Hillingdon Council Cabinet Member and Officer Decisions
Council Housing Home Release Reward Scheme
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Democratic Services
Location: Phase II
Ext: 0692
DDI: 01895 250692
Ref: CMD 165
To: COUNCILLOR EDDIE LAVERY
CABINET MEMBER FOR ENVIRONMENT,
HOUSING AND REGENERATION
c.c. All Members of Executive Scrutiny Committee
c.c. Chairman of the Environment, Housing &
Regeneration Select Committee
c.c. Perry Scott, Corporate Director of Infrastructure,
Transport & Building Services
c.c. Rod Smith, Tenancy Services
c.c. Conservative and Labour Group Offices
(inspection copy)
Date:
07 June 2021
Non-Key Decision request Form D
COUNCIL HOUSING HOME RELEASE REWARD SCHEME
Dear Cabinet Member
Attached is a report requesting that a decision be made by you as an individual Cabinet
Member. Democratic Services confirm that this is not a key decision, as such the Local
Authorities (Executive Arrangements) (Meetings and Access to Information) (England)
Regulations 2012 notice period does not apply.
You should take a decision on or after Tuesday 15 June 2021 in order to meet
Constitutional requirements about publication of decisions that are to be made. You may
wish to discuss the report with the Corporate Director before it is made. Please indicate your
decision on the duplicate memo supplied, and return it to me when y ou have made your
decision. I will then arrange for the formal notice of decision to be published.
Neil Fraser
Democratic Services Officer
Title of Report: COUNCIL HOUSING HOME RELEASE REWARD SCHEME
Decision made:
Reasons for your decision: (e.g. as stated in report)
Alternatives considered and rejected: (e.g. as stated in report)
Signed ………………………………………………………Date……………………..
Cabinet Member for Environment, Housing and Regeneration
Cabinet Member Report – 07 June 2021 Page 1
(Part 1 Public)
COUNCIL HOUSING HOME RELEASE REWARD SCHEME
Cabinet Member(s) Cllr Eddie Lavery
Cabinet Portfolio(s) Cabinet Member, Environment, Housing and Regeneration
Officer Contact(s) Rod Smith, Tenancy Services
Papers with report None
HEADLINES
Summary
This report presents a proposal to the Cabinet Member for
Environment, Housing & Regeneration to make changes to the
Council Housing Home Release Reward Scheme, specifically to
increase the maximum financial incentive offered to current
Council tenants to relinquish their existing family sized
accommodation and move to a smaller property. The proposed
changes to the package of measures to encourage and support
under-occupying Council tenants to move to smaller, suitable
sized accommodation will ensure best use of Council resources
and is in line with expectations set by the Regulator of Social
Housing to make best use of available accommodation.
Putting our
Residents First
This report supports the following Council objectives of: Our
People; Our Built Environment; Strong financial management.
The proposal set out in the report supports the delivery of the
Housing Strategy.
Financial Cost The downsizing incentives increase is to be funded from within the
existing annual HRA Home Release Reward Scheme Budget of
£100k. Any pressures above this will be considered as part of the
HRA MTFF process as the incentives will be reviewed on an
annual basis.
Relevant Select
Committee
Environment, Housing and Regeneration
Relevant Ward(s)
All
Cabinet Member Report – 07 June 2021 Page 2
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RECOMMENDATIONS
That the Cabinet Member approves the updated Home Release Reward Scheme as set out
in this report which increases the incentives available to Council tenants moving to smaller
bedroom sized Council accommodation.
Reasons for recommendation
Payments under the ‘Home Release Reward Scheme’ were last reviewed and increased in April
2015. There are now several drivers which would suggest that it is both timely and appropriate to
review the current level of incentives. Financial incentives are des igned to address a range of
practical barriers which can present in relation to tenants wishing to transfer and seeks to
encourage more tenants to move to smaller accommodation. The clear objective of the Home
Release Reward Scheme is to increase the suppl y of family sized affordable accommodation
available for eligible residents in the Borough.
Alternative options considered / risk management
To not consider increasing the offer within the Home Release Reward Scheme is likely to lead to
lower levels of under occupying Council tenants moving to smaller accommodation.
Democratic compliance / previous authority
The decision can be made under the Cabinet Member’s delegations.
Select Committee comments
None at this stage.
SUPPORTING INFORMATION
1. Supporting under -occupiers to move into smaller accommodation is part of the overall
strategy to increase the supply of social housing and reduce the number of households in
expensive forms of temporary accommodation, where they have 10 or more years
residency. The Regulator of Social Housing, as set out in the Tenancy Standard, expects
registered providers of social housing to develop and deliver services to address under -
occupation within the resources available to them.
