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


Memorandum by the Office of the Deputy Prime Minister (HOM 53)

INTRODUCTION

  1.  The Government is committed to tackling the serious problem of homelessness and has made significant progress since 1997.

  2.  Our approach has been to reduce the most severe and damaging aspects of homelessness, while developing a stronger and more strategic framework to address the wider problems that cause homelessness. In 2002, we set out our approaches in the report, "More than a roof". This placed a stronger emphasis on addressing the personal and social problems faced by homeless people. The approaches in "More than a roof" were under-pinned by six key objectives. These were to:

    —  strengthen the help available to people who are homeless or at risk of homelessness;

    —  develop more strategic approaches to tackle homelessness;

    —  encourage new responses to prevent homelessness;

    —  reduce the use of B&B hotels for homeless families with children;

    —  sustain the two-thirds reduction in rough sleeping; and

    —  ensure the opportunity of a decent home for all.

  3.  The overall progress we have made is summarised below and is then set out in more detail under each of these objectives.

SUMMARY

  4.  Our first priority was to tackle the most severe and visible problem of rough sleeping—helping people who are literally roofless. Our strategy on rough sleeping successfully reduced the number of people sleeping on the streets of our towns and cities by two-thirds between 1998 and 2002. We have sustained those reductions with just over 500 people sleeping rough on any night now, 70% below the 1,850 who were sleeping out in 1998.

  5.  We inherited legislation—the 1996 Housing Act—which had reduced the rights of homeless people. We have amended the legislation to strengthen the statutory protection available to people who face homelessness. The revised legislation widens eligibility for local authority help, and adds to the duties and powers local authorities have to tackle homelessness.

  6.  In the short-term, this has meant more people being accepted by local authorities as homeless and has added to the numbers in temporary accommodation. But many of these are people who would have been left to fend for themselves under the previous legislation. In particular, priority need for accommodation has been extended to cover young people, people fleeing violence and other vulnerable people, such as those with an institutionalised background in the Armed Forces, in care or in prison, who had previously been over-represented amongst those sleeping rough.

  7.  Of course, we are concerned about the growing numbers in temporary accommodation. In particular, we have acted to reduce the worst aspects of temporary accommodation use—families with children forced to live for excessive lengths of time in cramped B&B hotel rooms, with no room to play or do homework, and having to share washing and cooking facilities with strangers.

  8.  Since 2002, the number of families with children in B&B hotels has been reduced from 6,700 to just over 1,000. And we have strengthened the legislation so that, with only a few exceptions, local authorities cannot discharge their homelessness duties by placing families with children in B&B for longer than six weeks.

  9.  We have also consulted on, and will include in revised statutory guidance, the minimum standards that should apply to all temporary accommodation used by local authorities to re-house homeless households.

  10.  Every local authority in England has been helped to develop a new homelessness strategy and we have promoted prevention initiatives, with additional funding and guidance on good practice. These strategies and prevention initiatives go much wider than the narrower groups who are owed the main re-housing duty in the homelessness legislation, and provide a more comprehensive response to all forms of homelessness. They are helping to break down the old distinctions between "statutory" and "non-statutory" homelessness and between family and single homelessness. They are also helping to forge stronger partnerships between local authorities, housing associations and other voluntary and statutory sector agencies.

  11.  These partnerships have been an important part of our work to improve the links between housing and other services that can help people to avoid or overcome homelessness.

  12.  The introduction of Supporting People has been one aspect of that, providing a more strategic basis for housing related support services that help vulnerable people begin to live independently or to maintain independent living.

  13.  Work across Government has played an equally important part including, for example, initiatives to address the health needs of homeless households and better co-ordination of housing and homelessness services with strategies to tackle domestic violence and re-offending.

  14.  Action to prevent homelessness is beginning to show results. The statistics over the last couple of quarters show that the number of households becoming homeless has started to fall. If this trend can be sustained, as we believe it can, it will reduce the flow of households being placed in temporary accommodation.

  15.  While there are more people in temporary accommodation now, it is important to remember that these are people who have been helped and re-housed as a result of our strong homelessness legislation. At the end of June 2004, 18% were in shared accommodation such as B&B hotels, hostels or women's refuges—a lower proportion than in the past. The vast majority (82%) were housed in private sector, council and housing association homes, waiting for a more settled tenancy.

