PREPAY METER CAMPAIGN VICTORY SAVES £150M FOR POOREST ENERGY CUSTOMERS
08 February 2010

David Orr The National Housing Federation and its members have won a high-profile campaign to end the prepayment meter rip-off - after British Gas announced that it will no longer charge a premium to its gas prepay meter users. The announcement means that following the long-running campaign by the Federation, supported by its members, each of the big energy firms has equalised the charges they make to prepay meter users with customers on quarterly bills. The Federation estimates that the campaign has saved prepayment meter customers at least £150m since it began in 2007. Over the last few years, all of the big energy firms, except for Scottish Power, have charged prepayment meter customers more for their gas and electricity than anyone else - even though they are from low income backgrounds. According to research for the Federation, the average income for a household with a prepayment meter is £16,000. Federation chief executive, David Orr said: "The efforts of the Federation, housing associations and residents for a fairer deal for prepayment meter customers have paid off. This news is an incredible testament to what can be achieved when we all pull together. “This is a great day for social justice and means that almost one million people, many of whom are on lower incomes, will now find it easier to pay their energy bills and heat their homes." Although we now have full equalisation across all of the big six energy suppliers - British Gas, EDF, e.on, npower, SSE and Scottish Power - the Federation will lobby MPs to make the change permanent in the Energy Bill, currently progressing through Parliament. Further Links

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HEALEY ANNOUNCES PLANS TO REDUCE RENT INCREASES
08 February 2010

John Healey Housing Minister, John Healey has confirmed a good deal for tenants in council houses after he announced guideline rent increases will be halved for 2010-11. Mr Healey said the reduction would ensure rents remained fair and affordable for council tenants and for councils. He emphasised that he remained committed to ensuring rents remain fair and affordable for tenants and that this reduction this year would not lead to steep increases in the following years. The move means that for the second year running the government has taken steps to lower rents for council tenants. He also referred to the Government's policy of rents convergence that will see council and H.A. tenants will eventually paying similar rents for similar properties in similar areas in place, but said there was no fixed date for convergence. He made clear that the Government's starting point and first concern was to see rent rises for council tenants next year at a reasonable and affordable level, given the pressure on all households due to the economic downturn. Mr Healey said: "This government's priority during this downturn has been, and will continue to be, ensuring that council rents remain as affordable and fair as possible to tenants. "This is why for the second year running we have decided to halve the guideline rents increase to 3.1 per cent. This has only been achieved at a cost to central Government, but it was the right thing to do. "This does not mean steep rent increases for council tenants in the next few years after 2010-11 due to bringing dates forward for when council and RSL tenants rents will match, as there is no fixed date set for when RSL and LA tenants' rents will converge." Further Links

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TOP PRIORITIES FOR NEXT THREE YEARS OUTLINED BY TSA
08 February 2010

Peter Marsh The Tenant Services Authority (TSA) has set out its priorities for the next three years – to work towards securing a fair deal for tenants, protecting the taxpayer and delivering modern and effective regulation. Published in its draft corporate plan 2010-13, TSA sets out its ambitions for 2013, which include having more tenants satisfied with the services they receive; all providers being well-run and well-governed so that they can provide quality services and value for money for the taxpayer; and being considered as a best practice regulator and judged on performance in a transparent way. The plan also highlights key achievements during the first year of the TSA and details actions for 2010-11, including identifying landlords that face the biggest challenges in delivering services – with an initial focus on repairs and maintenance and gas and fire safety; and targeting regulation where it will make most difference and freeing landlords from red tape. It also highlights targeting landlords where tenants are least satisfied with opportunities for involvement and requiring them to have action plans to improve involvement and scrutiny arrangements for the benefit of their tenants; and working with the boards of the larger housing associations to review executive pay arrangements. Chief Executive, Peter Marsh said: “In our first 14 months, we’ve developed a radically different approach to regulating social housing landlords who provide homes for more than eight million people. “Now we’re setting out our key priorities for the next three years – how we intend to secure a fair deal for tenants, protect the taxpayer and deliver modern and effective regulation. This plan sets out our vision for social housing regulation – it’s a framework for action.” Further Links

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NLA: GOVERNMENT PLANS FOR RENTAL MARKET REMAIN UNWORKABLE
08 February 2010

Government plans for the private-rented sector remain unworkable, according to the National Landlords Association. Plans include the development of a ‘Trip Adviser’ style feedback website which would allow tenants to post views on rental accommodation and landlords. In addition, the Government has reaffirmed its commitment to establishing a National Register for Landlords which would allow tenants to gather information on the track record of prospective landlords including the condition of their properties and how quickly they fix any faults. NLA is opposed to websites which offer landlords the opportunity to feedback on their tenants. It is also opposed to the planned ‘Trip Adviser’ style website encouraging tenants to post views on their landlords. The website would require such intensive management and scrutiny so as to make it unworkable and ineffective. As with all subjective feedback sites, negative experiences considerably outweigh the positive. Furthermore, lists of landlords in the form of the proposed National Register will not root out rogue operators from the sector. In fact, the likely consequence of these plans would be to penalise the law-abiding while at the same time drive the worst landlords under the radar. The proposed National Register would neither protect tenants nor support local authority enforcement activity. David Salusbury, Chairman, NLA, said: “Landlords are now getting highly mixed messages from the Government. At the same time as having to provide more accommodation in order to plug the housing gap, landlords are also now expected to be on a register, declare the addresses of their rental properties and also have feedback (whether true or false) posted about them on the internet. “Where is the incentive for landlords to develop their housing provision in today’s proposals? And how exactly do these administrative functions actually improve the quality of rental property? “The NLA has said again and again that we do not need further regulation which over-burdens the overwhelming majority of good landlords. However, we recognise the desperate need for local authorities to better use existing powers to drive up standards and root out rogue operators. Once again, we call on councils to devise strategies which target rogue landlords without penalising the law-abiding majority. “For many landlords today’s announcement when combined with last week’s proposed changes to the planning regime surrounding Houses in Multiple Occupation (HMO) will not make for good reading. Very little of what we have before us recognises the value of the majority of good landlords who work tirelessly in the provision of decent and affordable housing solutions. Landlords could be forgiven for thinking that this latest round of measures is little more than landlord-bashing by the Government.” Further Links

