Stirling Council Agenda Item No.17 Date of Environment & Housing Meeting: 14 November 2019 Committee Not Exempt Housing Allocations’ Policy Purpose & Summary This report advises the Committee on the review and proposals for change to the current Allocations’ Policy which is compliant with the Housing (Scotland) Act 2014, current policy changes, and supports the delivery of the Rapid Rehousing Transition Plan. It presents revised policy documents for comment and approval. Recommendations Committee is asked to: 1. approve the revised Allocations policy as attached at Appendix 1; and 2. approve the allocation of two bedroom properties to single people, a key part of the new policy, to be implemented as soon as practicable. Resource Implications A summary of the resource is contained in the considerations section. Legal & Risk Implications and Mitigation The Council’s current Allocations’ Policy needed to be reviewed to be compliant with the Housing (Scotland) Act 2014, and current policies, including the delivery of the proposed Rapid Rehousing Transition Plan. 1. Background 1.1. The Council’s allocation policy must meet all legislative and regulatory requirements surrounding the allocation of housing, and make sure those in the greatest housing need have fair and efficient access to affordable housing. In summary, the policy must: 1.1.1. Comply with current legislation and statutory guidance; 1.1.2. Be fit for purpose and meets the needs of our applicant and tenants; 1.1.3. Meet the Council’s statutory responsibilities in relation to homelessness, as well as support the delivery of Rapid Rehousing Transition Plans (RRTP); 1.1.4. Make best use of housing stock; and 1.1.5. Ensure decisions are fair, transparent and equal. 1.2. To meet these challenges, the Housing service carried out a detailed review of the current allocation policy to make sure the policy: 1.2.1. Complies with legislation, the Scottish Social Housing Charter and best practice; 1.2.2. Is flexible in responding to the impact of local housing need; 1.2.3. Meets statutory requirements to homeless households; and 1.2.4. Is accessible and easy to understand. Consulting on the proposed changes to the current allocations policy. 1.3. The service carried out a comprehensive consultation exercise to gather and consider the views of tenants, applicants, registered tenant organisations, elected members and other stakeholders. 1.4. An allocations working group was set up in 2017 to examine the current policy, research good practice and discuss policy options. Several meetings took place throughout 2018/19 and the results of which were fed into the consultation. The working group’s views are contained within Appendix 3. 1.5. In addition, consultation during 2019 included targeted stakeholder events, a full tenant and applicant consultation where a consultation document was sent to over 8,500 respondents and 5 local community events were organised in the summer months. 1.6. A high number of responses were received (1,155, 13.6%) and the full results of the consultation are contained in Appendix 2. 1.7. In addition, two elected member briefing sessions were carried out in September. All members were invited and 10 attended the sessions. An overview of the information contained in the briefing is contained in Appendix 4. 1.8. A detailed options’ appraisal was undertaken, which included the results of the wide ranging consultation. A preferred option was identified from 5 options. This option was presented and discussed at a meeting of the Housing Advisory Group on 11 October 2019 and the group agreed to develop a new allocations policy based on this preferred option (which included an allocations policy with a ‘groups plus points’ system). Details of the options appraisal are contained in Appendix 5. 2. Considerations 2.1. The proposed policy takes account of the acute pressures on social housing in the Stirling Council area where: 2.1.1. Demand for housing across all tenures is high; 2.1.2. There is a predicted growth in single people households in Stirling of 18% in the next twenty years; 2.1.3. House prices are 7% higher than the Scottish average; 2.1.4. Private rented sector rents are more unaffordable than the Scottish average– the average rent for 1 and 2 bedroom homes in the private sector is 16% above the Local Housing Allowance rate; 2.1.5. There is limited availability of social housing with Stirling Council’s housing stock having the lowest turnover in Scotland (5%) and RSL (social landlords) stock also being low at 5% compared to the Scottish average of 11%; and 2.1.6. 94% of people on the current waiting list will never have enough points to be allocated a house, such is the extremely limited supply and low turnover of council housing. 2.2. Some key statistics that we have considered in reviewing the Allocations Policy are that: 2.2.1. 