South Tyneside Homelessness Meeting Developing Partnerships with Private Landlords that Benefit People in Housing Need

Developing Partnerships with Private Landlords that Benefit People in Housing Need Landlords’ View: Bruce Haagensen Representative National Landlords Association April 2013.

Perceptions How are landlords perceived by tenants and by local authority officers? How are LHA tenants perceived by landlords? How are councils perceived by landlords?

What do reasonable landlords ask for? A reasonable return on their investment Confidence that rent due will be paid Continuity of rent Confidence that their property will be respected and returned in good order Vacant possession when reasonably expected Fair and even-handed treatment Non-confrontational relationships with councils

What do Councils want Safe properties with no hazards Well maintained properties Responsible Landlords Secure longer term Tenancies Affordable properties for Tenants Selection of properties to cover their shortfall

Universal credit and the way it will operate Benefit caps LHA capped at 30 th percentile Regional variations in demand and availability Govt. expects PRS to provide 20% of homes by 2015 Student market Fewer UK students, more overseas students, trends in education Demographics: growth in more demanding tenant groups Trend towards discretionary licensing and article 4 directions Availability of finance, and trends in interest rates Pay and salaries, job security Market Factors

Landlord-friendly Initiatives Social letting agencies Cost to the council, offset by other savings Objections from some insurers and lenders Tenant-find schemes (in some areas) Direct payment of rent to the landlord not normally available under universal credit Rent & Damages underwritten by the council

Landlord-friendly Initiatives (continued) Private Sector Leasing Schemes 1- or 3 or 5 –year Guaranteed rent, balanced by lower rents than LHA Guarantee of full repair and refurbishment (except maintenance) Bonds Example: Medway Gold: 6 weeks rent guaranteed, money up front, damage repair Silver: ….. Bronze: 4 weeks rent guaranteed

Landlord-friendly Initiatives (continued) Tenancy Support Officers impartial mediation before the tenancy breaks down include help for landlords dealing with rogue tenants Accept that correct service of a section 21 notice is enough for the tenant’s leaving not to be taken as intentional homelessness. Stop advising tenants to wait for the bailiffs. Work with Landlord Associations: e.g. partnership on landlord forums. Pursue bad landlords, using existing powers Recognise good practice. e.g. incentives for accreditation- both property and Landlord

Accreditation Incentives Free advice seminars for landlords: e.g. security measures, or PAT testing Market advantage: use of council and scheme logo Website listing all accredited landlords Discounts on HMO and discretionary licenses (incl. renewals) Free property advertising on the council website Bond scheme and/or enhanced benefits Free installation of smoke alarms / CO detectors Access to grants - including empty properties Access to discounted landlord training events Free EPCs carried out by the local authority Free help and advice regarding energy efficiency Free gas or electric safety certificates Free tenant checks and referencing

What have other authorities done? The Local Authorities in the Midlands area have collectively created a multi agency partnership to address the needs of the involved Authorities and their Tenants. What is that Partnership called?

Homestamp Partnership

Who are Homestamp? Homestamp is an award-winning partnership consortium based in the Midlands with a direct interest in private sector housing, comprising of Local Authorities, the private rented sector, Universities, Police and Fire Services. As an organisation they have several aims. To encourage the supply of good quality private rented homes. To provide and facilitate information and training for landlords. To consider and respond to regional and national issues affecting the private rented sector. To encourage joint working between all interested parties.

Homestamp Partners

A website service aimed at tenants in receipt of HB and searching for property in the PRS Free to use and free advertising for landlords Putting tenants directly in touch with landlords Tenants encouraged to Self-Serve and take pressure off housing teams

Council approved service, initially funded by DWP Piloted across West Yorkshire councils (5) - Feb 2012 The place tenants are directed to by council staff when searching for accommodation Rolled out nationally from Sept 2012 “LetsHelpYou attracting interest from across the UK with 5 new areas coming on board since September”

Landlords upload property details and photos themselves Tick box feature for easy property descriptions Free management tools available Monthly e-newsletter and updates (opt-in/out) “1,480 properties have been uploaded across West Yorkshire since February 2012” “775 landlord registrations”

All rents compared to relevant HB rate Rents equal to or below HB rate shown in green Rents above HB rate show in red Tenant assistance / advice about bond and deposits “5,500 tenants have registered with LetsHelpYou in 11 months” “70% uploaded properties list rent below or matching relevant HB rate”

Refine Search

So where do we go from here? Local authority engagement with the PRS Meet with NLA to access our free knowledge and expertise Look for benefits to Landlords with no cost to Council Create regular Landlord forums in conjunction with NLA Create a Landlord Steering group to discuss ways to overcome the problems we all face Investigate the merits of the Homestamp Partnership model Get PRS properties advertised with Council properties Offer Landlords some security or incentive for taking homeless tenants Access Affordable Homes Funding if not done already

If you carry on as normal Greater pressure on Council Housing resources Lower than possible reduction in Homelessness Lower than possible reduction in empty properties Higher costs to Council to meet obligations Loss of revenue due to revised entitlements for tenants Reluctance by PRS Landlords to help you meet your needs Potential Landlords invest in other Authorities Missed opportunity to improve standards

Any Questions? Please feel free to ask any questions or to clarify on how the PRS can help you discharge your Homelessness responsibilities. or Tel: Thank you