ANNEX C
THE GOVERNMENT'S RESPONSE TO ADDITIONAL QUESTIONS
RAISED IN RESPECT OF THE NORTHERN IRELAND AFFAIRS COMMITTEE'S
REPORT ENTITLED SOCIAL HOUSING PROVISION IN NORTHERN IRELAND (HC
493-I)
This document represents Government's response to
the additional questions posed by the Northern Ireland Affairs
Committee as a follow up to the Committee's report entitled
"Social Housing Provision in Northern Ireland" (HC
493-I).
It responds to the questions in the order they were
raised and refers to the numbering in the Committee's report.
Question 1
The Committee had called for the development of
a strong and inclusive regional housing strategy setting out a
vision for social housing in Northern Ireland. What consideration
has been given to the development of such an overall housing strategy?
(Conclusions, paragraph 129).
GOVERNMENT RESPONSE
The Department for Social Development (DSD) has given
serious consideration to the development of a Housing Strategy
for Northern Ireland. Government is advancing a number of significant
cross-cutting policies in Northern Ireland which have been influential
in deliberations and have featured strongly in discussions with
other key stakeholders across Government. A Shared Future, the
Review of Public Administration, the Investment Strategy for Northern
Ireland 2005-2015, the Sustainable Development Strategy and the
Anti-poverty Strategy will have immediate and potentially far-reaching
implications for the development of housing policy and the delivery
of housing related services.
DSD is acutely aware of the need to make connections
across traditional sectoral boundaries and continues to monitor
various developments and consider how these will impact upon
housing, particularly on the provision of social and affordable
housing in the future. DSD has engaged with the Department of
the Environment (DOE) and the Department for Regional Development
(DRD) to develop appropriate responses to the issues raised by
Kate Barker during her review of housing supply in 2004 and this
work will continue. DSD, in partnership with the Northern Ireland
Housing Executive (NIHE), the Northern Ireland Federation Of Housing
Associations (NIFHA) and other key stakeholders has developed
strategies covering many aspects of housing. For example, at a
regional level, strategies to address homelessness, manage Supporting
People, implement maintenance strategies and deliver private sector
grants are paying dividends - at a local level, initiatives such
as the North Belfast Housing Strategy, the various Community Safety
Partnerships and local District Housing Plans provide vehicles
through which to engage the communities in improving the quality
of not only their accommodation but also the wider environment.
Interventions targeted at geographical areas or specific client
groups demonstrate that in relation to many issues there is rarely
a "one size fits all" remedy. The nature
of recent cross-Departmental policy developments has highlighted
and reinforced the enormous potential for housing to play a critical
role in advancing a range of varied initiatives from community
safety through economic development. DSD will therefore continue
to concentrate efforts on progressing and contributing to the
delivery of cross-cutting policies and programmes that produce
sustainable communities.
To support DSD's aim of creating and sustaining synergies
across relevant Government Departments and to provide a robust
evidence base from which to progress, DSD, in partnership with
the NIHE, has commissioned an overarching piece of research into
the operation of the housing market. This work, due for completion
in Autumn 2006, will be conducted by the Centre for Urban Studies
at the University of Glasgow and the School of the Built Environment
at the University of Ulster. The research will support the policy
review/development process and will facilitate wider debate on
the challenges inherent in providing housing related services
in Northern Ireland.
Question 2
What progress has been made on developing the
homelessness strategy following the consultation on "Promoting
the Social Inclusion of Homeless People" which ended in February
2005? (Recommendation 1, paragraph 32)
GOVERNMENT RESPONSE
The consultation paper "Promoting the Social
Inclusion of Homeless People", which was published on 4 November
2004, proposed that there should be a statutory requirement for
NIHE to publish, every five years, a strategy for preventing and
alleviating homelessness. Consultation ended in February 2005
and DSD has analysed the responses, which were largely supportive
of the proposals in the consultation document. DSD is currently
engaging with other Government Departments and agencies on issues
arising from the consultation which impact directly on their respective
areas of responsibility. It is envisaged that a final report will
be submitted to the Minister by January 2006. If the proposal
for a statutory requirement for a homelessness strategy is accepted,
this will be progressed through a future Housing Order.
