The Head of Housing and Property has submitted a report which recommends changes to the Lord Mayor’s Deposit Guarantee Scheme in anticipation of legislative changes and to boost positive outcomes for vulnerable persons

Recommendations: That the City Executive Board resolves to:

1.    Agree the enhanced one year pilot offer to landlords, as set out in this report, to help increase the number of low income non-statutory homeless households to find property in the private rented sector.

2.    Delegate any further minor changes to the scheme to the Head of Housing and Property, including whether to adopt the approach piloted in future, following an evaluation of the pilot.

The Head of Housing and Property submitted a report which detailed changes to the Lord Mayor’s Deposit Guarantee Scheme in anticipation of legislative changes and to boost positive outcomes for vulnerable persons.

Cllr Rowley, Executive Member for Housing presented the report.  He said the scheme had been declining in effectiveness because of the increasing cost of housing. The deposit scheme is autonomous from the housing budget and has been increased so it can sustain itself. Loans are charged at 0% interest. The scheme will be advertised at Shelter but he encouraged members to let people know about it.

The Private Rented Sector Team Leader said the pilot would show how the scheme goes, he had spoken to Premier estate agents and had been told that some landlords might take it but because of the housing demand, they do not need housing need tenants.

The City Executive Board resolved to:

1.    AGREE the enhanced one year pilot offer to landlords, as set out in this report, to help increase the number of low income non-statutory homeless households to find property in the private rented sector.

2.    DELEGATE any further minor changes to the scheme to the Head of Housing and Property, including whether to adopt the approach piloted in future, following an evaluation of the pilot.

The Private Rented Sector Team Leader introduced the report.  He said the scheme had been introduced 23 years ago and was last reviewed 8 years ago.  The proposal was to enhance the scheme by offering an increased bond above Local Housing Allowance (LHA) rates, which were significantly below market rents in the City, and also offering a loan equating to 6-8 weeks rent in advance.

The Panel strongly supported the scheme and the proposed enhanced offer and questioned why the Private Rented Sector Team had only been able to help eight households last year given that 252 assessments had been undertaken.  The Panel heard that the market had shrunk in recent years and that refusals were largely due to landlords rejecting applicants.  A survey last year had revealed that only 5% of landlords and agencies would accept Housing Benefit claimants, despite 70% of this group being in work.  Applicants with rent arrears would also be refused unless they had a repayment plan in place.  Applicants were required to find properties themselves and needed to be motivated to encourage landlords to take them on but were signposted to ‘tenant ready’ courses. 

The Panel questioned the level of funding available for the scheme and the risk of the enhanced offer being suspended due to lack of funds.  The Panel heard that the scheme was funded from a one-off £50k reserve and that expenditure would be monitored in-year.  The expenditure and the number of clients assisted would be reviewed and reported annually.  The Panel suggest that a report should come to the City Executive Board and Scrutiny after one year so that if necessary, any funding changes could be picked up in the following budget round.

The Panel agreed to make the following recommendation to the City Executive Board on 14 July 2016:

o   That after the pilot year a review of the enhanced offer including expenditure, the number of clients assisted and refusal reasons is reported to the City Executive Board.

Councillor Sanders left the meeting during this item.