Agenda item

This report provides an update to the Housing Scrutiny commission setting out the progress on the delivery of the Housing Crisis actions, following the declaration of a Housing crisis on 24^th November 2022.

The Director of Housing submitted a report to update the commission on progress made on the delivery of the Housing Crisis actions. It was noted that:

·       The capacity of the Council to respond to housing needs had been significantly undermined by the introduction of the Right-to-Buy (RTB) scheme. In response to this, the council declared a housing crisis in 2022.

·       This report served as an update to the one presented previously 12 months. It showed good progress had been made on the delivery of the LCC action plan. Of the 16 actions, 11 had been completed and 5 were in progress. Of the actions set out by the Government, 12 were in progress and 4 had been completed. The council remained on track to deliver 1500+ homes by 2027.

·       An additional £500m had been added to the Affordable Housing programme by Government and the council was accessing this funding.

·       In line with its commitment to strengthening private rental sector quality, the council had also made progress on its Private Rented Sector (PRS) strategy, including the introduction of a Selective Licensing scheme.

·       No increase to the Local Housing Allowance (LHA) was expected in 2025.

·       The Renters Reform Bill would introduce changes including a national landlord register. Other proposed legislative changes included the abolition of Section 21 ‘no-fault’ evictions, new rules around holiday accommodation, and changes to council tax on second homes. These changes were expected to have a positive impact. Section 21 was a significant contributor to homelessness, with many affected individuals needing the council for support.

·       The council had provided a strong response regarding the qualification period before RTB. Local authorities would also be able to retain capital receipts from RTB sales.

In response to comments and questions, it was noted that;

·       The national housing allowance had been set at the 30^th percentile of local rents. However, with rising mortgage costs for landlords, rent affordability remained a challenge.

·       Only 3% of the market was affordable for the PRS tenants on low income before the Local Housing allowance uplift in 2024.

·       The Renters Reform bill was progressing through political processes and was expected to be completed in 2025.

·       To meet the city’s housing needs, the council had a well-established programme targeting 1500+ units.

·       The new Local Plan would allocate new housing sites for development and was expected to be completed between late 2025 and early 2026. Work was already underway on sites currently allocated to Housing, and this positioned the council to be ahead of schedule once the Local Plan was approved.

·       The status of the Local Plan was that certain modifications had been agreed upon with the inspectors following the initial examination. There would be further consultations on these modifications.

·       The applicability of changes to the law on section 21 would be to all tenancies, both existing and new.

·       Council tax on second homes would be subject to double council tax. If the property remained vacant for an extended period, the council could charge up to 400% as this time increased.

·       There had been national challenges with the construction industry because of factors like COVID-19, the Ukraine War, and other factors. The strategy deployed by the council to mitigate this was ensuring that builders would have early sight of its plan, allowing them ample time to decide whether to tender any bids. This approach has led to more submissions and fostered long-term partnerships with contractors.

·       The council had reviewed its procurement policy to ensure it was amenable to the market.

·       The Selecting Licensing Scheme had recorded successes, and there were measures in place to address defaulting landlords.

·       Some properties are excluded from the RTB scheme. The exclusion of some ground-floor flats in the Right to Buy (RTB) scheme would only occur if there had been adaptations made to the properties.

·       The impact of government policies in Leicester could mean the Council would face a £6M overspend on temporary accommodation for 2025/26; this would have been significantly worse without the current strategy.

AGREED:

The Commission noted the report.