Issue - meetings

To receive a report from the Head of Housing and Health on the Downsizing Work Group report.

The Cabinet had before it a report * from the Head of Housing and Health on the Downsizing Work Group Report.

The Cabinet Member for Housing, Assets and Property Services and Deputy Leader outlined the contents of the report with particular reference to the following:

• The Homes PDG established a Downsizing Incentives Working Group to investigate potential incentives that might encourage tenants to move from larger properties. The group was tasked with gathering tenants' perspectives on desirable incentives and providing recommendations for an incentive scheme.

Discussion took place with regards to:

• The number of people on bands A to C had increased and large properties within the Mid Devon area.
• If there was any work that was around helping people to move on and to move out of properties and would this opportunity be there for young families?

RESOLVED that:

That the Downsizing Incentives be developed by Officers and added as an addendum to the Allocations Policy with the following provisions:

• A maximum financial incentive of £1,000 for tenants downsizing by one bedroom.
• A maximum financial incentive of £2,000 for tenants downsizing by two or more bedrooms.
• Tenants could use the financial incentive to offset any recharges they might owe on their current property or to cover costs for moving, new carpets and/or redecoration in their new property. If no recharges are owed, they would receive the full incentive amount to use at their discretion.
• A direct let option for existing tenants to allow MDH to consider downsizing moves into newly void properties in specific circumstances in accordance with wider allocation policy.
• A communication plan including targeting of hard-to-reach tenants.
• One-to-one support for completing Devon Home Choice applications if relevant.
• A 12-month pilot scheme, followed by a review to assess the scheme's success and determine next steps.

As recommended by the Downsizing Working Group and the Homes Policy Development Group.

(Proposed by Cllr S Clist and Seconded by Cllr S Keable)

Reason for Decision:

The proposed incentives would affect the HRA. Any costs associated with the recommendations in this report that were not covered by savings elsewhere or existing staffing budgets would need to be drawn from the HRA Minimum Working Balance.

Note:* Report previously circulated.

To receive a report from the Head of Housing and Health. The Homes PDG established a Downsizing Incentives Working Group to investigate potential incentives that might encourage tenants to move from larger properties. The group was tasked with gathering tenants' perspectives on desirable incentives and providing recommendations for an incentive scheme. The reports sets out the recommendations of the Working Group.

The Group had before it a report * from the Head of Housing and Health. The Homes PDG established a Downsizing Incentives Working Group to investigate potential incentives that might encourage tenants to move from larger properties. The Group was tasked with gathering tenants' perspectives on desirable incentives and providing recommendations for an incentive scheme.

The contents of the report were outlined by the Chair of the Working Group, Cllr A Glover, with particular reference to the following:

·       Feedback had been sought from tenants, there had been 76 responses and 70% of those had agreed that incentives should be offered for downsizing.

·       All options had been considered by the Working Group and the ones recommended below had seemed the most helpful.

·       It was confirmed that a budget could be found within the Housing Revenue Account to support these proposals.

·       A number of difficult conversations had had to be had to reach this point.

·       Officers thanked the Working Group for their hard work and dedication in conducting this exercise.

RECOMMENDED to the Cabinet that:

The Downsizing Incentives be developed by Officers and added as an addendum to the Allocations Policy with the following provisions:

a)     A maximum financial incentive of £1,000 for tenants downsizing by one bedroom.

b)     A maximum financial incentive of £2,000 for tenants downsizing by two or more bedrooms.

c)     Tenants could use the financial incentive to offset any recharges they might owe on their current property or to cover costs for moving, new carpets and/or redecoration in their new property. If no recharges are owed, they would receive the full incentive amount to use at their discretion.

d)     A direct let option for existing tenants to allow MDH to consider downsizing moves into newly void properties in specific circumstances in accordance with wider allocation policy.

e)     A communication plan including targeting of hard-to-reach tenants.

f)      One-to-one support for completing Devon Home Choice applications if relevant.

g)     A 12-month pilot scheme, followed by a review to assess the scheme's success and determine next steps.

(Proposed by the Chair)

Reason for the decision

Formulation of a Downsizing Incentive Scheme would encourage and support tenants to move to suitable accommodation. Tenants who were in receipt of benefits were affected by the ‘bedroom tax’ which provided a financial disincentive to remaining in a home which was larger than they needed. Promotion of mutual exchange scheme will encourage moves. Improved data collection on households would enable targeted contact with tenants under occupying.

Risks associated with this scheme had been considered although assessment would need to continue throughout the early life of the scheme. Whether the payment was sufficient to incentivise downsizing remained to be seen, although with the number of tenants looking to reduce numbers of bedrooms in their properties expected to increase, another risk was that the HRA resource was being paid to support moves which would have happened anyway.

Note: * Report previously circulated.