The Decent Homes Programme - Public Accounts Committee Contents


1  Completing the Programme and maintaining housing in the long-term

1. The Decent Homes Programme (the Programme), overseen by the Department for Communities and Local Government (the Department), aims to improve the condition of homes for social housing tenants and vulnerable households in private sector accommodation in England.

2. The Department originally set a target for all social housing in England to be decent by December 2010, and substantial progress has been made against this. As of April 2009, almost 86% of social housing was decent according to returns from landlords, with the numbers of non-decent properties falling by 1,100,000 to leave 580,000 properties non-decent. Of these, 182,000 were Registered Social Landlord properties, representing over 8% of their stock. These Landlords have reduced the level of non-decency from a maximum of almost 21% in 2003, mainly at their own cost.[2] Between April 2001 and March 2008, Arms Length Management Organisations (ALMOs) and retaining local authorities have installed 810,000 new kitchens, 610,000 new bathrooms and 1,140,000 new central heating systems. Some 850,000 council homes have been re-wired, over 1,000,000 have had new windows, and 882,000 have had improvements to their insulation. There have also been wider benefits in terms of better housing management, tenant involvement and employment opportunities.[3]

3. Despite these achievements, the target of 100% decency by 2010 will not be met. The Department estimates that 92% of social homes will be decent by that date, leaving 305,000 properties non-decent. The number of non-decent properties is then expected to fall to 124,000 by 2014, and work on the last of these will not be completed until 2018-19.[4]

4. There is some uncertainty over whether the landlords concerned will receive the funding they need from the Department to complete this work. The Department assured us that it is committed to funding the remainder of the Programme so that all social homes are decent, but we consider that there is still a risk, given the likely pressures on future public spending, that such funding may not be forthcoming.[5]

5. The Government intends that each local authority and Registered Social Landlord will have sufficient funds available to them to maintain their housing to the required standard once the Programme has been completed, without the need for another large capital programme like Decent Homes. The Department is proposing to reform the system for financing local authority housing so that it becomes self-financing, with local authorities keeping all their rental income and capital receipts for use on their housing.[6] The Housing Minister will be announcing more details in March.[7] However, the reforms are complex, involving a redistribution of housing debt between local authorities across the country and a significant increase in the Major Repairs Allowance to free up funds for maintenance, while at the same time avoiding any significant increases in rent.[8] There is a risk that the reforms will not be successful in making the necessary funds available, resulting in the build-up of another maintenance backlog.

6. From April 2010 new regulatory standards will apply for all social housing. While these will require that individual social housing properties be maintained at least to the Decent Homes Standard, they will also contain new standards for the maintenance of communal and external areas. The Department intends that there should be sufficient funding in the new local authority housing finance system to allow for the on-going maintenance of these areas, with backlogs of work on these items to be dealt with by capital grant programmes.[9] The Department is also working with the Department of Energy and Climate Change on its Household Energy Management Strategy for increasing the energy efficiency of existing housing and is currently considering how any resulting work on social housing will be funded.[10]


2   Qq 38 and 48; C&AG's Report, Session 2009-10, The Decent Homes Programme, HC 212, paras 2.3 and 2.4 Back

3   C&AG's Report, paras 17 and 4.1 Back

4   Qq 17 and 48; C&AG's Report, para 2.6 Back

5   Qq 8, 17 and 21 Back

6   Qq 8-9 and 60 Back

7   Qq 10 and 58 Back

8   Qq 9-10 and 52 Back

9   Qq 44 and 66; C&AG's Report, paras 4.9 and 4.10 Back

10   Q 66 Back


 
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