  16.  But we accept that this growing number reflects a shortage of accessible, settled housing in some regions and areas, and we are determined to tackle this issue too.

  17.  In 1997, we inherited a backlog of disrepair in social housing of £19 billion. And the housing capital investment budget had been halved between 1993 and 1997. We have already more than doubled the housing capital investment budget, but we were determined as a first priority to tackle disrepair in the existing housing stock. As a result, a million homes have already been made decent. We will continue this programme to bring all social housing into a decent condition by 2010.

  18.  Our priority for new action and investment is to increase housing supply where it is needed and, as a result of SR04 will, together with efficiency improvements, produce 75,000 social rented homes and 40,000 homes for essential public sector workers and low cost homeownership over the three years to 2007-08.

  19.  Our strategy is reducing the most damaging aspects of homelessness, providing a stronger statutory safety net, promoting more strategic and preventative approaches and improving the supply and condition of social housing. There is further to go, but we believe this combination of approaches will work to reverse the rising trends in temporary accommodation use that we have seen in recent years.

  20.  We welcome the Select Committee Inquiry as an opportunity to review these approaches and the views of stakeholders to inform our future strategy and work.

STRENGTHENING HELP TO PEOPLE WHO ARE HOMELESS, OR AT RISK OF HOMELESSNESS

  21.  The homelessness legislation provides statutory under-pinning for action to tackle homelessness. It places a general duty on authorities to ensure that advice about homelessness and preventing homelessness, is available to everyone in their district free of charge. Under the legislation, certain categories of household, for example, families with children and households that include someone who is vulnerable, for example because of pregnancy, old age, or physical or mental disability, have priority need for accommodation. Local authorities must ensure that suitable accommodation is available for people who have priority need, if they are homeless through no fault of their own. The local authority can provide accommodation in their own stock or arrange for it to be provided by another landlord, for example a housing association or a landlord in the private rented sector.

  22.  In 2002, the Government amended aspects of the 1996 Housing Act which had reduced the rights of homeless people. We strengthened the homelessness legislation through the Homelessness Act 2002 and the Homelessness (Priority Need for Accommodation) (England) Order 2002 to:

    —  strengthen the assistance available to people who are homeless or threatened with homelessness; and

    —  ensure a more strategic approach to tackling and preventing homelessness, in particular by requiring a homelessness strategy for every housing authority district.

  23.  The Homelessness Act provided greater certainty for homeless households by amending key provisions in the 1996 Act. The Act ensures that councils must take steps themselves to ensure that suitable accommodation is available for everyone in priority need who becomes homeless through no fault of their own—and that this continues to be available for as long as necessary until a settled home becomes available.

  24.  The Homelessness (Priority Need for Accommodation) (England) Order, (PNO) extended priority need to homeless 16 and 17 year olds (with certain exceptions), care leavers aged 18, 19 and 20; people who were vulnerable because of time spent in care, the armed forces, prison or custody; and people who are vulnerable as a result of having to leave their accommodation because of violence.

  25.  Taken together, these legislative changes have ensured that more people are assured of homelessness assistance and will receive help when they need it. In the short-term, this has meant more people being accepted by local authorities as unintentionally homeless and in priority need and so has added to the numbers placed in temporary accommodation pending a settled home. But many of these are people who would have been left to fend for themselves under the previous legislation.

  26.  Statistics show that the number of households accepted by local authorities as unintentionally homeless and in priority need increased by around 16% between 2001-02 and 2003-04, although numbers have fallen slightly in the first half of 2004.

DEVELOPING A STRATEGIC APPROACH

  27.  Success in meeting the Prime Minister's rough sleeping target demonstrated the benefits of a strategic approach to tackling homelessness. In addition to strengthening the assistance provided for homeless people the Homelessness Act therefore required all housing authorities to have a homelessness strategy based on a review of all forms of homelessness in their district. The first strategies had to be published within 12 months of the Act coming into force, ie by 30 July 2003 and must be renewed at least every five years.

