Select Committee on Office of the Deputy Prime Minister: Housing, Planning, Local Government and the Regions Written Evidence


Memorandum by the National Housing Federation (NHF) (HOM 37)

1.  EXECUTIVE SUMMARY

    —  People who are homeless need access to homes in sustainable and diverse communities providing long-term security. This approach reduces the "revolving door" that homeless people often fall into.

    —  Current financial arrangements can militate against resolving homelessness in a sustainable way.

    —  Further investment in affordable housing will reduce the number of households presenting as homeless. We argue for 60,000 more affordable homes a year by 2007-08.

    —  The Federation believes that mixed neighbourhoods in terms of housing type, tenure, income, age, economic status, faith, ethnicity, household size and special needs have the best chance of thriving and providing long term housing solutions and that these should be promoted.

    —  There is a need for good quality temporary housing but appropriate permanent housing must be provided for single people so their current hostel or other short-term accommodation is freed up to provide intensive support for new clients.

    —  The positive introduction of the Supporting People Programme in providing support to maintain tenancies is acknowledged, but the lack of stability and cuts to this programme are a cause for concern.

    —  There is a need to further co-ordinate local homelessness strategies with strategic regional housing plans: improving these links will provide a more long-term effective housing strategy to reduce homelessness.

2.  INTRODUCTION

  2.1  The National Housing Federation (the Federation) represents nearly 1,400 independent, not for profit housing providers. Our members include housing associations, Co-ops, Trusts and transfer organisations. They manage more than 1.8 million homes provided for affordable rent, supported housing and Low Cost Home Ownership, and deliver an increasingly diverse wide range of community and regeneration services. The Federation's in business for neighbourhoods programme, promotes inclusive communities and neighbourhoods and a commitment to supporting people and diversity. Almost all the Federation's members work with local housing authorities in housing people who are accepted as homeless. Some members operate the local authorities duties on homelessness under contract.

3.  SUSTAINABLE COMMUNITIES

  3.1  The Federation believes that mixed neighbourhoods in terms of housing type, tenure, income, age, economic status, faith, ethnicity, household size and special needs have the best chance of thriving and providing long term housing solutions and that these should be promoted. Also, that individual life chances are adversely affected if people are ghettoised into areas where poverty and social exclusion are concentrated and that such concentrations within social housing should be challenged as they stigmatise its tenants and the sector as a whole. The issues have been documented and debated for a very long time, including recent work from the Social Exclusion Unit.

  3.2  Settled accommodation can offer people a springboard to better life chances as roots are put down, children settled into schools, social connections made and employment and other opportunities taken up. However, too frequently (via one offer policies or time limited choice-based systems for homeless households) homeless people are re-housed far away from where they want to be and seek to move-on as soon as possible or avoid putting down roots. As a result some neighbourhoods have very high turnovers, fail to stabilise, feel less cared for and become stigmatised places where the most vulnerable continue to be concentrated. Our submission considers how more sustainable routes into housing for homeless households can be found.

Case Example 1

  A single parent living in private rented accommodation is on a council's housing waiting list. Nothing happens. She and her six year-old girl are then threatened with eviction. They are accepted as unintentionally homeless and the council accepts a duty to them. They spend some time in a B & B.

  Then they are placed in private sector leased temporary housing. It is far away from the girl's school and all their family and friends. They spend a lot of their income on travel but still see their family less than they would like. The rent is too high for the mother to take up the sort of jobs she can get with her experience and skills, especially given the way her housing benefit would be effected.

  Also, it would be difficult for the mother to afford out of school care for her daughter-she used to rely on her mum for this when she lived close-by. She and her daughter live here for two and half years and the mother feels increasingly isolated and stressed. Finally they are offered a permanent home. This fits an official assessment of their needs in terms of the number of bedrooms etc but they would have liked to have been nearer their family. They take it because they will not be offered anything else. As soon as they can they register for a transfer and do not seek to make ties with the area. They will wait a very long time.

4.  FINANCIAL IMPERATIVE

  4.1  Homeless households are often given little choice of where they will be re-housed permanently and are often routed through one offer policies (or the expiry of time limited choice) to the least popular areas where there are concentrations of the most vulnerable people. There are strong financial drivers behind this as the burden of securing temporary accommodation for homeless households to whom a local authority owes statutory duties falls exclusively on that authority.

