Key principles for private rented sector access schemes

Guidance for those assisting homeless and vulnerable people to access private rented accommodation January 2010

Contents Establishing key principles ...................................................................3 Who is this document for? ....................................................................3 How to use this document.....................................................................4 Follow up support ..................................................................................4 Crisis and the private rented sector .....................................................5 Key principles of a good PRS access scheme ....................................7 Key principles self assessment tool ..................................................11 A. Organisational principles .................................................................11 B. Staffing ............................................................................................15 C. Services for clients ..........................................................................16 D. Housing Benefit and rent.................................................................20 E. Services for landlords......................................................................21 F. Properties and property management .............................................23

Preventing homelessness through use of the private rented sector

Stable and secure housing is the foundation of successful work with vulnerable people to enable them to access support services and integrate into their local community. Commissioners and service users increasingly prefer ordinary housing rather than hostels or purpose designed supported housing, but demand is such that it cannot be met by the social housing sector alone. The private rented sector (PRS) is not a panacea for the housing needs of all vulnerable people but it can provide an effective housing solution for many, where appropriate safeguards are in place. By taking account of the needs and aspirations of both landlords and tenants, PRS access schemes, such as deposit guarantee schemes or local lettings schemes, can ensure a successful and sustainable working relationship that is beneficial to both parties and which overcomes financial and other barriers.

Establishing key principles

There are over 200 PRS access schemes in operation throughout the UK, with great variation in terms of the model applied and the client group assisted. Some variation is desirable as the model should be appropriate for the local housing market, avoid duplicating or competing with other local services, and will be dependent upon the level of resources available to the scheme. However, some features of PRS access schemes have been found to be central to delivering an effective service and should therefore be universal. The key principles set out in this document are based upon Crisis knowledge and experience of the sector (see below) and that of an expert group of stakeholders representing central and local government, the homeless sector, private sector landlords and tenants. We would like to thank the following for their input: Barnet SmartMove service user Brent Council Camden Federation of Private Tenants Communities and Local Government Greater London Authority Homeless Link Local Authorities Coordinators of Regulatory Services National Landlords Association Residential Landlords Association.

Who is this document for?

These principles are intended for service providers involved in the delivery of PRS access schemes and those involved in commissioning and designing services. These principles are therefore relevant for both informing and shaping the design of new services and the improvement of existing services. For the purposes of this document a PRS access scheme is defined as: A scheme which has direct contact with both a prospective tenant who is homeless or insecurely housed and a private sector landlord, and which assists both parties in establishing a tenancy.

This definition is deliberately broad as the principles are intended to apply to a range of different models, including deposit guarantee schemes, landlord incentive schemes and local letting models. These principles are equally applicable whether the scheme is operated by a voluntary, statutory or private sector body, and should be applied to both those schemes currently in operation and those still in the planning or development stages.

How to use this document

The key principles set out in this document are intended to act as guidance for service providers as to the minimum standards that all PRS schemes should meet. The Key principles list provides a full list of those strategic and operational elements that are present in good quality PRS access schemes and is provided in a succinct format for easy reference purposes. The Key principles self assessment tool section of this document enables service providers to systematically assess whether they have in place the key strategic and operational elements of a well run and inclusive scheme (or proposed scheme). It is not related to the levels of outputs or outcomes being achieved by a scheme, but rather whether the fundamentals are in place to ensure that a good quality service is being provided to landlords, tenants and those in housing need. There is space provided for comments as well as details of remedial action that will be taken to address issues identified through this process. This document should be used periodically to enable schemes to assess how they are doing, areas they are particularly strong on, and areas they need to work on to meet best practice standards. The date of the assessment should be included on the form, and subsequent reviews should take place on at least an annual basis.