2. Tenants choose to downsize to a smaller home for a variety of reasons. Some reasons
relate to ‘pull factors’ i.e. the attractiveness of a smaller, easier to manage and cheaper to
run home with lower outgoings whilst other reasons relate to ‘push factors’ including those
tenants who are struggling to pay their rent and or have multiple debt issues and are facing
formal rent arrears recovery action which puts their home at risk.
3. Under the current Social Housing Allocation Policy, priority is given to households wishing
to downsize. Households giving up two or more bedrooms are awarded Band A.
Households releasing one bedroom are awarded Band B. There are proposals being
Cabinet Member Report – 07 June 2021 Page 3
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progressed separately to prioritise under occupying tenants for a move to smaller
accommodation.
4. The Council has used a tailored approach to identify and address barriers to downsizing.
This does not rely upon a simple monetary payment to encourage tenants to move but the
provision of support packages to unblock barriers to downsizing, particularly in the context
of older and vulnerable households. Barriers can fall within the scope of; financial, property
and support related issues. Financial barriers typically include arrears of rent which prevent
verification under the Social Housing Allocation Policy or simply insufficient funds to move
and set up a new home. Property related barriers typically include poor property condition,
including hoarding. Support related barriers typically include vulnerable households who,
without practical support and encouragement, would be unable to contemplate a move
under any circumstances.
5. In addition to the work of the Tenancy Management Officers, a dedicated Under -
Occupation Case Officer works within the Lettings Team to identify suitable downsizing
cases, identify suitable properties for them to move to and provide ‘one on one’ tailored
support. We know this bespoke service is valued by tenants. The greater the monetary
value of the downsizing payment, the greater the flexibility available to staff to overcome
the presenting barriers and enable to the tenant to still benefit from a payment to ‘set up’
their new home.
6. Spare room subsidy (also known as Bedroom Tax or under occupancy charge) means that
Council tenants will receive less in Housing Benefit or Housing Costs Element in a
Universal Credit claim if they are deemed to have one or more spare bedrooms. Whilst this
negatively impacts financially on applicable households, it is important to note that
pensioner households are not adversely affected. In this context, unlike non- pensioner
under occupiers claiming benefit, there is no financial ‘push factor’.
7. Figure 1 below sets out the level of downsizing successes over the last 5 years to date,
including the number of bedrooms released as part of each downsizing move and the total
spend.
8. There are currently 302 Council tenant households claiming Housing Benefit who are
affected by the spare room subsidy. These households clearly outnumber those registered
for smaller accommodation as set out in figure 2 and 3 below:
Figure 1 – Properties released by downsizing 2016/17 to date
Year/Property
Size
2
Bedroom
3
bedroom
4
bedroom
5
bedroom
6
bedroom
Annual
total
Total
Spend
£000’s
2016/17 12 16 28 62
2017/18 10 10 3 1 24 72
2018/19 21 18 2 41 87
2019/20 15 20 1 1 37 80
2020/21 7 10 3 1 21 56
Grand Total 65 74 9 2 1 151 357
Cabinet Member Report – 07 June 2021 Page 4
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9. There are currently 174 tenants registered who have expressed a wish to downsize to
smaller accommodation. The current accommodation occupied by these tenants and the
bedsize need is set out in the tables below.
Figure 2 – Current bedsize of under occupying council tenants
Figure 3 – Bedsize required of under occupying council tenants
10. It is clear from tables 2 and 3 above that there is considerable scope to release larger
family sized accommodation. These registered downsizers are in the process of being
contacted to better understand their downsizing requirements and to establish any
presenting barriers. Once needs have been established Officers can communicate any
potential change in the Home Release Reward Scheme and start to formulate tailored
support plans and potentially match households to current and forthcoming void properties.
Feedback from under-occupiers on property and support requirements
11. The Under-Occupation Officer is in regular and ongoing contact with a large number of
under-occupiers as part of the case-work management approach to encouraging under -
occupiers to register for a move and in terms of facilitating moves. In this context the officer
has identified a number of themes and more recently has made contact with 25 under -
occupiers in relation to property and support requirements. The overriding feedback is that
larger financial incentives would ‘unblock’ a range of presenting issues but other themes
are reflected below.
12. Decorative state is an issue raised with almost every older person who is downsizing.
Downsizing tenants do not wish to cover the cost of redecoration from their downsizing
incentive payment. This is particularly the case where tenants are only releasing one
bedroom and are therefore currently receiving £1,500. Added to this, internal redecoration
is frequently beyond the physical capability of some downsizers.
