Memorandum by Brighton and Hove City Council
(HOM 47)
Brighton & Hove City Council is a large
unitary authority providing services to approximately 250,000
residents in the city with high levels of homelessness and housing
need, a proportionately small social housing sector, and one of
the largest private rented sectors in the country.
Brighton & Hove has the highest proportion
of one person households and smallest average household size in
the South East. At the same time however, 12.7%[64]of
the city's households live in overcrowded conditions, the proportion
level outside London, and we are the fifth most densely populated
area in the region, with 30 people per hectare.
Bounded by the Downs and the sea, Brighton &
Hove has limited opportunity for new housing development and population
growth. Demand from households wanting to live in the city has
been reflected in larger than average property price increases,
high levels of overcrowding, and high levels of homelessness.
Unless otherwise stated, all statistics used
in this submission are from the authorities own monitoring and
research.
1. THE OVERALL
LEVEL AND
NATURE OF
NEED FOR
HOUSING FOR
HOMELESS PEOPLE
1.1 Brighton & Hove has a long history
of high levels of homelessness, however, the last six years have
seen significant increases, with the current level of homelessness
acceptances 50% higher than in 1997-98.
1.2 Over the year 2003-04, Brighton and
Hove City council took 2,598 homeless applications, of which we
accepted 926 households in accordance with the Housing Act (almost
30% of applications). Though the number of acceptances has risen
slightly from 2002-03, the number of applications has fallen,
indicating some measure of success in our homelessness prevention
strategy.
1.3 The following chart illustrates the
level of homelessness applications and acceptances over the last
seven years.
1.4 During 2003-04, as in previous years,
we have continued to see large numbers of homeless households
resulting from loss of private rented accommodation. Family eviction
and domestic violence are also key homelessness drivers in Brighton
and Hove, as shown in the following chart:
1.5 Local Authority and Registered Social
Landlord social housing is the traditional means for housing homeless
households with secure tenancies. In tandem with the increase
in homelessness, fewer households have been able to leave social
housing and enter owner occupation or the private rented sector.
This has led to a 28% decrease in the amount of social housing
available for new homeless families since 1997-98, and in three
of the last four years, there have been more homeless households
than properties available, as can be seen in the following chart:
1.6 Factors such as high homelessness and
low social housing turnover combine to place pressures on our
ability to house homeless households, as well as our ability to
allocate to other households on the housing register, as illustrated
below:
1.7 In turn, we have to procure significant
levels of bed & breakfast and other forms of temporary accommodation
as an emergency housing measure. In total, during 2004-05, our
homelessness services are expected to cost £4.4 million,
a significant burden on the authorities finances and residents
council tax bills, although this has been helped by a contribution
of £0.9 million from the ODPM's Homelessness Directorate
for our rough sleeper and homelessness prevention work.
1.8 In addition, sales of council homes
through the Right to Buy have risen threefold since 1997-97, further
restricting the level of available affordable housing:
1.9 Overcrowding in the city is of particular
concern, with the Census 2001 highlighting that the city has the
highest level of overcrowding outside London, at 12.7%, more than
one in eight of the city's households, and cuts across all tenures.
This manifests itself in high levels of evictions by family and
friends, which accounts for a third of all the city's homelessness.
The table below illustrates the levels of overcrowding, by tenure:
OVERCROWDING IN BRIGHTON & HOVE
| Tenure | Overcrowding within the tenure
| Proportion of the city's overcrowding
| Number of households overcrowded |
| | |
|
| Owner Occupied | 5.1% | 24.7%
| 3,575 |
| Private Rented | 27.7% |
51.8% | 7,498 |
| Local Authority | 18.6% |
15.1% | 2,180 |
| RSL & Other Public Sector | 24.6%
| 8.5% | 1,232 |
| Total number of households | x x x
| 100% | 14,485 |
Source: Census 2001
1.10 Our comprehensive Housing Needs Survey 2000 projected
a need for 3,000 new affordable homes per annum to combat homelessness,
overcrowding and unfitness. Limited capital funding is restricting
the development of new affordable housing to an average of 300
units per annum. As property prices have risen significantly since
2000, we are currently commissioning a new housing needs survey
to update our information.
