Beyond Decent Homes - Communities and Local Government Committee Contents


Examination of Witnesses (Question Numbers 40-59)

MR NIGEL LONG, MR MICHAEL GELLING OBE AND MS TRISH CANHAM

26 OCTOBER 2009

  Q40  Chair: So the answer to the question: have tenants been kept informed and been involved in plans to manage the backlog after 2010, Mr Long?

  Mr Long: I think the answer to that, Chair, is that yes, the Decent Homes programme has been an incredible success, and there are lots of examples of tenants being involved in ensuring it is delivered effectively on the ground, and I think people are aware of the funding constraints, and that is why I think there is a big push towards the setting of local priorities. So for TPAS the debate would be how you move towards more local prioritisation, tenants making decisions on the ground, and therefore how they can access the funds through their landlords to actually deliver the next stage of Decent Homes. I think the previous speakers are right, we really have to think about Decent Homes 2, son and daughter of Decent Homes, but for us at TPAS the key thing is how we can build upon what has been the real success of tenant involvement in the first phase of Decent Homes, and ensure that takes us forward in the second phase of Decent Homes to deliver value for money again, but the answer to your question is yes, I think people are aware of constraints, but they are keen to address the challenges in the next phase.

  Q41  John Cummings: TAROE tells the Committee that Decent Homes standards are relatively weak. You also tell the Committee that you feel that steps should be taken to improve upon these, so that the national acceptable minimum standards across the sector are raised year by year. What specific elements of the current Decent Homes standards are weak, and what would you suggest we do to improve it?

  Mr Gelling: Well, the elements that are weak are the basic elements that tenants look at, so if you ask anybody, what would you class as a decent home, they would not say, well, if I had a modern kitchen at least 20 years old, that would be a decent home, and that is a standard with the Decent Homes. They would not say a reasonable modern bathroom, 30 years old or less, would be a decent home. Ordinary tenants are quite surprised when they see what a decent home standard is, because it is a very low bar. We would say that some of the best organisations that have gone down this road of Decent Homes have had Decent Homes Plus, because they have had tenant involvement, and they have added to those, those requirements of Decent Homes they have added to, so it has been a far more improved Decent Homes standard that they have signed up to.

  Mr Long: Could I just add to that, because I think Michael has made a very powerful point about initial standards, but what has come out of the consultations around the country is that often, Decent Homes standards themselves are not what is critical to people living on estates, hence the debate about the environment, and hence we have seen examples of landlords around the country not just delivering the Decent Homes, but improving the estates where people live as well, addressing anti-social behaviour, doing basic things, like actually it is much more important to get the security right first before you change the bathrooms. So the Decent Homes standards are weak at one level, and in the next stage of Decent Homes, what we have to do is not only, I think, address some of the low level standards, but address the wider issues, and I think the proposals around reforming the housing revenue account suggest that that might be being addressed.

  Ms Canham: I agree that the external environment is really important as far as the Decent Homes standards go. It seems that they are vital for people with physical and mental well-being, to have a good green environment, or access to a green environment. Locally where I come from, we have an officer who deals with something called local community action plans, so she visits all the communities to find out what they value most, and top of the list every time is access to green space, whether it is just a small patch locally, or somewhere larger. I think it is most important that that should be included.

  John Cummings: I would very much like to hear perhaps TAROE tell the Committee what you think is good about the Decent Homes standard.

  Chair: I think we had that at the beginning, Mr Gelling outlined what he thought was good. Can I pick up—

  John Cummings: I must have misunderstood there, Chair, because it did come across by Mr Gelling that there appeared to be nothing positive about the Decent Homes standards. I am perhaps mistaken in that assumption.

  Q42  Chair: I think at the beginning, in his introductory statement, he said a lot of good things about the Decent Homes programme. But the question I would ask is: I accept that tenants would suggest that the standard of Decent Homes is too low, but given that many homes were actually below even that very low standard, surely they do accept that it is a good idea to bring every home up at least to that low standard?

  Mr Gelling: I cannot object to what you are saying, but if you are living in a property that is below Decent Homes standards, I mean, why are you paying rent for that kind of property? That is the reality. But there is an expectation; if you empower people, if you involve people, as ALMOs do, as co-operatives do, as TMOs do, as some local authorities do, and as some housing associations do, and you raise their expectations, and they are involved in a Decent Homes programme, and the choices are there, as Nigel was saying, about the environment, and everything else is in that package, and how it is going to be funded, because it all should not come from housing either, the expectations have been raised. I am saying there are huge amounts of good work done under the Decent Homes banner, but the Decent Homes banner itself, in itself, by itself, is not a really high standard to achieve, but because of the involvement and the expectations and the work and the positiveness about doing work in a place, because we are investing in places, it is the additionality that goes with that that raises that expectation, and the quality of life for people in that environment.

