The Scrutiny Homes Sub-Committee met on Tuesday, 16 April 2024, to discuss the financial performance of the Housing Directorate, an update on culture change initiatives within the department, and the new Homelessness and Rough Sleeping Strategy for 2024-2029. Key decisions included noting the financial report, agreeing on actions to improve the handling of housing adaptation backlogs, and recommending improvements to the Homelessness Strategy, particularly regarding prevention workstreams and contractor oversight.

Period 9 Financial Performance Report - Housing

The Sub-Committee reviewed the Council's financial performance for the Housing Directorate as of Period 9 (December 2023). Orlagh Guarnori, Head of Strategic Finance, presented the report, highlighting that while the General Fund was expected to break even against a budget of £23.9 million, the London housing market's pressures were increasing demand for services. Officers projected an end-of-year overspend of approximately £4 million for emergency and temporary accommodation. The Housing Revenue Account (HRA) was predicted to overspend by £12 million, largely due to £8.6 million in responsive repairs and an additional £3.4 million for disrepair and legal costs.

Concerns were raised about the timeliness of the report, with officers explaining that year-end figures were still being finalised. They assured the committee that forecasts were expected to be accurate, as significant repair costs were identified in the previous year. The committee also discussed the financial implications of asylum seekers gaining the right to remain, which transfers housing responsibility from the Home Office to the local authority. While this presents a financial challenge, the Council is working with the Home Office to mitigate the impact. Officers noted that while they predominantly assist families, many single asylum seekers struggle to find accommodation and are signposted to support agencies to prevent rough sleeping.

The Sub-Committee also questioned the underspending of the disability grant, with officers explaining that eligibility criteria meant not all applications were successful. They confirmed that any unspent grant could be rolled over to the next year and that efforts were underway to explore alternative uses for the funds. Acknowledging waiting times for adaptations, officers stated that an additional occupational therapist had been recruited to address the backlog.

Regarding legal cases impacting the HRA, officers reported that 550 legacy disrepair cases were being processed, with approximately 30 new cases arising monthly. The aim is to achieve zero new cases by the end of the next financial year. On the issue of voids, over 650 long-term voids had been cleared in the past year, and monitoring would be enhanced with the implementation of the NEC system.

Actions agreed:

• Officers will provide information on how the Housing Department will triage and prioritise cases for occupational therapists to reduce the backlog.

Culture Change in Housing Update

An update on the Culture Change in Housing Directorate was presented by Lara Ashley, Housing Transformation Lead. She outlined the progress made, key priorities, and future plans, noting that the challenging initial conditions had influenced the implementation timeline, with satisfactory results expected within three to five years. Councillor Lynne Hale, Cabinet Member for Homes, emphasised the importance of involving all staff in the transformation and encouraged the Sub-Committee to contribute ideas for respectful and empathetic housing service delivery.

The Sub-Committee inquired about extending culture change work to the Council's contractors. Officers explained that while the primary focus is on internal staff, contractors are selected based on their alignment with the Council's values. Residents are involved in the procurement process, and Key Performance Indicators (KPIs) are monitored to ensure contractors deliver services appropriately. Complaints against contractors are taken seriously, and customer service training for contractors is a possibility if financially feasible. The inclusion of a specific 'culture' section in the procurement process was discussed, with officers confirming that elements like politeness and courtesy are already monitored, though not explicitly labelled as 'culture'.

Call recording and monitoring are in place within the repairs contact centre, with action taken when behaviour deviates from standards. Officers acknowledged that implementing monitoring and disciplinary frameworks takes time. The Council currently lacks the facilities to record interactions between contractors and residents, but this is being considered. Despite this, the Council actively investigates cancelled jobs and uses mystery shopping exercises to monitor contractor compliance.

Regarding staff morale and workflow, officers noted that different staff groups require varied approaches, and some staff are less engaged in the transformation journey. Feedback is continually sought, and a new staff award scheme has been introduced. A recognition system for exemplary customer service is also planned.

The integration of the Housing Directorate's cultural transformation with the broader People & Culture Transformation Strategy was explained through representation on the Workforce Board. The Housing Directorate is also an early adopter of a new leadership programme. Concerns about complaints regarding the size of housing officers' patches were acknowledged, with officers assuring that patch allocation and workflow are integral to the directorate's restructuring.

The prioritisation of cultural change alongside statutory obligations involves working closely with services facing the most significant challenges. Performance management of staff under the cultural change programme is monitored through monthly assurances to the regulator and appraisals. Progress is tracked via tenant satisfaction measures and appraisal outputs. Measures to enhance staff understanding of autism are also being implemented to improve customer service for residents with diverse needs.

Actions agreed:

• The Sub-Committee will scrutinise patch allocation for housing officers alongside the review of the new Housing Allocation Policy.
• A visit to the contact centre will be organised, along with mystery shopping.
• Additional information will be requested on how housing department staff performance management is assessed, including the monitoring of one-to-one meetings between staff and managers.
• Confirmation is required on whether contractors and sub-contractors record their calls with residents and if the Council has access to these recordings.

Conclusions:

• The Sub-Committee commended the Housing team's comprehensive culture change programme and the work undertaken in short timescales.
• Capacity issues and ongoing recruitment challenges were recognised as key challenges to the pace of delivery.
• The use of effective graphics in the report was commended for making information more accessible.

Recommendations for the Executive Mayor:

• Monitoring whether housing contractors/subcontractors' culture meets the Council's expected standards should be included in the scope of the Housing Culture Change Transformation Programme.
• The Council should encourage contractors to participate in the Chartered Institute of Housing campaign 'It's not okay' to tackle stigma in social housing.
• The possibility of including a section on culture in the procurement process should be explored.
• Non-financial staff rewards/benefits should be explored to improve staff morale and attract new staff.