2. THE SUCCESS
OF POLICIES
MEETING THE
NEEDS OF
HOMELESS HOUSEHOLDS:
(a) Families
2.a.1 Our monitoring of property prices in the city highlights
that three-bed houses now cost an average of £268,000 (Q2
2004), equivalent to more than 11 times the median household income[65]requiring
an income of £78,000[66]to
finance. Similarly, rent on three-bed homes average at £1,049
per month, equivalent to the repayments on a £179,000[67]mortgage
that would require an annual income of £55,000.
2.a.2 The analysis of our Joint Housing Register and
our Housing Needs Survey show a high demand for 1 bedroom homes
for single people. However, when comparing the availability of
social housing with demand by accommodation size, it highlights
that family sized accommodation is less likely to become available,
and that the needs of those families requiring larger accommodation
are less likely to be met than the needs of smaller households.
2.a.3 As an urban area, the majority of our affordable
housing arises from planning gain, more specifically our planning
policies that ensure 40% of any new housing development must be
affordable. The nature of Brighton & Hove results in most
private developments comprising of flats, allowing very limited
opportunity to develop family sized accommodation.
2.a.3 The combined effects of high property prices, rental
costs, and limited development opportunities for new houses, all
illustrate that Brighton & Hove is, and will continue to,
experience significant levels of homelessness amongst families.
2.a.4 Brighton & Hove has met the ODPM's target of
ensuring that families with children are only placed in B&B
in an emergency, and if so, for no more than six weeks. However,
we have only been able to achieve this by securing large numbers
of temporary accommodation units, not the provision of secure
accommodation. Furthermore, procuring temporary accommodation
does not increase the overall supply of housing in the city. Temporary
accommodation is often secured at market rate with the resultant
benefit trap making it very difficult for these households to
secure work and move away from benefit reliance. We are currently
market testing the potential of entering into longer term leasing
schemes with providers which will deliver more continuity of supply,
greater value for money and in some cases allow conversion of
a proportion of units into permanent social housing at the end
of the lease term.
(b) Single people
Our dedicated Single Homeless and Rough Sleepers service
and Singles Homeless strategy continue to provide a range of services
for single homeless people for whom there is no statutory requirement
to accommodation.
3. THE ADEQUACY
OF INVESTMENT
IN HOUSING
FOR HOMELESS
PEOPLE AND
THE QUALITY
OF ACCOMMODATION
AVAILABLE TO
THEM
3.1 Our commitment in 2003-04 of £3 million to a
local authority funded enabling programme helped lever in an additional
£17 million from the Housing Corporation and a further estimated
£7 million from RSL and private finance. In all, during 2003-04,
we estimate that around £27 million was spent on new affordable
housing for local residents, with almost 600 new homes currently
in development.
3.2 Despite the Local Authority Social Housing Grant
system stopping, we still aim to maintain funding for a local
authority programme, transferring funding from LASHG to "other
housing" uses. This investment enabled the delivery of 93
units during 2003-04, with a further 65 and 20 planned for 2004-05
and 2005-06 respectively.
3.3 With our involvement in major regeneration sites
such as Brighton Station, we anticipate an expansion in the number
of units delivered with local authority financial assistance to
250 in 2005-06 and 300 during 2006-07. Such major developments
will increase the number of affordable units delivered through
the ever more important planning gain, to an estimated 169 in
2005-06 and 220 in 2006-07.
3.4 In a city such as Brighton & Hove, with a wide
range of challenging needs, we recognise we could invest far greater
sums of money than we are currently able to access. For example,
we have a pipeline of new affordable housing developments worth
£64 million, requiring approximately £40 million of
public subsidy, which do not have identified funding.
3.5 Despite Brighton & Hove seeing lower Housing
Capital and ADP allocations for 2004-05 and 2005-06 in comparison
to previous years, the Regional Housing Board and Housing Corporation
both recognise the affordable housing challenges in the city,
and have allocated Brighton & Hove the largest amount of funding
in the South East outside London.
3.6 The Council has also financial responsibility for
either the provision of Temporary Accommodation (TA) or the payment
of people's accommodation costs for a number of different client
groups. The demand for housing from homeless is expected to be
in the region of 900 households per annum and this group will
form the bulk of people requiring TA. In addition the Council
has additional responsibilities for accommodation eg to families
that are intentionally homeless and have children or clients with
mental health or learning difficulties.
3.7 Even with the long term leasing scheme there is an
anticipated shortfall in accommodation, which could be met by
a combination of B&B, short term leasing, or private sector
solutions.