  4.2  People accepted as unintentionally homeless are placed in various types of temporary housing. The costs of the temporary accommodation fall on the General Fund and are thus ultimately met directly by the tax and council taxpayers. There is thus a strong pressure from councillors and spending departments of the local authority to minimise the financial impact of homelessness on the local area.

  4.3  The financial imperative translates into an incentive for local authorities to interpret homelessness duties narrowly as opposed to operate as facilitators of sustainable re-housing. It acts as an incentive to limit the choices available to homeless applicants compared to others. Also, it means that authorities maximise the use of permanent lettings, including nominations to housing associations, to homeless households owed a statutory duty. Where there are lots of lettings to be made at once, for example on new developments or in areas where there is high turnover due to the unpopularity of the stock or transient nature of the population this can lead to high concentrations of statutorily homeless households with priority needs. Under the current legislative framework this results in skewing neighbourhoods with high concentrations of children or households who are particularly vulnerable.

  4.4  This concentration of the most vulnerable is reinforced by the financial imperative of prioritising new housing developments to match the profile of homeless households rather than provide a mix of housing types.

  4.5  Statutorily homeless households are housed at the expense of other homeless households (such as childless couples and the single homeless who do not meet the vulnerability tests), other people in arguably equally urgent, as well as less urgent, housing need (such as those desperately overcrowded or in otherwise unsuitable private sector or social rented accommodation), people wishing to move within and beyond local authority boundaries to take up employment or training opportunities or to give or receive support from family and friends.

  4.6  While local authorities must consider all applicants, they are able to prioritise people with a local connection and the financial imperative means that there is no incentive to promote cross authority mobility. The choices of housing applicants (including homeless households) are generally confined to a local authority area or moving to a lower demand area. This limits people's opportunity to move to take up job or educational opportunities or to give or receive support from family and friends. Yet where people want to move is rarely confined by thoughts of administrative boundaries.

  4.7  This distorted market creates a perverse incentive to go down the homelessness route to obtaining re-housing despite the social, economic and health risks. Too frequently people emerge from the homeless route in a more vulnerable state or as if their life has been on hold (in terms of taking up for example employment opportunities or making social connections). This not only has immense human costs to individuals, but also has an impact on the wider community as concentrations of re-housed statutory homeless households are less sustainable and arguably have less social capital.

  4.8  The Federation is keen to explore the possibility of removing the financial burden on individual local authorities to meet homelessness duties for temporary housing. If this is possible it may help unlock the potential for housing associations and local authorities to work in partnership to provide more sustainable routes into permanent housing and to meet a wider spectrum of housing needs. This could reduce the overall tax burden of homelessness as it opens up other routes into permanent re-housing. It could also open up wider choices for homeless households and others. Action to address the acute shortage of housing and affordability gap are also important as explored further below.

5.  GROWTH AREAS AND HOUSING MARKET PATHFINDERS

  5.1  Attention also needs to be given to how homes will be let in the growth areas. Such areas present the opportunity to let for mixed communities from the outset. Not to do so, would be to repeat the mistakes of the past across a wide area. Community cohesion strategies will need to be in place if the diverse communities of the wider London and South-East regions are to benefit equally from the new housing opportunities. This reflects the potential racism that non-white ethnic groups, including homeless households, might face if they move to some areas, which are largely white. If "choices" are to be opened up for all and the needs of those with pressing housing needs are to be met this issue cannot be ignored.

  5.2  It should also be noted if we are considering how not to repeat the mistakes of the past, that many of the Housing Market Pathfinders have identified creating mixed neighbourhoods as a major factor in addressing cross tenure housing market failure. For example, Liverpool has taken lettings, population change and tenure diversification as core steps to revitalising its housing markets

6.  SUPPLY OF AFFORDABLE HOUSING

  6.1  In meeting the needs of homeless people it is an obvious fact that the shortage of affordable housing is a key factor in the number of homeless households.

  6.2  The Treasury commissioned Barker report looks at housing supply from a macro economic perspective of stabilising house price inflation. As a result it recommends an increase of 17,000-23,000 affordable homes each year above current provision, and a doubling of provision from the private sector from 125,000 to 140,000 homes per year. We look at supply side issues from the perspective of what is needed to deliver the long-term objective of sustainable communities and balanced housing markets in different localities. In our joint Spending Review 2004 submission with the Local Government Association and Chartered Institute of Housing we argued for a mixed housing association programme, towards meeting future housing needs and the backlog of unmet need, to deliver 60,000 affordable rented, low cost home ownership and intermediate rented homes a year by 2007-08 building up from a programme of 35,000 homes in 2005-06.

