted the discussions taking place at the Overview and Scrutiny in relation to homeless families.

The Deputy Mayor agreed the recommendations as set out in the report.

RESOLVED

1.      To agree to amend the Allocations Scheme to provide capacity to place homeless applicants on autobid in the circumstances set out in section 4.10 – 4.14 of the report.

2.      To authorise the Corporate Director Development Renewal to set quotas for the proportion of lets to be made to homeless households.

3.      To agree the revised priority target groups for the Lettings Plan set out in section 5.3 of this report.