  28.  To assist local authorities with this process the ODPM issued good practice guidance, "Homelessness Strategies, a good practice handbook", as well as statutory guidance through the "Homelessness Code of Guidance for Local Authorities". Both documents made clear that an effective homelessness strategy will:

    —  provide information on the scale and nature of homelessness in the area;

    —  identify the additional accommodation and support required to meet those needs;

    —  identify the services needed to prevent homelessness occurring or recurring;

    —  identify the resources currently available to meet these needs;

    —  identify additional resources required;

    —  involve other public, voluntary and private agencies in partnership work; and

    —  spread best practice among agencies.

  29.  Every local housing authority in England now has a homelessness strategy in place to ensure that accommodation and support are available to all those who are homeless and at risk of homelessness. Put simply, this means that local authorities no longer concentrate solely on those who are accepted for a rehousing duty. Strategies should ensure that advice and assistance are available to those households who might not be owed a statutory duty for accommodation, including those who are homeless intentionally, or those whose housing circumstances are unsettled and therefore put them at risk of homelessness in future.

  30.  The Homelessness and Housing Support Directorate within ODPM provides practical help and assistance to local authorities in drawing up their strategies and continues to work with them as they are implemented. The Directorate has provided individual feedback to all 354 local housing authorities in England and will shortly be publishing the results of an independent evaluation of the strategies, undertaken by Housing Quality Network Services (HQNS).

  31.  Their evaluation confirms that the Homelessness Act has made a real difference in the way in which local authorities now approach their homelessness duties. Although there are some acknowledged gaps in the coverage of some strategies, the overall message is that local authorities found the process of undertaking the homelessness review and putting together their strategy a very positive one. For the first time authorities were asked to take a wholesale look at their homelessness services and consider where it fitted into the corporate aims of the authority. As never before, local authorities drew on the views of service users, other agencies and other local authorities, and other council departments. HQNS concluded that most authorities had gained a good understanding of the causes of homelessness in their areas which were reflected in their prevention strategies. We are considering a number of recommendations made by HQNS on ways in which local authorities, housing associations and Government can work together to further improve local authorities' homelessness strategies.

EVIDENCE BASED POLICY

  32.  The HQN work is part of a large and varied programme of work ODPM is carrying out to improve the evidence base on homelessness and to help to understand these issues better.

  33.  Statistics and research play an important part in informing the development of homelessness policy. "More than a roof" identified the following priorities for improvements in the evidence base:

    —  Improvements in statistics about homeless families and individuals;

    —  Investigating the underlying causes and trends of homelessness, including a better understanding of Black and Minority Ethnic issues;

    —  Better information about cost effective measures to reduce and prevent homelessness.

  34.  ODPM is carrying out a programme of work to address these issues. This includes enhancements to statistical reporting from local authorities on operation of the homelessness legislation, while current research projects include a survey of homeless families and homeless 16 and 17 year olds; homelessness amongst Black and Minority Ethnic groups; and identification and promotion of effective homelessness prevention initiatives.

IMPROVEMENTS IN STATISTICS ABOUT HOMELESS FAMILIES AND INDIVIDUALS

  35.  Local Authorities report a comprehensive summary of homelessness information to ODPM on a quarterly statistical return (P1E), published as National Statistics. This return monitors local authority operation of the homelessness legislation and the range of data is regularly reviewed to ensure that it reflects and informs policy development. Further improvements in the collection of statistical data are planned for 2005 about which we will be consulting local authorities shortly.

  36.  Recent additions to the data collected include information about ethnicity according to Census categories. The list of reasons why people are assessed as being in priority need due to vulnerability was extended to include drug and alcohol abuse, and whether applicants are former asylum seekers. The return now also seeks information on levels of repeat homelessness; any secondary categories of priority need; and the numbers of children in each type of temporary accommodation.

  37.  Attention over the past two years has focussed on improving both response rates and the quality of data received. Recent significant changes and expansions to the range of data collected have been drawn up following consultation with local authorities who have generally been very co-operative and supportive of our aims.

  38.  The use of Interform—the secure submission of statistical returns via the Internet—has simplified the task for authorities and incorporates validation checks at source, saving time and effort for ODPM's data collection team in Bristol. Improved data quality and response levels have reduced the degree of imputation needed for missing data, and enhanced the reliability of our analyses—around 95% of authorities now submit returns compared with 90% one year ago. Statistical Releases and other outputs are available via the ODPM website (www.odpm.gov.uk) and more detailed data is freely made available on request.

