Agenda item

The Director of Housing submits a report providing a progress update on the delivery of the Housing Crisis actions to the Housing Scrutiny Commission.

The Deputy City Mayor for Housing and Neighbourhoods introduced the item highlighting?the positive work of the Task Group which included?Members from across various Scrutiny Commissions in assisting a housing crisis to be declared. It was noted that the Action Plan has been a helpful benchmark to monitor workstreams and progress. Two main benefits were noted including the communication with residents regarding the housing register and ensuring the issue became a corporate priority with cross divisional working. ? 

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The Director of Housing presented the report in which it was noted that: ? 
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·       A housing crisis was declared in Leicester in November 2022. An Action Plan was developed including recommendations by the Task Group and adopted by full Council. The Action Plan includes actions for the Local Authority and demands of central government, both which have had good progress. ? 

·       The Local Authority is on track to deliver the 1,500 council and affordable housing targets with £250m investment. Poor quality private sector housing is being addressed through the development of the Private Rented Sector Strategy and Selective Licencing Schemes. Homelessness prevention includes private landlord offers and call before you serve landlord offer. The Action Plan is monitored by the Strategic Director for City Development and Neighbourhood Services to ensure cross divisional working. ? 

·       There has been good progress with demands on government including an £11.4bn fund to deliver 180k affordable homes over five years and the Local Authority continue to work on bids to secure additional funding for schemes in the city. The Local Housing Allowance cap will be lifted from April 2024 to enable individuals on low income or benefits to access homes up to the thirtieth percentile in?the private rented sector. The division previously conducted work with De Montfort University on Local Housing Allowances and at that time only 3% was affordable to this group and further work may be undertaken on the new arrangements. ? 

·       Legislation is being introduced to end Section 21 no fault evictions and require robust justifications which was another demand of government as it?currently accounts for over half of homelessness applications. Loopholes to holiday homes are currently being consulted on which the Local Authority will be submitting a response to. A national landlord register is also proposed in the Renters Reform Bill 2023 that would help tackle poor landlords. ? 

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The Commission thanked officers for the report and good progress. In response to questions and comments from Members, it was noted that:? 

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·       Homes that have been empty for more than five years will be charged three times the council tax of an occupied home and from 2021, homes empty for more than ten years are charged four times the council tax of an occupied home.?Unlike many other cities, Leicester has a dedicated small empty homes team who gather data with the council tax service to tackle private empty homes. There has been a slight increase in private empty homes in the city recent due to affordability to bring them back into use, but the team follow a process and work on early interventions with owners and?monitor with compulsory purchase orders as a last resort. ?? 

·       Homeowners may manipulate the system by?leaving furniture in the property and proactively making it look as though it is occupied. The Local Authority is limited in its powers to gather evidence and the empty homes team must make a judgement on whether it is viable if legal action is pursued that a judge would determine it as empty on the evidence.? 

·       If a ward councillor identifies land that they think may be suitable for development,?they should contact the housing development team who are responsible for new housing developments and acquisitions. The team will follow a?process to assess the viability of the site with finance, EBS, planning etc. It is expected that feedback would be provided to the ward councillor on the outcome.? 

·       The viability and legality of a Housing Company was explored and progressed through to the setting up of a Housing Company. When assessed against the existing work of the division however it was felt that it was not an appropriate tool, and nothing further would be gained and therefore?the priority should remain on delivering targets within services and in the HRA. A?Housing Company will remain?on the Action Plan for consideration if?outcomes to be delivered are changed and as part of ongoing monitoring of how other Local Authorities utilise Housing Company’s to determine whether it may be appropriate in future. ? 

·       Sites for long-term development have been identified and form part of the Local Plan proposals which has been submitted to the Government Inspectorate. A number of sites are included for residential purposes but overall there is insufficient land to meet housing needs in the city which has required an agreement with neighbouring Districts. If sites are removed this will reduce the ability to deliver more housing and developments in neighbouring Authorities will not give access to the housing register.? 

·       The Local Authority are actively in discussions with owners of private sites that have not been developed to discuss the feasibility to bring them forward.?If successful, the Commission will be updated. ? 

·       For a short period of time Local Authorities have been able to retain 100% of Right to Buy Receipts to use alongside other funding for acquisitions and housing developments. Right to Buy receipts can be used to fund 40% of a property. The recent Budget announcement reduces retained receipts?to 50% and therefore the Local Authority will have less money for its active initiatives to increase council homes in the city. The Local Authority will continue to bid to the £11.4bn Homes England Fund but this can only fund 30% of a property. Homes England Funding and Right to Buy receipts cannot be merged. ? 

·       Some properties lend themselves to conversion to multiple occupancy which often results in saturation zones that can have an impact on the community. The Article 4 Directive provides power to prevent further conversions in a particular area but does not prevent an individual purchasing and converting a property elsewhere. ? 

·       Data indicates that since the introduction of the Right to Buy scheme, Local Authority housing stock has reduced from c37% to c13% but the number of privately owned properties in the city has not increased. Instead, private rented properties have increased but there are no controls on what an individual does when they own a property.  

·       If the Local Authority purchase a former council property to rent it is protected for ten years. If the council tenant seeks to exercise the Right to Buy in the first ten years, they will have to pay the full rate that the Local Authority paid, after the ten years they will be entitled to purchase at the discounted rate.? 

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AGREED: ? 
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·       The Commission noted the report.? 

·       The Commission to be updated if successful progress in bringing forward private sites for development.? 

·       The Commission recommended the action plan?be reviewed to make the status of items clearer. ? 

·       Item to remain on the work programme for updates on the Action Plan.?