Agenda item

To receive the report of Kayt Wilson, Head of Private Housing Solutions.

RECEIVED the report updating the panel on the performance of Housing Gateway Ltd.

NOTED:

1.     The introduction from Cllr George Savva, Cabinet Member for Social Housing.

2.     Kayt Wilson, (Head of Private Housing Solutions) highlighted key issues and advised that the council owned property company Housing Gateway Ltd was buying up homes and renting them out to people who would otherwise be placed in temporary accommodation with cost avoidance of up to £30,000 per household per year.

3.     Since it was set up in 2014 Housing Gateway Ltd (HGL) had built up a portfolio of 648 properties generating cost avoidance of around £13.2 million to date. However, acquisitions had stalled this year following a hike in interest rates with the company buying just 34 properties against a target of 70.

4.     HGL’s ethical lettings agency, Enfield Let continues to promote ethical lettings in the Borough, tackling social injustice and ensuring residents are not discriminated against because of their financial status or credit history.

5.     Enfield Let leases properties from private landlords in the Borough, offering leases of 3-5 years. Landlords are offered guaranteed rent, paid monthly in advance and a full management service.

6.     Enfield Let has grown a portfolio of 248 leased properties since October 2020, providing quality homes in the private rented sector for families who would otherwise be placed in temporary accommodation.

7.     Enfield Let has been asked to collaborate with the Council to manage some or all of the Council’s temporary accommodation stock, delivering significant savings to the Council. This workstream will be the primary focus for Enfield Let in 2023/24

8.     HGL, in collaboration with the Council, was successful in securing a £6.7m capital grant from the GLA to support the Rough Sleeping Accommodation Programme (RSAP). The grant funding facilitated the purchase of 77 bed spaces (61 properties), by purchasing a mix of studios and 1 bed and 2 bed accommodation. All properties have been purchased, meeting the 31^st March deadline.

9.     In response to a question regarding the security of the tenures and the support that will be offered, officers advised that the 61 properties purchased have already served to house 90 tenants who were previously sleeping rough, and the properties will remain available to house ex-rough sleepers for 30 years. However, it is determined as interim accommodation, with a view to each tenancy being 2-3 years, but this will very much depend on the needs of the individual.  The ex-rough sleepers are fully supported in the accommodation by Council provided services.

10. In response to Cllr Guzel’s question regarding an HGL internal transfer system as well as an upsizing and downsizing system, officers confirmed that this was in hand and currently in draft form and being circulated internally for comment.

11. In response to a question from Cllr Chamberlain regarding Landlord Standards Inspections, Officers confirmed that all inspections are tracked, and this information is readily available.

12. Cllr Chamberlain also referred to paragraph 5 of the report and sought clarification on this. Officers advised that HGL is one of the most well-established local Housing Companies and has been funded to build its current portfolio. This has been achieved by the council lending to the company and the company then paying the debt and capital back.

13. In response to Cllr Abey’s question regarding future purchasing of properties, officers advised that HGL has a clear vision, and this is to deliver demonstrably, good quality housing for residents through a variety of products suitable for residents on low to medium income levels. The aim is to deliver increased housing supply to the Council over three years from 2022, with at least an additional 270 units by 2025.

14. Cllr Guzel raised concerns regarding residents who would not be able to afford private rented accommodation and sought clarity on the Council’s strategy to address this. Officers confirmed that rents would need to be kept at affordable levels and would also not be transferring anybody to accommodation that would disadvantage them financially.

15. With regards to the 648-core portfolio of HGL, Cllr O’Halloran asked what the typical term of tenancy is for these properties and where do residents move on to. It was noted that this varies in terms of tenure length, as people generally move on due to a change in circumstances, for example, moving into permanent council housing, relocating out of the area, buying a property or finding larger accommodation, so in general it’s a change in family circumstance that would take them out of the existing property.

16. In response to Members’ questions as to whether the council have made representation to central Government regarding the LHA policy, Joanne Drew advised that they had written directly to the Government in terms of Enfield’s situation as it is recognised that Enfield has one of the most pressing homelessness situations in London. Enfield also work closely with London Councils as there is an issue across the whole of London, so joint up work has taken place to lobby the Government on the LHA rates as this is something that will benefit all London Boroughs.

17. In response to the Chair’s question as to the type of properties the council purchase, officers advised that it is a mixed portfolio, ranging from 1-bedroom to 4-bedroom properties and it is very much dependent on what the council’s need is. It was agreed that a breakdown of the property types be circulated to Members of the Panel.
Action: Kayt Wilson