  6.3  Our analysis is grounded in a belief that a failure to meet the needs of medium and low income households, who are priced out of private sector options, will threaten the achievement of sustainability objectives. More than 95,000 families are in forms of temporary accommodation, and 1,260,000 are on housing waiting lists. Behind these figures are the immense costs to individuals and society of people inadequately housed, or placed in temporary accommodation, in some cases far from friends and family and unable to put down roots.

  6.4  The outcome of the Spending Review resulted in resources that should enable development of 115,000 homes over three years still a shortfall of 25,000 from the Federation's submission to the Spending Review. We will continue to argue for additional investment to bridge this gap.

  6.5  In addition to the lack of new housing, is the shortage of the right type and mix of housing in terms of tenure, size and cultural attributes in many areas, including areas of low demand and in places with failing markets.

  6.6  In arriving at the required mix of homes needed in different areas on a local, sub-regional and regional level we stress the importance of whole market needs assessments. It is important for such assessments to examine the need for affordable rented housing, as well as shared ownership and other low cost home ownership and intermediate priced housing options. We are actively engaging with the ODPM on its proposals to produce guidance on local housing assessments in this regard.

  6.7.1  The current reform of planning policy provides an opportunity to ensure that there is a presumption in planning guidance that all new developments cater for a spectrum of housing needs. This is the supply side of the equation that is needed to underpin the delivery of mixed and sustainable communities. Again, it is important to recognise the role that this plays in addressing the needs of homeless households and other people in housing need in a sustainable manner.

7.  FUTURE AFTER ROUGH SLEEPERS AND BED AND BREAKFAST TARGETS

  7.1  The ODPM set two major targets in recent years, to end rough sleeping and to end the use of Bed and Breakfast accommodation for families with children The Federation has supported these initiatives but expresses caution over the "knock on effect" of these targets.

  7.2  The key change in recent years is the level of need of rough sleepers. The majority of those who are sleeping rough or have recent experience of sleeping rough have complex needs including enduring mental health problems and drug addiction. The push to remove people from the streets has had many successes and the support of the Homelessness Directorate in the hostel improvement policy was welcomed, although more involvement of providers of this accommodation in the planning of the timetable and priorities may have provided more results faster.

  7.3  The success of hostel providers in reducing the "revolving door" of moving from the street to hostel and back means short term housing is being "silted up" by people ready to move to their own accommodation but none being available. The success of the rough sleepers programme is in danger of becoming the next problem.

  7.4  The most recent new people who are street homeless or with very poor temporary places to stay are people who have experience of the asylum system and people from the new European Union countries. Providers of services both in the statutory and voluntary sectors must address the need of these communities.

  7.5  Federation members have been fully engaged in helping meet the ODPM target to end the use of Bed and Breakfast accommodation for families with children. The need for quality temporary housing remains high in London alone numbers within temporary housing had increased to nearly 55,000 in April 2004. This is an increase of over 3% in the last quarter of 2003. The total number of households in temporary housing is now 95,000.

  7.6  Our members have been key players in the provision of temporary accommodation as an alternative to bed and breakfast, especially in London. Providing temporary housing is a specialist housing function that small numbers of housing associations are organisationally in a position to carry out.

  7.7  In our Joint Spending Review submission we recommended that the DWP and ODPM urgently re-open consideration of a grant-based model to fund private leasing, which has been proposed by a range of groups as an alternative to Housing Benefit funding, we still believe this would increase the supply of good quality temporary housing, and contribute to social inclusion by enabling homeless adults to take up employment.

8.  HOUSING RELATED SUPPORT

  8.1  The development of the Supporting People Programme has the potential to be extremely beneficial in providing housing related support to ensure tenancy sustainment by people with a history of homelessness or chaotic life styles. The initial expansion of the programme led to the creation of many new services aimed at ensuring tenancy sustainment. However the continuing uncertainty over the long term level of resources for this programme means there is little confidence that the level of support required to ensure we do not return to high levels of street homelessness and that permanent move on from hostel accommodation will be successful.

