HousingHousingStock Condition Survey, Study of Private Rented Sector and Sheltered Stock Condition Survey, Study of Private Rented Sector and Sheltered

Housing Feasibility StudyHousing Feasibility Study

Adult Strategic Partnership Board Adult Strategic Partnership Board

2020thth October 2010 October 2010

Genevieve MacklinGenevieve Macklin

Head of Strategic Housing & Regulatory ServicesHead of Strategic Housing & Regulatory Services

Stock Condition Survey• Private rented stock in Lewisham 29% v national average

12%, • Owner occupied sector is 42% v 70% nationally• 13,410 HMOs - 7,880 are poorly converted buildings into

self contained flats, 4,830 are houses with multiple households of which 700 are the larger licensable HMOs.

• There are 3,190 vacant dwellings with 520 being long term vacants

• 29,950 homes or 36.7% of the private stock is non decent• 40.8% of vulnerable households are living in non decent

dwellings in Lewisham• 7,850 owner occupiers are in fuel poverty (11%)• 15,920 homes have Category 1 health hazards (19.5%) v

23.5% nationally• SAP rating is 51 better than the national average of 48

Housing Health and Safety Rating System

• Class 1 Harms – death, permanent paralysis below the neck, malignant lung tumour, regular severe pneumonia, permanent loss of consciousness, 80% burn injuries

• The main Category 1 Hazards identified in Lewisham’s survey are:

• Excess cold at 52% of all Category 1 Hazards found.

• Falls on the level 25%,

• Falls on Stairs 23%

• Total cost of addressing all the Category 1 Hazards is £109.7m

• £6,890 per dwelling

BRE/CIEH model HHSRS cost calculator

• Cost to NHS to remedy excess cold = £4.38 m (x4)

• Cost to LBL to remedy excess cold = £1.28m

• Falls on the level NHS = £1.162m (x6)

• Falls on the level LBL = £174k

• Falls on the stairs NHS = £640k (x7)

• Falls on the stairs LBL = £86k

• The overall cost to the NHS of incidents involving the three hazards was £6.2 million, set against costs of £2.3 million, a clear saving of almost £4 million

• Damp costs to NHS £78k v LBL = £1.7m (x 21)

Study of Private Rented Sector• Market in Lewisham is segmented• Filling many different needs (young professionals,

migrant workers, LHA tenants, students etc)• Lots of smaller v larger landlords• LHA market at saturation point - 9600• Tenants don’t see PRS as a long-term solution• PRS is meeting their short-term needs, but want to

move to other tenures.

LHA Tenants• Government’s proposed changes in June 2010 budget not

understood by 50% of Letting agents/landlords letting to LHA

tenants• Government changes assume rents will fall. • Survey respondents don’t see this happening – only 13%

likely to reduce rents • Two main means to increase supply of properties for LHA:-• Pay rent directly to landlord, not via tenant but Gov not

inclined to do this• Guarantee income on property for longer period of time

Impact of Changes in Lewisham• Setting the LHA levels at the 30th percentile i.e. the 30th cheapest rental value

out of 100 properties from Oct 2011 - 9600 affected, £17pw, £8.6m p.a.

• 10% reduction in JSA after 12 months from April 2013 – 4,600 affected, up to £15 pw, £2.8 m

• Capping the Local Housing Allowance in the private rented sector at a maximum of £400 per week from April 2011– 80 affected, £240k p.a.

• Increasing the non dependent deductions from April 2011 – 530 affected, up to £7pw, £103k p.a.

• Restricting the benefit of social tenants of working age who are under occupying their properties i.e. their properties are larger than they need from April 2013. – over 1000 in LH, £490m saving to Gov by 2014/15, largest saving

• Allowances to increase by Consumer Price Index rather than the Retail Price Index from April 2013 – within 2 years no properties will be fully paid by LHA

• Restricting a household’s total weekly benefit to £500 pw???

• Cumulative affect – 35% in social rented property £30 pw, 50% in private rented £240pw

Impact of Changes in Lewisham

• Increased homelessness

• Increased financial hardship

• Deterioration of health and well being

• Migration – loss of family/neighbour support networks

• Concentrated areas of poverty

• Less willingness to care for elderly parents

• Increased burdens on schools, social care and health

Sheltered & Extra Care Housing Study Timetable

• Briefing 27th October 2010

• Final report 1st/2nd November 2010

• M&C December 2010

Preliminary Findings

Kenton Court, Adamsrill Road, SE26 - Extra Care – 30 units• Not fit for purpose - in development terms already at maximum use. remodelling being explored for specialist

client groups such as individuals with LD

Siddons Road, SE23 – Sheltered – 18 Units• the potential for a 38 unit fully functional Extra Care development is being explored

Somerville, SE14 - Extra Care – 25 Units• Location, quantum and current design not suitable for EC also not suited for conversion into lower level older

peoples housing. Feasibility options on this site are centred around redevelopment for general needs housing.

Hollowcombe, Taylors Lane, SE26 – Sheltered – 36 Units• Not fit for purpose – location, not close to transport, general needs development being explored

Lanain Court, Newstead Road, SE12 – Sheltered – 17 Units• Potential redevelopment for EC to deliver circa 28 units, this becomes an issue for the more traditional EC

model and thus any development on this site would likely have to be some form of more specialised EMI model. Hence also looking at redevelopment for market sale housing to maximise a potential capital receipt that could be utilised for reinvestment in other sites.

Lewis Silkin House, SE15 – Sheltered – 35 Units• Two options: light touch remodelling to reuse the building as ongoing sheltered type accommodation or the

community centre gives potentially the best economies of scale for a redevelopment for new-build EC, giving on first estimates 45 units.

John Penn House, Amersham Vale, SE14 – Sheltered – 18 Units• Good location, option for redevelopment with the site taking up to 30 units