  39.  The Housing Data and Statistics division continues to emphasise the benefits, for both ODPM and local authorities, in obtaining timely and accurate P1E data, and are considering further ways to feedback customised analyses to authorities to meet their research needs and inform further development of their homelessness strategies.

  40.  The timely and accurate collection of robust data is essential for informing policy decisions by giving us a picture of the scale and nature of current levels of homelessness. However in order to understand more clearly the reasons for homelessness we have a programme of research to investigate in more detail key issues. Current projects are:

    —  Investigating the underlying causes and trends of homelessness, including a better understanding of Black and Minority Ethnic issues

    —  Identifying and promoting effective measures to reduce and prevent homelessness.

  41. Other recent research undertaken to help improve the evidence base on homelessness policy includes:

    —  A report on the support needs of homeless households, which was published in 2003.

    —  An evaluation of homelessness strategies, which will be published later this year.

    —  A research project on the costs of homelessness, which will report by the end of this year.

  42.  All published research reports are available free of charge on the ODPM web-site at www.odpm.gov.uk.

JOINED-UP GOVERNMENT

  43.  Preventing homelessness is a key area of our work in tackling disadvantage and creating sustainable communities. Joint action across Government to reduce homelessness should have a positive and significant impact on reducing the prevalence of these problems and the wider costs that they impose on people, communities and society.

  44.  The ODPM's Homelessness & Housing Support Directorate is leading the work of the Accommodation sub-Board of the Home Office Reducing Reoffending National Action Plan. Building on the work initiated by the former Rough Sleepers Unit (RSU) and developed by the Directorate to deliver Housing Advice Services in prisons. The sub Board has commissioned the testing of a modular housing needs assessment for prisoners at induction which will feed into a Key Performance Target and an existing Key Performance Indicator to measure the success of prisons in addressing the housing needs of prisoners at induction and upon leaving prison

  45.  In December 2003 the Directorate and Comic Relief (who each invested £1 million in the project) and leading domestic abuse charities Women's Aid and Refuge, launched a new, national, round-the-clock freephone helpline for all women experiencing domestic abuse. The helpline is underpinned by the UKRefugesOnline service, which provides up to date information for helpline providers on the availability of refuge accommodation, as well as other important contact information and availability of services.

  46.  In 2003 the Government announced major investment in refuge provision in England in 2003-04. A total of £18.8 million capital has been allocated (£9.9 million through the Housing Corporation and £8.9 million from the Homelessness and Housing Support Directorate). The Government has also committed a further £7.5 million nationally in 2004-05 and 2005-06 to fund provision for additional refuge schemes, with an additional £5.8 million provided through the Housing Corporation programme. Priority has been given to projects arising from local authority housing and homelessness strategy reviews to meet gaps in service provision. On current plans this should provide 427 units of accommodation.

  47.  In March 2004 the Directorate, in partnership with the Department of Health produced guidance for local authorities and Primary Care Trusts (PCTs) on shared positive outcomes in health and homelessness, to help tackle the health inequalities that homeless people face. Leicester is the first PCT/housing authority to sign up to all five shared outcomes. The Directorate is also working with the National Institute for Mental Health in England (NIMHE) to research and promote best practice on joint mental health and homeless solutions.

  48.  The Directorate has worked closely with the Department for Work and Pensions (DWP) to prevent homelessness by influencing new policies and Housing Benefit administration and by aligning voluntary sector employment schemes with the DWP's agenda to improve the employability of homeless people. The Directorate is also scoping work to test policies to reduce the work disincentive for households in temporary accommodation and worked in partnership with Jobcentre Plus in London to provide outreach benefits advice in hostels, emergency shelters and day centres.

