Audit Advisory Committee Department of Adult Services, Health and Housing: Homelessness Demand 11 September 2012

What is the Risk & Impact? Risk ref DASHHN0008 (Red Risk) Increasing homelessness demand due to economic conditions and changes to welfare benefits Lack of housing supply resulting in need to use more expensive temporary accommodation Additional and unplanned cost to the General Fund Inability to control spending on temporary accommodation

What are the existing controls? Workshops held to explore issue and identify ways of mitigating this risk Detailed action plan drawn up including demand management, procuring private sector properties, increasing supply and working with vulnerable groups Homelessness numbers monitored monthly at CMT as part of corporate organisational stress set of indicators Decision to procure temporary accommodation outside the borough Monthly temporary accommodation strategy meetings

What are the existing controls? Cont’d Weekly monitoring of households in emergency accommodation and tight financial control Established framework of private sector providers to supply temporary accommodation Increasing use of council housing for temporary accommodation Croylease and landlord bond scheme New Homes Bonus to cover additional cost of temporary accommodation

How can the risk be improved in the future? Introduction of tenancy strategy and revised allocations scheme Improved marketing of offer to private landlords – bond scheme, Croylease and market rents Introduction of on-line housing advice tool and speed up investigations Work with ImPower to manage expectations particularly around parental exclusion

How can the risk be improved in the future? Continued Increase private sector supply Youth homelessness – turnaround centre, STOP service, CRIAS and First Base lodgings Mitigate the impact of welfare and housing benefit reform and introduction of Universal Credit Close links with Family Resilience Service Bring empty properties back into use Increase social housing through the HRA

Recent trend Homeless decisions increased by 5% from 2176 in 2010/11 to 2279 in 2011/12 Homeless acceptances increased by 45% from 579 in 2010/11 to 839 in 2011/12 Temporary accommodation has increased from 1385 in September 2010 to 1945 in June 2012 Households in non self-contained B&B has increased from 117 to 287 over the same period

Recent trend Continued

Pressure of homelessness Croydon has the largest population in London with comparatively low stocks of social housing Reliant on the private rented sector which is very susceptible to market changes Changes to housing benefit and the introduction of local housing allowance caps have impacted on the supply of private rented properties Impact of restricted mortgage lending, austerity measures and stagnant housing market

Future & Conclusion Government implementation of the section in the Localism Act which will enable the discharging of homelessness duty by placing household in the private sector and the issuing of new “suitability” guidance. New allocations scheme – less priority for homelessness Recovery of mortgage market and revival of buy to let Mitigating the impacts of welfare benefit changes Increased supply through new council houses, RSL schemes and HMOs