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Maidstone Borough Council

Regeneration and Sustainable Communities Overview and Scrutiny Committee

Tuesday 9 December 2008

Choice Based Lettings Allocations: Discussion Paper on Points Vs Bands

Interview with the Chief Housing Officer, John Littlemore and the Housing Options Manager, Kaks Chahal

Report of: Kaks Chahal

1.           Introduction

This discussion paper will set out the Choice Based Letting Scheme and the issues Overview and Scrutiny Members may wish to consider when deciding whether to recommend that Maidstone Council should opt for a points or a band based approach in drafting its allocations policy.

2.           Officer Recommendation

The council approves the adoption of a “points” based approach for its housing allocation policy. This will ensure the council is able to meet its legislative duties.

3.           Issues for discussion

·         Bands are more simplistic compared to points?

·         Could the council be legally challenged if it moved towards a Band based approach?

·         The issue is not of Band or Points but an open and transparent system in letting affordable housing which a Choice Based Letting scheme offers

4.           What is Choice Based Lettings (CBL)?

A Choice Based Letting scheme (CBL) is the name given to a system of letting council and registered social landlord properties when they become vacant.  Properties will be advertised in a free sheet/internet on a fortnightly basis. Applicants registered to the council’s Housing Register can then bid for a particular property advertised provided it is suitable for their need (i.e bedroom size).  The applicant with the highest points who has placed a bid for a property will be successful in securing that property. A bid can be placed in a variety of ways including; mail, internet, in person through the council offices and by telephoning. The government has set a target that by 2010 all Local Authorities will have adopted a Choice Based Letting system.  As part of the process many local authorities are reviewing their allocation polices. Within those reviews some authorities have opted for banding system as opposed to the common points system.

Maidstone, as part of the Kent CBL partnership has opted for points, as with Ashford, Gravesham and Tonbridge and Malling council. Some Councils, such as Canterbury, Swale and Dartford have opted for a banding system.  Maidstone is due to go live with CBL in April 2009.

There have already been a number of pilots and CBL schemes that have gone live in other parts of the country. The outcome/observations of these have shown:

·         Empowering choice for housing applicants.  By providing choice, this gives applicants a stake in where they live and should lead to more satisfied tenants who stay longer, pay the rent and look after their homes.

·         Creating a more simple and transparent process for letting

·         Reducing the turnover of tenancies in some areas

·         Reducing losses from void periods where the CBL system decreases the number of refusals

·         The pilots highlighted that it is possible to change general perceptions of social housing and modernise access

An outcome sheet will be available to all applicants informing them of the number of bids received for an advertised property and the number of points the applicant had. This will assist applicants in making an informed “choice” for properties they wish to bid for.

The pilots have also highlighted the following:

·         Ensure vulnerable people are able to access “Choice” through support

·         The need for consistent monitoring to ensure the effectiveness of the scheme and local authority housing allocations policy to ensure applicants with the greatest need are identified

·         To have information available in a key minority languages so that applicants from Black, Asian and Minority Groups can access the scheme equally.

It should be noted that CBL is not designed to tackle the supply issues of social housing.  It is a scheme of improving how the existing stock is managed.

5.           Customer feedback

As part of the consultation on CBL the council undertook a postal survey to gain the views of customers and partners.

73 customers responded to the survey and the results can be found at Appendix 1.

21 partners responded to the partner questionnaire and the responses can be found at Appendix 2. 

Overall there is a positive response regarding the CBL scheme and customers welcome the opportunity to be able to view properties advertised and would consider areas outside there are preference.

Whilst 32 customers considered the CBL system to be simpler 25 were undecided. This could be because this is part of the first consultation process undertaken and more information is required as the scheme develops to assist customers.

Following the partner feedback, overall partners considered the CBL scheme to be more successful in assisting customers in finding a home.

