A review of the rent setting policy for Wales

Members may recall that the Deputy Minister for Housing asked for a review of the rent setting policy for Wales be undertaken. The Essex Implementation Programme Board and its Strategic Board recommended that independent reviews of both the Housing Revenue Account regime (HRA) and the Social Sector Rent Policies should be undertaken. This work is now almost complete. Whilst there are two reviews they are closely linked. The Housing Directorate is responsible for setting Guideline rents for HRA Subsidy purposes for Local Authorities and Benchmark rents for the Registered Social Landlord (RSL) Sector.

About the HRA and HRA subsidy System - A Local Authority Housing Revenue Account (HRA) is essentially a ring-fenced income and expenditure account of transactions relating to Council Housing Stock. The elements making up the HRA are contained in the Local Government and Housing Act 1989 and the Housing Act 1985 while further guidance is contained in Welsh Office circular 33/95. LA actual rents support the HRA and provide funding for maintaining Council stock and meeting WHQS. The Housing Revenue Account Subsidy System (HRASS) forms a part of the Housing Revenue Account, it attempts, through notional calculations, to provide an estimate of the level of subsidy required by LAs to maintain their Council House stock. Currently the subsidy for all LAs in Wales is negative and is consequently repaid to HM Treasury under the Devolved Administration Funding policy. The main elements considered in the calculation of the subsidy are income from Rents, Management and Maintenance allowances and Capital Finance charges (borrowing costs). Levels of Rents and Management and Maintenance allowances are set annually by the Welsh Assembly Government with the aim to achieve financial neutrality of the level of negative subsidy. Consideration is also given to LAs 30-year stock retention business plans when the annual levels are determined. It is anticipated that the HRASS will end thus no longer requiring us to participate in the redistribution of positive or negative balances across all LAs in England and Wales.

Rents for RSLs are the main source of income for housing associations and provides funding for private sector borrowing and is fundamental to the sustainability of business plans and meeting Welsh Housing Quality Standards(WHQS). The consultation document will propose a new national policy for the setting of rents by Registered Social Landlords and Local Authorities that own housing stock. The aim is to provide a system that is consistent, transparent, and fair to both landlords and tenants.

We anticipate that the consultation will begin shortly. Anyone interested in rent setting or the review of the HRASS please contact us.

New ASB report for community activists

The Home Office has published Baroness Newlove's report showing how community activists can tackle anti-social behaviour (ASB). Baroness Newlove, whose husband Garry was kicked to death by a drink and drug fuelled gang of youths, has visited activists up and down the country to find examples of how communities and the authorities are working together against ASB. The report our vision for safe and active communities is written by an activist for activists and contains many good practice examples showing how groups of volunteers have formed to rid their local area of ASB. It provides advice and ideas for local communities working with police, local authorities and social landlords to uphold the law and enforce tenancy conditions. From a landlord's perspective, the report provides a useful insight into current practice and strategies for tackling ASB that can be shared with residents. The recommendations include:

'Community Reward' – where information provided by the community leads to a conviction the community is given a reward to spend on crime prevention work

'Bling Back' – where money made from selling local drug dealers’ assets is handed back to the neighbourhood they blighted

letting communities set their own local speed limits

taking crime maps to the next level so people can use them to report crime and ASB and agencies can publish details of what action was taken against offenders

giving the public a single point of contact through the roll out of the 101 number to report ASB

providing council tax rebates, or vouchers for local businesses and services, for people who take part in activism

asking Police and Crime Commissioners to commit at least one per cent of their budget to grass roots community groups to use or have a say on

Our Vision for Safe and Active Communities is available to download below.

If you have any views as to the reports findings, conclusions and recommendations we would love to hear from you.

The document can be accessed by clicking here: http://www.homeoffice.gov.uk/publications/crime/baroness-newlove-report?view=Binary

Supporting People Review

As you may be aware the final report of the Supporting People Review was published in Nov 2010. The head of the government-commissioned study, Professor Mansel Aylward, said of the supporting people programme that the £140 million supported housing scheme could be more efficient. Speaking at the Chartered Institute of Housing Cymru’s Tai 2010 conference, he said the scheme ‘his review would look at simplifying the system, and making it more efficient and accountable’. Talking to people who benefit from the services and seeing the difference it makes to their lives had convinced him the programme should be kept, he said.

Deputy housing minister Jocelyn Davies ordered the review in 2009, to ensure the scheme is being delivered efficiently. In 2009-10 £138 million was spent on Supporting People in Wales. It has been allocated £141 million for 2010/11. The review aims to ensure housing support services are tailored to individual need and high quality support that demonstrates value for money is delivered.

The Assembly Government are now working towards the implementation of the recommendations contained within the report these include:

Work on establishing a measure of the value for money of the programme

Reviewing the work done by LE Wales on distribution and working up recommendations around a funding formula

Considering the outcomes pilot and how outcomes from the SP programme can be robustly evaluated and collected

Working up recommendations around the future structure and administration of the programme

Conclusions on how the regulation of the programme can be improved

Undertaking a “following the money” exercise tracing funding from WAG to service users.

A copy of the report and questions relating to the implementation of the programme can be found here: http://new.wales.gov.uk/topics/housingandcommunity/housing/supportingpeople/supportedreview/finalreport/?lang=en

Guidance for Local Authorities on Allocation of Accommodation and Homelessness'

The Deputy Minister for Housing and Regeneration has issued 'The Code of Guidance for Local Authorities on Allocation of Accommodation and Homelessness' along with the consultation questions relating to the report. You can access the document via the housing homepage on the Welsh Assembly Government website or by going here:

http://wales.gov.uk/consultations/housingcommunity/codehomelessness/;jsessionid=lSYyNJ8PKNTXSLHSNkHpnDCLLBzv24KChGYnmsQdRTJpjp99dGMB!-301227275?lang=en

Although the document is mainly targeted for allocation and homelessness practitioners, chapters 2 and 7 give a flavour of the impacts of the amended guidance.