Submissions invited for Housing Ombudsman Select Committee inquiry

The Commons Communities and Local Government committee has called for evidence on the Housing Ombudsman Service, inviting submissions from interested parties. Likely subjects for discussion include:

• the impact of the Ombudsman's work on social landlords, particularly whether it leads to better administration and improved quality of service
• the function, purpose and remit of the Housing Ombudsman Service
• the volume and nature of complaints made to the Ombudsman and expected trends
• the arrangements for handling complaints
• the adequacy of arrangements
• the impact of the extension of jurisdiction to include complaints from tenants of local housing authorities in 2013.

The Communities and Local Government committee makes it clear that it does not intend to consider individual cases set before the Ombudsman, and the deadline for submissions is 6 September 2012.

The Chartered Institute of Housing (CIH) will be submitting evidence to the inquiry and is inviting CIH members to contribute to their response.

Providing quality long-term private rental homes

The planned conversion of the Olympic Village to 1,400 high quality long-term private rental homes should serve as a model for how to tackle the UK’s housing crisis according to new research published by independent think tank the Resolution Foundation.

The new report, Making Institutional Investment in the Private Rented Sector Work, calls on local authorities to support private rented sector development through the planning system by strategically designating land for private rented sector development rather than for residential development in general.

This report is based on a financial model for debt and equity investment in the private rented sector that the Resolution Foundation has been developing in collaboration with the Royal Bank of Canada over the last 12 months.

The Resolution Foundation and Royal Bank of Canada are currently working with a group of five registered providers to model the returns that would be generated by this approach to build-to-let development. The details of this work will be published this autumn.

Vidhya Alakeson, Director of Research and Strategy at the Resolution Foundation, said:

"More and more families find themselves in the private rented sector, they urgently need access to better quality housing options. Institutional investment in build-to-let provides an opportunity to create new, professionally-managed homes better suited to long term tenants. It also increases the overall supply of housing whilst boosting the construction sector."

Relaxing laws on social housing build schemes

According to The Guardian the government is considering relaxing the requirements for new developments to include social housing as part of plans to boost housebuilding.

This recommendation is expected to be included in a report by Sir Adrian Montague who has been tasked with examining how to boost investment in rental properties. The report is due to be published in the next couple of weeks.

Under the proposed changes the government is also considering plans to boost housebuilding by lending publicly owned land to developers.

A spokesperson for the Department for Communities and Local Government said:

"The private rented sector plays an essential role in the housing market, offering flexibility and choice to people, and supporting economic growth and access to jobs. To boost supply and choice, we want to encourage greater institutional investment into the sector, and in due course we will be publishing our response to the Montague review."

In speaking to Inside Housing Rod Cahill, Chief Executive of Catalyst Housing, warned:

"Any money that is used for loans [to support private rented sector developments] is money that is not available for affordable housing - and it is the affordable programme that has been cut by 67 per cent."

"I don't think that you can possibly say that private renting is a substitute for affordable housing [in housing strategies]," he added. "Private renting is a market solution. The growth problem isn't in private rented housing - the [growth] problem is owner-occupation and the affordable housing sub-market sector."

UK housing affordability third worst in Europe

Source: Eurostat

Families in the UK are among the worst off in Europe when it comes to housing costs.

This is the conclusion drawn by Shelter from European Union Statistics on Income and Living Standards, which show that in 2010, the latest period for which data is available, 16.5 per cent of people in the UK were overburdened by housing costs. This means they are spending more than 40 per cent of their income on costs such as rent, mortgage payments and other living costs associated with their home. By contrast, in neighbouring France only 5.2 per cent of people are overburdened.

Out of 29 EU countries for which data is available, only Denmark and Greece reported being worse off, placing the UK third from bottom for affordable housing costs.

Campbell Robb, Shelter’s Chief Executive said:

‘These figures are the evidence that the UK housing market is deeply dysfunctional.

‘With so many families spending huge amounts of their income on their rent or mortgage, people will be making daily trade-offs between food bills, filling the car tank with petrol, and paying their housing costs.

‘Housing is the largest monthly cost for most people, yet the affordability of housing is not getting the same attention as the monthly costs of other essentials such as food or fuel. We believe all political parties must recognise solving our housing crisis is as fundamental as health and education.’

No guarantees for housing investment

There was disappointment amongst housing providers that the new UK Guarantees scheme, unveiled by the Chancellor of the Exchequer and Chief Secretary to the Treasury on Wednesday, omitted housing investment.

The scheme aims to kick start nationally significant large infrastructure projects such as transport and energy that may have stalled because of adverse credit conditions. Up to £40 billion worth of projects that are ready or nearly ready could qualify and, subject to legislation, the first guarantees are expected to be awarded in the Autumn. To qualify, these projects must be ready to start in the 12 months following a guarantee being given.

In June it was reported that the prime minister had asked officials to draw up plans to spark a house building boom to revive the UK economy, and Business secretary Vince Cable suggested that housing associations might be suitable recipients of government guarantees.

