Select Committee on Communities and Local Government Committee Minutes of Evidence


Examination of Witnesses (Questions 140 - 155)

MONDAY 15 JANUARY 2007

COUNCILLOR BOB COPLAND, MR ALAN DAVIES AND MR STEVE CLARK

  Q140  Chair: That is fine. It was the none at all that I was asking about.

  Councillor Copland: That certainly is not the case. We would have to supply you with figures.

  Emily Thornberry: Do you have a target?

  Chair: It would be helpful afterwards if you would tell us because certainly from your written evidence the impression was given that you were not given any social housing out of section 106s, and it would be helpful to have an indication of what social housing you have out of section 106 and what was shared ownership and what was rented.

  Q141  Mr Hands: Referring to the very sharp decline in your stock that you mentioned, can you take us through that?

  Mr Davies: The stock has gone down from twelve and a half thousand properties in 1980, mainly as a result of the right to buy legislation.

  Q142  Mr Hands: What is it today?

  Mr Davies: Just over 6,000, of which 1,200 are sheltered accommodation units.

  Q143  John Cummings: In 2003 your tenants voted against a stock transfer proposal. Is this going to have an effect upon your ability to achieve the decent homes standard by 2010?

  Mr Davies: No, it is not. The tenants voted to stay with the local authority by a fairly significant majority, despite the Council at that stage fully supporting the transfer to an arm's length organisation. Changes in the subsidy system almost immediately after we took the tenants' vote mean we are now comfortably able to achieve the decent homes standards by 2010, and hopefully better. We see the decent homes standards very much as a minimum standard; we want to provide our tenants with much better accommodation and are working very closely with them to do that, and are very confident we will achieve that well before 2010.

  Q144  John Cummings: I think that answers the second question but I will certainly ask it for the record. Why do such a high proportion of your tenants wish to keep the Council as their landlord? And do not be shy!

  Mr Davies: I think you would need to ask the tenants that question. Most of our tenants genuinely felt they were getting a good service from the Council. Our transfer proposals were very much driven by finance at the time and our inability at that time to achieve the decent homes standards. Changes in the subsidy system now mean we can do that and when we carried out our stock options appraisal immediately after the vote, I think 90% of the tenants who voted at that stage were adamant they wanted to stay with the Council.

  Q145  Mr Olner: I know you all well, and just for the record I do represent Nuneaton in Parliament so I know a little bit about the problems such as the one Bob described when he was answering a question because unfortunately, like many other members, the member of Parliament is also the person responsible for making sure people are housed correctly, so I do know something about the housing problems. What I really wanted to ask, however, was what government formulas in funding are stopping Nuneaton and Bedworth borough council from building more council house properties to rent themselves? Is there any way you are being penalised? Is there any money being taken off you as an authority that you think is grievous and should not be taken off you?

  Mr Davies: The subsidy system as it works at the moment means that Nuneaton and Bedworth would probably contribute £3.3 million to the National Exchequer next year under the present subsidy rules, so that money is taken from our housing revenue account and redistributed to other authorities. We have recently concluded a deal with an RSL to provide social rented properties. We put in 250,000 pounds worth of land to get eight social rented properties. If you scale that up to £3.3 million, then, in a very simplistic way, you could look at providing 150 social rented properties on that basis. Having said that, it is much more complex, obviously. There are issues around land, planning, working with developers—there is a whole range of issues to take into account—but if that £3.3 million we contribute to the National Exchequer, stayed in Nuneaton and Bedworth we believe we could provide a lot more social rented housing for the people who need it most.

  Q146  Mr Olner: I know Nuneaton, and if this £3.3 million were taken off Nuneaton and Bedworth and given to other local authorities, who might those be?

  Mr Davies: At the moment I think the principal gainers are the London local authorities, and I think there are something like 200 local authorities who still retain their stock and are part of the subsidy system. Our understanding at the moment is that the principal gainers are London but I am sure experts could give you better advice on that than I can.

  Q147  Chair: On the private rented sector in your area, you said that are 700 properties empty for six months or more. Why are there so many empty properties in the private sector?

  Mr Clark: One of the problems is we do not know enough about them yet. We have just had a stock condition survey undertaken in the private sector where we have particularly looked at empty properties as well as those that are occupied. We are trying to work with landlords as well to try and make sure that people who have got empty properties bring them into use, and we are trying to work with them by means of helping them financially and to place tenants with them. But there are also quite a lot of empty properties and we are working through the Council Tax Register and other areas to try to identify who they belong to. Some are clearly people who need work doing to them before they could bring them into use; some are parts of estates that have not been wound up and so on, and it is quite individual to find out who they are and work with the owners to bring them into use. We have now restructured our staffing so we have staff to concentrate on the empty properties in the private sector and to work with the people who own them and to see what financial and other assistance we can give them to ensure they are brought back into use.

