Agenda Item No____12________ Housing Allocations Scheme Summary: Options considered: Conclusions: The Council has reviewed its Allocations Scheme to reflect the changes in legislation introduced by the Localism Act and statutory instruments. The changes ensure that the Council’s Allocation Scheme complies with all statutory requirements whilst also ensuring that it maximises the number of affordable dwellings which will be occupied by households with connections to towns and villages in North Norfolk. The new Allocations Scheme will be delivered through the Your Choice Your Home scheme which is a partnership between the Council and 8 Housing Associations. Once adopted, the new Allocation Scheme will be used to allocate properties from April 2013. 1. Do nothing. This option was discounted as this would mean the Council’s Allocations Scheme was not in accordance with legislation and did not meet members’ aspirations for how affordable housing is allocated. 2. Review the allocation policy. This option was adopted as it ensures the Council’s new Allocations Scheme reflects changes in legislation on the operation of housing registers. It also ensures that member’s aspirations that the number of affordable dwellings which are allocated to households with connections to towns and villages in North Norfolk is maximised. The Localism Act has introduced changes to the operation of housing registers. The Council’s Allocations Scheme has therefore been amended to reflect the changes and also to meet member aspirations. The proposed new Allocations Scheme has created 3 housing registers and includes both qualifying and non-qualifying criteria and introduces a new 2 Stage Approach to allocations which will seek to maximise the number of properties allocated to households who have connections to towns and villages in North Norfolk. The proposed new allocation scheme has been subject to wide consultation and now requires adoption by the Council. Once adopted the new Allocations Scheme is expected to go live in April 2013 following an implementation period. Recommendations: Cabinet recommend the adoption of the Housing Allocations Scheme to Full Council. Reasons for Recommendations: To ensure that the Council’s Allocations Scheme reflects the legislative and regulatory requirements for housing registers following a change in these requirements. LIST OF BACKGROUND PAPERS AS REQUIRED BY LAW (Papers relied on the write the report and which do not contain exempt information) Housing Allocations Scheme Housing Act 1996 as amended by Localism Act 2011 Allocation of accommodation: guidance for local housing authorities in England, CLG, June 2012 Cabinet Member(s): Trevor Ivory Ward(s) affected All Contact Officer, telephone number and email: Nicola Turner, 01263 516222, nicola.turner@north-norfolk.gov.uk 1. Introduction 1.1 The Localism Act 2011 introduced a number of changes to Part VI of the Housing Act 1996 which sets out how housing registers should operate. In January 2012 the Communities and Local Government issued a consultation document setting out guidance on the allocation of accommodation. In June 2012 the final guidance was issued and all Council’s must have regard to the guidance when allocating housing either directly into a property owned by a Housing Authority or through the use of nominations, this guidance replaced all previous statutory guidance. The Council is not stock holding and nominations are made through the Your Choice Your Home scheme in accordance with the current Choice Based Lettings Policy and Housing Register Policy. 1.2 The changes made through the Localism Act and introduced through statutory regulations include the following changes: • Removed the requirement to have an open register • Allows Local Authorities to use qualifying and non-qualifying criteria which determines eligibility to join the housing register • Allows tenants to move outside of the housing register where they do not meet the reasonable preference criteria. • Removed the ability to disqualify some applicants through lack of local connection in some circumstances (armed forces covenant). Although a number of changes were made, the following principles were retained: • Requirement to give reasonable preference to those in the reasonable preference groups over those that are not • Requirement that all those in the reasonable preference group irrespective of whether they fall in more than one group do receive reasonable preference • A statement on applicant choice must be included in the allocation scheme. 1.3 Members are concerned that more affordable housing should be allocated to households who have strong connections to towns and villages in North Norfolk. 1.4 The Your Choice Your Home scheme is a partnership of the Council and 8 Housing Association Partners who together operate the scheme. The housing register is contained on an IT system provided by Locata (Housing Services) and the Housing Association Partners have access to the IT system in order to create property adverts and allocate properties. The costs of the Your Choice Your Home scheme are shared with the Housing Associations contributing 40% of the scheme costs. The scheme is overseen by the Partnership Board which agrees the scheme budget and changes to the scheme, the Partnership Board consists of the Council and the 3 largest stock holding Housing Associations in North Norfolk: Victory Housing Trust, Broadland Housing Association and Flagship Housing Group. 1.5 Introducing a new Allocations Scheme which includes a new Local Allocations Agreement (see 2.4 below) will require a change to the current IT system, a cost for these changes has been requested but is expected to be in the region of £9000. 2. Housing Allocations Scheme – Main principles 2.1 The proposed Housing Allocations Scheme has been designed to reflect the changes in legislation and regulation whilst also meeting members aspiration that the allocation scheme increases the number of affordable dwellings which are allocated to households who have connections to towns and villages in North Norfolk. 2.2 The main principles of the Allocations Scheme are the creation of 3 new registers through which affordable housing will be allocated: • • • 2.3 Housing Register – contains those in the most urgent housing need (those who meet the reasonable preference criteria) Housing Options Register – contains other applicants who can be considered for a range of housing options Transfer Register – contains Housing Associations tenants who live in North Norfolk (although tenants in urgent housing need will be on the Housing Register). When an affordable dwelling becomes available for occupation the property will be advertised through the Your Choice Your Home scheme and all applicants irrespective of which register they are on will be able to bid as long as they are eligible for the property size and type. The property will then be allocated using a new 2 Stage Approach. At Stage 1, only applicants on the Housing Register will be eligible to be considered. If there is no one suitable on the Housing Register, all bids will then be considered and the property will be allocated to the applicant with the strongest local connection as defined using a new Local Allocations Agreement. 