Issue - meetings

Referring to minute 482 of 8 October 2013, and following a review, to approve the continuation of the Homefinder Internal Lettings Agency.

RESOLVED

That the internal lettings agency (Homefinder) be continued.

Further to minute 482 of 8 October 2013, the Cabinet considered the report circulated with the agenda and the replacement appendix circulated with the supplement to the agenda (copies attached to the official minutes).

Mrs Taylor introduced the report, explaining that the problems of finding suitable rented accommodation in the private rented sector were well documented. In addition to high rents, there was the added complication that landlords were reluctant to take on Housing Benefit tenants.

Homefinder had been set up to assist the Council to meet the challenges that arose from the Localism Act 2011 and other welfare reforms and to discharge its homelessness duty.

Homefinder had two main objectives :-

(1)  To set up a letting agency by offering a three tiered service to landlords as set out in the report. In all three tiers, the Landlord received rent at the Local Housing Allowance Rate. This, admittedly, was less than the market rent but landlords participating at the Gold Level had the advantage of knowing that the rent was guaranteed, which mitigated the lower rent.  Also, the tenant had the benefit of private accommodation that had been inspected by Environmental Health and had the necessary safety requirements.

(2)  Homefinder also provided a tenancy sustainment service to help prevent tenants from becoming homeless. To date 40 tenancies had been successfully sustained. These were families that could otherwise have ended up homeless with the Council having to provide them with temporary accommodation.

The unit cost of preventing homelessness via Homefinder was £850 compared to the cost of up to £3,150 for placing a homeless household in bed and breakfast for 10 weeks. This was apart from the social costs of such placement which could result in social and medical problems as well as criminal activity and anti social behaviour.

The figures in the Report showed the success of the scheme. It was disappointing that more landlords had not taken up the Gold Homefinder and solutions were being looked at to make the Gold scheme more attractive.

At the invitation of the Chairman, Mrs Apel (Chairman of the Overview and Scrutiny Committee) explained that the Committee had considered a similar report on 2 June 2015 and supported the continuation of the Homefinder scheme.

The Chairman asked about the reference at the end of the Appendix to consideration whether it might be advantageous to offer a full management service at no charge to the landlord in order to entice landlords to provide accommodation at an affordable rent.

Mr Dunmall (Housing Operations Manager) replied that the lost income would depend on the number of properties managed by the Housing Operations Team. If the Team provided a free full management service on 100 properties, after say 4½ years, then the income forgone would be £56,000 per year.

At the Chairman’s invitation, Mr Oakley asked whether the Council required higher standards of accommodation, fixtures and fittings and whether this might inhibit landlords from participating. Mr Dunmall replied that an inspection was carried out before  ...  view the full minutes text for item 29

To consider the attached report to Cabinet on 7 July 2015, review the performance of the council’s internal lettings agency Homefinder and confirm that Homefinder provides value for money to the council by preventing homelessness at a reasonable cost. The committee is requested to recommend to Cabinet that the internal lettings agency Homefinder be continued subject to a review in 2020 after it has been running for a further period of 5 years.

Mr Dunmall explained that recommendation 2.2 should read:

‘To recommend to Cabinet that the internal lettings agency Homefinder be continued.’

Mrs Dignum praised the value of sustaining tenancies and asked for clarification on the following points:

1.    The Universal Credit effect causing concern for landlords unable to receive direct payment of housing benefit

2.    Repayment arrangements for tenants in rent arrears

3.    Time spent on individual cases

4.    Officer skill sets to provide support amounting to social psychology

Mr Dunmall explained:

1.    Landlords do not want to evict tenants with rent arrears as they will lose the money owed

2.    Increasingly rent arrears are a problem

3.    When payments are made directly to tenants there is a fear of whether payment will reach landlords

4.    Officers utilise lifeskills to often act as mediator between landlords and tenants

Mrs Plant asked for clarification on the difficulty to attract landlords to the scheme and whether the loss of revenue to landlords would be outweighed by the benefits of the Homefinder scheme. Mr Dunmall explained that a possible subsidy scheme for landlords would be investigated.

Mrs Plant asked how the Homefinder service was staffed. Mr Dunmall explained there are two officers whose workload sustains 100 properties.

Mr Cullen asked if there is a joint landlord forum. Mr Dunmall explained that there was and it was important landlords understood that the local authority wanted to work with them.

Mr Cullen asked if commercial lettings fees are taken into account. Mr Dunmall confirmed that this was the case.

Mr Cullen asked if any guarantee could be provided to landlords. Mr Dunmall explained that the Council offers a rent guarantee scheme.

Members agreed that a review would be appropriate approximately a year after the implementation of Universal Credit.

RESOLVED

That the internal lettings agency, Homefinder, provides value for money to the Council by preventing homelessness at a reasonable cost.

RECOMMENDED TO CABINET

That the internal lettings agency Homefinder be continued