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AUDIT COMMISSION APPOINTS INTERIM CHIEF
08 February 2010

Eugene Sullivan has been appointed as interim chief executive of the Audit Commission. Steve Bundred, Chief Executive for the past six and a half years, will leave the organisation on March 31. Mr Bundred, who announced last November that he would be stepping down, will be succeeded on an interim basis by Eugene Sullivan, who is managing director corporate services at the Commission. The Commission Board has begun the process of selecting a permanent successor and will be advertising the post shortly. The Board has decided not to set a salary guideline at this time, but will focus the search on attracting the highest quality candidates. Mr Sullivan will assume the duties of accounting officer for the Audit Commission during his tenure as chief executive. Michael O'Higgins, the Commission's Chairman, said: “In Eugene we have a redoubtable leader with extensive experience in the public and private sectors. He commands the utmost respect of his colleagues and I am confident he will lead the Commission very effectively until we have in place a permanent successor to Steve.” Mr Sullivan said: “I feel honoured to be asked and pleased to have the confidence of the Board. Steve is a hard act to follow but I will do my best. I will have the support of colleagues and together we will manage the Commission through the period ahead when, among its other challenges, a general election will take place.” Further Links

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END OF STAMP DUTY HOLIDAY FAILS TO DAMPEN HOUSING MARKET ACTIVITY
08 February 2010

The housing market started 2010 on a positive note, with the number of valuations on residential property conducted last month nine per cent higher than in January 2009, despite the removal of the stamp duty holiday. This is the fifth consecutive month that monthly valuations activity has exceeded that of the same month the year before, according to the latest research by Connells Survey and Valuation. Ross Bowen, managing director of Connells, said: “December and January are traditionally quiet months for the housing market, but valuation activity in December was buoyed by transactions completed by before the withdrawal of the higher stamp-duty threshold. “This more positive trend was continued in January, with valuations up a tenth on a year ago. The positive start with transaction levels in January points to a continuing improvement in the housing market.” The growth in the number of valuations compared to Jan 2009 was led by current homeowners, who obtained 40% more valuations last month than in January 2009, while there was also a substantial increase in buy-to-let business (+30%). On the other hand, remortgage activity continues to languish, 28% lower than a year ago, while first time buyer valuations were almost unchanged. Mr Bowen said: “During the downturn, many homeowners who wanted to move delayed their purchase decisions. As confidence continues to come back to the housing market, we’re seeing this pent-up demand translated into much higher levels of activity among existing homeowners and buy-to-let investors. It is still subdued for first time buyers, however.” Further Links

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JUST A MINUTE: MARCUS KEYS, MANSELL
09 February 2010

Marcus Keys Marcus Keys, Affordable Housing Director, Mansell How did you get started in the industry? My Grandfather was a surveyor for the Independent Broadcasting Authority and his experiences within the construction industry got me interested. I started working with a regional contractor, then a couple of housing associations, then the Government and now back with a national contractor – Mansell. Biggest professional achievement: Working with The Housing Forum and starting the Demonstration Projects Programme. I also get a buzz from managing successful bids. Biggest mistake: Setting out the pad foundations for a factory in Northampton in the wrong place – a lot of concrete was wasted! This wasn’t a Mansell project… Best advice you received: Never be arrogant, someone always knows more than you do. What do you like most about your job? The diversity of work, the ability to procure work for the regional businesses within Mansell and the different people you meet. And least? Losing tender opportunities. What you would most like to change in housing? Competitive tendering - it wastes resources, does not allow the client to benefit from partnering or foster long term strategic relationships. The lowest price wins but clients pay little attention to the exit cost at the end of the contract. What future issues do you see arising in housing? The fall in S106 opportunities and the reduction in public spend on grant allocations. More private finance required and shared risk between client and contractor. Do you read a daily newspaper? The Times. How are you making use of the internet? As a wealth of knowledge for research into housing strategy and information on local authorities and housing associations. Also useful for local site information and property values. Hobbies and interests: Classic cars, walking, travel, skiing, DIY. Favourite holiday destination: St. Lucia – stunning and relaxing. Favourite Music / Bands: Neil Diamond, Simon & Garfunkel, The Killers, The Zutons. www.mansell.plc.uk If you would like to feature in Just A Minute, please email: news@housingnews.co.uk for more information. Further Links

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HOUSE-BUILDING TO HIT LOWEST LEVELS SINCE 1923 AS WAITING LISTS HIT HIGH
09 February 2010

David Orr The number of new homes built in England and Wales in 2009/10 will slump to its lowest level since 1923, fuelling fears that a chronic shortage of housing will leave millions of people trapped in overcrowded and substandard housing for a generation to come, a campaign group has warned. The National Housing Federation has forecast that house-builders are on course to build just 122,700 homes between April 2009-March 2010, 18,000 fewer than were built over the previous financial year, as a result of private developers scaling back developments following the onset of the recession. The figures for 2009/10 will be the lowest total since 1923/4, when just 86,000 homes were built, if the war years are excluded. It will be the second successive year that numbers have fallen significantly, after 2008/9 saw only 140,950 homes built, compared to 176,660 the year before. The building of homes this year has been propped up by housing associations, who are set to build over 45,000 homes in England by April this year. This will be the highest total achieved by the affordable housing sector for a decade. A record 4.5 million people in England are stuck on housing waiting lists and rising unemployment and repossessions has further fuelled demand for affordable housing during the economic downturn. But supply has failed to keep pace with demand and the prospects of getting an affordable home are looking bleaker than ever for millions of Britons. Since the mid-60’s there has been a long-term downward trend in the number of new homes built. In 64/5, 387,000 homes were built, and in 1965/6 347,000 were constructed. The last time more than 200,000 were delivered was 1988/89, when 214,000 homes were built. The number of new homes expected this year was exceeded eight times during the nineteenth century, with 135,000 new homes being delivered as far back as 1875/6. Given the scale of the housing crisis, the Federation has called on the three major political parties to go into the forthcoming general election with a pledge to ring-fence spending on housing – in the same way that ministers have pledged to protect investment in health, education and policing. It says that unless spending on housing is ring-fenced, the consequences will be dire for millions of families stuck on housing waiting lists. Assessing the Pre-Budget Report, the Institute of Fiscal Studies said that cuts of 17.98% would have to be made to all government departmental budgets if current levels of investment are maintained in health, education and policing. An 17.98% cut to the housing budget would see the completion of only half the 1m affordable homes the Government had planned to build by 2020, adding an extra 1.25m people to housing waiting lists. Federation chief executive, David Orr said: “The number of new homes built during 09/10 is set to hit an 87-year low, plunging the country into the worst housing crisis for generations. The delivery of new homes this year has been propped up by housing associations, who have built just under half the total number – with the aid of record levels of public investment and more flexible government grants via the HCA. “With record housing waiting lists and overcrowding reaching epidemic proportions in many places across the country, the need for more affordable housing has never been greater. The three main political parties must demonstrate their commitment to helping the millions of Britons in desperate need of an affordable home by pledging to safeguard investment in housing – and giving it the same priority as health, education and policing." Further Links

