Housing Renewal Policy 2023

Introduction

The purpose of this policy is to be used when the Council requires a tenant or owner occupier to move due to regenerating, refurbishing, or improving the Council's housing stock. It does not apply if a tenant or owner occupier decides to move home. It is also to be used only where the Council requires that the tenant or homeowner are required to move on a permanent basis, where a tenant or owner would move back South Tyneside Council Housing Services decant policy would be used.

The Policy sets out what the tenant or owner is entitled to receive from the Council, what priorities they would be given through the Council's allocations policy and also what financial compensation is paid.

The Policy aims to provide a consistent approach to housing renewal projects across the Borough which aims to allow us to manage these arrangements efficiently and fairly and thereby giving the best support available to affected tenants and homeowners.

Moving tenants and owner occupiers to allow for housing renewal

Eligibility Criteria for Council Housing

Council tenants, private tenants and owner occupiers are eligible to apply for a Council House as long as they meet the eligibility and criteria set out in the Council's Housing Allocations Policy 2018. Where residents do not meet this criteria, this will be considered as part of the relevant cabinet report for the scheme that would consider additional eligibility as to when or if they are allowed onto the Housing Register . The Housing Renewal process will not stop any ongoing action which South Tyneside Council Housing Services may be in the process of taking and will not prevent a tenant's eviction. In the event of this a tenant will not be eligible for rehousing through the scheme.

Residents will be required to register with the Tyne and Wear Homes scheme, where they will be awarded a Band 1 priority for re-housing. The available properties are advertised on a Thursday and residents will be required to bid for suitable properties which they are eligible for. As a housing renewal scheme residents would be supported to place bids on appropriate accommodation, where homes are repeatedly refused further engagement and support will be offered to better understand resident's needs.

The residents Band 1 date would normally be backdated to the date of the Cabinet Decision, in the event of a tie with other residents the person with the longest tenancy date will be made the offer first. If there is an owner occupier the offer may need to be given to them over a Council Tenant if we have agreed a purchase figure for the property, this would be through our direct let process.

We do not usually offer a 'Like for Like,' alternative for Council Housing and the properties would be allocated in accordance with the criteria and needs basis set out in the Housing Allocations Policy. Any decision to a property outside of this criteria would be included within the relevant cabinet report for that scheme

Eligibility Criteria for alternative rented housing

Other alternative social or affordable housing on offer could be through a Housing Association. Residents could also consider properties through the private rented sector.

In the case of a Housing Association who advertises through Tyne and Wear homes, you would be shown as a priority on the shortlist generated from the bids but please note that they do select their own tenants and we couldn't guarantee that you would be successful for the property and do sometimes have additional criteria to be met, but this should be detailed on the advert.

In the case of the Housing Association who does not advertise through Tyne and Wear Homes, the resident would need to register directly with the housing association and go onto their waiting list, if needed support can be offered with this process. If a resident is successful for a property, they would then need to let the South Tyneside Council Housing Services delivery officer know so that we can arrange for the removals to be arranged and home loss to be paid.

In the case of the private rented sector a resident can request assistance from the Housing Solutions team to support in finding suitable private rented accommodation.

Alternatively, residents can apply for private rented properties through an estate agent. If eligible you would still be entitled to home loss and disturbance payments.

Exceptional Circumstances / Direct Let criteria

We would expect people who are requiring to be re-housed by us to make bids for suitable properties through the Tyne and Wear Homes bidding cycle which current runs from Thursday to just before midnight of the following Monday. The cycle then closes for the properties to be shortlisted.

However, from time to time there may be circumstances which means that we may need to grant exceptional circumstances for medical grounds or property type, or we may need to direct let a property to the person being re-housed.

Right to Return

We do not normally allow residents to return to the new properties which will be built on the scheme. However, this would be confirmed on a scheme-by-scheme basis and would be set out within the relevant Cabinet approval.

Financial Compensation

Home Loss Payment to tenants

Home Loss payments will be paid in line with the Planning and Compensation Act 1991, the Land Compensation Act 1973 and Home Loss Payments (Prescribed Amounts) (England) Regulations 2008. This prescribed amount of compensation to be paid to tenants currently (as of 1^st October 2023) is £8,100. These regulations are currently reviewed annually by the Government, so this amount is subject to change. This is paid to all Council tenants and to private tenants (subject to the agreement made with the landlord of the property).

In accordance with the Planning and Compensation Act 1991, home loss payments will usually only be made when:

The tenant has been living in the property for one year before they have to be permanently decanted.
The tenant has been living in the property as their main or only residence.
The tenant is required to move as a consequence of improvement or redevelopment (repairs, even if major, do not justify payment)

At the time of moving any arrears (housing or other Council related debts) that the tenant owes will be deducted from the Home Loss payment and credited to the tenant's rent account.

