The Committee is asked to consider the Tenant Strategy Refresh.

The Cabinet Member for Housing and Wellbeing and the Strategic Housing and Health Manager have been invited to attend for this item.

The Chairman welcomed the Cabinet Member for Housing and Wellbeing and the Strategic Housing and Health Manager to the meeting.

The Cabinet Member for Housing and Wellbeing introduced the report which set-out the background to the Refreshed Tenancy Strategy, and the eight week consultation process.  He advised that there were very few changes, and these included a few statistics.  Local Authorities were required to have a tenancy strategy, even if they had no housing stock.  The strategy enabled Swale Borough Council (SBC) to have a monitoring role in relation to the housing associations who had the housing stock.  The Cabinet Member welcomed comments from Members on the refreshed strategy.

In response to a question, the Strategic Housing and Health Manager explained that the changes to the strategy were mainly data updates, particularly changes to rent levels.  She  drew Members’ attention to paragraph 10.1 in the Tenancy Strategy document which outlined the new Government grant programme, the Shared Ownership Affordable Homes Programme 2016-21 (SOAHP)  which enabled Registered Providers (RP) to charge rents of up 80% of local market rents.  She also drew attention to paragraph 11.2.4 which required RPs to reduce social housing rents by 1% a year for four years.

In response to a question on the circumstances that RPs were required to grant lifetime tenancies to households whose circumstances were unlikely to change over time, the Strategic Housing and Health Manager explained that this would include anyone who had extra vulnerabilities or mobility issues, and could not sustain a tenancy on the open market.  In response to a further question on whether in the situation of a lifetime tenancy, one person died, she explained that this was down to the individual housing association.  They had individual tenancy policies, but generally, the tenancy would move to the other person if succession applied.  If they were under-occupying they could apply to the Housing Register and bid on smaller homes when they became available.  The person would not be evicted or made homeless.

A Member considered the wording in paragraph 7.2.1 in relation to two year tenancies only being issued in ‘exceptional circumstances’ was not strong enough, and asked what exceptional circumstances might be.  He also asked whether further checks were made on any additional income coming into the household (paragraph 7.6.2).  The Strategic Housing and Health Manager explained that a tenant could get a two or five-year fixed term tenancy, or a two-year which could be reviewed.  This was carried out in a managed way, and was down to the individual housing associations.  The standard tenancy was five-year fixed term.  She also explained that with regard to income, a nominated person in the household would be verified, but if an income was not declared, this was difficult to follow-up.

A Member referred to the 1% decrease in rent over four years, and whether there was any scope for rent to increase in relation to changes in the open market, and whether these costs were passed on and the impact on viability.  He suggested there needed to be links with the Planning Team with regard to the amount of affordable homes.  The Strategic Housing and Health Manager explained that the 1% decrease was a legislative change, but that rents might still be unaffordable for some prospective tenants and could impact on who the housing associations accepted. Some may be by-passed because of the rent set as 80% of the local market rent, could still be unaffordable for some households.  In response to a further question, she explained that shared ownership was not a true affordable housing option for many local families, and these homes could be sold to those with no connection to the local area.  In partnership with Housing Associations it was often agreed that a cascade could be put-in-place to ensure that local families were given the option for three months to purchase and then it was put out to others.

There was some discussion on earnings that were not declared.

A Member suggested that paragraph 3.2 in relation to population growth in Swale needed to be strengthened.  He raised concern with the lack of affordable homes available in the Borough, and suggested that the normal minimum 5-year tenancy term in Swale be changed in light of the impending housing crisis in the Borough.  The Member asked how the figure compared with other local authorities.   In response, the Cabinet Member explained that the five-year term was recommended by Government, and the Strategic Housing and Health Manager stated that the standard term was also 5-years for the majority of housing associations in other local authorities.  She further advised that housing associations could be asked to lower their fixed term, but there was no legislation to force them to do less than a five-year term.  It would be onerous to undertake the administration and monitoring of a two-year term.  The Cabinet Member confirmed that paragraph 3.2 could be strengthened.  The Strategic Housing and Health Manager explained that she tried to get a maximum of affordable homes on each new development, but viability reports overrode planning policy, but the aim was to get a reasonable and proportional mix of housing.

There was further discussion on when affordable housing was applied for, that this reflected the current growth in population in the Borough, and that the policy needed to be more substantial.  The Cabinet Member agreed that this could be looked into further.

A Member referred to paragraph 7.5.5 and asked that if tenants had to move because the property was under-occupied, would the new property be in the same area, or would they have to move away? He also asked what happened if a landlord did not cover all the bullet points listed in paragraph 6.1.2.  The Strategic Housing and Health Manager explained that tenants were not forced to move, but they could bid for available properties on the housing register.  She stated that every Housing Association needed a policy and they were required to take into account SBC’s strategy.

In response to a question, the Strategic Housing and Health Manager explained that shared ownership housing was included within the affordable housing figures outlined in paragraph 4.2.  She added that she was consulted on every large development site with regard to affordable housing and shared ownership.  In response to further questions, she stated that possible security of tenure after five years could be achieved by the fixed term becoming rolling tenancies after review; and that Right to Buy enabled tenants to purchase at a reduced rate, but this was down to the individual housing association.

A Member asked what could be done to help young people get onto the private housing market.  The Cabinet Member stated that it was recognised that tenants could also be saving for the future, and the Strategic Housing and Health Manager outlined other options such as Rent to Buy, and shared ownership.

A Member asked if SBC looked at other housing associations, such as English Rural?  The Strategic Housing and Health Manager stated that they actively sought to work with other housing associations and were open to working with as many housing associations as possible.

The Cabinet Member for Housing and Wellbeing thanked Members for their comments.

The Chairman thanked the Cabinet Member for Housing and Wellbeing and the Strategic Housing and Health Manager for attending for this item and explained that the refreshed Tenancy Strategy was out to consultation until 23 March 2018, and would be considered by Cabinet later in 2018.

Recommendation for consideration by the Cabinet Member:

(1)      That the comments made by the Committee be considered by the Cabinet Member for the final Tenancy Strategy document.