The Chartered Institute of Housing’s director of policy and practice Gavin Smart said that “not including housing could be considered a missed opportunity.”

He continued, “It’s important not to be too downhearted. There is a chance that government will look to issue further guarantees with housing being one of the areas targeted. CIH will certainly be encouraging government to continue to look at the impact that guarantees for housing investment could have and making the case for the economic benefits.”

Criminalisation of subletting moves forward

The DCLG last week published an analysis of responses to its consultation on proposals to reduce the incidence of fraud relating to social housing in England, including introducing a new criminal offence of tenancy fraud.

The analysis appeared at the same time as Second Reading of a Private Member’s Bill, introduced by Richard Harrington MP and supported by the Government, which will take forward key elements of the consultation proposals.

The Prevention of Social Housing Fraud Bill seeks to establish a new criminal offence, but only in those situations where a tenant who is not in occupation unlawfully sub-lets or parts with possession (which would include key-selling). The offence would carry penalties ranging from a fine to a maximum custodial sentence of two years. The Bill would also allow local authorities to prosecute for offences in the Bill on behalf of housing associations and other local authorities and allow social landlords to recover the profits made by tenants who sub-let their property without permission.

Back in March 2010 the New Local Government Network called for legislative changes to allow the prosecution of those subletting social housing. The Labour housing minister at the time John Healey promised action, so we can assume there will be all party support for Harrington's Bill.

The DCLG also favours establishing a 'mandatory gateway' to force banks, building societies and utility companies to share data in respect of tenancy fraud, but has deferred action pending discussions with the Home Office and other government departments.

MPs criticise performance of Local Government Ombudsman

The Communities and Local Government Committee has published a critical report calling on the Local Government Ombudsman (LGO) to raise its game significantly.

The LGO's funding has been cut by a third, prompting it to commission a strategic business review. The Committee chair Clive Betts MP said that the changes identified by the review should be implemented "so that it can live within its means while providing the service to the public that is required by the legislation and expected by taxpayer".

The Committee also criticised the LGO for taking far too long to determine some cases, and said that it should apply strict deadlines to all the cases that it handles. The LGO responded by claiming that its performance against time standards for handling complaints compare well with other Ombudsman schemes.

The LGO hands over responsibility for investigating housing complaints from council tenants to the Housing Ombudsman in April 2013, and called in its Annual Report published last week for a shared services approach, saying "We believe this would be both cost-effective and provide a streamlined, efficient service to tenants."

Other recommendations of the CLG Committee include measuring and publishing customer satisfaction levels each year and the annual evaluation of its own activities and decision making by an independent external reviewer, to ensure the LGO is itself fair, effective, open, transparent and accountable.

Troubled families report paints grim picture

Today sees the launch of a report from Louise Casey, head of the government's Troubled Families Programme, that gives an insight into the lives of the broken families that the programme aims to ‘fix’.

Casey spent time with 16 volunteer families that had been working with Family Intervention Projects (FIPs) and were willing to discuss their experiences, and how they came to crisis point of accepting the help of a FIP.

The report finds a number of common threads through the personal histories, including:

• dysfunctional and unstable family structures;
• history repeating itself within families and between generations;
• extended family and antisocial networks within communities which reinforce destructive behaviour; and
• the need for one assertive family worker who offers practical help and support but also sanction in dealing with families.

Casey said:

"I am not making excuses for any family failing to send their kids to school or causing trouble in their community. However unless we really understand what it is about these families that means they behave in this way, we can't start to turn their lives around.

"It's clearer than ever to me now that we cannot go on allowing families to fail their children; none of the parents I spoke to wanted their children to repeat a life of chaos and trouble, but often they couldn't see how to put things right by themselves - they needed practical and persistent help to do so."

The Daily Mail reported:

"The study ... has found that generations of the underclass shrug their shoulders and dismiss pregnancies as ‘just happening’ even when their other children have been taken into care."

Under the Troubled Families programme the DCLG will pay upper-tier local authorities up to £4,000 per eligible family on a payment-by-results basis if they reduce truancy, youth crime and anti-social behaviour or put parents back into work. The £448m three-year budget is drawn from across seven Whitehall departments.

Shapps nudges the right to buy

Housing Minister Grant Shapps has been featured in a Telegraph article on 'nudge theory' - the idea that small changes in how choices are presented can have a big impact on people’s behaviour.

A month or so ago Shapps's department wrote to every stock holding local authority asking them to use a template letter to publicise the right to buy.

The letter, which has been branded 'irresponsible' by a number of councillors, claims that tenants can own their own home for £100 a week and implies that their neighbours are also interested.

It appears that Shapps is planning to use controlled tests where householders receiving personalising letters and "amusing 90-second videos" will be tested against those who don't and the then results compared.

The right to buy uptake will then indicate the success of the 'nudging'.

