Agenda item

The Head of Housing and Health, on behalf of the Executive Member for Neighbourhoods, submitted a report that covered the East Herts Tenancy Strategy for 2021 to 2026.

The Head of Housing and Health said that under the Localism Act 2011 having a Tenancy Strategy was a statutory requirement for any local authority that was also a housing authority. He said that the strategy document would focus the views and guidance of the authority in terms of the types of tenancies that it would like to see on offer in East Herts. Members were advised that the document would also focus on rent levels, given the tie in between rent levels and the tenancy types that were on offer.

The Housing Development and Strategy Manager said that the Tenancy Strategy document took the form of guidance in that it did not legally compel registered providers to adopt certain types of tenancies or rent levels in East Herts.

Members were advised that the document laid out what the Council expected from registered providers. The Committee was also advised that the sharing of information served to inform registered providers on the level of housing need within the District.

The Housing Development and Strategy Manager said that recent housing research had been incorporated into the Tenancy Strategy and it was expected that rent levels set by registered providers were at the lower end of 50% to 80% of market value. Members were also advised that it was expected the length of tenancies should be for as long as possible and for a minimum of 5 years, with very few registered providers setting  fixed term tenancies, and the majority now setting life-time tenancies.

The Committee was advised that the Council worked with registered provider partners via the East Herts Housing Forum and the strategy document had been presented to them at a meeting on the 29June 2021. There had been very positive feedback from Members of the Forum.

The Housing Development and Strategy Manager said that the Tenancy Strategy was part of a suite of housing related strategies that were currently being drafted. The much broader full Housing Strategy for 2021 to 2026 was currently out for public consultation and was scheduled to be presented to Overview and Scrutiny Committee at the meeting on 2 November 2021. Members were also advised that the Homelessness Strategy and accompanying action plan would also be reviewed to bring this up to date in light of changing housing needs in East Hertfordshire.

Councillor Hollebon asked the Executive Member for Neighbourhoods to provide a comparison of housing numbers within East Hertfordshire District Council, past and present. She expressed concerns about the difficulties being experienced by the younger population in terms of getting onto the housing ladder. Councillor Hollebon also commented on the particular difficulties being experienced by single people when being considered for housing.

The Head of Housing and Health said that the Tenancy Strategy was not the document that dealt with supply. He referred to the District Plan and the Housing Strategy as the documents that covered the matter of supply. Members were advised that East Herts did relatively well in terms of the numbers of affordable homes when compared to the rest of Hertfordshire.

The Committee was further advised that the policies did work well and the Tenancy Strategy was intended to match the types of tenancies to the very real housing pressures that existed in East Herts.

Councillor Frecknall commented on the strength of the strategy and whether it was realistic that housing associations would adhere to it. The Head of Housing and Health said that the Localism Act 2011 only required registered providers to have regard to the Tenancy Strategy. He said, however, that the level of discussion and joint working with registered providers was such that the asserting of the soft influence of the Council was maximized.

The Housing Development and Strategy Manager made a number of points regarding the linkages between the Housing Strategy and the Tenancy Strategy.

The Chairman read out the question submitted by Councillor Devonshire in respect of percentage targets and the penalties the council could incur for failing to meet targets. Councillor Frecknall asked his question in relation to the numbers of affordable houses in the District being so low and also in respect of the target percentages contained within the District Plan.

The Head of Housing and Health reiterated that the Tenancy Strategy was not about delivery. He commented on the interplay between rent levels and housing development and reminded Members that planning policies dictated the amount of homes that were delivered on site. He also referred to the statistics that related to the percentage increase in affordable homes matching the percentage increase in private homes. Members were reminded that a lesser number than 40% affordable housing often had to be accepted on viability grounds by the Development Management Committee.

The Chairman read the first question from Councillor Goldspink regarding theguidance for registered providers on rent levels and whether this could lead to the levels being fixed at around 60-70% of Market Rents. The Head of Housing and Health said that social rents were set by nationally set formulae which took in account local rent levels and local incomes. He said that the Tenancy Strategy made it clear that the Authority favoured Social Rent over Affordable Rent wherever that was possible in East Herts.