Follow up support
Where schemes find there are shortcomings (represented by answering either no or unclear to the self assessment questions), support is available to assist agencies to address these issues. The website www.privaterentedsector.org.uk collects the cumulative knowledge and experience of organisations that work with the private rented sector to prevent and tackle homelessness. The information and tools collected here are intended for a wide range of stakeholders and advice, information and good practice resources can be found at http://www.privaterentedsector.org.uk/goodpracticeandresources.aspx. This will be an invaluable resource for those wishing to address gaps in their service provision identified through the Self assessment process. The website is also a comprehensive resource for private sector landlords, tenants, and those wishing to rent in the private sector. You can also contact Crisis directly for advice and guidance by e-mailing our Private Renting and Housing Development team at private.renting@crisis.org.uk.

Crisis and the private rented sector

Crisis is leading the way to achieve greater access to private rented accommodation for homeless and insecurely housed people. We run a national advisory service providing consultancy advice and support to local authorities and homelessness agencies across England and Scotland. Crisis is the national charity for single homeless people. We campaign and deliver innovative services year-round to help people find a route out of their homelessness and rebuild their lives. Crisis involvement with PRS access schemes dates back to 1997, when it launched its best practice model deposit scheme SmartMove. Crisis SmartMove is delivered by a network of 27 partner organisations around the UK and has enabled over 13,000 people to access housing. In 2006, following the wind-up of the National Rent Deposit Forum (NRDF), Crisis recognised the opportunity to take on key staff and resources to establish a new national advisory service for local government and the homeless sector to support the development of deposit schemes and private rented sector solutions to homelessness. A good practice guide and supporting resources have been developed and a programme of events and training has been established for those operating schemes. Crisis has played a key role working with the Scottish and Welsh Assembly Governments to advise on the establishment of schemes and improving their quality and coverage. Crisis is now working with Communities and Local Government and local authorities and agencies to support the development of PRS access schemes throughout England, particularly those that assist non-statutory homeless people in accessing and sustaining accommodation.

Key principles of a good PRS access scheme

Organisational principles Schemes are: Involved in the development of local homelessness, PRS, and other relevant strategies, and included therein Part of a strategic approach to tackling and preventing homelessness in the local area. This strategic approach should take into account the needs of all homeless and vulnerable client groups including non-statutory homeless people.

Schemes to have: Clearly published aims and objectives A business plan and a defined model consisting of services for landlords, to incentivise them to let their properties to the schemes clients, and services for prospective tenants, to help them access and sustain a PRS tenancy Well publicised mechanisms through which landlords, tenants, service users and stakeholders can feedback on, and influence the development of, the service Service standards that set out maximum timescales for responding to queries from landlords, tenants and those approaching the scheme in housing need Robust financial monitoring to provide clear accounting of the costs involved in delivering the scheme (including staffing and other revenue costs) Secure electronic monitoring systems that adhere to best practice on data protection for the storage of data on clients, landlords and properties Clear outcome indicators, and systems to measure outcome performance Protocols with neighbouring boroughs and other similar local services that establish policies on competition, duplication and relocating clients where location is a particular issue (i.e. substance misuse) Information on other relevant services for signposting purposes A named point of contact within the Housing Benefit department with whom they can raise issues that arise.

Staffing Staff time is dedicated to the scheme and those involved have clear roles and responsibilities Staff receive regular supervision sessions Staff are supported to refresh and develop their skills in a structured way.

Services for clients The scheme clearly publicises the services they offer The scheme has clear referral and eligibility criteria for service providers and individuals, which are in line with equal opportunities legislation and available in a format that meets the needs of the schemes client group Clients receive a needs assessment in order to identify any support needs that may affect their ability to maintain a private rented tenancy Where support needs are identified, an appropriate support plan is developed or the client is referred to an appropriate support service Clients receive assistance to enable them to access a PRS property. This may include the provision of a bond, deposit, or other incentives to landlords, including non-financial incentives such as the offer of support Clients receive advice or assistance to enable them to provide a deposit or bond where required Clients receive assistance with, or advice on, the practicalities of setting up a tenancy Clients are provided with information on their rights and responsibilities as a tenant Clients are provided with contact details of support they can access through the duration of the tenancy, including contact details for assistance and advice that is available out of office hours Clients are provided with contact details of support they can access if their landlord fails to comply with their legal responsibilities Clients are advised on where they can find out about local services that provide education, volunteering and employment opportunities, and services that provide advice on benefits and returning to work.

