Crisis Private Renting Sector Conference 2016 Wednesday 2nd November – Barbican Centre #ahomeforall Wi-Fi Network Name: Barbican Event Password: business4029

Agenda Morning 10:30: Welcome: Chris Hancock, Crisis, Head of Housing 10:45 – 11:00: Hannah Gousy, Centre for Social Justice: The PRS as a housing option 11:05 – 11.30: Morning address: Jennifer Bradley, Westminster Policy Institute Economics : The cost of access 11.30 – 11.40: Morning coffee 11.40 – 12:50: Morning workshops 12:50 – 13:30 Lunch Wi-Fi Network Name: Barbican Event Password: business4029

Agenda Afternoon 13:30 – 14:40: Afternoon workshops, repeated from the morning 14:40 – 14:50: Afternoon tea 14:50 – 15.40: Feedback from workshops, led by workshop chairs 15.40 – 16.30: Where next for policy? Chris Hancock, Crisis, Head of Housing Wi-Fi Network Name: Barbican Event Password: business4029

Workshops sessions Title Question to Answer Contributors Chaired by Access How can the PRS be a housing option for people with high and complex needs? Shelter Inspiring Change Glasgow Homeless Network   Maeve McGoldrick – Crisis Head of Policy and Campaigns Conditions How can we access PRS properties which are affordable but are also of a high enough standard? Tenancy Deposit Scheme Spring Housing Sarah Rowe – Crisis Senior Policy Officer Affordability How can we access PRS properties which are affordable but still provide an attractive return to landlords? Plymouth Access to Homes New Horizons ARCH Alice Ashworth – Security How can we encourage and support landlords to offer longer tenancies? National Landlords Association Homes 4 Good Inside Housing Solutions Francesca Albanese – Crisis – Head of Research & Evaluation

Aims for the Day Hear about and share best practice from the experts But identify the limits of best practice – what needs to change? Tweet @privaterenting #ahomeforall Please complete feedback forms Continue the discussion on the Crisis Help to Rent Forum

The Barbican

Help to Rent Programme Glasgow Homeless Network – Housing First in the PRS Arch – North Staffordshire – Sharing in Social Housing Newydd Housing Association – Vale of Glamorgan & South Wales - Sharing in Social Housing Developing Health and Independence - Bath – Sharing in PRS New Horizon Youth Centre – North London- Sharing in Social and the PRS

Private renting – opportunities and challenges Hannah Gousy, The Centre for Social Justice

The changing nature of private renting 11 million people (4.3 million households) rent their home privately – an increase of over 80% in the last 10 years For the first time since the Second World War there are now more private renters than social renters Government focus on homeownership at the expense of low cost rental accommodation

The changing nature of private renting

Cause of, or solution to, homelessness Localism Act (2011)- Private Rented Sector Offers Key housing tenure for single homeless people, who often don’t qualify for the main homelessness duty Loss of an AST - leading cause of statutory homelessness (30% in England, 40% in London) London CHAIN- 39% of all rough sleepers become homeless from the PRS Homeless Link- 25% of people in hostels stuck due to lack of affordable housing Landlords reluctant to let to tenants on HB/ experience of homelessness

Suitability Insecurity – very short minimum term, typically only 6/12 months 1/3 homes in the PRS fail to meet the Decent Homes Standards- worse at the lower end Rents are much higher than social rents / LHA freeze despite rising rents Very high access costs- £2,000 on average (letting agency fees, a deposit, one month’s rent in advance)

What’s next? Opportunities for change? CSJ recommendations Greater capital funding to expand the work of social letting agencies. We have recommended that £40m of the £1bn allocated to DCLG by DWP for temporary accommodation should be used to set up a Capital Fund to aid the expansion of social letting agencies Government should consider banning letting agent fees for tenants Extending minimum tenancy length from 6 to 12 months DWP explore a scheme to enable tenants in receipt of UC to borrow against future UC payments to secure a deposit/pay rent in advance.

What’s next? Opportunities for change? Political opportunities Housing and Planning Act (2016) – measures to crack down on rogue landlords Extending HMO licensing £40 million budget to help local authorities tackle homelessness – including measures to better prevent homelessness in the PRS Homelessness Reduction Bill – preventing homelessness at an earlier stage

Crisis Private Renting Sector Conference 2016 Jennifer Bradley WPI Economics

Private Rental Sector Access Scheme and Guaranteed Deposit Jennifer Bradley Associate Consultant

Index The Commission from Crisis The Cost Model Headline Results Issues – data and assumptions Final thoughts Questions?

Research with over 800 landlords found that barriers included: The private rented sector plays an important role in helping end homelessness but also remains unfit for purpose and difficult to access for homeless people; Research with over 800 landlords found that barriers included: High upfront costs – deposits, rent advance, letting agency fees the need for guarantors; Landlords concerns towards letting to homeless people and tenants in receipt of housing benefit - only 18% of landlords were willing to let to homeless people; In addition local authorities said it had become more difficult for single homeless people to access the PRS in the past five years. PRS help-to-rent (access) schemes and a national rent deposit guarantee service could help overcome some of the barriers homeless people are experiencing; Provision is currently patchy so Crisis commissioned WPI Economics to analyse the costs associated with investing in a national scheme.

The Cost Model Stylised model using data available and assumptions to estimate costs and benefits; National, 24 month programme consistent with Crisis best practice for PRAS; GDS – again for 24 months, based on average deposits and LHA rates; Provider discussions added colour and weight to assumptions.

Headline Results The Guaranteed Deposit Scheme run nationally, would have an annual cost of around £6.5m; The Private Rental Sector Access Scheme would cost around £23.6m annually; Together the schemes would cost around £30m annually in steady state; In the first year the costs are higher because of the addition of the stock; the first year cost is £47m; If access were available to all households approaching their LA for homelessness assistance, we estimate 31,000 benefit units would receive support on an annual basis, at a support cost of £290 per unit; Lifetime benefits from one year of the scheme amount are estimated as between £172-584m.

Issues – data and assumptions Data gaps and variation; Main assumptions that drive the costs: Numbers of people using the schemes; Costs of PRAS; Default rate of GDS. Benefits – from moving people from Temporary accommodation to PRS.

Final thoughts Regional variation and scope for tailoring – at a national level?; Uncertainty – soft start? Test and learn approach?; Data collection; Real benefits to be realised for individuals, LAs, Government, providers etc.

Workshops sessions Title Question to Answer Chaired by Access How can the PRS be a housing option for people with high and complex needs? Maeve McGoldrick – Crisis Head of Policy and Campaigns Conditions How can we access PRS properties which are affordable but are also of a high enough standard?   Sarah Rowe – Crisis Senior Policy Officer Affordability How can we access PRS properties which are affordable but still provide an attractive return to landlords? Alice Ashworth – Security How can we encourage and support landlords to offer longer tenancies? Francesca Albanese – Crisis – Head of Research & Evaluation

E-mail private.renting@crisis.org.uk Tel 020 7426 5685 Home, no less will do E-mail private.renting@crisis.org.uk Tel 020 7426 5685 Twitter: @PrivateRenting Or visit http://www.crisis.org.uk