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EXTRA SUPPORT FOR EMPTY HOMES ANNOUNCED
09 February 2010

John Healey Housing Minister, John Healey has announced extra support for councils to step up efforts to get empty homes back in use and reduce anti-social behaviour, including cash for an intensive crackdown in 17 local authority areas with known problems. Empty homes, particularly those in disrepair, can be a magnet for vandalism, drug-taking, gangs or other forms of anti-social behaviour. Councils already have tough legal powers to force private landlords to sort out their properties and can even take over properties if necessary, but tenants and landlords often don't know about these powers, reducing their effectiveness. That's why Healey is announcing a £1m boost to council efforts to train key staff on how best to get empty homes back in use, with cash for 17 councils where anti-social behaviour focused around empty homes is a real concern and residents want to see more effective local action. The main response for councils will be through frontline workers and specialist teams with the expertise to lead the crackdown. This will include action to renovate derelict houses for letting out as social homes, and the use of private funding to turn empty homes into properties that allow local people the chance to take a more affordable step onto the housing ladder. The announcement is part of the new drive to tackle anti-social behaviour announced in November. The drive will equip up to 10,000 front line workers and community champions, including 1,000 local tenants, with the skills to use tough powers to solve problems in their area. While many councils and social landlords are already working with the police to tackle anti-social behaviour, Ministers are determined to see more effective co-operation to give the public greater confidence that action is being taken. Healey said: "Empty houses are both a blight on communities and a waste of much needed homes. Councils already have strong legal powers to force the owners of empty properties to act and if necessary take over homes, but these powers are often neither used or understood properly. I want Councils using every tool available so that people can see action being taken against anti-social behaviour in their area. "I'm backing 17 councils in areas where empty homes have been a magnet for vandalism, threatening behaviour or other types of anti-social activities. They will get training for frontline workers and tenants so they understand how they can use their legal powers. And they will get the cash they need to renovate and re-let empty homes back, reviving run-down areas of their communities." David Ireland, Chief Executive of the Empty Homes Agency said: " Every empty property is a missed opportunity for somebody to have a decent home. This initiative will, we hope, be the impetus for councils to offer people the help they need to turn vacant property into much needed homes." Further Links

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TENANTS’ RIGHTS MAY STILL NEED PROTECTION FROM DEFAULTING LANDLORDS
09 February 2010

The Residential Landlords Association is concerned that the courts may order outright possession to lenders if landlords fail to pay a buy-to-let mortgage. The second reading of Bolton MP Dr Brian Iddon’s private member’s bill – to protect tenants from losing their homes if their landlord defaults on a mortgage - is a step towards fair play for tenants, landlords and lenders, agrees the RLA. But the association still has concerns – including the clause covering a situation where a landlord has given the keys back – which could require a court order to rectify the matter – but “an amendment would be helpful to make this aspect crystal clear,” said RLA lawyer, Richard Jones. An explanatory note from the department for Communities and Local Government says that the Bill gives protection in this situation. Jones said: “We hope this is the correct view. A court order would need to be obtained but, as the tenant is a trespasser as against the lender, the court must normally order immediate possession meaning the tenant would have to move out there and then.” With some reservations, the RLA believes “the bill will enhance the private rented sector and assist tenants who, through no fault of their own, find themselves facing eviction at short notice. “Past experience shows that tenants may not find out until the last minute that a property is being repossessed and we are aware of cases where the first indication is a bailiff turning up on the doorstep. That cannot be fair – and it brings into disrepute the reputation of a private rented sector that has struggled hard to gain the standing it deserves.” Further Links

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PLAN FOR NEW BIO-LIQUID HEATING FUEL GOOD NEWS FOR RURAL HOUSEHOLDS
09 February 2010

Plans which mean that the UK’s 1.4 million homes currently heated by oil will be able to receive incentive payments for switching to a new bio-liquid heating fuel, are vital to encourage consumer take-up, says the Oil Firing Technical Association (OFTEC). OFTEC was instrumental in the successful campaign to include the option of using blends of bio liquids to heat buildings in the consultation paper for the proposed Renewable Heat Incentive (RHI), which was issued by the Department of Energy and Climate Change (DECC) on 1st February 2010. Under the proposed RHI, homes and other buildings using renewable heat technologies will qualify for regular incentive payments from OFGEM for up to 20 years after installation. For some technologies payments could be as high as £1,400 per annum for an average sized house. OFTEC has been working in partnership with the ICOM and the University of East Anglia to develop a new bio-fuel which can be used in existing oil boilers with minor modifications. The bio-fuels project has helped provide a body of evidence to DECC to show that bio-heating fuels can easily deliver green house gas savings in the heating sector at a lower cost than other technologies. Jeremy Hawksley, OFTEC director general said: “We welcome the move to include the new bio-liquid heating fuel within the consultation paper for the RHI, which is good news for both the environment and the consumer. 47% of our CO² emissions in the UK and Ireland come from buildings and therefore it is a key area to target in reducing our carbon footprint. Homes currently heated by oil will be able to switch to bio-fuel with very little effort and at very low cost. We hope the fuel will be available from later this year. “Under the RHI, this will enable householders to claim annual payments towards the cost of their fuel from April 2011. In the UK there are nearly 1.4 million, mainly rural and semi rural homes, heated by oil and we estimate that 90% of these and many homes off the mains gas grid, will be using the new fuel by 2020.” The association also welcomed the announcement that a fossil fuel levy will not be applied, as had been muted and that the RHI will be funded from general taxation. Further Links

