Agenda item

Questions from Members of the Council under Standing Order 20

To receive questions from Members of the Council to the relevant Portfolio Holders for this Scrutiny Committee. The Portfolio Holders are:-

 

Councillor Harvey -     Portfolio Holder for City Management

Councillor Ghusain -   Portfolio Holder for Communities and Culture

Councillor Williams -   Portfolio Holder for Supporting People

Councillor Wright -      Portfolio Holder for Council Housing Development and Services

 

Advance questions from Members relating to the Portfolio Holders should be notified to the Corporate Manager Democratic and Civic Support.

Minutes:

In accordance with Standing Order No 20 the following questions, which had been circulated in advance to Members of the Committee, had been submitted by Councillors Atkinson, M. Mitchell and Sparling.

 

Questions from Committee Members

 

Councillor M. Mitchell

 

Can the Portfolio Holder provide an update regarding the council house building programme for the next five years and clarify whether the targets are realistic?

 

Response

 

Members will be aware that an ambitious Council house building target was set and agreed last year of 500 homes over a ten year period - a target which balanced the Council's ambition of increased supply with that of retrofitting and maintaining our existing properties.

 

I am pleased to report that substantial progress has already been made with our Council Development Programme and I can confirm that;

 

75 properties have either been completed and occupied or will be completed within the next three months

92 properties have Planning Approval and are at the Tender stage of development - with development work anticipated to commence later this year/early 2022

22 properties have had detailed feasibility work completed and will be progressing to Planning later this year A potential sites list which could yield 239 properties over nine locations is being subjected to a detailed development appraisal with our development partner Exeter City Living - we anticipate a detailed development programme resulting from this.

 

As such, I am able to confirm that 428 properties and potential sites currently form our development plan and demonstrates excellent progress in year two of our 10 year target.

 

Supplementary question and answer.

 

What more can be done to build more houses?

 

The Council is doing a great deal already in uncertain times caused by Brexit and the Covid-19 Pandemic. Future house building by the Council will continue to be considered with due regard to feasibility.

 

Councillor Atkinson

 

new Exeter City Community Trust Initiative plans to offer >100 supported accommodation places across several wards, including Alphington, to partners including Exeter City Council. Myself and Ben Bradshaw M.P. have been made aware of some issues for vulnerable current residents who are to be evicted to make way for the new scheme.

 

What housing advice is given to single men and women on a low income with a history of vulnerabilities when they are threatened with eviction? Is available accommodation affordable?

 

If there is a gap between provision and housing such that it could lead to homelessness and hardship, as a city how can we work with private sector and social landlords and other agencies and housing advice services to improve the situation in the short to immediate term?

 

In particular, what lessons can the City Council learn from housing schemes like the Exeter Community Trust initiative?

 

Councillor Williams, the Portfolio Holder for Supporting People, gave the following response:-

 

What housing advice is given to single men and women on a low income with a history of vulnerabilities when they are threatened with eviction?

 

Anyone threatened with eviction will be offered either an appointment with a Casework Officer or will be passed to an Officer to deal with that day, if their situation is urgent.

 

The Casework Officer will then make an assessment in accordance with housing legislation, to see if they are threatened with homelessness.  Sometimes landlords threaten eviction and where these are not lawful the Officer will then work with the Landlord to try and avoid eviction if possible.

 

Depending on timescales, a prevention or relief duty is likely to be taken.  The Casework Officer will work through a Personal Housing Plan to help the client either stay in their home if possible and reasonable to do so, or to help them find a new home before they are homeless if this is possible.

 

The Casework Officer will make an assessment of any vulnerabilities and signpost to additional services if needed.  If a client has debt issues then they could be referred to Homemaker or the Citizens Advice Bureau. If a client has mental health difficulties they may be supported to get additional help from their GP. If a client is homeless then the Casework Officer will assess to see if there is a legal duty to provide emergency temporary accommodation.  The Officer will see if there is reason to believe the client has a priority need.  Not all vulnerabilities are classed as a priority need and the Casework Officer may need to make enquiries to find out more information.

 

If a client does have a priority need then temporary accommodation will be offered and the Casework Officer will work on a Pathway plan so that the client finds permanent accommodation as quickly as possible.

 

Is available accommodation in Exeter affordable?

 

As in many other parts of the country, the cost of accommodation is high due to basic demand and supply issues. Exeter, as a reasonably affluent city, has significant housing capacity pressures one of which is affordability given local market property prices and rents. Added competition for private rented housing from professionals and the student market seeking city centre accommodation adds to the supply issues and therefore affordability.

