Tenancy Strategy 2018-2021 - Housing and Neighbourhood Services Properties Repairs Investment Delivery Efficiency - Corby Borough Council
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
Tenancy Strategy 2018-2021
Housing and Neighbourhood Services
Elizabeth Howley (Lizzie)
Properties
Repairs
Investment
Delivery
Efficiency
Policy Owner Jacqui Page
Introduced V1.0 Nov 2012 Last reviewed October 2018
Version V2.0 Review date November 2020
0|Page
Table of Contents
1 Introduction ......................................................................................................................................... 4
2.0 Corby Profile ..................................................................................................................................... 5
2.1 Profile of the Borough................................................................................................................... 5
2.2 Corporate vision and priorities ..................................................................................................... 6
3.0 Setting the Scene .............................................................................................................................. 6
3.1 Government Policy........................................................................................................................ 6
3.2 Localism Act 2011 ................................................................................................................... 7
3.3 Housing and Planning Act 2016 .............................................................................................. 7
3.4 Housing Green Paper 2018 ..................................................................................................... 8
3.5 Delivery of New Homes .......................................................................................................... 8
1|Page
3.6 Tenure Options ....................................................................................................................... 9
3.7 Mobility in social housing (moving house) ............................................................................. 9
3.8 Scope of this strategy .............................................................................................................. 9
4.0 Housing Market............................................................................................................................... 10
4.1 Stock profile ................................................................................................................................ 10
4.2 Housing register profile............................................................................................................... 11
4.3 Income data ................................................................................................................................ 13
4.4 Rents and affordability ................................................................................................................ 14
Private Rents ................................................................................................................................. 14
Affordable Rents ........................................................................................................................... 14
Social Rents ................................................................................................................................... 14
Summary ....................................................................................................................................... 15
Affordability .................................................................................................................................. 15
5.0 Guidance for registered providers .................................................................................................. 16
5.1 Definition of affordable housing and affordability ..................................................................... 16
Affordable Housing ....................................................................................................................... 16
5.2 Flexible tenure ............................................................................................................................ 17
Prior to issue ................................................................................................................................. 17
During Tenancy ............................................................................................................................. 18
Prior to the end of fixed term period............................................................................................ 18
5.3 Needs of specific groups ............................................................................................................. 19
Families with children of school age or younger .......................................................................... 19
Households with member who is disabled, terminally ill or has special needs ........................... 19
Older people over the age of 60 ................................................................................................... 19
5.4 Delivery of affordable rent.......................................................................................................... 20
5.5 Conversions to affordable rent ................................................................................................... 21
5.6 Mobility ....................................................................................................................................... 21
5.7 Disposal of Stock ......................................................................................................................... 21
5.8 Local lettings policies .................................................................................................................. 21
5.9 Discharge of homeless duty into the private sector ................................................................... 21
6.0 Consultation and Communication .................................................................................................. 22
7.0 Review and Monitoring ................................................................................................................... 22
8.0 Equality and Diversity ............................................................................................................... 23
9.0 Contacts .......................................................................................................................................... 23
10. Glossary of terms and references ................................................................................................... 24
References .................................................................................................................................... 24
2|Page
Appendix 1 ............................................................................................................................................ 25
Stock profile (including registered providers)................................................................................... 25
Appendix 2 ............................................................................................................................................ 26
PayCheck Data .................................................................................................................................. 26
Appendix 3 ............................................................................................................................................ 27
Consulted Organisations ................................................................................................................... 27
Internal consultation: Version 0.1................................................................................................. 27
Internal consultation, Corporate & Membership: Version 0.2 and Version 0.3 ........................... 27
Professional external consultation: Version 0.3 ........................................................................... 27
The customer: Version 0.4 ............................................................................................................ 27
Appendix 4 ............................................................................................................................................ 28
Consultation questions ..................................................................................................................... 28
3|Page
1 Introduction
The Localism Act (external link) was given Royal Assent on 15 November 2011. It shifted power from
central government back into the hands of individuals, communities and councils. It includes five key
measures that underpin the Government's approach to decentralisation.
These five key measures are:
Part 7, of the Localism Act deals with Housing and included changes to the following:
Allocation of housing
Homeless duty
Social Tenure
Leaseholds
Housing Revenue Account
Housing Mobility
Housing Ombudsman
Home Information Packs
Tenants’ deposits
Homes in multiple occupation licensing
The original version of our Tenancy Strategy consulted on the Social Tenure Reforms introduced by
the Act and also had regard to and referred to the other sections of the Act where relevant. Chapter
2; Section 150; required Local Authorities to prepare and publish a Tenancy Strategy by the 31 st
January 2013 which set out the matters to which the Registered Providers (RPs) of social housing in
4|Pageits district were to have regard in formulating policies relating to the kinds of tenancies they grant and
under what terms those tenancies are granted.
This 2018 updated version of the Tenancy Strategy is what Corby Borough Council has compiled as the
follow-up strategy from the 2012 – 2017 version. We like to continually engage with our Housing
Partners, Associated Organisations and customers to gauge their thoughts, concerns and ideas of what
is included and what else potentially should be included in this strategy when it is next reviewed.