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ENGLAND TOLD TO THINK ‘LOCAL’ TO MAKE THE MOST OF £105M RURAL FUND
09 February 2010

A local approach to delivering more than £105m of Rural Development Programme for England (RDPE) funding will ensure the biggest positive difference for rural areas. This message was delivered at the second national RDPE Network meeting for Local Action Groups (LAGs), which also featured practice sharing, knowledge transfer and a series of interactive workshop sessions. LAGs from across England were told that they have a crucial role to play in ensuring that the money is spent on tackling key issues in villages and towns and maximising opportunities to improve the quality of life and safeguard and create jobs. Rebecca Frost, Programme Manager for the RDPE Network, said: “Funded by the EU and UK Government, the RDPE supports a range of schemes for land based businesses (farmers, growers, foresters and primary processors), rural tourism organisations, rural businesses and community organisations. “Through small capital grants, strategic investment funding and action plans, the programme will aim to safeguard and enhance the countryside, helping communities to thrive in the process. Our second event was shaped by the LAGs and the organisations that they work with and was about looking at recent activity, sharing examples of how the funding is working and also ensuring that LAGs are getting the support they need to help with delivery. “It was also an opportunity to look at how this money can be spent to help bring our local communities out of recession by encouraging businesses to diversify.” The Leader approach enables community-led delivery of RDPE funding in rural areas and is being implemented through LAGs, which represent public and private partners and community and voluntary groups. LAGs have developed Local Development Strategies that set out their plans and include criteria for the types of projects that can be supported. They encourage local individuals and organisation to get involved in making decisions that affect their area and communities and empower people to come forward with their project ideas. Frost added: “The Leader approach will provide a more integrated approach to making decisions on who gets funding, focusing on adding value to existing local assets and ensuring economic potential is retained, whether that is food produce or heritage features, for example. We are already seeing some really exciting projects coming forward. Now is the time for LAGs to make sure even more local individuals and organisations benefit by encouraging them to claim their share of the funding.” Further Links

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GOVERNMENT ALLOCATES £60M FOR ‘ECO SHOW HOMES’
10 February 2010

John Healey The government has announced the allocations of a £60m funding package to build over 600 new homes including 'eco-show homes' as well as community and green infrastructure projects. The new 'eco-show homes' will be built in and around the first four eco-town locations at Whitehill-Bordon in Hampshire, St Austell in Cornwall, Rackheath in Norfolk and North West Bicester in Oxfordshire. The funding will be used to improve existing transport links, including rapid routes for buses, green travel hubs and facilities for electric cars and bikes. It will also provide a new ‘low carbon sixth form’ for a school in Bicester and to install technology like smart meters to track energy use, electric car charging points, home insulation and systems for saving water and recycling or composting waste. The allocation will see Whitehill-Bordon receive £12.675-16.675m, Rackheath £11.95-15.95m, St Austell £11.85-15.85m and North West Bicester £11.51-15.51m. The specific amounts are still to be decided pending further assessment of development agreements with investors. Housing and planning minister, John Healey, said: "This is the start of the country's biggest ever eco-home building programme. As a first step, 600 will be built in these four areas - most will be for sale but some will be permanent eco-show homes. "By 2016 there will be 10,000 new eco homes in these four pioneering areas. This means people will be able to experience green living for themselves and see how it can change their lives and save money." TCPA Interim Chief Executive, Kate Henderson said: "This first phase of new homes, including state-of the-art 'eco-show homes', will provide real life examples of green living that are open to the public, providing a vital role in giving local residents first hand experience of low carbon living. "This is an opportunity to show how eco-towns can meet the needs and aspirations of ordinary people seeking a decent home in a good environment. These pilots will need to appeal to all as much for their utility, location and setting as for their green credentials." Further Links

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TENANTS LIVES AT RISK AS LANDLORDS FAIL TO PROVIDE RIGHT GAS SAFETY INFO
10 February 2010

Tenants’ lives are at risk because landlords are failing to provide them with the right gas safety information, CORGI has revealed. A third (32.3 %) of people living in rented accommodation have never received the basic facts from their landlords on how to keep safe from carbon monoxide poisoning, the home safety company has found. CORGI’s biggest survey yet asked over 3,000 people about their attitudes towards the maintenance, repair and the dangers of neglected gas appliances. One in three respondents said they had not received vital information, such as a copy of their boiler safety certificate from their landlord. Tenants are also not being given contact details for a certified tradesperson in case of emergency or even made aware of the location of their boiler. The elderly and over 55s were the most neglected according to the study, whilst 35% of young people aged 16-24 had never been shown where their gas emergency control valve was. Landlord’s failure to supply vital information raises fears that many people may be at risk of carbon monoxide poisoning. CORGI has revealed that more than 20 people die every year from accidentally inhaling Carbon Monoxide in their own homes - a silent killer which many are unaware of. CORGI home safety guru and technical expert, Ray King said: “Landlords are failing their tenants on a massive scale by not following the fundamental rules of gas safety. Their negligence is putting lives at risk. “We all need to know about our gas appliances, when they need to be serviced and who to call in an emergency. Too many people are using unaccredited trades people and do not have a Carbon Monoxide alarm because they are unaware of the dangers.” Further Links