 

Anyone living in Exeter who is entitled to means tested benefits may be able to claim either Housing Benefit (HB) or the housing element of Universal Credit (UC) to help pay their rent. One of the keys issues facing our clients, when the majority are on low income and/or in receipt of HB or UC, is finding accommodation that they can afford. Shortfall in rent is a common problem. Local Housing Allowance (LHA) is the rent figure usually used to work out HB or the housing element of UC for most private tenants.

 

LHA rates are based on the number of bedrooms a household is allowed: The rates are:

 

Local Housing Allowance.

 

Room Need

Weekly LHA Rate

Monthly LHA Rate

Shared room

£96.66

£420.01

1 Bedroom

£131.18

£570.01

2 Bedroom

£156.49

£679.99

3 Bedroom

£189.86

£824.99

 

There has been a recent article on Devon Live that states that rental prices have increased in the area. Many clients state that they have looked for private accommodation but cannot afford it as what is on offer is not affordable. 

 

A research from November 2020 shows that Exeter has seen the highest increase in average rent across the whole of England over the past five years. Average rent in the city has jumped an incredible 39% in five years, according to findings from international rental marketplace Spotahome.

 

According to numbers from the Office for National Statistics, in 2015 the average monthly rent stood at £853. It has gone up to £1,201 - a £337 difference….and it is still rising.

 

Today figures for Exeter from home.co.uk:

 

Exeter Market Rent Summary 01/06/2021

Our rental price analysis for Exeter summarises the advertised rents for homes to let, calculated daily from the rental properties found by the Home.co.uk Property Search Engine

Summary of Properties for Rent in Exeter

 

Total properties for rent in Exeter:

251

Properties for rent in Exeter listed in the last 14 days:

42

Average property rents in Exeter:

£1,003 pcm

Median rent:

£849 pcm

Properties for Rent in Exeter by Price

 

No. of properties

Rent under £250 pcm

0

£250 to £500 pcm rent

26

£500 to £1,000 pcm rent

156

£1,000 to £2,000 pcm rent

50

£2,000 to £5,000 pcm rent

19

Rent over £5,000 pcm

0

Property Rents in Exeter by Number of Bedrooms

 

 

No. of properties

Average rent

Median rent

 

 

 

 

One bedroom

63

£733 pcm

£702 pcm

Two bedrooms

71

£997 pcm

£897 pcm

Three bedrooms

26

£1,205 pcm

£1,023 pcm

Four bedrooms

12

£1,912 pcm

£2,048 pcm

Five bedrooms

4

£2,556 pcm

£3,153 pcm

Property Rents in Exeter by Type

 

 

No. of properties

Average rent

Median rent

 

 

 

 

Room

29

£617 pcm

£498 pcm

Flat

139

£996 pcm

£880 pcm

House

66

£1,214 pcm

£899 pcm

Note: The current rents for Exeter were calculated by sampling over all properties for rent in the Home.co.uk property search within five miles of the centre of Exeter.

As evidenced, average shortfall between a market rent and the maximum amount payable in HB (LHA) is £200 per month or more (for example, LHA for two-bedroom property is £679.99, while the average rent is £997 per calendar month).

There is pressure in Exeter’s private rented market, with high competition for properties and confidence in tenants low. The expanding student market has significantly inflated the larger family property market, as higher income and greater security from parental guarantors can be gained through shared student lets.

A research released in December 2020 shows the demand for property in Exeter more than doubled since the easing of lockdown restrictions and the introduction of a Stamp Duty holiday. Recent Housing Action Team (HAT) enquiries with estate agents have shown that houses are being snapped up within a month of coming onto the market, many from the landlords who were previously letting their properties, and want to sell now making a huge profit. There are sometimes more than 100 applications for a rented property.

 

If there is a gap between provision and housing such that it could lead to homelessness and hardship as a city how can we work with private sector and social landlords and other agencies and housing advice services to improve the situation in the short to immediate term?

 

Exeter is a small city and access to affordable private sector housing is therefore limited. The Housing Access Officers approach all letting agents and known local landlords to establish why they are reluctant to offer properties to applicants who are on a low income and/or in receipt of HB or UC. Perception of risk by private landlords by letting to those people, especially feelings of insecurity of rent payments, was stated as a major reason for avoiding renting to low income (including homelessness) clients.