While there is no statutory requirement for NIHE
to have a homelessness strategy, NIHE has been taking a strategic
approach to the problem for some years and published its first
Homelessness Strategy in September 2002. The strategy identifies
individual client groups in need of assistance, particularly the
very vulnerable. Homeless Area Plans have been devised at a local
level to address the needs of homeless people, particularly victims
of domestic violence and people with disabilities, learning difficulties
and addiction problems. The plans are reviewed annually and updated
appropriately. Strategic measures designed to assist those who
are at risk of becoming homeless include mediation, debt counselling,
housing advice and 'floating' support services. As part of its
Homelessness Strategy, NIHE has adopted homelessness targets which,
as a minimum, reflect those set for England by the Office of the
Deputy Prime Minster.
Question 3
The Committee warned that 'if urgent action is
not taken a crisis in the supply of social housing seems inevitable'.
What measures have been taken to meet the needs of the increasing
number of people on the social housing common waiting list, given
the Department's recognition that the new build requirement has
further increased to around 2,000 dwellings per annum? What indicators
have been identified to ensure that these measures address the
shortfall? What target has been set for new build social housing
in the current and future years? (Recommendations 2 & 3, paragraphs
48-49)
GOVERNMENT RESPONSE
The majority of need for social housing continues
to be met by re-lets -approximately 8,000 properties are re-let
each year providing an important continuous stream of affordable
housing for rent. At the end of October 2005, NIHE reported that
the average waiting time for a social house in Northern Ireland
was twenty-four and a half months.
DSD has implemented a range of measures to support
delivery in 2005/06. The main constraint in achieving the new
build target is the availability of land in the areas where NIHE
has determined the need to be. This is being addressed through
the new Advance Land Purchase arrangements that DSD has put in
place. Over the past 2 years, £35m has been spent on advance
land purchase providing sufficient land for around 844 programmed
units. In the current year, a budget of £16m will allow
the Advance Acquisition of Land facility to be utilised to secure
land for around 370 units.
Housing need estimates are recalculated annually
by NIHE and the latest assessment is that there is a need for
some 2,000 units per year. The available budget, however, will
not sustain that level of building. The current target therefore
remains at 1,500 but DSD is actively engaged in discussions with
the Department of Finance and Personnel about future funding and
ways of getting greater benefit for the Social Housing Development
Programme (SHDP) from within the budget available. DSD is also
actively pursuing the efficiency agenda with Registered Housing
Associations (RHAs) and it is anticipated that this will secure
better value for money and improve performance in the delivery
of the SHDP.
Question 4
The Committee drew attention to the unacceptable
delay in finalising Planning Policy Statement 12 (PPS 12) 'Housing
in Settlements'. Which elements of the now published PPS 12 will
address the supply of land for social and affordable housing and
how will the Government ensure its speedy implementation? (Recommendation
4, paragraph 62)
GOVERNMENT RESPONSE
DRD published PPS 12 in July 2005. It was prepared
in close consultation with DOE, DSD and NIHE because of the range
of issues on social and affordable housing. With regard to affordable
housing, it states that:
'It is considered that it is not appropriate
at present to impose an arbitrary level of affordable housing
to be delivered by the private market. This situation will be
monitored and kept under review.'
With regard to social housing provision, the document
states that the Northern Ireland Housing Executive will carry
out a Housing Needs Assessment (HNA). This will include an analysis
of social housing need in district council areas. DOE Planning
Service will use this in the preparation of a development plan
and will either zone land for social housing or set out
the requirements for social housing for specific sites. The zoning
of land for social housing will help facilitate the supply of
affordable housing.
In addition, in locations where a demonstrable housing
need is identified by the Northern Ireland Housing Executive,
planning permission for housing proposals will only be granted
where provision is made for a suitable mix of housing types and
tenures to meet the range of market and social housing needs identified.
The proportion of land or units to be set aside for social housing
will be determined as part of the development control process.
This is now being implemented. The draft Belfast Metropolitan
Area Plan was the first draft plan to zone land specifically for
social housing. As development plans are released, the requirements
of PPS 12 will be implemented.