DoH launch care and support white paper

The Department of Health has published a white paper and draft legislation outlining care and support policies up to the next election and beyond.

‘Caring for our future: reforming care and support’ seeks to focus on people’s wellbeing, helping them to stay independent for as long as possible.

It offers additional aid within communities, better housing options and improved assistance for carers, to help people maintain their independence and avoid a crisis.

A brief chapter on housing related support emphasises that Laying the Foundations: A Housing Strategy for England will ensure housing and planning policies positively reflect the needs of older and disabled people.

The housing chapter also includes further policies:

• new duties in the Care and Support Bill will ensure that adult social care and housing departments work together
• £200m (or £40m a year for five years) of capital funding to encourage providers to develop new accommodation for older people and disabled adults
• an expectation that local authorities will give particular consideration to developing housing for older and disabled people
• an extension of Home Improvement Agency work to people who fund their own adaptations.

Responding to the government White Paper on social care, Grainia Long, chief executive of the Chartered Institute of Housing (CIH) said:

"[The] White Paper demonstrates the significant contribution that a good home makes to the health and well being of individuals....However, there is still greater clarity needed on how the government plans to fund the social care system in England."

David Orr, chief executive of the National Housing Federation said:

"We’re pleased the White Paper recognises that housing is crucial to the integration of health and social care....But this is not just about social policy...We need a health service that invests in services that keep people out of hospital, not one that simply treats them when they get there."

Stunell announces empty homes funding awards

Communities Minister Andrew Stunell has announced the winners of £25.1 million of government funding to bring empty homes back to life.

The funding awards have been made to community groups across the UK including two ALMOs.

In its press release, the Department for Communities and Local Government states that:

"the expertise for returning empty homes to use lies with community groups or voluntary organisations, and that is why the government is supporting innovative schemes around the country."

£25.1 million has been allocated so far out of a total of £30 million, with a further 20 organisations bidding for the remainder of the cash.

The DCLG's website contains a spreadsheet outlining all 76 organisations that have so far been successful.

Proposed new audit framework for public bodies

The government has published its proposals for a new audit framework for local public bodies, the process for the appointment of auditors, and the regulatory framework for local public audit.

The main provisions of the draft Local Audit Bill include:

• closure of the Audit Commission and making arrangements to transfer its assets, liabilities and continuing functions to other bodies
• a requirement on local public bodies, such as councils, to appoint an external and independent auditor on the advice of an independent auditor panel
• transferring responsibility to the Financial Reporting Council and professional accountancy bodies for regulating the provision of local public audit services, mirroring the arrangements for private sector audit 
• giving responsibility to the National Audit Office for setting the high level code of audit practice, which auditors of local public bodies must follow, and for undertaking a small number of value for money studies relating to local government
• the continuation of the National Fraud Initiative to prevent and detect fraud, which will be transferred to another body.

Alongside the draft Bill, the government is also publishing proposals for the proportionate audit of smaller local public bodies such as parish councils.

Communities Secretary Eric Pickles said:

"Today's draft Bill will recast local audit - making councils more accountable to local citizens, stripping out unnecessary bureaucratic costs, and letting councils appoint their own auditors from an open, competitive market."

The government last year consulted on its proposals for a new local public audit framework and published its response in January 2012.

The consultation on the draft Local Audit Bill runs until 31 August 2012.

Coalition seeks to unlock growth in cities

Following the Coalition's announcement last December to 'set free' eight cities by offering them power in return for accountability Deputy Prime Minister Nick Clegg and Cities Minister Greg Clark have announced the first wave of city deals.

Eight of the largest English cities outside of London have agreed to unique deals that will help them invest in growth, improve local workers' skills and create jobs, support local businesses, control budgets and improve critical infrastructure. In return, the cities have agreed to put in place stronger, more accountable local leadership and to spend their resources more efficiently.

The eight cities and their surrounding areas are:

• Greater Birmingham and Solihull
• Bristol and the West of England
• Greater Manchester
• Leeds City Region
• Liverpool City Region
• Nottingham
• Newcastle
• Sheffield City Region

To deliver the new approach the government has set up a Cities Policy Unit based in the Cabinet Office. It will provide a tailored service to help cities develop creative new ideas and turn these into practical solutions on the ground.

Deputy Prime Minister Nick Clegg said:

"These groundbreaking deals signal a dramatic power shift, freeing cities from Whitehall control. Everyone in these eight core cities will feel the benefits - from young people looking for jobs, to businesses looking to expand.

"Over the coming months, we are transferring more and more power from Whitehall to these cities."

Hilary Benn, Shadow Communities and Local Government Secretary, said:

"Labour strongly supports local communities being given more powers - indeed I have been calling for this for some time. These city deals represent an important victory for local people and local government.

"But, if this is the right thing to do for our core cities, then what about the rest of England? What we now need is a clear commitment that local authorities in all parts of England - including other cities, counties and districts - will be given the same opportunity to come together and take back power in the interests of the communities they represent."