Members were advised that in respect of Affordable Rent, the national guidance was that they could be set up to a maximum of 80% of Market Rent, and the Tenancy Strategy had indicated a preference towards the lower end of the amounts referred to by Councillor Goldspink. Members were reminded again of the interplay between rent levels and the quantum of new build that was developed. The Housing Development and Strategy Manager said that flats were cheaper to build than houses and houses were also more expensive to acquire. She referred to the importance of the balance of property types in East Herts in order to meet a range of housing needs.

The Chairman read the second question from Councillor Goldspink regarding the setting of the Local Housing Allowance rates and whether this could be changed according to local circumstances (Local Housing Allowance rates are used to calculate Housing Benefits for tenants renting from private landlords). The Head of Housing and Health said that the Local Housing Allowance rates were set by the Valuation Office Agency’s Rent Officers, and local authorities did not have a say on Local Housing Allowance rates. These rates are based on rent levels within Broad Rental Market Areas within local authority areas, so they take into account local housing costs.

The Housing Development and Strategy Manager said that a lot of research went into local rent levels. However, there had been freezes in Local Housing Allowance levels over the past five years.

The Chairman read the third question from Councillor Goldspink, asking why East Herts had not performed to the same level as St Albans and Three Rivers in relation to homelessness and temporary accommodation. The Head of Housing and Health answered that the rates of assessed homeless cases per 1,000 households fluctuated for a variety of reasons. Members were given a comparison to figures from other Hertfordshire Authorities and Officers were open to comments outside of the meeting in respect of homelessness and the Council’s approach.

The Chairman summarised the first question from Councillor Brady regarding why some tenancies were five years and others were lifelong. The Housing Development and Strategy Manager said that most registered providers no longer used fixed term tenancies as they never really evolved into checking whether tenancies were still required. She explained that most providers used lifetime period tenancies that just continued unless there were specific grounds, defined in legislation, for a tenancy to be ended.

The Chairman detailed the second question from Councillor Brady in respect of how East Hertfordshire District Council was addressing the shortfall in the social housing sector. The Head of Housing and Health referred back to his earlier answers regarding the Tenancy Strategy. He also referred to work that was being done with registered providers in terms of maximising work with developers regarding Section 106 agreements or options for regeneration in East Herts.

Councillor Snowdon asked if Officers had any further background information in terms of the rising numbers of people with high levels of support needs. The Head of Housing and Health said that Officers intended the Tenancy Strategy to set out the context of the contours and shape of the housing need in the District. The Housing Development and Strategy Manager added that Officers had seen a higher level of need amongst single people during the past eighteen months. She cited the example of cases where single people were no longer able to live with family or friends due to the COVID-19 pandemic.

Councillor Curtis made a number of points that were relevant to the Tenancy Strategy, including the fact that he welcomed the efforts that were being made to limit the number of fixed term tenancies, and asked whether the 50% – 80% range should be quantified in terms of actual numbers in the strategy document.

The Head of Housing and Health referred Members to research at section 3.10 of the report and he said that there more detail in the Housing Strategy. He said that Officers had tried to demonstrate whether the percentage level of rent would be affordable or not.

Councillor Curtis asked whether there could be a Member information training session to address any confusion amongst Members regarding the Tenancy Strategy.

The Head of Housing and Health responded to a query from Councillor Bell by referring back to his previous answers regarding affordable housing provision and the planning process. Councillor Redfern referred to the costs of people being accommodated in bed and breakfasts in East Herts. She commented on whether any consideration was being given to the provision of housing that had been built by the Council.

Councillor Curtis proposed and Councillor Hollebon seconded, a motion that the report be received and the comments of Overview Scrutiny Committee be passed onto the Executive. After being put to the meeting and a vote taken, this motion was declared CARRIED.

RESOLVED – that (A) the report be received; and

(B)   comments made by Members of Overview and Scrutiny Committee be passed onto the Executive.