  8.2  There is a great capacity for Supporting People funded services to contribute to the prevention agenda across departments, assisting in reducing or preventing homelessness. The example below shows how one of our members is providing a tenancy sustainment service to people who have experienced homelessness. These low level preventative services potentially save significant NHS and social care resources as people are helped to start managing issues rather than spiral into crisis. They also help prevent people reappearing in housing departments as homeless.

Case Example 2

  Circle 33's EPIC Trust launched a specialist support scheme for families in Haringey called Harts (Haringey Tenancy Sustainment). Noew they have nearly 70 members of staff helping more than 600 families. This specialist team of advisors provides floating support to people in their own homes on a range of issues, from language difficulties to alcohol and substance misuse. The team also tackle issues such as child welfare, anti-social behaviour and domestic violence. Harts recruited skilled staff, who speak 27 languages between them. This is a vital part of how the service has excelled in achieving outstanding levels of customer engagement, as the support worker is able to converse with the service user in their own language. With Haringey having a population of almost 50% BME residents, it is important that the HARTS service user base reflects the rich diversity of the borough and that there are no barriers to prospective service users on grounds of race, gender or language.

  8.3  Examples such as the one above show that resources are required to stop the "revolving door" of homelessness. The reduction of the Supporting People funds raises concerns about the ability of government to meet their own targets in reducing homelessness and leaving support providers without the tools to address the need for tenancy sustainment support.

9.  HOMELESSNESS STRATEGIES

  9.1  The Homelessness Act 2002 requires every district and unitary authority in England to adopt and publish a homelessness strategy. Strategies must aim to prevent homelessness and ensure that accommodation and support will be available for people who are homeless or at risk of becoming homeless.

  9.2  The Federation fully supports the benefits from such strategies and the ability of authorities to focus on planning for the future. However, with the advent of Regional Housing Boards, how the strategies are used to inform the regional housing strategies is not clear. It is only the South East Regional Strategy that links performance in tackling homelessness in their region to local homelessness strategies. The London Regional Strategy focuses heavily on homelessness but without reference to individual strategies

  9.3  There is a need for a review of the way local action on homelessness contributes to meeting the aims of the regional housing strategies. How regional housing boards consider housing people who are homeless in their plans is not consistent or in some places given enough priority. There are 353 authorities producing homelessness strategies, it is important that the sum of these is truly represented in the nine regional housing strategies. The West Midlands Housing Forum has begun to address this for the next round of regional strategies. The objectives of this group highlight the importance of connecting local strategies and action to the regional housing strategy and other local strategies.

Purpose of a West Midlands Homeless Strategy

    1.  To provide a regional steer on preventing and tackling homelessness.

    2.  To inform the Regional Housing Strategy and the Regional Supporting Strategy and other regional and local strategies.

    3.  To establish regional housing investment priorities to prevent and tackle homelessness and influence other related investment.

    4.  To contribute to the development of sustainable communities and successful housing markets within the context of urban and rural renaissance.

    5.  To focus on cross boundary issues which can only be tackled at a regional or sub-regional level.

    6.  To identify priority areas for action/investment as part of the wider objective of tackling social exclusion.

    7.  To foster a spirit of cross-sectoral working through collaborative action.

  9.4  As the West Midlands example shows the local homelessness strategies also need to link to the Supporting People strategies. This revenue grant administered with much flexibility by county and unitary authorities must relate to the local level homelessness strategies. In some county areas this is yet to be achieved.

  9.5  The use of housing related support grant, Supporting People, is fundamental to achieving the most appropriate support for people when they first move to their new tenancies. We would welcome clear direction from the ODPM on the prioritising of Supporting People grant across client groups to assist administering authorities in achieving the goals of local homelessness strategies.

  9.6  For homelessness strategies to be really effective they need to be fully integrated with other local strategies: for example local crime reduction partnerships, where tenancy sustainment work would assist in reducing anti social behaviour.

10.  CONCLUSION

  10.1  The Federation acknowledges the major strides taken by the Government in the last few years to address key issues concerning homelessness, especially the concentration on reducing the numbers of rough sleepers and tackling the use of bed and breakfast accommodation by families.

  10.2.1  The momentum needs to be kept up. A detailed look at the financial structure for tackling homelessness is needed and the impact of the loss of Supporting People funds to maintain tenancies needs to be considered. This should to be done in conjunction with regional housing boards to focus on the reduction of homelessness as part of the development of long-term sustainable communities.

Diane Henderson

Head of Care Support and Diversity





 
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