Question 5
What progress has been made in developing area
plans and has a revised target date been set for the completion
of the suite of plans? (Recommendation 6, paragraph 71)
GOVERNMENT RESPONSE
Development Plans inform the general public, statutory
authorities, developers and other interested bodies of the policy
framework and land use proposals that will guide development decisions
within their local area. They provide an essential framework
for guiding investment by public, private and community sectors
and help harness additional resources through collaboration in
tackling problems.
Area Plan Delay
For some time, the Planning Service has had an ambitious
area plan programme covering the Council areas in Northern Ireland
without an existing up-to-date plan. In recent years, good progress
has been made in implementing a challenging programme. In the
past two years, three Adopted Plans and three Draft Plans including
the Draft Belfast Metropolitan Plan 2015 have been published.
Collectively, this covers 14 of the 26 Council areas in Northern
Ireland. Draft Plans for a further 8 are under preparation.
The remaining 4 are already covered by up-to-date adopted plans.
In October 2004, the Planning Service was forced
to review the rapidly increasing and unprecedented workload pressures
being faced by the Agency as a whole. After very careful consideration,
it was decided to concentrate as much resources as possible for
a period of time on dealing with planning applications. The re-allocation
of staff did, however, have a knock on effect on emerging area
plans and resulted in some delay to the plan programme. The period
of reallocation of resources has now come to an end. The Planning
Service is fully committed to moving the challenging Development
Plan programme forward as quickly as possible. This means that
a full plan programme will proceed for the following year. Details
of the recent Development Plan documents published to date and
the target dates for future publications are attached in Annex
1.
Question 6
What has been the outcome of the consultation
on the proposal to transfer management of the social housing programme
from the Department for Social Development to the Northern Ireland
Housing Executive? What consideration has been given to returning
some responsibility for the direct provision of the new build
programme to NIHE? (Recommendations 7 & 8, paragraphs 76-77)
GOVERNMENT RESPONSE
Responses to the consultation on the proposal to
transfer management of the Social Housing Development Programme
(SHDP) were generally positive; all respondents from the voluntary
housing movement endorsed the proposal. A summary of the responses
is available on the DSD web-site and can be accessed via the following
link: http://www.dsdni.gov.uk/transfer_of_functions.doc
The proposal has been approved by Minister and DSD
is advancing the primary legislation necessary to affect the transfer.
Whilst administrative arrangements are proceeding progress is
dependent upon securing a slot in the legislative timetable.
However, to ensure timely consultation with key stakeholders and
facilitate the participation of the voluntary housing movement
and its representative body, the Northern Ireland Federation of
Housing Associations (NIFHA), in the development of an Implementation
Plan, appropriate mechanisms will be put in place to manage the
transition.
The question of returning some responsibility for
the direct provision of the SHDP to NIHE has not arisen. NIHE
is a Non Departmental Pubic Body and its expenditure - irrespective
of the source of that expenditure - scores as public expenditure.
RHAs on the other hand operate on a mixed funding regime. They
can raise, and spend, private finance without that scoring as
public expenditure. Thus only the Housing Association Grant paid
by DSD is a charge on public expenditure.
In 2004/05 an estimated £44m of private funding
was attracted into the budget by RHAs - the equivalent of around
490 units. Had NIHE been responsible for direct provision of
that new build programme, either the number of starts would have
had to have been reduced or the public expenditure would have
had to have been increased by equivalent amounts. Additionally,
the revenue costs involved in managing and maintaining NIHE properties
score as public expenditure. RHAs meet such costs from within
their own resources.
Question 7
What Government interventions have been identified
to address the negative impact of the House Sales Scheme and what
progress has been achieved to date? (Recommendation 10, paragraph
87)
GOVERNMENT RESPONSE
DSD is very aware of the potentially negative impacts
of a very successful social house sales scheme in the longer term.
Research commissioned by DSD which reported in March 2004[29]
reiterated many of the issues reported in numerous research findings
undertaken into the operation of the right-to-buy from 1980 onwards
in Great Britain[30].
This included the effect of increasing the stock of dwellings
allocated through market processes whilst reducing those allocated
through bureaucratic, needs-related processes. Research concluded
that a supply of former social houses has provided an important
addition in the stock of dwellings available to first time buyers.