  49.  The Directorate has worked with the Ministry of Defence (MOD) and ex-Service Benevolent Sector to tackle and prevent homelessness prior to, at the point of, and after discharge. The Directorate, in partnership with the MOD, Business Action On Homelessness and key corporate defence partners set up Project Compass to improve the employability of ex-Service Personnel. The ODPM has contributed funding to Kings College to develop a feasibility study to establish what proportion of rough sleepers and homeless households are ex-service personnel. In addition, the Priority Need Order and capital schemes to develop additional bedspaces have strengthened the safety net and amount of supported accommodation for vulnerable ex Service personnel.

  50.  Examples of positive joint working with the Department for Education and Skills (DfES) include joint guidance on Careleaving strategies and Connexions guidance on to join up agencies working with vulnerable young people. The Directorate and DfES have contributed funding to the "Safe Moves" research, pilots and toolkit linked to Foyers work to prevent youth homelessness. In addition the Directorate also brought together key players and negotiated a rescue package for the Children's Refuge in London which provides respite care and support for young runaways. The Directorate is also working closely with colleagues from DfES to focus assistance to help the many children and young people living in families that have experienced homelessness.

ENCOURAGING NEW RESPONSES TO PREVENT HOMELESSNESS

  51.  There are a wide range of policies and services that can tackle homelessness which authorities can either provide themselves or commission others to deliver. The causes of homelessness can be complex and involve a mix of personal problems such as tension between family and friends, relationship breakdown (often associated with domestic violence) or debt. The Homelessness & Housing Support Directorate has encouraged innovative responses to help people overcome these problems and prevent them from leading to homelessness. We have worked to achieve this in a number of ways. Direct funding has helped authorities to pump-prime schemes targeted towards the main causes of homelessness in their particular areas. Around £100 million was available in 2002-03; £60 million in 2003-04; and £60 million in 2004-05. Of this around £15 million-£20 million was allocated direct to voluntary sector agencies who were providing national or cross-borough services. Local authorities have used this funding to reduce rough sleeping and use of B&B hotels for homeless families and for a range of prevention projects including:

    —  improved housing advice teams;

    —  services for young people;

    —  rent deposit and bond schemes; and

    —  mediation services for singles and young people.

  52.  The Directorate has been assisting local authorities in developing these schemes and spreading awareness of good practice, including working with seven Beacon Councils (Trafford, Rochdale, Bolton, Camden, Harrow, Colchester and Leicester).

  53.  The Directorate has also issued advice to local authorities about positive outcomes that we would like local authorities to achieve through effective delivery of their homelessness strategies: reduced levels of repeat homelessness; reduced levels of homelessness against the main causes; and reduced inappropriate use of temporary accommodation. Details are given in "Achieving Positive Outcomes on Homelessness", issued in April 2003. Since then we have been encouraging local authorities to sign up to achievement of these objectives through our funding agreements with them.

  54.  The Directorate has also issued several publications which give additional examples of best practice around specific themes. Publications include a quarterly briefing on a different policy issue, timed to coincide with the release of quarterly homelessness statistics. In addition we published a Handbook in July 2003 containing good practice examples to help assist local authorities in reducing their use of B&B hotels. A second handbook will be published later this year. Both handbooks show sensible and effective approaches to reduce homelessness, providing case study examples and contacts. A list of the Directorate's publications is attached.

  55.  The emphasis in the good practice handbooks is on the "people" factors associated with homelessness. The Government's Supporting People programme, which took effect from 1 April 2003, complements these aims through provision of housing related support services to a wide range of vulnerable people. The programme is designed to ensure that vulnerable people have the opportunity to live independently in their own home.

  56.  The 2004 Spending Review has announced funding for Supporting People for the next three years of £1.72 billion in 2005-06 and around £1.7 billion in each of the following two years. This is the first time that there has been a three-year settlement for this programme, creating stability and enabling Administering Authorities and providers to plan more strategically to deliver housing-related support services. In line with the Gershon Efficiency Review we are taking forward some of the value for money recommendations of an independent review of Supporting People services (undertaken by Eugene Sullivan of Robson Rhodes) which identified wide variations and costs of services and levels of inefficiencies. We know from our research that there is scope for efficiency savings to be found, whilst enabling Administering Authorities and providers to deliver good quality, value for money, strategically relevant services.