This document can be found on Corby Borough Council’s website at this link. There is a consultation
form at Appendix 5 with some relevant questions and space for individual feedback. A hard copy is
available on request from the Council’s One Stop Shop which is based on the first floor of the Corby
Cube and can also be emailed on request from housing.options@corby.gov.uk. All feedback will be
welcomed and used to formulate further change where relevant.
2.0 Corby Profile
2.1 Profile of the Borough
Corby is a vibrant and rapidly changing place. The Borough, the 11th smallest local authority in the UK,
covers 80 square miles, is situated in the heart of England with excellent road links via the A14 to the
M1, M6 and A1 and a direct passenger rail service to London. The local population has expanded by
approximately 16,700, to circa 69,800 in the past 17 years (2001 to 2018). The Office of National
Statistics has reported the Borough as in the top ten nationally for growth.
Until the 1930s, Corby was a small village but all of that changed with the opening of the steelworks
by Stewarts and Lloyds. Corby grew quickly through the 1950s and 1960s, with a huge influx of
migrants seeking work, many of whom were from Central Scotland. Steel production ceased in 1980,
resulting in around 11,000 job losses, increasing the unemployment rate at the time to over 30%.
Corby’s Celtic ties remain evident today and the Borough is often referred to as ‘Little Scotland’ and is
proud of its continued expanding diverse population.
In 2001 there were an estimated 22,006 households in Corby and this had risen to 29,171 by January
2018. The Council currently owns and manages some 4,700 rented homes and continues to be one of
a small number of councils adding to their own housing stock through an active development
programme. Detail on the profile of the social housing stock in the Borough is provided within this
document.
Corby is also a significant employment centre and is home to many national and international brand
names such as Tata Steel, Avon, Roquette, Joules, Weetabix, RS Components and Staples.
Corby’s main ambition is around growth and regeneration and in recent years this has been evident
through the construction of large housing developments as well as educational, leisure, business
premises and investment in infrastructure to support the growth. Regeneration has clearly been
significant, e.g. over 16,000 new homes built since 2001, primarily at Oakley Vale, Little Stanion and
Priors Hall. In addition major town centre developments have been completed, i.e. the Corby East
Midlands International Pool, Corby Cube, Willow Place shopping mall and the Savoy Cinema complex,
utilising both private and public funding.
Whilst improvements continue, it is clear that Corby really has seen some big changes and
improvements over the past decade. With a lot of forward thinking and great ambition, Corby has
come out of the shadows and is now firmly centre stage – not just as a leading community in
5|PageNorthamptonshire, but also in the Midlands and was voted Greatest Town 2018
https://www.academyofurbanism.org.uk/.
2.2 Corporate vision and priorities
Despite economic challenges Corby has delivered on major regeneration and sporting projects as well
as maintaining growth levels through the successful provision of new houses across the borough. This
has included new affordable homes, over 200 of which have been delivered directly by the Council,
thus helping to facilitate jobs and skills. Together with the opening of facilities such as Corby Enterprise
Centre the borough is building and demonstrating that it is open for business. The council remains
ambitious and wants to ensure that the borough thrives and prospers and thereby achieves its’
aspirations of doubling its’ population by 2030. This strategy has direct and indirect implications on all
5 key themes of “Working together to deliver P.R.I.D.E. in Corby” by:
Promoting Healthier, Safer and Stronger Communities
Regeneration and Economic Growth
Inspiring a Future
Delivering Excellence
Environment and Climate Change
The council’s Corporate Plan takes these priorities forward and develops them into a set of key
outcomes that we are committed to deliver. The outcomes relevant to this strategy are:
Sustainable development
Strong communities
Improved housing
Strong strategic partnerships
Shaping Corby as a place to live and stay
The Corporate Plan is available to view on the Borough Council website via this link.
The council’s vision for this strategy, taking into account the priorities above, is that it should
ultimately seek to establish two key principles:
1. A broad and appropriate range of tenure types across the district which can provide residents
with settled homes for as long as they need them.
2. The best use of the affordable housing stock within the borough.
3.0 Setting the Scene
3.1 Government Policy
The Government’s key housing policy objective is to ensure that everyone has the opportunity of living
in a decent home, which they can afford, in a community where they want to live. To achieve this, the
Government is seeking to:
achieve a wide choice of high quality homes, both affordable and market housing, to address
the requirements of the community,
widen opportunities for home ownership and ensure high quality housing for those who
cannot afford market housing, in particular those who are vulnerable or in need,
6|Page improve affordability across the housing market, including by increasing the supply of housing
and;
Create sustainable, inclusive, mixed communities in all areas, both urban and rural
3.2 Localism Act 2011
The Localism Act includes powers relating to allocations and flexible tenancies and requires local
authorities to produce a Tenancy Strategy that sits alongside the Housing Strategy, Homelessness
Strategy and Allocations Policy. The legislation requires the Strategy to cover:
What kind of tenancies to offer
Circumstances in which the landlord will grant a tenancy of a particular kind
Where a tenancy is set for a fixed term, the length of this term
Circumstances where the landlord will grant a further tenancy on the ending of the existing
tenancy
3.3 Housing and Planning Act 2016
Schedules 6 and 8 reviewed the use of lifetime tenancies with a view to limiting their use. Guidance
within that Act advises the following:
5 year tenancies the norm
Less than 5 years in exceptional circumstances
Longer than 5 years for tenants with longer term needs (e.g. older people and those with
disabilities)
Existing lifetime tenants:
If remain in home or required to move – will retain security of tenure
If chosen to move, may be given a further lifetime tenancy in circumstances prescribed in
affirmative regulations
Expect it will include, e.g., tenants downsizing or moving for work and those escaping violence
or abuse
If apply to swap with fixed term tenant, may be given further lifetime tenancy
Housing Associations have discretion – for Councils will be set out in the regulations
Mandatory use of fixed term tenancies:
The Act required that most new local authority tenancies are granted for fixed terms of between 2
and 10 years, however the Social Housing Green Paper (August 2018) decided that mandatory use of
fixed-term tenancies would not be implemented.