  Q43  John Cummings: Have you drawn any general lessons about the best ways to involve tenants in the Decent Homes programme?

  Mr Gelling: If I had the template, I think I would be a millionaire, because what works for me as a tenant, with my landlord, might not work for you if you were a tenant with your landlord.

  Q44  John Cummings: How many landlords are you dealing with?

  Mr Gelling: Well, there are something like 2,300 housing associations in the country, there are 100 local authorities with retained council stock, there are 100 ALMOs, I think. Clive is far better briefed on that.

  Q45  John Cummings: What about private landlords?

  Mr Gelling: I do not know a great deal about private landlords, but in the 1996 Housing Act, when it set up the independent Housing Ombudsman, private landlords could voluntarily join.

  Q46  Chair: I think Ms Canham deals with private tenants, so it might be more appropriate for her to speak on that.

  Ms Canham: I do not have a lot of experience with private landlords, but I would like to say that according to the statistics, 80 per cent of the properties in this country are owned privately, and I would ask whether the Decent Homes standards actually is extended to that sector, because there are, I think, millions of vulnerable people living in private rented accommodation.

  Q47  Chair: Sorry, the Decent Homes standard is supposed to extend to the vulnerable people in private rented accommodation, so that is supposed to happen already.

  Mr Long: What is interesting is that all the landlords that have delivered most effectively in terms of Decent Homes, they have all worked with their tenants, they have all set up forums, forums that often have overseen the process of Decent Homes in their area, these forums have often set the priorities, so there is a lot of evidence that where landlords are committed to effective tenant empowerment and tenant involvement, they work closely with them, and that has led to the Decent Homes programme being more effective on the ground and we give a number of examples in our submission. The second area I bring out in terms of good practice is, if you like, the other party to this process is the contractors who do the work. Again, where you get effective contractors who are committed to resident involvement, and they are working with the landlords and they are working with the tenants, you get much better performance, and we have seen that with companies like Lovells, Mears and Frank Haslam Milan. We see really good practice. So it is possible to deliver really effectively on the Decent Homes, despite, if you like, the threshold standards, and it is possible to do that where the tenants and the landlord and the contractors are working effectively together. One of the things we would advocate, Chair, is the importance of contractor accreditation, ie the best contractors we would expect to show that they can deliver on resident involvement before they can actually undertake a contract. We think that is a very important part of the jigsaw.

  John Cummings: In view of what you have told the Committee, should tenant involvement be formalised still further?

  Q48  Chair: Yes or no I think is the answer to that.

  Mr Gelling: Yes, I would say.

  Mr Long: The answer is yes.

  Q49  Mr Betts: Coming on to the extra works that might be incorporated, and you have been making various submissions that environmental works ought to be part of bringing housing up to a decent standard, looking at community facilities, things like play facilities for kids, anti-social behaviour has been an issue, so maybe community wardens I know in some areas have been very popular, but are any of these functions really landlord functions as such when they are going to be carried out for the benefit of the whole community, not just those that pay their rent?

  Mr Gelling: I would say that a landlord does have a responsibility, as do others. I mean, the police have a responsibility to be involved, the Primary Care Trust has an obligation to be involved, so it is not just about housing, it is about people's quality of life. A person who pays rent is no less a person than who owns their own property, and they have an investment in that community, so they would expect their landlord to engage with other agencies when that improvement is coming online to see whether or not the other agencies had resources to put in there to assist.

  Q50  Mr Betts: I was not in any way suggesting that tenants were lesser people, what I was suggesting maybe was if, say, a community warden service is provided, or there are general improvements to the open space in an area, and they are paid for out of tenants' rents, then tenants alone are paying, but the whole community gets a benefit. Is that not a problem, that we somehow—maybe landlords are a good mechanism for dealing with this, but do we have to have the funding done by different means?

