Croydon Council chief executive: 'We have a housing crisis - and it's going to get worse'
WITH an increasing number of families in emergency accommodation, social and private rental supply drying up and a benefits cap around the corner, Croydon's housing system is under intense pressure. In an exclusive interview, Croydon Council chief executive Jon Rouse tells Gareth Davies the situation has reached crisis point.
THE benefits cap due to come into effect in April will increase homelessness in Croydon, council chief executive Jon Rouse has warned.
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Croydon Council chief executive Jon Rouse says the borough's housing system is in crisis CRDC20130107B-012_C
In a rare interview, Mr Rouse told the Advertiser that capping benefits at £500 per week will affect 800 families and deepen the borough's housing "crisis".
The number of households living in emergency housing in Croydon has risen six-fold in the last four years, from 61 in 2008 to 441 at the end of 2012.
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Of greatest concern are the 170 homeless families who have been in shared bed and breakfast accommodation longer than the six-week government guideline.
The stark figures have led Mr Rouse to make addressing homelessness the council's main priority.
"Housing is our number one problem," he told the Advertiser.
"There is a housing crisis in Croydon and we're not going to try and pretend there isn't.
"For a whole set of circumstances, Croydon has become a hotspot in terms of a lack of housing availability.
"Unless there is a very rapid economic recovery, which leads to a significant fall in joblessness, then the likelihood is that homeless numbers are going to get worse before they get better."
Mr Rouse, who has created a housing supply task force to source more homes, based his bleak prediction on the latest change to the benefit system, which will see overall benefits capped at £500 per household, per week.
The Government says the new system will be fairer for working families, but critics have branded the cap "immoral" and an attempt to "demonise the jobless".
Croydon has been chosen as one of only four authorities in the country to trial the changes from April, alongside Bromley, Haringey and Enfield. The cap will be rolled out across the rest of the country in the summer.
There was no consultation with Croydon Council prior to the announcement, and it is now taking legal advice to discover whether the decision can be challenged.
Mr Rouse continued: "Is it fair for a Croydon household to be treated differently from a Sutton or a Lambeth household, even if it is only for a period of time?
"My second concern is whether it will make it even more difficult for us to access temporary accommodation, if landlords believe they could be affected by the benefit cap when others aren't in the same situation.
"So we are talking with the three other boroughs about how we might to relay our concerns back to the Government."
Mr Rouse added: "Clearly they wanted to test on areas where there are a significant numbers of people affected by the cap. Why we were chosen over other London boroughs I don't know."
Council projections show the cap, which roughly equates to £26,000 a year, is likely to affect 800 families in Croydon, although it is harder to tell how many will be a risk of becoming homeless.
"We are still trying to work out what the impact will be but I don't think there's any doubt [the cap] will increase homelessness," said Mr Rouse.
"Now we are trying to contact them, because we need to talk to them now about how they are going to cope.
"If there are any households reading the article who think they are likely to be affected then contact us now."
Mr Rouse believes changes to housing benefit, introduced last April, have also led to increased homelessness applications, because families have been priced out of the private sector.
Estimates show the reduction in Local Housing Allowance (LHA) to the 30th rather than 50th percentile would mean the council had to find homes for an extra 530 families, and left 300 single people facing eviction. It was also predicted that 550 families would move to the borough from more expensive areas of London.
Mr Rouse said: "The benefits cap will only add to the pressure we are under."
Though other local authorities are experiencing housing pressure, the issue is particularly acute in Croydon.
The borough's council housing stock stands at 11,000, and although 40 new homes are planned this year, demand far outstrips supply.
Mr Rouse said: "Our borough struggles because the number of units which become available from our housing stock in any given month is only 50 to 75 units.
"If you think about our waiting list then you can see that people are going to be waiting a very long time for access to that accommodation."
With its own stock over-subscribed, Croydon is reliant on the private sector, where supply is also dwindling due to market immobility and landlords being reluctant to take social tenants. In 2011 the council found 393 rental properties, but last year just 31.
Mr Rouse said: "The private sector has been saying a number of things. One is that they don't need to rent to people on benefits, that there's such a demand for their property, why should they take the risk?
"That's more of a perception of risk than a reality but that's what they say. Second, rents are going up so people on low incomes or on benefits are going to struggle to afford them."
The shortage of available housing has contributed to a significant rise in homelessness.
Croydon council received more than 2,200 homelessness applications in the past 12 months and placed 1,470 households in temporary accommodation, of which record numbers are in emergency housing such as hostels and bed and breakfasts.
The social and economic causes behind the figures are also on the increase.
There has been a 43 per cent jump in applications due to rent arrears and 53 per cent rise in homelessness caused by family breakdown, as well as an increase in people fleeing domestic violence.
With no viable alternatives, the council has little choice but to place many of these vulnerable families in shared B&Bs.
Government guidelines say such emergency accommodation should only be used as a last resort and for no more than six weeks, though 170 have been there longer, leading one Government minister to claim the council was breaking the law.