Other significant measures:
There are a number of other significant measures in the Act in relation to planning and new homes so
for more detail of this click on the following link to a CIH summary:
Of these significant measures the ones relating to Private Landlords are noteworthy in relation to
tenancies including a package of measures to help tackle rogue landlords in this sector of housing,
including allowing local authorities to apply for banning orders to prevent a particular landlord or
letting agent from continuing to operate where they have committed certain housing offences. The
administration of this will include creating a national database of this information to be maintained
7|Pageby local authorities. It will allow tenants or local authorities to apply for a rent repayment order where
a landlord has committed certain offences (for example continuing to operate while subject to a
banning order or ignoring an improvement notice). If successful the tenant (or the authority if the
tenant was receiving Universal Credit) may be repaid up to a maximum of 12 months’ rent.
The Act will also allow a private landlord to regain possession, without a court order, of a property
they believe to have been abandoned. Again details of this will be in the Act using the aforementioned
link.
3.4 Housing Green Paper 2018
This paper was published mid-August 2018 and has the stated aim to ‘rebalance the relationship
between residents and landlords, tackle stigma and ensure that social housing can be both a stable
base that supports people when they need it and support social mobility’ It is almost eight years since
the last review of social housing regulation and the Green Paper proposals allow a fresh look at the
regulatory framework.
Five principles will underpin a new, fairer deal for social housing residents
A safe and decent home which is fundamental to a sense of security and our ability to get on
in life;
Improving and speeding up how complaints are resolved;
Empowering residents and ensuring their voices are heard so that landlords are held to
account;
Tackling stigma and celebrating thriving communities, challenging the stereotypes that exist
about residents and their communities; and
Building the social homes that we need and ensuring that those homes can act as a
springboard to home ownership. Delivering good quality and safe social homes with the right
services from landlords relies on a robust regulatory framework.
Other major points from the Social Housing Green Paper included:
At the time of this Tenancy Strategy being published there was a ‘Call for Evidence’ on how
the current regulatory framework operates and to inform what regulatory changes are
needed to deliver regulation fit for purpose.
Support for delivery of new social homes by local authorities including allowing greater
borrowing and new flexibilities over how they spend Right to Buy receipts,
Local Authorities no longer required to sell-off their vacant, higher value council homes.
Decided not to implement provisions in the Housing and Planning Act 2016 to make fixed term
tenancies mandatory for local authority tenants.
3.5 Delivery of New Homes
To deliver the requirements of the above legislation, Homes England (formerly the Homes and
Community Agency) is working to agree programmes for the delivery of new affordable housing for
the foreseeable future. They are working with housing delivery partners (Housing Associations, Local
8|PageAuthorities, Developers and Land Owners) to deliver sustainable and viable sites with a mix of tenure
to suit all needs in the borough, including that of growth. Homes England have made a number of
changes to their programme criteria in recent years and now include affordable rents, shared
ownership, specialist builds and the possibility of limited social rent and in some cases would subsidise
infrastructure work in order to unlock a development. In addition some Registered Providers are
offering to increase rents on a percentage of re-let properties – these are referred to as ‘conversions’.
Providers are also encouraged by Homes England to take a more proactive approach to managing their
stock, including disposal of stock where this will bring funds to invest in new homes.
Details of all current funding programmes may be found at:
Housing: Funding programmes - GOV.UK
3.6 Tenure Options
It is expected that nomination arrangements will remain unaffected and that lettings will continue
through existing arrangements which for Corby is via the Keyways choice based lettings scheme with
partners in Kettering and Wellingborough Councils.
Existing tenants who remain in their current homes are not affected by affordable rent charges unless
they transfer to another property – in which case their security will remain the same but their rent
may change.
3.7 Mobility in social housing (moving house)
The Localism Act promotes mobility in social housing, which essentially means making it easier for
tenants to move home should their circumstances change i.e. they need to move to be closer to work.
The Act includes extending existing powers of the Secretary of State and the regulator to give
directions to include methods of assisting tenants to exchange tenancies, such as introducing flexible
and fixed term tenancies for example. Corby Borough Council runs a mobility scheme via House
Exchange.