Whilst studies have continually reported unexpectedly consistent
patterns in terms of property types sold and the socio-economic
characteristics of the purchasers, any policy of this nature will
result in losses and gains for some client groups. This is perhaps
most obvious during periods of rising house prices where a cohort
of social tenants, whose housing status qualifies them for an
option that produces a benefit unavailable to other households.
Differential impacts are experienced by later cohorts of social
tenants who may, as a result of declining supply, face longer
waiting lists or a reduced choice in accommodation. This reinforces
concerns about the residualisation of the sector and the associated
implications for social segregation.
The study into NIHE's House Sales Scheme conducted
by the Centre for Research on Property and Planning at the University
of Ulster and the Centre for Urban and Regional Studies at the
University of Birmingham suggested that if one dwelling is added
to the stock for every five of social dwellings sold, the net
effect, in terms of housing need, would be positive. Securing
the majority of new social dwellings via new build will also have
beneficial impacts in the longer term by increasing the overall
housing stock levels and contributing to important renewal programmes
in both urban and rural areas. Case studies in a number of rural
and urban areas have analysed the inter-action of the Scheme with
waiting lists, re-lets and the wider market. Findings indicate
that:
- The impact on public sector property supply is
less than might have been expected;
- The main difficulty in all study districts was
a relative absence of family-type accommodation for re-allocation.
However, the waiting list structure is increasingly weighted
towards single and elderly households;
- Only a proportion of the properties sold would
have become available for re-let during the life of the Scheme.
The statistical analysis suggests that there is,
at best, a weak connection between house sales and housing need.
The evidence shows that the areas experiencing the highest levels
of housing stress are those with the lowest rates of sales.
However, DSD has been concerned about some aspects
of the House Sales Scheme and prior to extending the right to
buy to tenants of Housing Associations, it was decided that an
in house review of the scheme should be carried out. This review
looked at issues such as the generosity of the Scheme in comparison
with schemes which operated in other parts of the UK and which
it was supposed to mirror. It considered other emerging factors
such as the growing involvement of private sector landlords as
purchasers of former NIHE houses and the potential for former
tenants to resell their homes within a short time span, in many
cases to private sector landlords, thus creating instability and
the potential to affect the sustainability of estates.
The review recommended a number of amendments to
the terms of the Scheme relating to the discounts awarded, and
the terms under which discount is repayable. New clauses making
it easier for social housing providers to repurchase former stock
in the event of a resale were also proposed. The measures were
subject to consultation and introduced in December 2004.
Since the Committee's Inquiry, DSD has continued
to progress a range of measures that directly and indirectly address
the need for social housing. DSD, via the Co-ownership Scheme
and the Social Housing House Sales Scheme, continues to support
individuals and families with aspirations to move into home-ownership.
DSD and NIHE are also actively advancing strategies to support
a vibrant private rented sector in Northern Ireland and ensure
that the sector is a viable option for individuals and families
in need.
DSD continues to work in partnership with NIHE and
RHAs to deliver the Social Housing Development Programme (SHDP),
the addition of properties to the stock is an important element
in meeting need. 15% of the SHDP is allocated for the provision
of special needs housing and the remainder of the SHDP dedicated
to general needs. The dedication of a proportion of the SHDP
to family accommodation mitigates the adverse impact of the House
Sales Scheme on the profile of NIHE's stock. The SHDP has been
skewed to ensure that the future needs of rural and urban communities
are met; this has involved committing 10% of the SHDP towards
meeting rural needs.
Efforts have also been sustained to protect and enhance
the condition of the social housing stock. Investment has been
directed via the NIHE's and RHAs' Maintenance Programmes at ensuring
all social housing meets the Decent Homes Standard by December
2010. Significant resources have also been committed to working
in partnership across sectoral boundaries to develop joint interventions
that respond in a holistic manner to the needs of the community.
One of DSD's flagship policies, the Neighbourhood Renewal Strategy,
is focussed on regenerating our most deprived communities and
access to safe, affordable housing has a key role to play in this
in terms of developing communities where people want to live and
work - the sustainability of communities underpins all of DSD's
actions.