REDUCING THE USE OF B&B HOTELS FOR HOMELESS FAMILIES WITH CHILDREN

  57.  Many households accepted as homeless will be placed in temporary accommodation until settled (usually social) housing is available. Temporary accommodation includes council or housing association stock but let on a short term basis, property leased by the council (or a housing association) from a private landlord, hostels and bed and breakfast hotels.

  58.  The number of households in temporary accommodation has increased in recent years, and stood at 99,000 at the end of June 2004. Around 82% of these are in homes let on a temporary basis in the private or social rented sectors. The number in shared accommodation (B&B hotels, hostels and women's refuges) has remained fairly steady in recent years but has fallen to around 18% as a proportion of all temporary accommodation used.

  59.  Within these figures, the use of B&B hotels by local authorities to accommodate homeless households increased to just over 13,000 at the end of September 2002 (marginally below the peak of 1991) but has been falling consistently since then and stood at 7,220 at end of June 2004.

  60.  One of the Government's main concerns when the Directorate was set up, was to ensure that children from disadvantaged backgrounds had a better start in life. It was recognised that living in poor conditions, such as in B&B hotels, increases the likelihood of poor health and lack of educational attainment.

  61.  The Government therefore set a challenging target in March 2002, that by the end of March 2004, no homeless family with children should be accommodated in a B&B by a local authority, except in an emergency and even then for no longer than six weeks. The Directorate undertook positive action providing advice and support to local authorities developing and implementing action plans to reduce the use of B&B and also played a key role in enabling good practice to be shared between authorities. The Directorate also worked with the Department for Work & Pensions (DWP) on important changes to Housing Benefit rules and subsidy regulations enhancing the opportunities for accessing good quality self-contained alternatives to B&B.

  62.  From the Directorate's funding, around £35 million in 2002-03 and £15 million in 2003-04 was targeted to help local authorities be innovative, proactive and effective in meeting the B&B reduction target. In 2004-05 local authorities were allocated £45 million to sustain the B&B target, sustain the rough sleeping target and tackle homelessness more effectively.

  63.  The B&B target was met with the number of homeless families with children in B&B for over six weeks falling by 99.3% between March 2002 and the target date of March 2004. Estimates show this represents a reduction of around 6,000 in the number of children living in B&B for longer than six weeks over the last two years. Out of 354 local authorities only 17 failed to meet the March 2004 target. All London Boroughs—traditionally the highest users of B&B—successfully met the target.

  64.  We are not prepared to see the use of B&B for families with children become the norm again. The target will be reinforced and sustained through the Homelessness (Suitability of Accommodation) (England) Order 2003 which came into force on 1 April 2004. The Order means that local authorities are no longer able to discharge their homelessness duty to secure accommodation by placing families with children in B&B for longer than six weeks. If authorities fail to comply with the Order, their decision can be subject to review and then can be challenged in the courts.

SUSTAINING THE TWO-THIRDS REDUCTION IN ROUGH SLEEPING

  65.  The most visible form of homelessness is that of people sleeping on the streets. In 1998 the Prime Minister set a target that by 2002 the numbers of rough sleepers should be reduced by at least two thirds from the then level of 1,850. The Prime Minister announced on 3 December 2001 that the Government had met this target and estimates published since then show that reductions are being sustained, with levels in 2004 being more than 70% lower than in 1998. Reductions in the centre of London have not been as great—though they are over 57%—and the highest concentration of rough sleepers are still found there. The Directorate continues to work closely with local authorities to reduce this number still further.

  66.  Reductions have been achieved, and sustained, through advice and support from the Homelessness and Housing Support Directorate in implementing rough sleeping and single homelessness strategies. Our action includes encouraging partnership working between local authorities, voluntary sector agencies and other statutory bodies.

  67.  One issue which we have targeted our action towards is substance misuse amongst rough sleepers and single homeless people which we know in hostels runs as high as 90% in some areas and is a major barrier in preventing people from moving away from the street. The ODPM, together with the Home Office and Department of Health, successfully targeted treatment funds for this group. The Department continues to work closely with the Home Office and National Treatment Agency to ensure Drug Action Team Treatment Plans are aligned with local authority homelessness strategies (in areas where there were historically high levels of rough sleeping).

