Agenda item

Councillor Homan, Cabinet Member for Housing, explained that the administration had suggested the creation of a social lettings agency in response to the problem of poor maintenance by leaseholders who were sub-letting their properties. The idea had been that if the council could offer an attractive property management service and get leaseholders in council blocks to use it, it would be easier to ensure that maintenance work was done properly. The model also had other very attractive features; it would allow the council to influence the private rented market, upon which the council and residents relied heavily for accommodation, and would also help the council build up a portfolio of accommodation for people with special needs, such as wheelchair users. She explained that she would welcome residents comments on the proposal.

Labab Lubab, Housing Opportunities Manager, explained that quite a few councils had now set up social lettings agencies of different types and these had had varying degrees of success. The essence of a social lettings agency was that it would focus on sustaining tenancies, which wasn’t necessarily the most profitable option for commercial lettings agents. Mr Lubab explained that there was little regulation of lettings agents, alongside huge demand for housing and that this allowed some agents to be quite unscrupulous. The council’s entry into the market would allow it to compete with these agents and drive up standards. Labab Lubab explained that the council already had a very good housing property procurement service and that the social lettings agency would build on the knowledge and contacts which had already been built up. There were many property owners who were keen to work with the council because of its good reputation, gained from being the borough’s largest landlord. The proposal was expected to generate income for the council over the medium term, as a profit could be made on providing the service; this profit could be used to subsidise cheaper housing for those in need. If the social lettings agency was successful in sustaining tenancies then this would also reduce demand for housing advice and assistance. Labab Lubab explained that the effectiveness of the social lettings agency would be reviewed after one year of operation.

A resident said that if rent control hadn’t been removed in the 1980s a social lettings agency would not be necessary. Councillor Connell noted that this was out of the control of local councils.

Councillor Connell asked whether securing 500 units in the first year was feasible and if there was a financial risk to the council if the agency did not hit its targets. Labab Lubab said that whilst 500 units was an ambitious target it was an achievable one as 10,000 properties were put up for let each year in Hammersmith and Fuham alone; he said that the agency could also take on properties outside of the borough which meant even more might be available to the social lettings agency.  There was a risk to the council of approximately £200,000 but it was expected that even if the agency did not achieve its aims it should be able to break even.

Councillor Homan explained that she was confident that the scheme would be successful. A great deal of research had been done into the best possible model for a social lettings agency. Labab Lubab said that he had visited several social lettings agencies to learn from their successes and the challenges they faced to give Hammersmith and Fulham’s agency the best chance of success. Councillor Homan explained that the landlords forum had been consulted about the proposal and had been quite supportive. Labab Lubab said that there were a number of landlords already interested in working with the social lettings agency.

A resident how universal credit would impact on the social lettings agency. Labab Lubab explained that the council offered excellent support through its Housing Benefit Assist service for those being moved to universal credit. Councillor Homan explained that Hammersmith and Fulham was a pilot area for universal credit and that the roll out so far had been reasonably successful; she didn’t expect there to be a significant impact on the social lettings agency.

A resident asked whether repairs could be undertaken in leasehold properties not under the management of the council. Labab Lubab explained that the council had some limited powers but that these were far more difficult to use than if the council were the managing agent.

Councillor Holder asked whether the scheme might be extended to allow residents to let out spare rooms to lodgers. Councillor Homan noted that this had been suggested by a number of people recently, but that the scheme would not include the opportunity at its launch; more research into the idea was needed before a decision on letting out rooms to lodgers could be taken.