  Mr Long: I think there are two, possibly three issues here. The first is that most of the problems on the ground require a range of players to be involved, the landlords, the police, health and so on and so forth, probation and what have you. Clearly it is wrong for tenants to pick up the bill for funding the bulk of that activity, and I think one of the big debates that is taking place now around the reform of council housing finance is what should be charged to the tenants and what should be charged to the general taxpayer. I take the view that there should not be double taxation, and the taxpayer should pick up the bill for all things such as police, rather than things which are direct landlord responsibility, so I think that principle is probably quite clear. I think the third point though is what is becoming clear to me is that if there is not clarity over what should be charged to rents and what should be charged to the general fund, and there is not, but if there is to be clarity on that, then there has to be the acceptance of a role for the wider community, and there is a limited role for what tenants should pay so they do not pay twice, and that issue is still not clear in the current consultation on council housing finance reform, and there is still a debate to be had. I suppose the last point, the fourth point, if I may, Chair, is when local politicians are faced with a choice between funding a PCSO or funding something to do with health, and I think of Sheffield's sheltered housing schemes and the healthy eating programme on that, but when politicians locally are faced with that choice between funding that and not funding that, what they end up doing is trying to fund that, and that often does mean taking it from the housing revenue account when in principle it should come from the general fund.

  Q51  Mr Betts: Can I just move on to another issue, we have partly touched on it before. There is some fairly obvious belief that the Decent Homes programme, because the Government has laid down targets, has actually driven forward a national programme in a way that probably has not happened before in this field, but if we move on now into looking at the future, when you ask people, should all tenants across the country, irrespective of where they live, be entitled to the same standards that the Government is going to lay down that everyone has to deliver, people will probably say yes, of course they should. If we also say, should there be real emphasis on discussion and participation with tenants at local level, and their views taken into account, then of course they should. But what happens if tenants in different parts of the country have different views about what should be done?

  Mr Long: My take on that would be that the current move from the TSA towards local standards is so crucial, and that should be emulated in terms of Decent Homes, if a community wants to establish a higher standard, and they can find ways with their landlord to fund that, then that is for the tenants to make that choice, working on the ground. So local priorities is a really important thing for me, setting local standards is a really important thing for me. There clearly needs to be a minimum standard across the country, but above that, tenants should in their own communities set the standards. But then you come back to that fundamental issue: how do you pay for it?

  Mr Gelling: There is the other issue about empowerment, the TSA are looking at empowerment and what the empowerment standard is, and that will mean different things for different people, but as long as there is a core standard that you cannot come under, you can build on it, you can deal with it in different ways, and you can achieve it by doing different things, that should not be a problem, because you will always get diversity in this country; no matter where you live, you will get that diversity in reaching the same aim, and people will get there with different paths. You have to allow that flexibility.

  Q52  Mr Turner: When an ALMO or an LSVT comes along, the stuff that is put on in front of tenants is fairly good stuff, in the sense that you are going to get a lot of Decent Homes standards and all the rest of it. Why do you think tenants in some places do not take the advice of their local authority and approve it?

  Mr Gelling: Why does not the local authority take the advice of the people who elect them? At the end of the day, tenants live in a property, it is their home, the landlord, whoever the landlord is, and housing association tenants do not have that choice yet; it might be there, on a piece of paper, but it does not really happen with choice from tenants, but I think you have to look at the different circumstances of those organisations where tenants have decided not to transfer, and you have to go and talk to people about that, and maybe—

  Q53  Mr Turner: Can I just interrupt, I was not just talking about LSVTs, I did mention ALMOs as well.

  Mr Gelling: Maybe people do not realise the value. It is about how you approach the subject with people, it is about what promises are going to be made, and can they be kept, and what promises have been made in the past and not been kept, so why should I trust you this time? You are going to transfer, I am going to have the best thing since sliced bread as far as my house is concerned, it has never happened in the past. I think there is a lot of trust and faith, and you just cannot turn a thing round in a couple of years and say this is going to happen.

  Mr Long: TPAS would take the view that it is up to individual tenants within their own landlord and on the ground to make a judgment as to what is the best way to generate the funding to improve their estate, so it might be that the best way to do it is through a stock transfer, it might be the best way to do it is through the ALMO route, they have to make that judgment on the ground, and my experience is they do make those judgments, which is why there have been a large number of stock transfers. I think what happens in some places is that tenants are just not convinced by the people pushing a particular course of action, and that tenants just do not believe the current director of housing, or the consultants who have come in. It has varied across the country, but often tenants have, perhaps against their better instincts, gone for some of the more radical options, the stock transfer options, because at the end of the day, they want to create decent homes, decent communities. I suppose in a sense it would have been better if right at the start, local authorities had been able to have access to the resources that you can only get at the current position in the private sector.