3.8 The Council currently procures property from a number
of departments and sources. This has led to a move to ensure better
efficiency through joint procurement arrangements. Officers are
looking at new schemes to provide the necessary level of properties
to keep pace with demand and achieve value for money. There are
existing suppliers that can be used on this basis but in order
to keep pace with the demand for accommodation and to replace
bed and breakfast a new supply is needed.
4. FACTORS AFFECTING
THE SUCCESSFUL
IMPLEMENTATION OF
THE HOMELESSNESS
ACT 2002
4.1 The Act and the attendant priority need order have
both increased priority need categories, placing additional pressure
on authorities to accept more homeless cases, and also creating
the need for more "joined up" work prioritising homelessness
prevention and private sector solutions.
6. THE BALANCE
OF PUBLIC
INVESTMENT IN
HOUSING FOR
KEY WORKERS
AND HOMELESS
PEOPLE
6.1 Our Approved Development Programme for 2004-06 is
looking to spend over £22 million on affordable housing.
In addition, our Local Authority Sponsored Programme is allocating
nearly £1.8 million to affordable housing projects.
6.2 50% of the new homes delivered through this programme
are to be key worker intermediate renting and shared ownership,
with only 45% for homeless & housing register households,
and a further 5% for general shared ownership. The Key Worker
Living Programme, allocated by the ODPM, also provides additional
funding regionally for key worker housing.
6.3 We feel that the current centrally defined key worker
categories do not allow for enough flexibility from authority
to authority to meet local recruitment and retention needs. Furthermore,
if the proportion of investment in social rented stock continues
to fall, authorities will continue to see high numbers of homeless
households in temporary accommodation. Mixed-tenure, mixed-needs
developments with an adequate supply of social rented stock to
meet local housing need are key to balanced housing market.
7. PRIORITY FOR
THE HOMELESS
WITHIN THE
OVERALL ALLOCATION
OF SOCIAL
HOUSING
7.1 As a result of our homelessness pressures, the proportion
of social housing lets to the most vulnerable residents of the
city has risen from less than half to around 80% as stock turnover
has reduced. Despite the large demand for social housing seen
in the Housing Register, only a small proportion of lets are available
for these households.
7.2 We are most concerned that the larger concentrations
of vulnerable residents in these predominantly social housing
areas may become detrimental to our longer term Neighbourhood
Renewal and New Deal for Communities objectives, undermining the
city's efforts to create mixed sustainable communities.
7.3 To counter this sustainability issue, we have been
actively looking to private rented sector and long term leasing
options to significantly reduce the proportion of vulnerable residents
moving into social housing. Short term leasing has helped the
proportion of lets to homeless households reduce to 54% over the
last year, however, procuring accommodation on a short term basis
is not sustainable.
7.4 In response to this, and to the sustainable communities
agenda, from July 2005, we will be implementing a choice-based
lettings scheme, which will, through banding and local lettings
policies, allow for a better mix of needs in our communities.
In addition, a greater transparency and range of choice will be
available to all households on the housing register.
8. WHETHER THE
NON-HOUSING
SERVICES PROVIDED
FOR HOMELESS
PEOPLE ARE
ADEQUATE AND
ARE CO
-ORDINATED WITH
HOUSING PROVISION
In Brighton and Hove we recognise that the non-housing needs
of homeless households impact to a great extent upon their housing
needs—and vice versa. Effective joint work with Adult Social
Care, Children, Families and Schools, the Health Authority and
non-housing-related voluntary sector providers is as key to our
prevention agenda as it is to our support and move-on agendas.
In recognition of this, we have recruited and appointed a
dedicated "housing and health" resource manager within
our Housing Strategy Division, and are participating in a number
of key partnerships with ASC, CFS, the HA and our voluntary sector
colleagues.
We are restructuring our housing needs assessment services
in order to become more "person-centred", providing
interdisciplinary teams to cover a range of needs, with clear
referral procedures between providers.
In addition, in accordance with statutory requirement, we
are implementing the Single Assessment Process—not only
for older people, but for all vulnerable adults except for those
with a substance misuse or mental health problem. SAP is being
developed in tandem with ASC and the HA, using a coordinated project
management approach, joint training, and a "buddying"
system to demystify the differences in working practices between
services.
64
Census 2001. Back
65
CACI Wealth of the Nation 2003-Median Household Income in Brighton
& Hove-£23,100. Back
66
Based on a mortgage limit of 3.25 times income. Back
67
Assuming a mortgage at 3.25 times income over 25 years with 5%
interest. Back
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