 

Landlords clearly perceive a greater risk is associated with letting to HB/UC claimants and homeless people (risk of arrears, damage to the property and other breaches of tenancy, difficulty managing these tenants, problems with benefit administration). Landlords generally prefer to rent to tenants who are low risk and have previous renting history if not exemplary records. Some landlords cannot let their properties to these clients (and the majority of them are in receipt of HB or UC) as some insurance companies will not cover these groups or ask for higher premiums if the property was let to a HB claimant (increased deposit and at least six week’s rent in advance, guarantors, references). Sadly, some mortgage lenders still don’t let landlords who have mortgage loans with them to let their properties to tenants who are on benefits.

 

However, the Housing Access Team (HAT) works hard to access, not only affordable, private rented accommodation, but also a range of alternative forms of accommodation, such as almshouses, hard to let social housing, or accommodation provided by partner organisations such as St. Petrocks.  The HAT team advertises for private landlords through a range of outlets including social media, as well as more traditional ways such as leaflets in Council Tax bills and at local libraries etc.  Once a potential landlord contacts our service with a suitable property, the HAT team can undertake the entire process needed from property inspections to drafting tenancy agreements, and undertaking the tenancy sign-up if needed. In Exeter’s very competitive market, HAT has been building its reputation for reliability and support by assisting the landlords in resolving any arising problems.

 

HAT focused on developing a right to the Private Rented Sector Access Scheme (PRSAS) with the main aims and objectives of securing suitable and affordable accommodation for clients and sustainment of potential tenancies. The “Housing Access Together” scheme has been set up to assist people who approach us for help in securing accommodation in the private rented sector. HAT work closely with a wide range of landlords, as well as partner agencies, both in terms of accessing suitable accommodation, and in maintaining these tenancies. We have a fund available to help cover rent in advance or deposits needed, removal costs and covering the cost of furniture if needed. We work with a wide range of homeless, or potentially homeless clients, from single people to large families. As well as accessing private rented or other forms of accommodation, we work with clients and landlords to maintain these tenancies, providing a support service should these tenancies experience any difficulties.

 

It is also important to address clients’ expectations, which can sometimes be unrealistic, or very focused on accessing social housing. Many homeless, or threatened with homelessness, clients are still prepared to hold out for social tenancy and are reluctant to accept realistic expectations or even apply for social housing in the neighbouring areas close to Exeter. Many are still apprehensive about living in the private sector as private sector accommodation is dominated by the lack of long term security with short tenancy agreements and little protection against rent rises.

 

A multifaceted approach is needed to understand and tackle local issues when it comes to the PRSAS current circumstances in Exeter. HAT, together with other teams within Housing Needs, review regular plans of actions with a range of options to increase the supply of private rented accommodation and prevent homelessness arising from private rented housing, whilst meeting the duties of the Homelessness Reduction Act. Although it is a significant daily task, we are becoming more competitive in Exeter’s very challenging market. Current workstreams include trialling third party property management to act as the “middle” agent for brokering private rented properties to homeless clients and remodelling a social lettings scheme with charitable partners.

 

In particular what lessons can the City Council learn from housing schemes like the Exeter Community Trust initiative?

 

The Council is not pivotal to the planning or operation of the scheme and has not commissioned any part of the service nor provided any direct or any indirect funding for it. The Council has also not been given, or asked to give, any direction in any aspect of the scheme set-up including property identification or design of the model and its operation going forward. The Council has however given assistance to this scheme through referrals. The Council has learnt lessons from sharing good practice with housing scheme providers such as the YMCA and other local authorities and in participating in Local Government Information Unit briefing meetings.

 

Supplementary question and answer.

 

What assurance can be given that the low paid and vulnerable and those in Universal Credit will be rehoused and that no one will become homeless?

 

The City Council can be contacted for assistance and it will be important for individuals to follow the guidance and advice already supplied to Members in my answer.

 

The Portfolio Holder thanked Council officers for their hard work and commitment in the provision of this service.

Councillor Vizard 

Please could the appropriate Portfolio Holder, Director or Officer advise whether the Council or Devon Wildlife Trust have any data or information on the success of the swift tower on the Paris Street roundabout in attracting these migrating birds during this time of the year?