Question 8
What progress has been made on setting a realistic
and sustained level of funding for the co-ownership scheme? (Recommendation
14, paragraph 96)
GOVERNMENT RESPONSE
DSD successfully bid for additional funding for the
Co-ownership scheme in Budget 2004, securing an additional £23m
over the 3 year period, thus increasing Government funding for
the scheme to almost £39m over the period. This will supplement
Northern Ireland Co-ownership Housing Association's contribution
of around £60m, thus providing assistance to over 2,400 participants
over the 3 year period.
Question 9
What are the results of the Department's research
into the relationship between housing benefit levels and expansion
of private renting? (Recommendation 16, paragraph 103)
GOVERNMENT RESPONSE
Preliminary findings from the research into the Private
Rented Sector, commissioned by DSD and conducted by NIHE, indicate
that Housing Benefit has played a vital role in the expansion
of the Private Rented Sector in Northern Ireland. Key players
interviewed for the research indicated that in some areas Housing
Benefit is actually sustaining the Private Rented Sector and that
the proportion of tenants in receipt of Housing Benefit can be
as high as 90 per cent. A comprehensive case study of private
lettings in Armagh city supports this assertion.
However, research into singles in Derry city, which
is nearing completion, indicates that a major reason for households
leaving the Private Rented Sector to move into social housing
is that Housing Benefit does not cover the full rent payable.
Analysis of housing benefit claims, however, shows that in around
half of all cases housing benefit rent levels are significantly
below the actual rent being charged.
DSD is awaiting the final reports and will consider
the implications of the findings for the sector within the context
of policy emerging from the Local Housing Allowances Pathfinder
Projects in GB.
Question 10
What progress has been made to date towards meeting
the targets in the Fuel Poverty Strategy published in 2004? (Recommendation
19, paragraph 112)
GOVERNMENT RESPONSE
Both the Northern Ireland Fuel Poverty Advisory Group
and the Inter Departmental Group on Fuel Poverty have been established.
A Fuel Poverty Partnership Fund has been created to fund locally
focused schemes to address fuel poverty among households that
either do not qualify or apply for help through the more mainstream
programmes.
Results from the interim house condition survey will
be available shortly and will provide detailed information on
the extent of fuel poverty and the energy efficiency of the housing
stock and will confirm progress against the milestone targets
set out in the strategy.
Question 11
What progress has been made by the Department
for Finance and Personnel in re-examining its building regulations
in relation to the Lifetime Home Standard? (Recommendation 21,
paragraph 118)
GOVERNMENT RESPONSE
DFP is committed to facilitating all people within
the built environment and has, since 1984, made specific provision
(Part R) for disabled people in the Northern Ireland Building
Regulations. All new dwellings that are designed to the current
Building Regulations standards provide a level of accessibility
referred to as "visitability" standard.
Research into and consideration of the practicability
of incorporating the Lifetime Homes Standard into the Building
Regulations is currently being undertaken by the Office of the
Deputy Prime Minister (ODPM). In association with the ODPM review,
the Joseph Rowntree Foundation is actively reviewing the present
Lifetime Homes Standard.
Progress on implementing the NIAC's recommendation
on Lifetime Homes is therefore dependant upon progress being made
in England and Wales. DFP will re-examine its building regulations
in relation to the Lifetime Homes standard in light of this research
and review. Any proposal to amend the regulations will be subject
to a full public consultation and a Regulatory Impact Assessment
will be prepared setting out the costs and benefits of any proposed
amendment.
29 McGreal, S., Berry, J., Adair, A., and Murie, A.
(2004) The Housing Executive's House Sales Scheme and the Housing
Market, DSD: Belfast. Back
30
Murie, A. (1975), "The Sale of Council Housing", Occasional
Paper, 35, (CURS, University of Birmingham).
Kerr, (1989), The Right to Buy. (DOE: HMSO)
Forrest, R. & Murie, A. (1984), Right to Buy? Issues of Need,
Equity and Polarisation in the Sale of Council Houses, (SAUS,
University of Bristol)
Forrest, R. & Murie, A. (1990), Moving n the Housing Market,
(Aldershot: Avebury)
Forrest & Murie, (1994), "Home Ownership in Recession",
Housing Studies, 9 (1).
Malpass & Murie (1994), Housing
Policy and Practice, (Macmillian: Basingstoke) Back
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