  68.  We are now turning our attention to improving hostels which have been instrumental in achieving rough sleeping reductions. However we know that over half of rough sleepers move out of first stage hostels as a result of either eviction or abandonment. The ODPM is now taking the opportunity to improve both their operation and physical layout to improve outcomes for homeless people. A Hostels Pilot was undertaken to gain a greater understanding of high turnover and a toolkit to improve the effectiveness of hostels is under consideration by local authorities and the voluntary sector. Our capital investment programme will support physical improvements such as the removal of dormitory provision and the creation of training and "keyworking" rooms in existing projects to improve work with residents.

ENSURE THE OPPORTUNITY OF A DECENT HOME FOR ALL

  69.  The availability of a settled, affordable home is a vital part of our work to tackle homelessness and in build sustainable communities. ODPM has therefore been taking action to improve the quality of existing housing and to maximise its use, as well as increase new provision.

  70.  We are still living with the legacy of dramatic cuts in housing investment under the last administration. Between 1993 and 1997 capital spending on housing was halved, falling from £3.2 billion to £1.65 billion. The Government moved quickly to reverse this trend and since 1997, we have tripled total housing capital investment which will reach nearly £5 billion in 2005-06. This previous lack of investment not only impacted on the number of affordable and social housing units, but also on the condition of the existing social stock.

  71.  Many of the issues we are now confronting are a result of economic success. The Government's economic policies, creating the right conditions for low interest rates, and avoiding a return to "boom and bust", have ensured confidence in the housing market. A strong economy has also produced significant economic in-migration, which has put pressure on the housing market particularly in London and the South East, whilst other areas of the country are suffering low demand.

  72.  The provision of more affordable housing is key but we should not neglect the need to ensure that our existing stock of social housing is properly looked after and that it offers decent housing conditions to tenants.

  73.  In 1997, we inherited an estimated £19 billion backlog of repairs and maintenance work in council housing. This reflected significant under-investment over a number of years. Investment in the existing council housing stock in 1997-98 was only around half that of 10 years earlier in real terms.

  74.  We have set a target to bring all social housing up to set standards of decency by 2010, and to reduce the number of social tenants living in non-decent homes by one third between April 2001 and March 2004, with most of the reduction taking place in deprived areas.

  75.  We have backed this target with some significant increases in investment. For example, in 1997-98, planned central government support for local authority housing capital investment was £750 million. We have increased this year on year to £1.9 billion in 2000-01, and to £2.6 billion in 2002-03 (excluding funding through the Private Finance Initiative and through local authorities' own contributions). The funding is now bearing results and have reduced the number of non-decent social homes by one million.

Adequacy of existing supply and the level of resources available

  76.  We are acutely aware that, in many housing hotspots, in London and the South East especially, high demand for housing means many people face difficulties in securing good quality housing at an affordable price whether it be for rent or to purchase. A supply of good quality affordable housing is essential in maintaining balanced and successful communities. Delivering new affordable housing where it is needed, in more sustainable forms, is one of our key priorities.

  77.  To make progress in tackling this issue, we are increasing resources for housing generally, and for affordable housing specifically. By 2005-06, central government support for capital investment in housing will have risen to more than £5 billion compared with planned spending of £1.5 billion in 1997-98. Investment through the Housing Corporation rose to over £1.6 billion in 2003-04 with promised investment of £3.3 billion over the two years 2004-06.

  78.  We are also concerned about the ability of key workers to buy their own homes in areas where high house prices are undermining staff recruitment and retention. These workers support the communities in which they live. Following our investment of £250 million through the Starter Home Initiative we have developed the Key Worker Living programme which is part of the ADP investing £690 million over the two years in areas of high demand.

  79.  Despite the increase in investment, the number of new affordable homes being built is still below that of the mid 1990s, due to a huge rise in development costs, and the private sector has not been building enough houses to keep up with demand. Investment through the Housing Corporation's approved development programme provided over 16,100 homes for rent in 2003-04 along with over 6,100 homes for low cost home ownership.

The balance of allocation of new resources between social housing and low cost home ownership schemes

  80.  The Government is keen to meet the needs both of those in priority housing need who require rented accommodation, and of those, especially key workers, who are unable to achieve their aspirations to home-ownership without assistance. But we must be realistic about our ability to resolve every housing problem through public funding.