3.8 Scope of this strategy
This strategy provides guidance on the following:
Housing affordability levels for the district
Flexible tenure including review requirements
Needs of specific groups
Delivery of Affordable Rent
Conversions to Affordable Rent
Mobility
Disposal of stock
Local lettings policies
Discharge of homeless duty into the private sector
9|Page4.0 Housing Market
4.1 Stock profile
At the end of January 2018 there were 29,171 residential households in Corby. At this time Corby
Borough Council owned some 4,717 residential dwellings of varying sizes and types for rent. A
breakdown of these is shown in the table below:
Corby Borough Council - Housing Stock
Bedroom Numbers
1 2 3 4 5 Total
Bedsit – Ground Floor 54 0 0 0 0 54
Property Type
Bedsit – Other Floor 75 0 0 0 0 75
Bungalow 309 166 43 1 0 519
Flat – Ground Floor 342 196 23 10 0 571
Flat – Other Floor 307 296 22 0 0 625
House 1 697 1735 223 38 2694
Maisonette – Ground Floor 3 20 44 1 0 68
Maisonette – Other Floor 4 20 80 7 0 111
Grand Total 1095 1395 1947 242 38 4717
Apart from the Borough Council there are also 9 Housing Association landlords with 1141 homes for
rent locally, in various forms, between them. A detailed breakdown of these by size and type is not
available however; Appendix 2 shows some general stock information relating to general needs and
supported accommodation.
Additionally there are 115 homes that come under the banner of Affordable Ownership (details of the
type and size breakdown is not available) which leaves 20,877 which are considered to be privately
owned. The landlord details for all of the affordable homes in Corby (excluding Borough Council stock)
are attached at Appendix 2.
The number of affordable housing lettings for 2016/17 was 256 and in 2017/18 it was once again 256.
The number of people applying for each property can vary considerably between areas as some are
more popular than others, and some property types have specifically tailored criteria limitations due
to adaptations or suitability for specific age groups. Examples of this would be Sheltered
Accommodation, homes that are adapted and bungalows. Lettings have more than halved and bids
have more than doubled in the last 5 years since the first edition of this strategy, adding to the
pressure of homelessness as it is today.
National data from the English Housing Survey (EHS) Household Report 2016/17, Section 1.57; shows
that owner occupiers had resided at their current home on average for 17.5 years. The most common
duration of residence for social housing renters was 11.3, whereas for private renters it was 3.9 years.
All of these durations have increased since the 2012 data sets showing that tenants and residents are
all increasingly staying longer in their homes. This is reflective of affordability in all tenures and the
relatively recent experience of coming out of a global financial recession. The greatest number of
household moves occurred within, into or out of, the private sector. In England a total of 860,000
households moved within tenure (i.e. from one private tenancy to another) and 149,000 new
households were created. There were 179,000 moves into the sector, of which 80% (143,000) were
10 | P a g efrom owner occupation. There were 266,000 moves out of the sector, with 68% (182,000) of these
moving to owner occupation. The 2016/17 survey does not cite reasons for moving, however recent
local studies have shown that the most common reason for homelessness is the loss of private sector
housing. This is broken down into three reasons - rent arrears, termination of assured short-hold
tenancy and other. It is the second of these reasons that is by far the highest at approx. 84% but
explanations of this are hard to pin down, although outgoing tenants are advising that in many
instances the rent has risen beyond their affordability (for both those on welfare benefits and on lower
incomes) and also landlords are looking to sell in a number of instances. Section 1.53 of the EHS states
that the proportions of private renters in receipt of housing benefit has declined from 27% to 22%
between 2014/15 and 2016/17, thereby adding support to the perception of affordability.
4.2 Housing register profile
In March 2018, there were 1,168 applicants on the Council’s waiting list. Whilst this seems a
dramatic decrease on the same data of the previous strategy period starting in 2012 of 3,060, it
should be noted that Corby’s Choice Based Lettings Scheme (Keyways) has improved its
administration year on year and current register numbers reflect those applicants who are actively
engaging with its process.
Applicants are placed into bands according to need; ranging from Band A which contains the
households in the most housing need (such as homeless households), to Bands D & E which contains
the households in the least or no housing need. Applicants in Bands B and C have varying reasons for
requiring accommodation such as being overcrowded, needing to move on from supported
accommodation, etc.
The table below shows the March 2012 and March 2018 register numbers for comparative purposes
and how it is broken down into the different banding categories:
Corby Borough Council - Keyways Waiting List
Number of Households (March Number of Households
Band
2012) (March 2018)
A 8 38
B 273 209
C 265 238
D 2514 315
E Not applicable * 368
Total 3060 1168
* This Band was introduced after 2012, therefore no comparative data available
Applicants in Band D & E are generally considered to be adequately housed or have no housing need
– for example they may be living in accommodation considered to be adequate and affordable for
their needs and financial resources, have sufficient means to rent privately or may own a property
which is reasonable for them to occupy. Therefore there were 485 households on the waiting list as
at March 2018 who were in some degree of housing need.
Nearly a quarter (22%) of the households on the waiting list has at least one applicant aged over 60.
This is higher than in the general population figures for Corby which show that approximately 15.08%
of those living in the district are of this age. This is unsurprising though when considering that the
11 | P a g emany of the reasons for requiring re-housing – i.e. needing to downsize, requiring an adapted
property, or wanting to move close to a carer or family support – are associated with getting older.
Population projections show that in Corby, as is the case nationally, the population is getting older. It
is estimated that in 2018 there are 9,000 people aged 60 and over, and this is projected to rise to
14,100 by 2030.
When making a housing application, households are given the opportunity to present information
relating to any medical or social needs – i.e. are they vulnerable or do they have particular needs? This
information is then considered to determine whether the applicant should be given any additional
housing priority. Below is a band summary table showing numbers in each category based upon
vulnerability / need (based on March 2018 figures).