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NEW INFORMATION RELEASED ON HOW PLANNERS ARE RESPONDING TO RECESSION
10 February 2010

A new topic paper and practice notes on managing responses to stalled development schemes have been launched on ATLAS Guide. In recognition of the challenges that many councils and their partners are facing in developing a response to large scale development schemes that have stalled for viability reasons as a result of the economic downturn, ATLAS has published a new section in the Topic Zone of this website together with a set of practice notes titled Responsive Planning Practices for Changing Economic Times. The new practice notes are primarily aimed at local authorities and their private and public sector partners in situations where market uncertainties have resulted in the stalled implementation of development schemes and the parties agree there are benefits in trying to find solutions to enable delivery. They draw on experience from the ATLAS portfolio of projects around the country as well as emerging and best practice in local authorities. The notes set out key learning points and approaches that have been used by local authorities and the private sector to try and find solutions to unblock stalled schemes in a collaborative and solution-focussed manner. Areas covered by the new practice notes include developing strategies for managing stalled schemes, understanding the use of financial appraisals and viability in the planning process, identifying and testing potential solutions, and planning tools that can be used to deliver solutions. Further Links

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POPULAR 'FINANCIAL HEALTH CHECKER' NOW EXPANDED TO INCLUDE DISTRICT COUNCILS
10 February 2010

An Audit Commission online service that allows councils to check and compare their financial performance now includes data for England's 270 district councils. The Local Government Ratios Tool has proved a popular ready reckoner so far with 150 county and single tier councils. The Commission introduced it alongside the national report Summing up: a review of financial management in local government 2005-2008 published last April. The Commission's MD Audit, Martin Evans, said: “In business there is, of course, a focus on the bottom line. Private companies use profit margin as a quick indicator of their financial health. But in local government, where profit isn’t the motive, we need to use other measures to check financial health. “So, we’ve distilled the accounts of England’s councils into five indicators based on financial ratios. We don’t claim they tell the whole story, but they do provide a reckoner that councils have already found accessible and helpful for their financial planning.” The site has already drawn praise from local government finance directors in its first year, which is why the Commission decided to expand the service. The online database has now almost tripled in size to include ratios for England’s district councils. Martin added: “The Ratios Tool has already proved its worth with county and single-tier councils, so we decided to expand it to include districts. As smaller organisations their budgeting options can be even more acute, making tools to aid comparison and good financial planning all the more important.” Further Links

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DESPERATE LANDLORDS RELAX RULES TO KEEP PROPERTIES OCCUPIED
10 February 2010

Over 6,000 tenants in England and Wales have benefitted from the downturn, according to the latest research by easyroommate.co.uk. From 2004 until 2008, the number of tenant evictions rose by over eight per cent, peaking in the twelve months to Q308 at 56,700. But since then, the number of landlords trying to remove tenants from their property has decreased by over eleven per cent. In the twelve months from Q408, 50,450 tenants were evicted. This drop in evictions comes despite the growth in tenants arrears. As recession-driven redundancies, and cuts to pay and bonuses, have taken their toll, thousands more tenants have fallen behind with the rent. In a National Landlords Association survey in October, 43% of landlords said they had had tenants in arrears over the course of the previous 12 months. Jonathan Moore of easyroommate.co.uk said: “In the boom years, when house prices and rents were rising, many landlords were keen to kick out tenants who were late with the rent. They’d take cases to the courts as soon they could to remove a tenant in arrears because they knew that would mean increasing the rent when they got a new tenant in, or selling the place to capitalise on inflated house prices. “But in 2008, house prices stopped rising, and an empty property became a landlord’s worst nightmare. In the current housing market, landlords are doing all they can to keep tenants in their properties - even if it involves more leniency towards late rent payments.” The downturn has been so severe, it has driven many landlords out of the market. According to the CML, the number of buy-to-let mortgage possessions in the year ending in the third quarter of 2009 was three times higher than the same period for 2007. To ensure mortgage payments can be made landlords have had to be flexible. Many have given tenants payment holidays to help overcome short-term cash problems, or relaxed rules regarding sub-letting. Others have reduced rents to ensure their properties don’t stay empty. Findaproperty.com calculated that average rents in Great Britain dropped by £25 per month in 2009. Moore added: “The recession has caused misery for thousands in the UK – but thousands of tenants have benefitted as the rules of the game have changed. A couple of years’ ago they’d have been out on their ears if they fell behind with the rent. But now that landlords are keen to avoid long void periods, rents have become more flexible and tenants have found it a lot easier to keep a roof over their heads.” Further Links

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DEVELOPMENT SHOWCASE: THE BRIDGE, TIMPERLEY, TRAFFORD
11 February 2010

The Bridge, Timperley, Trafford Local authority: Trafford Council Housing association: Great Places Housing Group Developer: Great Places Housing Group in partnership with Gladedale Number of homes: 75 one- and two-bed canal side apartments. Features: Developed by Gladedale, all apartments come with contemporary fully fitted kitchen, stainless steel oven hob and extractor, modern bathroom suite, secure door entry system and secure parking. Select apartments boast delightful canal views, offering a tranquil setting just a stone’s throw away from the excellent amenities of Timperley and nearby Altrincham. Affordability: Through Plumlife’s shared ownership scheme, local first time buyers are able to purchase a one bedroom apartment at The Bridge development on Deansgate Lane in Timperley, for as little as £38,500 (based on a 35% share). For those struggling with a deposit - a necessity in the present economic climate, the recently launched Plumlife Rent scheme is also now available. The latest government backed ‘try before you buy’ initiative allows would-be home owners to rent their chosen property at a discounted rate for between three and five years while they save for a deposit. Websites www.trafford.gov.uk www.greatplaces.org.uk www.gladedale.com If you have a new or upcoming development you would like to Showcase, please email: news@housingnews.co.uk. Further Links

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FEDERATION SECURES EXEMPTION FOR SOCIAL HOUSING FROM CIL
11 February 2010