  81.  The key action in tackling affordability is to ensure a better balance between supply and demand. We have expressed our determination to address this issue, ensuring delivery of the housing numbers set out in regional planning guidance, accelerating proposals for the growth areas, and creating a more efficient planning system. But the Government recognises that, even where supply and demand are well balanced, there will still be some who will need assistance to gain access to a decent home.

  82.  Where existing social tenants aspire to home ownership and can sustain this, assistance through the use of low cost home ownership products can release existing properties for use for rent to others in priority need.

  83.  As part of the Spending Review we have a clear remit to turn around the growth in homelessness by 2008. The funding provided in the Spending Review will, along with efficiency improvements, produce 75,000 social rented homes and 40,000 homes for essential public sector workers and low cost homeownership over the three years to 2007-08.

  84.  Decisions have not yet been taken on how Regional Housing Pot funding for 2006-07 and 2007-08 (including the additional funding for affordable housing) will be split between regions. This needs to reflect the different pattern of needs across regions and the Government's national housing priorities, including development of the growth areas, and targets. We are aiming to complete this work, which raises some complex issues, by the end of the year. We then intend to announce decisions on allocation of funding within regions next summer in the light of recommendations from Regional Housing Boards, which are due in May next year.

  85.  It is important to see the package as a whole, with increased housing numbers, along with reforms to the planning system, a more responsive house building industry, more affordable housing, and increased resources to support investment in infrastructure and social housing.

  86.  We must not forget that the management of existing stock also has a key role in reducing the levels of homelessness. The Housing Corporation not only has an investment role in the provision of more affordable housing but also influences letting policies of housing associations through their regulatory regime.

CONCLUSION

  87.  We have made significant progress since 1997 in tackling the worst manifestations of homelessness and have met, and are sustaining reductions in rough sleeping numbers and in the use of bed and breakfast accommodation. We have provided a stronger statutory safety net and will continue to promote effective homelessness prevention measures. Coupled with investment to increase housing supply where it is needed, we believe this will reverse the rising trends in temporary accommodation use that we have seen in recent years.

ODPM

September 2004

ODPM Homelessness Publications

  Homelessness code of guidance for local authorities http://www.odpm.gov.uk/stellent/groups/odpm_control/documents/contentservertemplate/odpm_index.hcst?n=869&l=3

  More than a roof: a report into tackling homelessness http://www.odpm.gov.uk/stellent/groups/odpm_homelessness/documents/page/odpm_home_601520.hcsp

  Housing associations and homelessness briefing http://www.odpm.gov.uk/stellent/groups/odpm_homelessness/documents/page/odpm_home_027314.hcsp

  Homelessness Act 2002_summary of provisions http://www.odpm.gov.uk/stellent/groups/odpm_homelessness/documents/page/odpm_home_601519.hcsp

  ODPM advice note Achieving positive outcomes in homelessness http://www.odpm.gov.uk/stellent/groups/odpmhomelessness/documents/downloadable/odpm_home_609541.pdf)

  Homelessness strategies: a good practice handbook http://www.odpm.gov.uk/stellent/groups/odpm_homelessness/documents/page/odpm_home_601517.hcsp

  Reducing B&B use and tackling homelessness: What's working www.odpm.gov.uk/stellent/groups/odpm_homelessness/documents/page/odpm_home_023783.hcsp

  Achieving positive shared outcomes in health and homelessness http://www.odpm.gov.uk/stellent/groups/odpm_homelessness/documents/page/odpm_home_027792.hcsp

Homelessness Policy Briefings

  Policy Briefing 1: BME issues.

  Policy Briefing 2: Domestic violence

  Policy Briefing 3: Bed and breakfast

  Policy Briefing 4: Prevention of homelessness

  Policy Briefing 5: Improving employment options for homeless people.

  Policy Briefing 6: Repeat homelessness.

  Policy Briefing 7: Addressing the health needs of homeless people.

  Policy Briefing 8: Improving the quality of hostels and other forms of temporary accommodation.

  All found at: http://www.odpm.gov.uk/stellent/groups/odpm_control/documents/contentservertemplate/odpm_index.hcst?n=855&l=1





 
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