Band Number of Applicants
Band A 38
Band B 209
Band C 238
Band D 315
Band E 368
Grand Total 1168
In March 2018, there were 177
applicants who expressed an
interest in sheltered / supported
accommodation. This equates to
15% of the applicants over the age
of 60 at that time. Not all of these
resulted in additional priority;
however, this information shows
that there are a significant number
of older households, and
households with some sort of
special need, on the housing
register. It is important to take this
into consideration when
determining what type of tenancies
are more appropriate for the
borough.
The following graph to the left
shows the breakdown of housing
register applicants by age, showing
the comparison between 2012 and
2018.
12 | P a g e4.3 Income data
The graphic below shows the mean (average), lower quartile and mode (most frequent / common)
income levels for Corby. It is obtained from the CACI Post Code Data Pay Check Reports (2015) and a
full breakdown by Electoral Ward level is attached at Appendix 2.
The average income shown above is slightly lower that the surrounding North Northants area (also
including Kettering, East Northants and Wellingborough)
Whilst this information is useful, it should be used with caution for two reasons:
1. Corby has fewer rural areas within its boundaries than its’ immediate neighbours in the North
Northants sub-region and rural areas are shown to be those with the highest income brackets,
thereby making comparisons between where there are limited similarities difficult.
2. There can be occasional discrepancies between information sources as shown by the CACI
2012 information which stated that there were 23,944 households in Corby whereas CBC’s
Council Tax Section reported that there were 26,711 as at the beginning of April 2012; a
discrepancy of 2,767 households. Therefore such information should be used to give a general
view rather than a precise picture.
13 | P a g e4.4 Rents and affordability
1 Bed Flat 2 Bed Flat
Corby Borough £73 Corby Borough £81
Council Rent Council Rent
Affordable £98 Affordable £116
Weekly Rent Weekly Rent
Private £122 Private £145
Weekly Rent Weekly Rent
2 Bed House 3 Bed House
Corby Borough £85 Corby Borough £91
Council Rent Council Rent
Affordable £133 Affordable £146
Weekly Rent Weekly Rent
Private £166 Private £183
Weekly Rent Weekly Rent
4 Bed House 5 Bed House
Corby Borough £98 Corby Borough £96
Council Rent Council Rent
Affordable £183 Affordable £332
Weekly Rent Weekly Rent
Private £229 Private £415
Weekly Rent Weekly Rent
Private Rents
Figures in these tables have been calculated using a sample of advertised private rents on RightMove
in March 2018 from across the borough and are as accurate a guide as possible.
Affordable Rents
Housing Providers receiving grant from Homes England generally provide such housing at ‘affordable
rent’ levels which are capped at no more than 80% of current local market rent.
Social Rents
Social rented housing is owned by local authorities and private registered providers (as defined in
section 80 of the Housing and Regeneration Act 2008), for which guideline target rents are determined
14 | P a g ethrough the national rent regime.
A full definition of affordable housing and rents is provided at 5.1 (below).
Summary
The previous comparison tables clearly illustrate the marked difference in rental levels between
private; affordable and social rents. Housing Association rent levels are not included here and vary to
a limited degree between providers and developments. Generally Association rents are in excess of
Corby Borough Council social rents, but notably lower than private sector rents. In both the Council
and Housing Association sector ‘affordable rent’ levels are based on up to 80% of local private rental
levels for a similar size property.
Affordability
Housing affordability is quite difficult to measure as what is affordable to some households may not
be affordable at all to others. However it is generally accepted that housing costs should not represent
more than around a third of a household’s nett monthly income in order to be sustainable and
affordable - this is roughly in line with the level that mortgage providers will lend at and is consistent
with guidance given by MHCLG for undertaking strategic housing market assessments – they state that
3.5 times income for single income households and 2.9 times income for dual income households
should be used.
The council is of the view that when offering new tenancies to applicants Housing Providers should
carefully consider whether the housing costs (rent, service charge, etc.) are truly affordable for the
applicant and within Local Housing Allowance levels. For example, is the applicant on housing benefit
or Universal Credit and do they cover all of their housing costs? If not, how can they afford the top
up? Are Discretionary Housing Payments available? All these important issues should be covered prior
to tenancy sign-up to ensure that we are not setting households up to fail or excluding them from
certain housing providers who may have particular criteria around household income.
Affordability is very important when considering where, and at what level, Affordable Rent products
should be delivered. Therefore, consideration should be given to current housing allocations policies,
rent setting policies and local data in relation to income prior to delivery, including discussion with
relevant Council departments.