2.4 The Local Allocations Agreement will replace the current Local Lettings Agreement and provides a clear cascade of which connections will provide the strongest connections to towns and villages in North Norfolk. A threshold approach is used and where more than one applicant meets the same criteria, the decision as to which applicant should be offered the property is determined by Band and then relevant date. 2.5 Properties on Exception Housing Schemes which are already subject to local connection criteria will be let in accordance with Stage 2 of the allocation process (stage 1 does not apply). 2.6 Transfers have been retained within the Allocations Scheme as it offers the most flexibility and transparency. Housing Associations will be able to specify up to 20% of all vacancies as priority for tenants (the transfer quota). When a property subject to the transfer quota has been advertised, initially only tenants will be eligible to be considered, if the property is not let to a tenant, the property will then be allocated using the 2 Stage Approach. 2.7 A copy of the proposed new Allocations Scheme for North Norfolk is attached at Appendix F. The Housing Allocation Scheme details the qualifying and non-qualifying criteria for the 3 registers, property eligibility, applicant choice, support available and has a number of appendices providing more information including diagrams which set out the allocation process for the transfer quota and the 2 Stage Approach. The final appendix is the new Local Allocations Agreement. 3. Consultation 3.1 The principles of the new Allocations Scheme have been discussed with Cabinet and also with the partners in the Your Choice Your Home. Wider consultation has been carried out with stakeholders in the scheme: • Applicants were sent a questionnaire asking for views on a number of potential changes to the scheme in the spring. • All North Norfolk Councillors were invited to attend a workshop on 4 October at which the principles of the scheme were discussed • All Town and Parish Councils in North Norfolk were sent an invitation to attend a workshop on 8 October at which the principles of the scheme were discussed • Your Choice Your Home partners and members of the Stakeholder Group (voluntary and statutory organisations) along with Councillors and Town and Parish Councils were sent a copy of the proposed Allocations Scheme and asked for their comments. November. The deadline for comments was 16 3.2 A number of responses were received to the consultation, Appendix G shows who responded, the comments made and whether any changes were required to the Allocations Scheme as a result of the consultation response. The only change required was the addition of an explanation on what constitutes a connection to North Norfolk under the Housing Act 1996 Part VI. This change has been made. A couple of other minor changes have also been made to the Allocations Scheme to provide additional clarity. 4 Implementation 4.1 Once the Housing Allocations Scheme has been adopted by Full Council, the implementation stage will commence. This will require the re-registration of applicants on the current housing register and assessment under the new criteria. This will also include the amendment of the IT system and testing. It is anticipated that the new allocation scheme will go live in April 2013. 5 Review and Monitoring 5.1 The new Allocations Scheme will be reviewed a year after implementation to ensure that it is delivering the required outcomes. 5.2 On an annual basis, a review of all allocations made through the scheme will be carried out to identify: • Number of properties allocated at Stage 1 • Number of properties allocated at Stage 2 • Number of all properties which were allocated to someone with a connection to a town or village in North Norfolk. 6 Options Considered 6.1 Option 1: Do nothing. This option was discounted as this would mean the Council’s Allocations Scheme was not in accordance with legislation and did not meet members’ aspirations for how affordable housing is allocated. 6.2 Option 2: Review the allocation policy. This option was adopted as it ensures the Council’s new Allocations Scheme reflects changes in legislation on the operation of housing registers. It also ensures that member’s aspirations that the number of affordable dwellings which are allocated to households with connections to towns and villages in North Norfolk is maximised. 7 Conclusions The Localism Act has introduced changes to the operation of housing registers. The Council’s Allocations Scheme has therefore been amended to reflect the changes and also to meet member aspirations. The proposed new allocation scheme has created 3 housing registers and includes both qualifying and non-qualifying criteria and introduces a new 2 Stage Approach which will seek to maximise the number of properties allocated to households who have connections to towns and villages in North Norfolk. The proposed new Allocations Scheme has been subject to wide consultation and now requires adoption by the Council. Once adopted the new Allocations Scheme is expected to go live in April 2013 following an implementation period. 8 Implications and Risks The development and adoption of the new Allocations Scheme ensures that the allocation of affordable housing will be in accordance with all legislative and regulatory requirements. Replacing the current Local Lettings Agreement with the proposed Local Allocations Agreement will address a concern identified with the current Local Lettings Agreement. 9 Financial Implications and Risks It is expected that the costs to amend the IT system will be in the region of £9000. The Partnership Board will be requested to contribute towards this cost on the basis of the current cost sharing arrangements where Housing Association Partners pay 40% of the Your Choice Your Home scheme costs. 10 Sustainability There are no specific sustainability issues related to the Allocations Scheme. 11 Equality and Diversity An equality impact assessment has been carried out on the Local Lettings Agreement and did identify a concern with the Local Lettings Agreement which has been addressed in the development of the new Local Allocations Agreement. 12 Section 17 Crime and Disorder considerations There are no specific Section 17 Crime and Disorder considerations related to the Allocations Scheme. However, the Allocations Scheme does allow us to state that where an applicant has been guilty of behaviour serious enough to make them unsuitable to be a tenant we can disqualify them so they are unable to join a housing register until such time as it can be shown that they would be suitable to be a tenant.