David Orr Vigorous lobbying by the National Housing Federation has finally paid off as government accepted that all affordable housing should benefit from social housing relief – effectively a full exemption from the Community Infrastructure Levy (CIL) on virtually all social units developed. CIL is due to be introduced by local authorities later this year. This victory will potentially save housing associations millions of pounds, allowing them to build more much-needed affordable homes. Final regulations to enact CIL were laid before Parliament. They state that social housing, including socially rented and shared ownership homes, will not be liable for CIL. Charitable housing associations might have been able to benefit from the CIL charities exemption included in the 2008 Planning Act. However this was not certain and the Federation, along with the CIH and Shelter, had been lobbying government hard for full relief from CIL for all affordable housing, both to ensure a level playing-field across the sector and to protect housing associations’ capacity to deliver affordable homes. During the passage of the 2008 Planning Act, then Planning Minister Baroness Andrews committed to explore the potential of all affordable housing paying a ‘significantly reduced rate’ of CIL. However this was put in doubt when the draft CIL regulations and consultation document, published in July last year, stated that government was not yet convinced of the case for affordable housing receiving any relief from CIL. High-level lobbying by the Federation and its allies today paid off as government accepted the need for affordable housing to benefit from social housing relief – effectively a zero rate of CIL on virtually all social units developed. Federation chief executive, David Orr said: “The Federation is delighted government is introducing social housing relief for the new Community Infrastructure Levy. We are grateful John Healey and his CLG officials have listened to our concerns and recognised the need to protect the capacity of housing associations to deliver desperately needed homes during the economic downturn. “With social housing relief, housing associations’ development programmes will not be hampered by a new development tax that would have reduced their capacity to build social-rented and shared ownership homes. “With housing building this year slumping to the lowest level since 1923 and a record 4.5 million people stuck on housing waiting lists, this is good news not just for housing associations but for people waiting for a social home.” Further Links

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DENHAM CALLS FOR COMMUNITIES TO CHALLENGE ANTI-SOCIAL BEHAVIOUR
11 February 2010

John Denham Communities Secretary, John Denham has issued a rallying call for an army of community champions to challenge anti-social behaviour in their neighbourhoods. He is determined that people who want to make a difference in their community have the training and hands-on support they need to work together to solve local problems. That is why he is opening up a new programme of Government training to anyone suffering from anti-social behaviour in their neighbourhood. He wants to make clear that the Government is on their side and will back those who are working to make a difference. This builds on the Government’s Community Crime Fighters Programme, which means that nearly 4000 members of the public have now been recruited and trained by the Home Office as part of the Justice Seen Justice Done campaign. The Programme is a training and support scheme for people who are already active in their community and who want to know more about what they can do to help tackle crime and anti-social behaviour. Training events being run in every region across England will help equip people with the confidence and know-how to join together with their neighbours, police and council staff to take a stand against anti-social behaviour - an issue that can gnaw away at the fabric of strong communities. The events will offer practical advice to locals and front-line staff on what can be done and how they can work together to tackle neighbourhood anti-social behaviour issues. They will pass on lessons from those who have succeeded in bringing about change through the power of collective action. This call to action is being supported by a major campaign to give 10 million households across the country the information they need to take action against anti-social behaviour. A new booklet being delivered to homes in areas where anti-social behaviour is a priority for local people and the council advises residents how they can get help if they are being affected by anti-social behaviour and how they can challenge their local police, council or social landlord if they aren’t satisfied with how it is being tackled. The booklet explains what people can expect from the police and other agencies and how they can work with them to solve problems in their neighbourhood. This follows a leaflet drop to more than six million households in 60 areas across the country in November as part of the Justice Seen, Justice Done campaign and comes on top of an extra £6m of funding given direct to 130 areas to address their particular local priorities on anti-social behaviour. Denham said: "The Government has given police and councils strong powers and tools to deal with the scourge of anti-social behaviour. We should acknowledge how much has been achieved and take comfort in knowing the number of people who think it is a problem in their neighbourhoods has fallen to the lowest level since records began. "But there are still some communities where such behaviour causes real misery. The public have every right to feel confident that the police and councils will give a high priority to tackling the problem, and they need to know where they can go to get answers.” Further Links

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LANDLORDS CALL FOR MORE DELIVERY AND LESS DOGMA
11 February 2010

The government risks alienating the UK’s one million plus private landlords with pre-election showboating policies that overshadow the desperate need to encourage investment in the sector, according to the British Property Federation (BPF). An announcement to clean up the rental market by regulating letting agents and to look into what barriers are stopping big investment coming into rental development has been broadly welcomed by the BPF, however other elements of today’s report have been criticised. The Federation was reacting to a Government announcement today, which sets out its response to a consultation exercise on its Rugg Review of the Private Rented Sector, which was held in the summer of 2009. The review made a number of recommendations, which include a nationwide registration scheme for all private landlords in England; licensing of all residential letting and managing agents; raising the annual rental limit on assured shorthold tenancies – the most common form of tenancy in the private rented sector from £25,000 p.a. to £100,000 p.a.; and several measures to encourage local authorities to provide a more seamless service to landlords and tenants. At pre-Budget time the Government also announced it would issue a consultation document on investment in the sector, which is also out today. This is expected to help usher in more investment from the likes of pension funds and other institutions. The announcements follows two announcements that place restrictions on shared accommodation - requiring the owners of all new shared houses, where the house is occupied by three or more unrelated people, to apply for planning permission. A consultation exercise was also launched last week, which would allow local authorities to introduce landlord licensing schemes in certain circumstances, without first having to apply to the secretary of state at CLG, which is the current case. Ian Fletcher, director of policy at BPF, said: “After some questionable announcements on private rented sector policy, it is reassuring to see at least some support for this important sector. One valuable legacy of the Rugg Review is improved evidence which shows the private rented sector has been the driver of housing growth over the past decade, housing one million more households. We welcome Government recognition that the sector needs to continue to grow and its support for continued investment if housing need is to be met. “The Rugg Review contained a number of good recommendations, but the events of the last week have setback landlords’ confidence in its implementation and shown that good advice is not always followed. For example, if three nurses in London want to share a house it is frankly crazy to make them apply for planning permission to be allowed to share, but that is what the Government is changing the law to do.” Further Links