Homelessness & Rough Sleeping Strategy 2024-2029

The Sub-Committee considered the Homelessness and Rough Sleeping Strategy 2024-2029, a statutory five-year plan developed through consultation with residents and partners. Susmita Sen, Corporate Director of Housing, and Simon James, Change Manager, introduced the report, highlighting its significance. Councillor Lynne Hale stressed its borough-wide impact.

Questions focused on how the strategy aligns with the new operating structure, with officers explaining that the strategy provides direction and that the restructure was based on meeting statutory requirements, particularly focusing on prevention. Consultation feedback revealed mixed opinions on rough sleeping, with some respondents wanting more support for homeless residents and others prioritising tackling anti-social behaviour related to homelessness.

Regarding consultation engagement, officers stated that turnout was relatively good compared to other London Boroughs, but acknowledged that engagement with young people needed improvement. They are working with community partners and Children's Services to enhance this.

On the strategy's key priorities, officers confirmed there was no hierarchy or weighting, but the priorities were interrelated. The impact of people moving to Croydon due to lower rents was acknowledged as a challenge to housing supply, with the Council using its influence and monitoring authorities that place individuals in the borough.

Improvements in officer response times to landlords were noted, and the Council is building a portfolio of potential investment opportunities. Training for officers in restructured services is ongoing, with a focus on customer care and technical skills. While desired outcomes of the restructure have not yet been fully achieved, partly due to recruitment difficulties, permanent appointments are being made, and additional team leader roles have been created.

Councillor Davis, Chair of the Scrutiny & Overview Committee, raised concerns about the service's effectiveness following a visit to Crisis Skylight Croydon. Officers assured the committee that the new structure is considered the correct approach, despite acknowledging challenges and external factors like increasing homelessness. They explained that improvements would take time, given the significant backlogs and poor data quality.

The timeliness of developing a protocol for care leavers was addressed, with officers confirming that many actions are ahead of schedule. Improvements, such as an officer based in the hospital, have been implemented, and a pilot scheme is being reviewed. To reduce reliance on temporary accommodation, the strategy focuses on prevention and support for those already housed, alongside collaboration with housing investors for affordable housing.

Support for individuals who can afford private sector rent but lack deposits or meet other criteria is part of 'business as usual' operations, with efforts to improve promotion of available support, including a discretionary payment fund. For private sector properties, the Council verifies safety certificates and engages with landlords through the Private Sector Landlord Forum. Legislative mechanisms are in place for landlords providing substandard accommodation.

Concerns about low attendance at the Private Sector Landlord Forum were raised, with suggestions to promote events during property assessments. The stock conditions review for private sector properties is part of damp and mould assurance, with funding from Public Health. The Council is aware of poor practices by some letting agencies, and monitoring is ongoing, though a formal project to address letting standards has not yet been commissioned.

Partnerships with the voluntary sector are being reinvigorated, with officers visiting partners and developing mutually beneficial arrangements. The Council intends to collaborate with the voluntary sector to determine their expectations and establish a designated point of contact if beneficial. The Council's regulatory authority over Housing Associations is limited, but they aspire to collaborate with regulatory boards to implement common standards.

The Council's involvement in housing association property walkabouts would be limited due to capacity constraints. A buyback programme has been initiated to purchase properties from landlords intending to sell, focusing on former Council housing. The Council is collaborating with other local authorities to maximise grant funding.

The process for placing individuals in emergency accommodation and the use of StreetLink were discussed, with the service provider receiving direct information from StreetLink. The service is due for re-procurement with enhanced specifications. The need for improvement in customer service was acknowledged, with officers citing backlogs, structural changes, and increased demand as challenges. The NEC system has improved understanding of service operations.

Monitoring of the Homelessness Strategy delivery will occur through the existing governance programme and a refreshed set of KPIs. Tools for homelessness prevention are tailored to the causes of homelessness, with targeted efforts for issues like no-fault evictions, including assistance with rent increases or deposit payments.

Actions agreed:

• The new set of KPIs, including impact metrics, will be shared with the Sub-Committee on a regular basis once finalised.
• Confirmation is needed on whether the Council provides information to the Greater London Authority's rogue landlord register.

Conclusions:

• Concerns were raised about the effectiveness of the restructured homelessness front-door service, based on feedback from local charities and councillors' casework, indicating that vulnerable residents may be falling through the cracks.
• The Sub-Committee agreed that the Homelessness Strategy should prioritise delivering basic service provision to expected standards before implementing further improvement workstreams.
• Concerns were expressed that prevention workstreams in the strategy's delivery plan have timescales of two to three years, contradicting the objective of maximising prevention and potentially increasing pressure on the General Fund Budget.

Recommendations for the Executive Mayor:

• A review of the new housing homelessness service structure should be conducted to ensure it is meeting its intended outcomes, with an action plan developed to address any failings.
• Prevention workstreams within the Homelessness Strategy Delivery Plan should be fast-tracked, including hospital engagement.
• The Council should identify high-performing local authorities and learn from their best practices in building effective working relations with private sector landlords to maintain tenancies.
• The Council should introduce a gas, electrical, and EPC document check for private sector tenants claiming housing benefits.
• A designated point of contact for the charity and voluntary sector for all housing and homelessness-related matters should be established.
• The Council should take a more proactive role in facilitating good practice amongst housing associations in the borough, such as on nomination rights and organising estate walkabouts with tenants and local Councillors.

Work Programme 2023/24

The Sub-Committee noted the report on its Work Programme for 2023/24.