94% of those currently on the waiting list do not have enough points to be allocated a house; 2.2.2. People have on average 10-90 points, and need average of 191 to be allocated a property; 2.2.3. The current policy allocates 90% to homeless or waiting list applicants who don’t generate any additional turnover; 2.2.4. We have 25% fewer 1 bed properties than we need, and 25% more 2 bed properties than we need, therefore we need more flexibility in allocating these property sizes; 2.2.5. 60% of all offers are refused, with the most common reason for refusal being that an applicant does not want to be housed in the area they have been offered a property; and 2.2.6. The scale of housing need is significant in comparison to the number of lets available. The ratio of applicants to lets is 5:1. For 1 bedrooms properties this increases to 8:1. This places extreme pressure on homeless services, where the majority of homeless people are waiting on the allocation of a 1 bedroom property. The pressure on homeless services is in the form of extended waiting times for single people in temporary homeless accommodation, and increased financial expenditure on B&B to meet the Council’s statutory obligations. 2.3. The proposed new allocations policy is attached in Appendix 1. The new policy seeks to introduce a number of changes as a result of the consultation, stakeholder, allocations’ working group and member sessions. The revised policy seeks to: 2.3.1. Introduce a ‘groups plus’ points system, which is what the vast majority of other local authorities have. 2.3.2. Ensure compliance with current legislation, statutory guidance and good practice. 2.3.3. Prioritise reasonable preference groups in terms of the new allocations guidance. 2.3.4. Introduce a limit to the number of refusals allowed. 2.3.5. Introduce flexibility to allocate 1 or 2 bedroom properties to single people. 2.3.6. Take home ownership into consideration. 2.3.7. Support the delivery of the Rapid Rehousing Transition Plan in Stirling. 2.3.8. Update the definition and priority accorded to unsatisfactory housing conditions. 2.3.9. Revise the points system. 2.3.10. Implement a housing information and advice process. 2.3.11. Carry out an annual review of the policy to ensure that all aspects of the policy are operating as intended. 2.4. The proposed policy is intended to target and prioritise those in the greatest housing need in compliance with the reasonable preference categories within the Housing (Scotland) Act 2014. 2.5. In doing so, the proposed policy causes the least disruption of the options appraised, to those currently on the housing list. In addition, the proposed policy will meet more housing need in the Stirling Council area by increasing turnover with the introduction of a group for ‘transfer’ applicants. 3. Implications Equalities Impact 3.1. The contents of this report were assessed under the Council’s Equality Impact Assessment process and it was determined that an Equality Impact Assessment was required and attached in Appendix 6. Fairer Scotland Duty 3.2. The contents of this report were considered in terms of the Fairer Scotland Duty and were determined not to be of strategic importance. Sustainability and Environmental 3.3. Not applicable. Other Policy Implications 3.4. This policy links to the proposed Rapid Rehousing Transition Plan. Consultations 3.5. A paper explaining this policy review was presented to the Housing Advisory Group on 11 October 2019. 3.6. A full consultation with tenants, applicants and stakeholders has been completed in 2019 to inform the development of the policy. 4. Background Papers 4.1. Allocations Policy Review – Housing Advisory Group 3 February 2017. 4.2. Allocations Policy Review Update – Housing Advisory Group 24 August 2017. 4.3. Allocations Policy Review Update – Housing Advisory Group 23 March 2018. 4.4. Rapid Rehousing Transition Plan 2019/20 – 2023/24 – Housing Advisory Group 12 August 2019. 4.5. Revised Allocations Policy-Housing Advisory Group 11 October 2019. 4.6. EqIA Relevance Check. 5. Appendices 5.1. Appendix 1 – Proposed new Allocations’ Policy. 5.2. Appendix 2 – Consultation results. 5.3. Appendix 3 – Results of the Tenants’ Working Group Allocations’ Review Working Group Event. 5.4. Appendix 4 – Overview of Allocations’ Policy Review: Elected Member Briefing September 2019. 5.5. Appendix 5 – Allocations’ Policy Review Options Appraisal. 5.6. Appendix 6 – Equality Impact Assessment Form. Authors of Report: Contact Details: Steven McCabe 01786 237859 Approved by: Date: 5 November 2019 Lorna Cameron Chief Officer – Housing Details of Convener(s), Vice Convener(s), Portfolio Holder and Depute Portfolio Holder consulted on this report: Wards affected: All. Key Priorities: C - We will create more affordable & social housing in all Stirling's communities.