6.           Legislative Framework

The operation of the Housing Register is governed by Housing Act 1996. In accordance with legislation certain categories of people need to be given ‘reasonable preference’ in any local authority allocations policy. Failure to do so would expose the authority to legal challenge. The categories include:

·         People who are homeless (within the meaning of the Housing Act 1997 Part VII)

·         People who meet are in priority need but intentionally homeless; people who are in priority need but not intentionally homeless or those who are are not in priority need, unintentionally homeless and have been provided accommodation at the discretion of the local authority ( all there categories are within the meaning of the Housing Act 1996 Part VII)

·         People occupying unsanitary or overcrowded housing or otherwise living in unsatisfactory housing conditions

·         People who need to move on welfare or medical grounds ( including grounds relating to disability) and

·         People who need to move to a particular locality in the district of the authority, where failure to meet the need would cause hardship (to themselves or others)

7.      What is the difference between bands and points?

7.1    Bands

Under this system applicants are grouped in particular bands i.e applicants who are overcrowded, homeless, medical issues.  The Allocation of Accommodation: Choice Based Lettings (Code of Guidance for Local authorities) issued in August 2008 generally favours a band based approached.  It recommends generally four broad levels of priority.  An example of how this would look like is listed below from a London authority :

The draft Code of Guidance does suggest that authorities may wish to increase the number of bands and /or mechanisms to distinguish between applicants in the same band. 

7.2    Points

Under this system points are awarded to different housing circumstances i.e over crowding, tenure and homelessness. As a result the approach allows an authority to undertake a composite assessment of housing need (including multiple needs) by recognising applicant’s points in accordance to policy.

8.      Strengths and Weakness of both systems

8.1    Bands

          Strengths

·         Generally encouraged by Communities and Local Government ( CLG)

·         It is considered simpler for customers to understand

Weaknesses

·         Whilst a banding system is perceived as more simplified it is not sensitive enough to make a full assessment of individual housing need. As a result there have been a number of successful legal challenges and Ombudsman enquires (i.e London Borough of Ealing, Newham, Hounslow and Waltham Forest)

·         Whilst the CLG also suggest that authorities may wish to increase the number of bands and /or mechanisms to distinguish between applicants in the same band, there is no mechanism to distinguish between applicants within the band; this just makes the system over complex and lacking in transparency. It is inevitable that the respective priority of applicants in a particular band will be based on waiting time. This is fundamentally flawed as legally the assessment should be based on need and not waiting time.

·         One London authority (Newham) has tried to reconcile this by awarding a high-band to homeless applicants but offering a direct offer of accommodation to those with multiple needs. As a result the latter group is not provided with any choice.

·         Research undertaken by Heriot Watts University in 2007, reported that “…it is difficult to reconcile the choice of CBL’s and the long standing obligations of reasonable preference…” categories as stated above in this report.

·         Bands do not allow for an adequate assessment of multiple needs. For example you can have an applicant placed in band C as they have medical issues and another applicant again placed in band C who has medical and overcrowding issues

·         Does not meet legal requirements

8.2    Points

Strengths

·         Ensure the authority meets its legislative requirements. Therefore lessen its chance of being legally challenged/Ombudsman enquiry

·         The points approach allows for flexibility for sensitive cases and still ensuring choice for those applicants (albeit time limited in certain cases)

·         Allows multiple needs to be recognised as different points can be awarded for different circumstances

Weaknesses

·         Perceived to be complicated. However this is could be compensated:

o   By reviewing the literature provided which explains the points scheme; and

o   Through CBL, as this will ensure an open and transparent system for letting of accommodation.

9.           Conclusion

As this paper highlights, whilst bands are considered more simplistic, a points based approach does allow an authority to undertake a proper assessment of housing need including multiple needs. Therefore, allowing the authority to meet its legislative requirements. The introduction of CBL will allow for an open and transparent system for the letting of accommodation. This will enable applicants to make an informed choice of the properties they wish to bid for as well as providing feedback through the free sheets of bidding activity.