Mr Rouse admits the authority is 'vulnerable' to legal action from families in this situation, but says he is doing all he can to reduce the numbers.
He said: "The regulations say they should not be there for more than six weeks, yet there is not enough accommodation to move them on to. They are coming in the front door faster than we can get them into alternative housing.
"Do we want families in shared accommodation? The answer is no. Do we think it's the best environment for children to grow up in? No."
To tackle the problems, the council has created a housing supply task force. As well as existing bond schemes, it will offer landlords greater incentives, including increasing the amount paid up front for properties.
A new initiative, to be introduced later this year, will see owners of properties left empty for more than two years charged a premium on their council tax.
In the short term, Mr Rouse’s focus will be on reducing long term placements in B&Bs, by sourcing more accommodation outside London, including placements across East and South East England.
Croydon housing chief Dudley Mead was 'aghast' at news that Croydon will be one of only four areas to trial the Government’s new housing benefit cap in April.
Mr Mead, cabinet member for housing, said the council, together with Bromley and Enfield, was now seeking legal advice on whether the decision can be challenged.
The three councils, together with Haringey, are angry there was no consultation with them before the Department for Work and Pensions (DWP) made the announcement shortly before Christmas. The intention, the DWP says, is that the cap will be in place across the country by the summer.
There are already concerns that the cap will increase pressure on scare housing provision in areas like Croydon, but Cllr Mead believes the borough could be hit even harder by being forced to pave the way for the new system.
"We have a housing crisis going on and what we are trying to do is persuade private landlords to let their properties to Croydon residents to help ease the problem," he said.
He fears that if these landlords knew that Croydon was one of the areas in which the benefits cap was operating initially, meaning tenants may not be able to afford rents, 'they won’t come anywhere near us'.
He added: "The DWP is exacerbating the crisis."
- If you will be affected by the benefits cap call the council's hotline on 020 8726 7000 or visit www.croydon.gov.uk/benefitchanges
Comments
by Chris_Wilcox
Thursday, January 17 2013, 4:38PM
“@in_despair_01:
I actually agree with forcing people to downsize their council property if rooms are sitting empty. I am aware of the current policy. For healthy people I just don't see the problem ( although there is an issue with some disabled from what I understand ).
In plain english it is not 'your home' like if you had bought it. It's a very safe longterm rental with govt subsidy to make it cheaper. It's designed to help The Poor and the Disabled. Not to benefit those who have cash.
If they have 2 rooms going they should get on the ol' houseswap line and see if a family out there needs an upgrade. They should not try to keep the property. That's just wrong.
I hate to see wastage. Especially with finite resources. It's better the populace cooperate and work for the common good, than try to hoard what they can leaving others to rot.”
by in_Despair_01
Thursday, January 17 2013, 10:26AM
“Chris Wilcox, please note that the Govt or Local Council are 'evicting' those in Social housing to make way for others. The Council are now charging households a premium per room where spare rooms are available in their house or giving them the option to move to a smaller property. This is happening with my friends parents, they have lived in a 3 bed Council house since their 3 children were babies, however all of these children are now over 25 & none live (They all have their own council property) at home, they have 2 spare rooms! They have the choice to pay an extra £15 a week per room on their rent or give the house up and go into smaller accomadation. Obviously they dont want to leave and are writing to the MP about it being a 'family home' etc but why shouldn't they?
Unfortunately this house will not go to neither the disabled or someone who deserves it (such as Returning forces) but will go to an immigrant or anti social family.
People need to realise that this housing is not for life anymore and they are being 'borrowed' homes which are being paid for by others.
The biggest chage required is is people's attitudes.”
by Chris_Wilcox
Wednesday, January 16 2013, 12:46PM
“in_Despair_01:
I agree. Giving Social Housing to people with nothing wrong with them when there is a massive shortage of Social Housing is just daft.
The Disabled need a reliable roof over their head to improve. If they don't improve they remain VERY expensive to The NHS. Seeing as all the money comes from the same place ( The Govt ) I see no point in increasing NHS costs to give working healthy people a discount.
If we had more Social Housing it would be ok to have 'mixed communities'. But with the current severe shortage 'mixed communities' are just not viable.
It's also about time we started evicting those on good money. To make space for the injured ( like returning troops ). But, once again, The Govt won't do it.”
by Chris_Wilcox
Wednesday, January 16 2013, 12:43PM
“@swsquires:
'property websites': As I've said before these Landlords will not rent to people on benefits. So you have to do one of 2 things:
- Adjust the cap so that there is more choice. Even Dudley Mead admits the market is against them.
- Get a database going of landlords who will, register the ones who won't as well, change the law to apply force to the ones who won't, and...
Hence why this Council Tax premium is coming in for those who just leave their properties empty.
The real question is which one will be cheaper to run. Labour believe a regional cap ( rather than a National ) will do the job. Looks like the Torys are going for database etc etc, with all those new staffmembers that will be needed to run it.