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RICS PARTNERS GOVERNMENT'S HOUSING DESIGN AWARDS
11 February 2010

The RICS is, once again, partnering The Housing Design Awards, as sponsor and judge. Health minister, Nye Bevan launched them in 1948 in support of a brand new NHS. Today, they are sponsored by the Department for Communities and Local Government but this year also sees the return of the Department of Health with a new award for the best design for over 55's living. The Homes and Communities Agency is a key partner to the Awards, assessing entries to monitor and reward the quality of housebuilding. The RICS will stand alongside the other key professions in housebuilding - RTPI and RIBA - giving the awards true cross-industry support. Other partners to the Awards include NHBC and London Development Agency. About a dozen awards are given each year, a mix of occupied schemes called Completed Awards and those with planning permission but not completed called Project Awards About 32 schemes will be shortlisted. All parties to each shortlisted scheme - developer, contractor, consultants and planning authority - are invited to attend the lunchtime ceremony at the Banqueting Housing on 8 July as a guest of the Secretary of State. Shortlisted entries start in a major exhibition that will this year also be staged in London in association with the LDA before touring the country. The book of the winners remains a key reference document on new housebuilding each year. The awards deadline is Friday 5 March. Further Links

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CRIMINAL GANGS TARGET LANDLORDS
11 February 2010

Landlords’ properties are being targeted by criminal gangs as a cover for illegal activity, according to the National Landlords Association. Privately-rented homes across the UK are being used as a smokescreen to grow cannabis in homemade ‘factories’, and produce the harmful drug crystal meth. But it’s not just drugs. Prostitution is also found across the private-rented sector, with homes being used as brothels. Criminals are attracted to rented properties, often in quiet residential areas, as a base to operate without the fear of being disturbed. Unfortunately, when these kind of crimes take place, it’s the landlord who ends up footing the bill. Many insurance policies are rendered invalid when criminal activity takes place in a property and the damage caused can run into thousands of pounds. One NLA member lost £20,000 when two of his properties were used to grow cannabis. The gang involved took out internal walls and rewired the property directly to the electrical mains (example photos attached). And landlords who find brothels in their properties and fail to report them can face prosecution. David Salusbury, Chairman, NLA, said: “It is vital landlords are aware of the threat these criminals pose. Criminal activity not only has an impact on the landlord’s property, but on the community as whole. The production of some drugs involves highly flammable material, which poses a dangerous fire risk. More worryingly, criminals use the proceeds of their crime to fund other, more serious crimes such as people trafficking. “You may think ‘it will never happen to me’, but these incidents are on the increase. The checks you make before a tenant moves in are a key way to prevent becoming a victim of these crimes.” Further Links

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REPOSSESSIONS DROP 13 PER CENT
12 February 2010

Mortgage lenders took 10,200 properties into possession in the fourth quarter of 2009 - 13% lower than in the third quarter, and two per cent down on the fourth quarter of 2008, according to the CML. This figure reflects the number of possessions taken by first charge lenders on both home-owner and buy-to-let mortgages. In 2009 as a whole, this brought the total number of possessions to 46,000. This was lower the CML's most recent forecast of 48,000, and significantly fewer than the 75,000 forecast at the start of the year, but still 15% higher than the 40,000 in 2008. In terms of payment difficulties, 188,300 mortgages ended the year with arrears equivalent to at least 2.5% of the outstanding mortgage balance (for example, £2,500 or more arrears on a £100,000 mortgage balance). This was lower than the 195,000 the CML had anticipated, and 3% lower than at the end of the third quarter - but still 3% higher than at the end of 2008. Within the total number of arrears cases, there is a different picture in terms of what seems to be happening among households with lower levels of arrears (where the numbers are improving), and higher levels of arrears (where the numbers are little changed). This suggests that at present some borrowers facing only modest difficulties are being helped by low interest rates to get back out of trouble, whereas those with more severe problems may be stabilising their arrears but not recovering from them, and lender forbearance is likely to be a significant factor keeping them in their homes. Looking ahead, CML's current 2010 forecast of 205,000 arrears cases and 53,000 properties taken into possession may be a little pessimistic, given that unemployment is faring better than expected so far, and that low interest rates, lenders' arrears management policies, and government assistance schemes are working well to support many borrowers through temporary difficulties. However, the economic and political outlook remains uncertain, and interest rates may rise sooner than we expect if inflationary pressures build up. It would be premature to assume that housing market recovery will necessarily follow a smooth course. CML director general, Michael Coogan said: "The fact that mortgage arrears and possessions did not rise as much as we feared in 2009 is testament to the effect of low interest rates, and a great deal of concerted effort by lenders, government and the advice sector to help borrowers to address financial difficulties when they occur. "We are not out of the woods yet - 2010 will still be a challenging year for many borrowers, and some households will inevitably find their finances being squeezed if and when interest rates do eventually rise. But borrowers should feel reassured that lenders want to help them keep their homes wherever possible. The vast majority of people who get into arrears manage to keep their homes, and will do so even if interest rates rise. Seeking advice as soon as financial problems occur will help to minimise the risk of the situation getting out of control." Further Links

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CIH AWARD HONORARY MEMBERSHIPS
12 February 2010