13. Many downsizers are moving from family sized accommodati on with gardens. The
provision of a private garden, albeit smaller than their existing garden, is frequently an
issue which downsizers are not willing to compromise on. Linked to Covid-19 the profile of
this issue has increased over the last 12 months and more than ever tenants are seeking
their own private outside space and are less likely to want to share outside space with
other residents. Added to this, older tenants either have pets [necessitating private gardens
under conditions of tenancy] or grandchildren who require secure outside space to play
when visiting.
Cabinet Member Report – 07 June 2021 Page 5
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14. Many older downsizers are potentially releasing larger family sized properties which they
have lived in for many years and often raised their own family in the property. They are
unlikely to have lived in a flat or maisonette themselves and do not like the thought of
having other residents living above them. This is a conundrum in that older people would
not wish to move into an upper floor flat without the benefit of lift access. Such facilities are
limited outside of sheltered housing and tower block accommodation. A high proportion of
older tenants who want to downsize to a 1-bedroom property would not therefore consider
a flat and therefore the presenting option would be a 1- bedroom bungalow. Downsizers
frequently just fall below the 60 years or over age restriction for bungalows and are
therefore not eligible. If the age restriction were lowered, tenants would gain the Right to
Buy for this category of age restricted accommodation, which is currently exempt. This
does not, however, prevent a potential change of use to younger people with disabilities.
Such reclassification would facilitate exclusion from the Right to Buy.
15. Where age criteria are met, bungalows are frequently refused due to decorative state and
/ or particularly small floor area. The areas of choice for downsizing tenants is influenced
by a wide variety of factors including; employment, family connections, transport links and
proximity to shops. It has been noticed that areas in the north of the Borough are the most
popular including Ruislip, Northwood, Eastcote and Harefield.
16. The dedicated ‘one to one’ attention and support provided by the Under-Occupation Officer
is valued by older downsizers in particular. Key elements of support include specific
property identification / matches, bidding support, liaising with family members,
accompanied viewings, organising removals, disconnection / reconnections and
signposting to other services.
Proposal
17. The Council’s current financial offer to downsizing tenants is set out in Appendix A. In
summary terms this includes a sliding scale from £1,500 in respect of one bedroom
released up to a maximum of £4,500 for three or more bedrooms released. This offer has
been in place since April 2015. By way of comparison the London Boroughs of Ealing,
Hammersmith & Fulham and Brent offer £2,000 for each bedroom released. Harrow offers
£1,500.
18. The proposals set out in Appendix A include increasing the payment to £2,000 per
bedroom released. This is a flat rate of £2,000 for each bedroom released, irrespective of
the number.
19. Currently, where the Council assists tenants with arranging removals via its own term
contractor, the cost of the removal is deducted from the incentive payment awarded. This
reduces the value of any incentive payment the tenant receives ‘in their hand’. The
proposal is to add the inclusion of removal costs. Average costs have been capped at £400
reflecting the variability of costs depending upon property size, type, load and
consumables. The proposal also includes the additional of a full redecoration cost where
the tenant is aged 60 or over and is moving to one- bedroom accommodation. One
bedroom bungalows and some sheltered accommodation has proven to be more
challenging to let and it is a reasonable expectation that tenants moving into such
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accommodation would not be able to undertake their own works of redecoration. Such an
approach also increases the attractiveness of these age restricted voids with the potential
to reduce re-let time and void rent loss.
20. Subject to any changes in the agreed downsizing incentives it is proposed to review the
available packages, at least on an annual basis, based upon a structured approach to
tenant feedback.
Financial Implications
21. This report recommends increasing the current levels of HRA incentives for downsizing
under the Home Release Reward Scheme, which were last increased in April 2015.
22. The HRA Home Release Reward budget in 2021/22 is £100k . The existing and new
incentives ar e detailed in Appendix A. The £100k budget could fund approximately 40
downsizes under the current incentives depending on demand (based on freeing up 2
bedrooms £100k/£2,5k). Under the new recommended incentives, the £100k budget could
fund approximately 22 downsizes based on freeing up 2 bedrooms (£100k/£4.4k). With the
increase in incentives there is likely to be an increase in take-up of the offer and freeing up
of larger properties. In 2020/21 14 larger properties (3 bedrooms and above) were released
through this scheme.
23. Supporting under -occupiers to move into smaller accommodation is part of the overall
strategy to increase the supply of social housing and reduce the number of households in
expensive forms of temporary accommodation. Furthermore, a significant new driver for
reviewing the incentives is the housing regeneration project where there is demand for
larger properties as part of the decant process.
24. The increase in incenti ves can be funded from within the annual £100k HRA Home
Release Reward budget. Any pressures above this will need to be considered as part of
the overall HRA MTFF process, especially as the incentives will be reviewed on an annual
basis.