 

Councillor Harvey, the Portfolio Holder for City Management, gave the following response:-

 

The City Council has no specific information but we asked our colleagues at Devon Wildlife Trust. They responded that the routine monitoring of the site by their volunteers was disrupted by the Pandemic and has not as yet restarted. The sounds to attract swifts are still being broadcast on a timer but the time taken for swifts to colonise an artificial swift nest can be seven years or more. Anecdotally, it is suggested that the site hasn’t been used by swifts as yet but has and continues to be used by other birds. There are swifts nesting on the Jury’s Inn so they are nearby and it is hoped that they will make use of the tower soon.

 

Councillor M. Mitchell

 

Will any trial regarding the new waste collection service involve a range of different routes within the city to ensure that the new service will be available to all households in Exeter?

 

Response

 

Yes

 

Supplementary question and answer.

 

What assurance can be given that residents’ re-cycled waste does not end up in landfill in the UK or abroad?

 

Materials Recycling Facility (MRF) staff work very hard to sort materials to ensure a high quality finished product for sale. The service is working on a commercial basis and organisations across the city are reassured that waste is re-cycled and disposed of appropriately and that the highest price is secured when sold on.

 

Councillor Sparling

 

1) In October 2019 the Council approved the expenditure of £1,500,000 to improve the MRF, showing a return on investment over three years on the capital costs. What is the new budget for upgrading the MRF and why; and what is the expected period for return on investment to recoup capital costs? 

 

Response

 

Following the initial review of re-cycling in October 2019 much has changed in people’s recycling habits and demands as a result of the Covid-19 Pandemic. The waste management team therefore had to review operational procedures during this period and, at the same time, ensured that no bin was missed during collections. This work prompted a further review of the service and a revised service is the subject of a report to Executive on 6 July 2021. 

 

There is a cost to the Authority of approximately £200,000 per annum through the use of secondary MRF providers due to machinery breakdowns. It is therefore important for the efficiency of the MRF that there is investment in the equipment in order to improve MRF reliability and resulting productivity which, in turn, should help to increase income and resulting reduction in the reliance of secondary MRF providers and their associated costs. However, at this stage, there is no payback anticipated for the new recycling project.

 

Supplementary question and answer.

 

In view of Liveable Exeter’s proposals for Marsh Barton how long will the MRF remain in its current location and be able to sustain value for money investment?

 

Because there will be many issues for Liveable Exeter to address before its plans come to fruition and as there is also significant commercial interest in investing in the area close to the MRF, it is difficult to predict timescales and officers are fully aware of these circumstances.

 

2) After consideration of a number of options, in October 2019 Council adopted Option 4 on the grounds of lowest cost, lowest net CO2 emissions, improved re-cycling rate and meeting most residents’ wishes to have food waste and glass collected for re-cycling at the kerbside. The other alternative option to delay a decision on implementing a service change pending publication of forthcoming statutory guidance on consistency in waste collection services and the likely impact of Extended Producer Responsibility was explicitly rejected. Are you now recommending overturning that decision that Council made?

 

Response

 

Notwithstanding the further guidance expected from the Government on re-cycling, the Council will shortly bring forward a revised scheme, which seeks to respond appropriately and as cost effectively as possible to changing re-cycling habits.

Difficulties with waste re-cycling volumes are being experienced in a neighbouring authority and residents have been told to take cardboard to the tip thereby increasing the CO2 emissions due to the higher volumes of recycling being presented.

 

The Council’s sustainable credentials are evident through other schemes such as developing a solar field next to the energy from waste plant. The Deposit Return System is also to be commended.

 

Supplementary question and answer.

 

What is your view of Exeter’s reputation of re-cycling and what will be the increase in re-cycling rates the new service will bring and by when?

 

An increase of 20% from 30% to 50% is anticipated when fully operational. Exeter residents put into the energy from waste plant considerably less per household than most district councils in the country and Exeter is the 9th lowest city in this respect. This input is a better measure than the actual re-cycling rate.

 

3) The operational issues at the MRF has affected financial performance of the MRF. Previous reports for 2018/19 indicated an overspend of £213,300.  Was that the final figure? What was the overspend or necessary increase in budget required for 2019/20 and 2020/21 to deal with ongoing operational problems?

 

Response

 

The figures provided by the Council’s Treasury services are set out below:-

 

 

Budget

Actual

Overspend

2018/19

109,690

322,993

213,303

2019/20

141,970

701,378

559,408

2020/21

393,810

883,640

489,830

 

 

Supplementary question and answer.

 

How will the Council fund the increased budget for the MRF. Will it result in an increase in loan re-payments and will any services need to be cut ?

 

The question will be referred to the Section 151 Officer for a response to be given.