Local Housing Allowance rates for Northants Central
(01 April 2018 to 31 March 2019)
Number of bedrooms Category Weekly Sum Monthly Sum
Shared accommodation room rate and single people
under 35 years old (even if not sharing)
A £53.81 £233.18
Self-contained accommodation (not shared)
1 bedroom B £84.47 £367.77
2 bedroom C £109.12 £472.85
3 bedroom D £127.29 £551.59
4 bedroom E £164.79 £714.09
15 | P a g e5.0 Guidance for registered providers
5.1 Definition of affordable housing and affordability
Affordable Housing
With the publication of the revised National Planning Policy Framework (July 2018) the definition of
affordable housing has changed from the 2012 definition (and prior to that Planning Policy Statement
3) and can be found at National Planning Policy Framework - GOV.UK
Affordable housing: housing for sale or rent, for those whose needs are not met by the market
(including housing that provides a subsidised route to home ownership and/or is for essential local
workers); and which complies with one or more of the following definitions:
a) Affordable housing for rent: meets all of the following conditions: (a) the rent is set in
accordance with the Government’s rent policy for Social Rent or Affordable Rent, or is at least
20% below local market rents (including service charges where applicable); (b) the landlord is
a registered provider, except where it is included as part of a Build to Rent scheme (in which
case the landlord need not be a registered provider); and (c) it includes provisions to remain
at an affordable price for future eligible households, or for the subsidy to be recycled for
alternative affordable housing provision. For Build to Rent schemes affordable housing for
rent is expected to be the normal form of affordable housing provision (and, in this context,
is known as Affordable Private Rent).
b) Starter homes: is as specified in Sections 2 and 3 of the Housing and Planning Act 2016 and
any secondary legislation made under these sections. The definition of a starter home should
reflect the meaning set out in statute and any such secondary legislation at the time of plan-
preparation or decision-making. Where secondary legislation has the effect of limiting a
household’s eligibility to purchase a starter home to those with a particular maximum level of
household income, those restrictions should be used.
c) Discounted market sales housing: is that sold at a discount of at least 20% below local market
value. Eligibility is determined with regard to local incomes and local house prices. Provisions
should be in place to ensure housing remains at a discount for future eligible households.
d) Other affordable routes to home ownership: is housing provided for sale that provides a
route to ownership for those who could not achieve home ownership through the market. It
includes shared ownership, relevant equity loans, other low cost homes for sale (at a price
equivalent to at least 20% below local market value) and rent to buy (which includes a period
of intermediate rent). Where public grant funding is provided, there should be provisions for
the homes to remain at an affordable price for future eligible households, or for any receipts
to be recycled for alternative affordable housing provision, or refunded to Government or the
relevant authority specified in the funding agreement.
Affordable housing should include provisions to remain at an affordable price for future eligible
households or for the subsidy to be recycled for alternative affordable housing provision.
Social rented housing is owned by local authorities and private registered providers (as defined in
section 80 of the Housing and Regeneration Act 2008), for which guideline target rents are determined
through the national rent regime. It may also be owned by other persons and provided under
equivalent rental arrangements to the above, as agreed with the local authority or with Homes
England.
16 | P a g eAffordable rented housing is let by local authorities or private registered providers of social housing
to households who are eligible for social rented housing. Affordable Rent is subject to rent controls
that require a rent of no more than 80 per cent of the local market rent (including service charges,
where applicable).
Intermediate housing is homes for sale and rent provided at a cost above social rent, but below market
levels subject to the criteria in the Affordable Housing definition above. These can include shared
equity (shared ownership and equity loans), other low cost homes for sale and intermediate rent, but
not affordable rented housing.
5.2 Flexible tenure
We recognise that Registered Providers can take advantage of the provisions enabling fixed term
tenancies to be issued. We also acknowledge that the decision to use fixed term tenancies, and the
length of these tenancies, lies with the Housing Provider. However, in order to meet with strategic
priorities within housing and to ensure that rent levels are being set within the affordability
boundaries of local residents in housing need, we would strongly urge their use on a case by case basis
that considers housing need at the heart of that consideration. We would firmly expect Providers to
consult with the council’s Housing Strategy Manager on their proposed tenancy policies before these
are adopted and issued.
When fixed term tenancies are issued, we suggest that the following basic principles are adopted to
ensure need is considered:
A minimum of a five year fixed term tenancy for most households. There are some households
for whom we would prefer a longer tenancy and there are some exceptional circumstances
where we are prepared to accept a shorter term (these are described later at 5.3). Where a
term of less than five years is proposed we expect providers to discuss this with us at the
earliest opportunity as it will have implications for the council’s allocations policy.
For fixed term tenancies to be re-issued at the end of the term unless there is a significant
change of circumstance. We would like the opportunity to work with Providers to establish
the criteria they use to inform this decision.
That fixed term tenancies are not used as a general management tool. We are of the view that
there are other more suitable existing tools, such as introductory tenancies, available for
Providers to manage the risk of future breaches of tenancy agreements.
Clear and concise advice and information is provided to tenants throughout the whole process
from tenancy commencement to any potential termination – see below.
The information below sets out what we expect Providers to offer to tenants before they issue a fixed
term tenancy, during the tenancy, and prior to the end of such a tenancy.
Prior to issue
Timely information and advice services to help people understand their housing options which
should include, where appropriate, opportunities to move within and outside the social and
affordable rent sectors e.g., into market rent or home ownership (including low cost home
ownership).
Clear criteria against which the decision to re-issue the tenancy at point of review will be
made.
17 | P a g eDuring Tenancy
Tenancy support, for example help with financial planning.
Referral to external support agencies where required.
Periodic reviews to monitor any change in circumstances.
Prior to the end of fixed term period
A clear and transparent review process which is understood by the tenant at the time of
tenancy sign up.
Information sharing between all affordable Housing Providers and the council’s Housing
Options Team when the decision not to reissue a tenancy has been taken at the earliest
possible opportunity so as to avoid homelessness.