  Q54  Mr Turner: I think you were in the room when we were talking earlier with the other panellists about the Government's housing revenue account proposals for the changes there. How important do you think that is for tenants?

  Mr Long: I think it is crucial. I think I personally, TPAS personally, if I can say that—

  Q55  Chair: TPAS can be personally, as an organisation.

  Mr Long: Yes, TPAS support the self-financing option, but clearly the issue of the debt needs to be addressed. Richard from the Chartered Institute of Housing was raising that issue, clearly the issue of debt needs to be addressed. We are coming to the conclusion that yes, writing off the total debt was unlikely, but we think there needs to be some balance between writing off debt and reallocating debt, and we think perhaps the key factor there might be some resources have got to take account from what it is like to deliver services in the longer term in high cost areas. It is one thing to move to self-financing in a relatively low-cost area, but to move to self-financing in Islington or Kensington and Chelsea where I used to work, or Westminster, is a very different thing. So it might be that actually one looks at some combination of debt write-off and debt reallocation, but the debt issue has to be addressed, and I think the high cost of the service issue has to be addressed.

  Q56  Mr Turner: NORA states that in principle, the provision of social housing should be devolved to a local level, however there needs to be a system of allocating funds to deprived regions where tariffs or section 106 funds may be inadequate. I wonder if you could just expand on that, and tell us what you mean.

  Mr Gelling: We support the proposal, but it is about local authorities having the ability to do a 20-30-year financial business plan, so people know exactly what the game is that is being played, and how the investment is going to roll out. I think also I would say this. I used to sit on a local authority, I used to be on the housing committee, I think you cannot ringfence enough the money around housing revenue account, because that is so vital that it is not leaked anywhere, because that is one of the major problems in the past why we were left with properties that needed so much more investment in them at this current time. There is an asset here, and it has to be looked after properly, but local authorities have to have the ability to plan that financially, so there has to be some kind of continuity; even if Government changes, even if ministers change, there has to be some continuity with that kind of financial business plan, to make that happen.

  Ms Canham: I think talking about section 106 contributions, I have heard and had experience of local authorities who, despite having the chance to collect considerable amounts of money during the housing boom, have not actually been very efficient about collecting these amounts of money, and in some cases, they have been totally lost, and I think there actually needs to be in place some sort of method of ensuring that local authorities are collecting these amounts.

  Q57  Chair: Can I just clarify, Ms Canham, do you actually have knowledge of the private sector, the private rented sector?

  Ms Canham: It is mainly only owner occupied, rather than rented.

  Q58  Chair: So not private rented sector?

  Ms Canham: No.

  Q59  Alison Seabeck: Finally, the newly set up TSA have been out having a national conversation, as they called it. How impressed have your organisations and your tenants been, and indeed the landlords you have had contact with been with that process?

  Mr Long: TPAS are very supportive of the TSA. We think in its short life, since last December, it has made some significant progress. In the first phase of its national conversation, it got responses from 27,000 tenants, which is pretty impressive. In the second phase of its consultation, it has now had responses back from around 700 stakeholders. TPAS has undertaken some of the consultation on behalf of TSA, so I need to be open about that. We think it has made real progress, and we are really looking forward to the publication of the next set of standards, the statutory consultation phase that TSA is going to go through, so I think the answer is it has shown so far a real commitment to tenant empowerment and tenant engagement, and that is really to be welcomed. If it has a weakness at the moment, I would say it is in danger of overegging the pudding a bit, and it must not claim too much progress, but I think its general philosophy and the way it is going, and its commitment to involvement, has been very successful. There is still a way to go. We did a whole bit of work around BME communities on behalf of the TSA, and I think it was interesting that perhaps the TSA has not reached out enough into both the vulnerable, the communities of vulnerable people or into the black and ethnic minority communities, and I think that is a further piece of work, but I think as a general rule of thumb, I think the TSA has done very well.

  Mr Gelling: I would endorse everything Nigel has said, but there are other things that happen outside of the formal consultation that TSA went down, and many tenants in our organisation, we have a structured organisation of currently about 5 million people, they have had their own consultation, they have been talking to their own landlords for the very first time, some of them, so real meaningful conversations have taken place between landlords and tenants that has never happened before.



 
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