Building more houses: This is why Labour have no issue with Taxing The Rich. Where-else is the money going to come from? The Poor can't cough up any more, and yet The Tory are trying to tax them more ( Council Tax Benefit cuts hitting the Ill & Infirm ).
Definition of disabled: Much as your friends attitude is admirable what if he is wrong? What if he can work, but like me he can only work part time? He's gonna need some benefits or he'll starve.
Working and getting £26k pa: Fair enough that they work, but they can apply for things like Tax credits as well. They may not want to ( pride ), but they can. To force through a hard line of £26k pa with no flexibility is going to be VERY difficult on those who are trying to get work and just can't.
I will concede that some of these unemployed have had too many kids, but that is a small minority. Most are just unlucky. Or need training options The Govt have now taken away.”
by in_Despair_01
Wednesday, January 16 2013, 10:58AM
“We have an issue with lack of Council housing due to the many years of giving it to people who do not deserve it.
I also agree that although we have the Home Office the brough of Croydon should not bear the brunt of Immigrant/Asylum housing.”
by swsquires1
Wednesday, January 16 2013, 8:51AM
“Chris, I know it is hard, but you don't always have to jump on your soap box and spout politics.
There is no doubt that there is a lack of housing and this is a UK wide crisis. As you have previously admitted there is also a real problem with private landlords wanting to rent to people on benefits (one has to assume damage and care taken of property).
As for £26k not being enough, again, check property websites to see the lovely houses that you can get for this amount. The level is reasonable for Croydon (which is one of the cheaper areas in London). I have many friends who have worked their entire lives who barely earn more than £26k before tax, the thought that others have that paid towards a home (after tax) angers them.
As pointed out by GeorgesDragon, there does appear to be an issue with people settling close to the home office and thus increasing the demand for housing. This is a problem that needs to be addressed but if probably scary ground for most politicians to discuss...
Finally, I accept that more should be done for the disabled, but I see another problem here too. I recall hearing the other night that 10m people in the UK are disabled. As a friend pointed out who recently had his second major back operation - his doctor advised him that he could sign him off and he could get disability benefit for the rest of his life. He said he can work, so is back doing just that. I think the issue Chris is that the definition of disabled in the UK is so broad that those with real need are lost in the crowd.
More houses need to be built but we also need to determine where this money will come from. Right now there is not a simple solution to that question. Whilst it is nice to have strong left wing socialist views these need to be balanced with a reality of the broken world and economic climate around us.
Europe is still in serious trouble, there are strong rumours that China is hiding an economic downturn, the US keeps delaying dealing with its serious fiscal issues and Japan could go either way despite the huge monetary stimulus just agreed. Not so long ago the left were championing Hollande for his great policies, these have already been viewed as a failure, many have been overturned and the rich are moving abroad (but they would never do that we are told!).
Chris, if you have ideas as to how this problem in the article can be solved without blaming politics, please present them. As with any business, how do we solve this within the budget that we have? If the budget is an issue, how do we fight to get a larger share? Money does not grow on trees (just the printing presses of the BoE)...”
by Chris_Wilcox
Tuesday, January 15 2013, 8:27PM
“Not enough houses being built? A Tory decision.
Benefits Cap with no flexibility for high costs places like London? A Tory decision. ( Labour want a regional cap, not a national one ).
Housing working people in Social Housing, whilst leaving the Disabled without a decent roof over their head? Well, Croydon Council has been Tory for the past 6-odd years. You do the math.
Think before you vote.”
by david1957
Tuesday, January 15 2013, 1:54PM
“This is a pretty dreadful situation for homeless people. Successive governments and advisers have been telling us for many years that there is a housing shortage. The public sector has become increasingly reliant on the private sector to meet its statutory and other duties. Generally this has been on the basis of claimed better value, lower costs etc. However it is very obvious that the private sector will often make commercial decisions without any sense of public duty and one cannot complain if they will not let to social tenants if there are plenty of private sector ones.
Council's need a robust Plan B where they rely on the private sector otherwise there wil be many problems and breaches of the law. Regrettably I do not see many such plans in place. When you have a stock of 11,000 homes you probably need to replace these at a rate of 100 per year due to ageing. Building 40 per year doesn't match this let alone deal with increasing demand.”
by GeorgesDragon
Tuesday, January 15 2013, 12:03PM
“Wrong! We have a population crisis and one which is strongly influenced by the Home Office being located in Croydon. If 2/3rds of all new immigrant children arriving in the UK remain in Croydon to be educated then it can be safely deduced that their parents do likewise. Why are you not doing anything about this Home Office problem this Mr Rouse?
Croydon is not responsible for the UK's immigration policies, the UK Government is!
The English Democrats advocate the housing of local people first.
http://tinyurl.com/ay42ww2
That said as there is adequate housing elsewhere throughout the UK then the UK Government must ensure those councils take their full responsibility to house newly arrived immigrants. I am confident the Labour Party will agree for they encouraged mass uncontrolled immigration and were fully supported in the policies by their members.”