When a fixed term tenancy is issued, we expect that a full review will be undertaken prior to the
beginning and end of the tenancy period. It is accepted that occurrences where tenancies are not
renewed are likely to be the exception and not the rule due to the fact that for the majority of
affordable housing tenants their circumstances will not change considerably over time.
Towards the end of a fixed term tenancy, there are a number of courses of action which providers can
take:
1. To re-issued a new Fixed Term Tenancy; or
2. For the tenant to remain in the property but on new terms; or
3. To assist the tenant to find alternative (and more suitable) accommodation; or
4. Not offer any other form of tenancy
There are a number of situations where we accept that it may not be appropriate to re-issue a further
fixed term tenancy. These include where:
The property is adapted and no-one residing at the property requires the adaptations
The property is under-occupied by more than one bedroom
The property is over-crowded
The financial circumstances of the tenant have changed to such an extent that other housing
options would be more appropriate.
Breaches of tenancy or tenancy fraud are identified during the fixed term tenancy review
process.
The tenant and / or their advocate do not engage in the fixed term tenancy review process.
The tenant comes into legal ownership of another home or property.
The tenant’s behaviour during the fixed term of the tenancy has been unacceptable to the
extent that they would not be accepted onto the council’s housing register – See Keyways
Housing Allocations Policy for examples.
The tenant has substantial debt accrued during the current fixed term.
There is a particular need for the tenant to move to another location, for example to take up
employment.
This list is not exhaustive and there may be other circumstances where the re-issue of a tenancy would
be inappropriate.
When a Fixed Term Tenancy is coming to an end and a notice has been served, the council expects
Providers to ensure that tenants receive housing options advice, either provided directly, or co-
18 | P a g eordinated via the council’s Housing Options Team. This will ensure that they are aware of the different
housing options available to them given their particular circumstances and can access appropriate
support.
Any decision not to renew a fixed term tenancy should take full account of the likelihood of re-housing.
If affordable Housing Providers are not transferring a tenant to another property within their own
stock, then we expect that a full consultation with the council’s Housing Options Team will take place
to ascertain whether suitable properties are available, what the likely re-housing time is, and other
relevant factors.
We would also highlight the need to work actively with tenants well before their fixed term tenancy
is due to come to an end.
5.3 Needs of specific groups
There are some groups for which the type of tenancy they are issued will have more of an impact. We
have set out below the groups for which we feel that special consideration would be beneficial and
guidance on the types of tenancies that we would expect Providers to consider.
Families with children of school age or younger
Our preferred tenancy terms are:
A minimum of a five year fixed term tenancy
Security and stability during a child’s education is critical. Families also rely on nearby friends and
relatives to provide care for their children. We expect these factors to be considered by Providers in
reaching a decision about the length of fixed term tenancies for this household group.
Households with member who is disabled, terminally ill or has special needs
Our preferred tenancy terms are:
For fixed term tenancies to be used where this will enable the best use of adapted stock
A minimum ten year fixed term tenancy where it is likely that the disabled person will remain
living in the property for some time and still require the adaptations
Shorter tenancies may be deemed appropriate by Providers and their health and care partners in some
situations - for example we acknowledge that a two year tenancy in an adapted home may be deemed
appropriate where a household member has a recoverable injury/condition and is fully expected to
move on into a non-adapted home. It may also be appropriate for shorter tenancies (of not less than
five years) to be used where there is an adapted family home and the needs of the disabled child may
change, or the child may move out.
Older people over the age of 60
At this stage our preferred tenancy terms are:
A minimum of a five year fixed term tenancy for older people living in general needs
accommodation
Lifetime tenancies for older people living in sheltered housing (accommodation designated
specifically for older people)
In deciding on the length of tenancies for this household group or for accommodation that is specific
to older people e.g., sheltered, we would expect Providers to consider health and wellbeing, the role
of friends and relatives in enabling independence, and the possibility that insecurity of tenure may
add to someone’s worries about their future.
19 | P a g eWe are particularly interested in working with Providers to explore how under-occupation of family
homes can be addressed and this will be taken forward through a review of our housing allocation
policy.
We would also expect that Housing Providers give special consideration, within their policies and
development plans, to the following groups who struggle with access to social housing because of lack
of funds or appropriate property types that suit their needs:
Households in rural areas
Older persons accommodation
Small families with school aged children
Single households under 35 eligible for the shared accommodation Local Housing Allowance
only
Large families that are affected under the terms of the welfare ‘benefit cap’
We are aware that we currently have problems in re-housing these households due to changes
resulting from Welfare Reform, a lack of affordable housing supply and population growth.
5.4 Delivery of affordable rent
The council welcomes the delivery of new Affordable Rented housing where this can enable
development to proceed through harnessing grant or via S106 opportunities.
We continuously assess the demographics of Corby, and use both need and income data, to obtain an
idea of what income levels are required for applicants to be able to access Affordable Rented housing.
This information will be used to inform our conversations on required tenure as well as property types
on new developments, and our response to any conversion requests.
Policy on the provision of Affordable Rent through new developments in the Borough is held at
Appendix 3 of the Housing and Homelessness Strategy 2014-19 and in general terms states a 30%
portion of the site is dedicated to affordable housing split between affordable ownership and general
needs rent. (Also see Social Housing Green Paper) However, smaller areas (in particular those with an
already established housing base and infrastructure) will be considered on a site by site basis.