RESIDENT BENEFIT & CONSULTATION
The benefit or impact upon Hillingdon residents, service users and communities?
The proposals set out in this report will support under-occupying council tenants to move to
more suitable sized accommodation better suited to their needs. Releasing under-used council
housing will also ensure more family sized homes are available to households in need of larger
accommodation thereby helping to address the need for more affordable rented homes in the
Borough.
Consultation carried out or required
The proposals have been developed taking into account tenant feedback from discussion with
under occupying council tenants on a case by case basis, as set out above in the report. The
proposals are consistent with the expectations set by the Social Housing Regulator.
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CORPORATE CONSIDERATIONS
Corporate Finance
Corporate Finance have reviewed this report and concur with the financial implications set out
above, noting that the recommended increases to incentive payments are the first since 2015.
Legal
The Borough Solicitor confirms that there are no legal impediments to increasing the level of
payments made to downsizing tenants; such payments are authorised by section 26 of the
Housing Act 1985.
BACKGROUND PAPERS
Nil.
TITLE OF ANY APPENDICES
Appendix 1 - Current and proposed incentives for under -occupying council tenants moving to
smaller bedroom sized accommodation.
Cabinet Member Report – 07 June 2021 Page 1
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Appendix A – Options for revisions to the current Home Release reward offer
Current Incentives
No of bed released What you get
1 £1,500
2 £2,500
3 or more £4,500
Proposed Incentives
PLUS PLUS
Move from Move to Bedrooms
released
What you get Removals paid
for
Redecoration
Four beds Three beds 1 £2000 Up to £400 N/A
Four beds Two beds 2 £4000 Up to £400 N/A
Four beds One bed 3 £6000 Up to £400 £850*
Three beds Two beds 1 £2000 Up to £400 N/A
Three beds One bed 2 £4000 Up to £400 £850*
Two beds One bed 1 £2000 Up to £400 £850*
*Redecoration relates to pensioner households moving into one bed age restricted accommodation only i.e. bungalows and sheltered housing
or one bed general needs. The cost is an average from the schedule of rates for void contractors working across the north and south areas.
View Decision / Minutes Text
Executive Decision Notice – 18 June 2021 Page 1 This notice is a public document also available to view on the Council's website www.hillingdon.gov.uk OFFICIAL EXECUTIVE DECISION NOTICE PUBLISHED BY DEMOCRATIC SERVICES Title of report COUNCIL HOUSING HOME RELEASE REWARD SCHEME Reference No. CMD 165 Date of decision 18 June 2021 Call-in expiry date 5pm, on 25 June 2021 Relevant Select Committee(s) Environment, Housing and Regeneration Relevant Ward(s) All Decision made Cabinet Members making the decision Councillor Eddie Lavery - Cabinet Member for Environment, Housing and Regeneration DECISION That the Cabinet Member approve d the updated Home Release Reward Scheme as set out in this report which increases the incentives available to Council tenants moving to smaller bedroom sized Council accommodation. Reason for decision Payments under the ‘Home Release Reward Scheme’ were last reviewed and increased in April 2015. There are now several drivers which would suggest that it is both timely and appropriate to review the current level of incentives. Financial incentives are designed to address a range of practical barriers which can present in relation to tenants wishing to transfer and seeks to encourage more tenants to move to smaller accommodation. The clear objective of the Home Release Reward Scheme is to increase the supply of family sized affordable accommodation available for eligible residents in the Borough. Alternative options considered and rejected To not consider increasing the offer within the Home Release Reward Scheme is likely to lead to lower levels of under occupying Council tenants moving to smaller accommodation. Classification Public Link to report (if public) Here Relevant Officer contact Rod Smith, Tenancy Services Executive Decision Notice – 18 June 2021 Page 2 This notice is a public document also available to view on the Council's website www.hillingdon.gov.uk Decision implementation Where required, these decisions have been taken under The Local Authorities (Executive Arrangements) (Meetings and Access to Information) (England) Regulations 2012. Officers can implement this decision from: Friday 25 June 2021– from 5pm …unless this is called in by the relevant Select Committee set out above. Officers will be notified of any call-in received. Further information This is the formal notice by the Council of the above executive decision, including links to the reports where applicable. If you would like more information on this decision, please contact Democratic Services on 01895 250636 or email: democratic@hillingdon.gov.uk. Circulation of this decision notice is to a variety of people including Members of the Council, Corporate Directors, Officers, Group Secretariats and the Public. Copies are also placed on the Council’s website. London Borough of Hillingdon Civic Centre High Street Uxbridge UB8 1UW