Home Loss payment to Owner Occupiers and Landlords

Home loss payments to Owner Occupiers, who are purchased in line with the Planning and Compensation Act 1991, the Land Compensation Act 1973 and Home Loss Payments (Prescribed Amounts) (England) Regulations 2008, will be 10% of the purchase price subject to a minimum value of £7,800. The market value will be determined by one of our in-house valuers but done in accordance with the RICS Valuations Standards. Owner Occupiers and Landlords are able to seek an independent valuation but are recommended to appoint someone who is a member of the RICS Valuer Registration Scheme.

Home Loss payment to Landlords will be 7.5% of the property purchase price. In most cases a private tenant will be paid the tenants home loss payment. Please note Home Loss payments are paid per property so if a landlord moves additional tenants in these won't be compensated.

If a household is moved from their home permanently but have not lived in the household for more than a year, a discretionary payment may be made which will be a pro rata amount of the full payment.

Home loss payments for tenants and private tenants will be processed by the South Tyneside Council Housing Services area office dealing with the scheme on behalf of South Tyneside Council. This will be done once a tenant has signed up for a new property and where applicable the keys for the property have been handed in. Payments are usually made by BACS and the Council aims to pay these payments as quickly as is possible in order to minimise the debt and hardship to those Households affected by the demolition.

Home loss payments for Owner Occupiers and Landlords will be paid at the same time they are paid for the property through South Tyneside Council's Asset Management team.

Disturbance Costs

The Housing Act 1985 (part II S.26) allows Local Authorities to give financial assistance towards removals cost. We will therefore organise and pay for the removals for the residents affected by the Housing Renewal Programmes. We will also pay for a full packing service for those vulnerable residents who are unable to do this for themselves. Other items which the Council may paid a 'reasonable disturbance cost for may include:

Disconnection and reconnection of domestic appliances.
Disconnection and reconnection of telephone lines and extensions;
Disconnection and reconnection of television aerials or satellite dishes.
Redirecting of post for up to 3 months.
Uplifting and refitting of existing carpets and blinds.

If a tenant has current disability aids and adaptations for special needs, where possible these adaptations will be transferred to the new property. Alternatively, we will look for an alternative adapted property which meets the needs of the household. A Housing Renewal scheme will not necessarily mean that a property will be adapted especially for the household if we have alternative available adapted properties.

Other items such as Kitchens and bathrooms which tenants have put into properties with the permission of South Tyneside Council Housing Services may be compensated in line with the Secure Tenants of Local Authorities (Compensation for Improvements) Regulations 1994 and Sections 99A and 99B Housing Act 1985 (secure tenant's right to compensation for improvements) Qualifying items are listed below:

Bath or shower
Wash-hand basin
Toilet
Kitchen sink
Storage cupboards in bathroom or kitchen
Work surfaces for food preparation
Space or water heating
Thermostatic radiator valves
Insulation of pipes, water tank or cylinder
Loft insulation
Cavity wall insulation
Draught proofing of external doors or windows
Double glazing or other external window replacement or secondary glazing
Rewiring or the provision of power and lighting or other electrical fittings (including smoke detectors)
Any object which improves the security of the dwelling-house but excluding burglar alarms

Claims for any other item not stated above will be considered on an individual basis and will be at the discretion of the Project Manager of the scheme.

If the new property allocated to the household is not in a similar decorative order to the one, they are being moved from this will be considered through South Tyneside Council Housing Services decoration policy where an additional allowance of decoration vouchers may be awarded.

Disturbance costs will be paid by the Council for tenants.

Disturbance costs awarded to Owner Occupiers or Landlords will be paid at the same time as their property purchase by the Asset Management department of South Tyneside Council.

Residents can either get their own quote for the work required and this can be submitted to the Housing Office of South Tyneside Council Housing Services for the area that the scheme is in for consideration

Alternatively, a standard disturbance amount of no more than £500 will be paid for the work required.

Consultation and Communication

Residents will usually be consulted and informed when a Housing Renewal decision to demolish has been made by the Council.

Residents will be informed of the decision by letter, and this will be followed up by a home visit which will be undertaken by an officer from the Council where an assessment of the household's needs can be taken.

The Council will continue to monitor the schemes and keep in regular contact with residents until the scheme has been completed.

Review of the Policy

This policy will be reviewed on an annual basis to ensure that it is kept up to date and relevant to the Housing Renewal Programmes agreed in the Borough.

Comments, Compliments and Complaints

We anticipate to try and offer the appropriate held, guidance and support to residents subjected to Housing Renewal programmes. However, we understand that some residents may wish to offer feedback on all of the services offered by South Tyneside Council.

You can do this by telephoning us on 0191 427 7000 or visiting our website on www.southtyneside.gov.uk