Assessments of this will broadly take into consideration the tenure mix existing in the surrounding
area and aim to complement it or support any particular tenure gaps, viability, regeneration
considerations and the ability to meet localised housing need, localised housing management issues
and any other identified factors of a local nature.
Where homes are in settlements of less than 3,000 population (villages), we expect Providers to
deliver products which meet the requirements as documented within the local rural housing needs
surveys published in December 2017.
As stated earlier in this strategy Affordable Rent levels should be no more than 80% of local market
rents and also take account of local income and affordability levels, ideally not exceeding the Local
Housing Allowance for the Borough.
Further guidance on the provision of Affordable Rent will be provided in our Housing and
Homelessness Strategy due for renewal in 2019.
20 | P a g e5.5 Conversions to affordable rent
The council understands the need for Registered Providers to occasionally convert existing affordable
housing stock to Affordable Rented housing in order to generate funding. Where Providers are
considering conversions we would expect that early discussions take place with the council to ensure
that these occur only where they can be sustained and are affordable.
We would not wish to see any Registered Provider convert more than 50% of their stock to Affordable
Rent as there remains a considerable demand for social rented housing.
5.6 Mobility
The council recognises the need for mobility within the affordable housing sector and actively
encourages all Housing Providers to subscribe to an exchange service or to partner with another
organisation’s exchange service if prudent to do so. Enabling tenants to be able to move can help them
secure better employment and be close to family networks and can also help with the supply of
affordable housing, for example by ‘freeing-up’ properties for others.
The process for moving within the sector and information on how we can assist people to move quickly
and easier, can be found in our Housing Allocation Policy.
In addition to the housing allocation process we also welcome the use of other initiatives which make
it easier for those wishing to move to do so – such as mutual exchange programmes or ‘management
moves’ within affordable housing provider stock where appropriate.
5.7 Disposal of Stock
The council in general terms would not wish to see the disposal of affordable housing stock, however
it is recognised that in certain circumstances this may be justifiable providing it allows for future
investment, within the Borough, in more appropriate housing.
Providers are requested to consult with us before approaching the Regulator for the disposal of any
stock so that we have the opportunity to discuss the individual circumstance of the request and to
ensure that it meets with strategic housing objectives.
5.8 Local lettings policies
Local lettings policies (LLP) can be very useful in maintaining sustainable communities and for
addressing specific housing management problems. However we also recognise the need for tenants
to be able to exercise an element of choice over where they want to live and that mobility is important
– for example in maintaining a dynamic labour market.
Therefore we only introduce and implement LLP on a development-by-development basis where it is
agreed between the council, stakeholders and communities that they would be useful. More detail
can be found in Corby’s housing allocation policy (link at 5.6 above).
5.9 Discharge of homeless duty into the private sector
The Localism Act amended the way that Local Authorities are able to discharge their duty to
accommodate under homelessness legislation. The Council is now able to discharge their duty to
homeless households with an offer of suitable accommodation in the private rented sector if they so
wish, provided that the tenancy is for a minimum of one year.
This provision enables local authorities to discharge their duty into the sector if they feel that the
household’s circumstances mean that it is reasonable to do so. For example not all households will
21 | P a g eautomatically need an affordable home for life but under previous legislation they could acquire one
which would leave others waiting for a longer time period.
This flexibility should enable local authorities to better manage their temporary accommodation and
bed and breakfast costs. Determining factors when considering whether to make use of this relatively
new power are:
The circumstances of each individual homeless household / applicant
The availability of affordable, good quality private rented accommodation
Any current problems in discharging homeless duty
However, since welfare reform has changed the levels and methods by which someone is paid, the
private sector has become unaffordable and unattainable to most of those threatened with
homelessness, plus a reluctance on the part of landlords to accept those on Benefits.
In March 2018 there were 1168 households on the Corby housing waiting list (Keyways). Whilst Band
A remains appropriately the smallest in number it has increased 475% since March 2012. However
the most urgent applicants only represent 3.25% of those seeking accommodation, therefore we can
conclude from this that only a relatively small number of affordable properties are needed each year
to fulfil our statutory duty. However, if new affordable homes are not added onto the local stock
through consistent delivery year on year, reliance on the sector will only escalate.
6.0 Consultation and Communication
We sought to consult relevant stakeholder organisations and Affordable Housing Providers on the
previous iteration of this document with comprehensive consultation during 2012. (A full list of
organisations consulted is provided at Appendix 3)
A list of consultation questions is attached at Appendix 4 to help to provide us with structured and
specific feedback, along with a feedback pro-forma. In addition to the specific questions there is some
space on the pro-forma for general comments, thoughts and observations. This consultation format
will be retained throughout the strategy’s publication period and any feedback between publication
and review will be used to shape future documents, where appropriate.
The results of the consultation exercise will be used to further shape and refine this strategy, and will
result in a final document that will be put forward to our One Corby Policy Committee for approval.
We welcome feedback at any time on this document, and contact details are provided at 9.0 for this.
7.0 Review and Monitoring
This strategy is intended to provide guidance and is a working document that will be reviewed at 3
yearly intervals, or sooner, should there be a significant policy or legislative change that requires it
Before then we may from time to time amend some aspects of the document should we feel that this
is appropriate. If any amendments are made these will be communicated fully and a revised document
issued.
22 | P a g eYou can also read