The Chartered Institute of Housing (CIH) has awarded honorary membership to Michael Gelling, Chair of the Tenants and Residents Organisations of England, Anthony Mayer, Chairman of the Tenant Services Authority and David Orr, Chief Executive of the National Housing Federation. CIH President, Howard Farrand presented the awards at the CIH Presidential Dinner on 10th February 2010 at the Natural History Museum in London. Howard said: "I am absolutely delighted that CIH is awarding Honorary CIH Membership to three very distinguished members of the housing community. Michael Gelling, Anthony Mayer and David Orr have all made significant and valued contributions to the housing sector and have championed the interests of tenants. They have also been great friends and supporters of CIH. "CIH represents people involved in housing across the whole of the UK and within all spheres of the housing sector and we take pride in being able to recognise individuals who have made a significant contribution to our sector through the award of Honorary CIH Membership." Michael Gelling said: "As the first tenant recipient of this honorary award by CIH, I would congratulate the housing professionals for recognising the value of tenants as equals in the sector and how they can contribute when empowerment is embraced by all. How we have progressed over the past ten years." Anthony Mayer said: "I really am very touched to have been awarded honorary membership of CIH, the more so given the eminence of my fellow honorary members!" David Orr said: "It has been a huge privilege to have worked in this business for so long. Good housing is central to the way people approach the world, and far too many people still live in desperate circumstances. I see passionate people across the country who make a real difference every single day. These people continue to inspire me. I am deeply honoured that my small part has been noted in this way." Further Links

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REPORT CALLS FOR MORE ROBUST WAY OF TESTING TENANTS SATISFACTION
12 February 2010

A more robust way of testing resident satisfaction is needed in order to produce accurate and relevant performance measurement for housing associations, a new report has found. The report, Assessing Resident Satisfaction, was commissioned by L&Q to investigate the robustness of the current regulatory regime for the measurement of resident satisfaction in social housing. It also aims to contribute towards the development of new performance indicators that will complement new standards being introduced by the Tenant Services Authority. It is 10 years since the introduction of STATUS, the standard tenant survey model developed by the National Housing Federation, and STATUS-derived satisfaction ratings have come to play a major role in judgements by the regulators about how effective landlords are. However, while STATUS is already considered by many to be a highly standardised format, research evidence suggests that there are significant differences across the social housing sector in the way these surveys are actually carried out. These differences include the way that surveys are completed, the questions that are asked and the way that satisfaction performance indicators are calculated. Tenant responses to satisfaction surveys can also be heavily skewed by economic, geographical and demographic factors outside a landlord’s control. These factors are rarely taken into consideration though when making judgements about social housing providers. Despite these issues, the existing national “league table” produced by the TSA lists some landlords as “top performers” even though they deviate from recommended survey practices. The table also fails to address how the external factors beyond a landlord’s control can affect results. Mike Donaldson, Group Director of Resident Services at L&Q, said: “In light of this, some doubt is cast over the validity of the rankings that are often published. We would encourage the TSA to develop a new regime. “With ever-growing importance being attached to tenant satisfaction ‘ratings’, there is a strong case for greater standardisation in how the measurements are obtained and more attention paid to the context in which organisations operate. “Reform of the regime should include the development of a common framework across social housing. The scope for incorporating customer satisfaction measurement ideas used by the private sector should also be investigated. We would also like to see peer groups, based on size, type and operating area, more clearly defined so that tenant satisfaction between organisations could be compared with greater validity.” He added: “The inclusion of customer satisfaction ratings within social landlords’ future performance targets has become increasingly common. However, the effect of the recession in depressing national scores for customer satisfaction across public services in general has provided a sharp reminder that such ratings are subject to influences outside a service provider’s control. This development poses a challenge to the belief that simple longitudinal monitoring of customer satisfaction is the ultimate measure of an organisation’s performance.” Further Links

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ANCHOR DIRECTOR BROUGHT IN TO TACKLE CHALLENGES ELDERLY FACE
12 February 2010

Sara McKee Anchor Director, Sara McKee is to lead work by a top think-tank aimed at tackling the challenges posed by Britain’s rapidly ageing population. Proposals to tackle poverty and social isolation, improve care for the very old, and find ways of ensuring that older people have the chance to play an active part in society are on the agenda. The review by the Centre for Social Justice has received coverage in today's Times newspaper. In an initial briefing note, the CSJ warns that Britain is facing a demographic timebomb over the next 20 years, which will place further strain on cash-strapped public services. Sara said: “Massive demographic and economic changes call for new solutions. With 40 years’ experience, we are well-placed to advise on ensuring services are tailored to individuals’ increasingly complex needs. “At Anchor, we are developing flexible, mixed-tenure and shared ownership models of housing and believe these solutions could help many thousands of older people across the country. There needs to be a greater focus on services which prevent the need for more costly-higher impact services such as those provided by the NHS. "We are also pioneering new ways of making customers happy, including the development of care home residents’ life histories in order to provide tailored social activities, companionship and links to the community outside the home. Such new ideas are vital if we are to evolve to meet older people’s changing needs.” The CSJ reports that the fastest growing age group in the country is the over-80s, which now make up 4.5 per cent of the population or 2.75 million. This has increased from 2.8% or 1.57 million over the past 25 years. The numbers of pensioners are around 11 million or 19% of the population. This is expected to increase to 15 million in 20 years. Iain Duncan Smith, who chairs the CSJ, said: “Our ageing population presents us with huge challenges. Our attitudes towards the elderly need to change as well as our provision of material support.” Further Links

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FEDERATION PUBLISHES EXCELLENCE IN STANDARDS OF CONDUCT
12 February 2010

The National Housing Federation is to publish a new book, Excellence in standards of conduct, on Friday, which aims to support housing associations in maintaining excellent standards of conduct in everything they do. The book sets out a comprehensive framework covering all aspects of an association’s business, and requires all associations to demonstrate their commitment to excellent standards of conduct by laying down clear expectations for staff and board members. The new book is designed to be used alongside the two codes published last year by the Federation – Excellence in governance and Excellence in service delivery and accountability. For many years, the regulation of business probity in housing associations has been addressed through successive Housing Acts, which have laid down a series of increasingly complex provisions and entrusted their enforcement to the Housing Corporation, and then the Tenant Services Authority, as statutory regulator. But as the sector has grown and evolved, it has became increasingly clear that the statutory approach has imposed sweeping restrictions that have often operated to restrict normal business practices, while at the same time overlooking some key issues of probity and reputation. Federation chief executive, David Orr said: “The publication of this book is a massive step forward in the understanding of standards of conduct required by housing associations to ensure the upholding of their probity and reputation. “I am sure that it will go on to provide an invaluable framework for the business of housing associations for many years to come.” Further Links

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