Issue - decisions

Decision:

1.    Cabinet approves the introduction of a pilot insurance-backed rent guarantee and property damage liability scheme using the product developed by Help2Rent on the following basis:

a) For a pilot period of no more than 12 months during 2021/22;

b) That no more than 50 client referrals are made with a maximum expenditure of £29,200; and

c) That a detailed report on the outcomes and value-for-money of the scheme is submitted for Cabinet’s consideration at the conclusion of the pilot to determine if the scheme is continued.

2.Cabinet notes the funding for such a scheme will be provided through the Homelessness Prevention Grant awarded to the Council for the 2021/22 financial year.

Considerations/reasons for the decision:

·       The report of the Cabinet Member for Housing and Planning on the Private Rented Sector Insurance Scheme.

·       The Council cannot meet the housing needs of the district using solely its own housing stock.

·       The Council’s duties under the relevant homelessness legislation to provide accommodation and to discharge its homelessness prevention

duties.

·       The provision within the Localism Act 2011 allowing local authorities to discharge such duties into private sector rented accommodation.

·       Additional guarantees sought by landlords, such as rent and

property damage payment guarantees.

·       Changes to the welfare benefits system leading to many private landlords being reluctant to take homeless households and other referrals from Councils.

·       The ‘Help2Rent’ bespoke insurance policy cover includes Tenant’s Liability Insurance and Landlord’s Insurance, to cover losses from non-payment of rent and property damage.

Options considered:

1.    Continue as at present. This would result in continued difficulties in housing people within the private rented market and would place increased pressure upon our housing register, Council housing stock and other social housing registered provider stock.

2.    Purchase of the Help2Rent insurance policies. Help2Rent’s insurance policies are a niche offering, that are considered to offer good value for money. They have been designed and tested with specific local authority needs in mind.