  Q148  Emily Thornberry: You do not have any way of penalising these people, do you, and if you do not, what sort of penalties do you think you should have?

  Mr Clark: The main method with empty properties is using the empty dwellings management orders which is a long, drawn-out process.

  Q149  Chair: Have you used any yet?

  Mr Clark: It was recently introduced under the Regulatory Reform Act where the local authority can supposedly work with people who have long-term empty properties to try and bring them into use, and the aim of that piece of legislation is that the owners themselves should bring them back into use rather than us compulsorily lease them, although compulsory leasing was one of the suggestions in the 2004 Act. But the empty dwellings management order is quite lengthy and drawn out, with a lot of notices being served, people being given time to do something or another notice being served or maybe going to court, so it is about the owners themselves filling the accommodation.

  Q150  Chair: But if they do not you can force them to?

  Mr Clark: If they do we not can lease them at the end.

  Q151  Mr Hands: Have you tried to take out any orders yet?

  Mr Clark: None yet. I have not read anywhere that anyone else has either, I have to say. I am sure someone knows somewhere that they have but I have not read any press that says anyone has taken any action yet. It is quite a lengthy, drawn-out process, probably about nine months if you had to follow the whole process, so I guess no one has actually got there yet.

  Chair: I have a property in my neck of the woods that has been empty for eight years, so even if it took nine months that would be worth it to bring it into beneficial use.

  Q152  Emily Thornberry: On your tenant involvement strategy, how do you support tenants who want to take on some sort of management on their estate? How much power do they have, and do you think this is a way forward?

  Mr Clark: Yes, I very much think this is a way forward, and I was interested to hear the previous discussion. We have a full-time tenant participation officer and an assistant who does research and supports the groups around the borough. We have a very active tenants' forum, and a number of tenant groups around the whole of the borough. They are supported by those officers specifically related to TP working, helping them to set up, with funding, training; we go out and meet with them, we help with their work on the estates; they are very much involved in the procurement process, particularly with kitchen and bathroom improvements, appointing the contractors, setting standards, monitoring our processes for empty properties and so on. We very much see it as an integral part of the work. In fact, we feel it would be difficult to offer anything like a decent housing service without involving our tenants in the way we try to do. Again, listening to the previous discussion, some tenants want to be involved quite a lot; some want to be involved very little. Some people are happy to respond to questionnaires, some like meetings and so on, so it is quite a breadth of involvement we offer.

  Q153  Chair: From your experience, firstly, would you agree with the previous witness that where tenants are involved it increases the quality of the estate and, secondly, why is it that some tenants want to participate and others do not?

  Mr Davies: I think the answer is yes, tenants generally do want to be involved in the right way using the right mechanisms, and not everybody wants to come to meetings; some might want to be involved through newsletters or different mechanisms. We have found that where you do involve tenants you get a better service. For example, we fully involved tenants in choosing our new partnering contract to support providing kitchens and bathrooms. In that area tenants wanted to be fully involved, they wanted to look at the choices of finishes and help us choose the right contractor, and we were able to achieve not just a better deal but also greater value for money and efficiency. So if you involve tenants in the right way using the right mechanisms on the right subjects then you will get a better service, and that certainly in our case has been demonstrated by our satisfaction survey results where we have seen an improvement in the tenant satisfaction levels in the recent survey, where we even had high satisfaction levels previously.

  Councillor Copland: It is always going to be the case, some people will be involved and some will not. It happens at election time, for instance. It is so important, but how many turn out? It is just human nature, but it certainly is better for the tenants when they are involved. We are here to serve them.

  Q154  Mr Olner: If you have a shopping list that you wanted to alert the national government to give you, particularly on ASBOs on estates and so on, which would be your top two priorities?

  Mr Davies: I am not sure I would go to that level of detail. To me this issue has to be raised on the agenda both nationally and locally, and to give you a specific example we have negotiated a local area agreement in Warwickshire, as all local authorities have been doing over the last few years; I am not aware of one mandatory target around housing within that local area agreement. As we move to multi area agreements I think that has to be addressed. I think this issue has got to be raised on the national agenda.

  Q155  Chair: When you say a target on housing, do you mean numbers?

  Mr Davies: I think there has to be a target that people have to have affordable housing targets in their strategies. The second issue is down to resources. There have to be more resources put in through the Government Spending Review if at all possible. In terms of rented social housing that can be matched by other organisations, but there is a resource issue there at the end of the day if we are going to get more socially rented housing in this country.

  Chair: Thank you, and we will look forward to receiving the additional information we asked for.



 
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