Housing Benefit and rent Clients have their maximum affordable rent calculated and should not be assisted to move into a property that is more expensive than this maximum Clients in need of Housing Benefit are able to access assistance in setting up a claim, a bank account and where necessary an application for direct payment to the landlord Clients are advised on where they can access advice and information on returning to work and the benefit implications of this.

Services for landlords The scheme clearly publicises what services they are able to offer to landlords All landlords are provided with information on their rights and responsibilities as a landlord Landlords to be advised as to the existence of accreditation schemes, landlord forums, landlord associations and other forms of general support available to them Landlords to be provided with details of support they can access should problems occur with the tenancy Landlords to be provided with details of support they can access should problems occur with Housing Benefit specifically Landlords directed to model tenancy agreements and inventories where required In the case of bonds, schemes respond to claims within 14 days of the tenancy ending and release funds within a further 14 day period.

Properties and property management All properties are inspected before being accepted by the scheme and the findings recorded All properties accepted onto schemes must be free from HHSRS category one hazards and must be well maintained by the landlord or managing agent. Landlords are informed if their property fails to meet the standard of the scheme and of any remedial action that is required before the property can be accepted onto the scheme A copy of the Gas Safety Certificate (GSC) is obtained by the scheme at the outset of a tenancy and obtain a copy of the renewed GSC on an annual basis for as long as the scheme has an active interest in the tenancy All tenancies must be formalised in a written tenancy agreement, a copy of which is held by the scheme. The scheme will provide model agreements where necessary. The option of longer tenancy agreements (i.e. 12 months) is brought to the attention of tenants and landlords. These should only be entered into when both tenant and landlord approve of such an arrangement. An inventory is carried out and the scheme retains a copy of the inventory signed by both landlord and tenant The scheme only works with landlords who have the right to let their property and who comply with their legal responsibilities, including the protection of cash deposits with one of the Tenancy Deposit Protection Schemes Where there is landlord accreditation in operation, the scheme should only accept landlords who are accredited or willing to work towards accreditation. Information sharing protocols should be established between the scheme and the accreditation service There is a clear complaints procedure for tenants housed through the scheme to raise issues relating to the property or landlord. Where complaints are upheld against the landlord, they may be dismissed from the scheme. In such cases no further clients should be placed in properties managed by the landlord in question.

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Key principles self assessment tool

A. Organisational principles

Date

Q1. Has the scheme been involved in the development of local homelessness and PRS strategies, as well as other relevant strategies? YES Comment:
NO UNCLEAR

Action:

Q2. Is the scheme featured in the local homelessness and PRS strategies, as well as other relevant strategies? YES Comment:
NO UNCLEAR

Action:

Q3. Does the strategy for tackling and preventing homelessness in the local area take into account the needs of all homeless and vulnerable client groups, including nonstatutory homeless people? YES Comment:
NO UNCLEAR

Action:

11

Q4. Does the scheme have clearly published aims and objectives? YES Comment:
NO UNCLEAR

Action:

Q5. Does the scheme have a business plan, including a defined model specifying which services it provides to both landlords and prospective tenants? YES Comment:
NO UNCLEAR

Action:

Q6. Does the scheme have well publicised mechanisms through which landlords, tenants, service users and stakeholders can feedback on, and influence the development of, the service? YES Comment:
NO UNCLEAR

Action:

Q7. Does the scheme have service standards that set out maximum timescales for responding to queries from landlords, tenants and those approaching the scheme in housing need? YES Comment:
NO UNCLEAR

Action:

12

Q8. Does the scheme have financial monitoring systems in place to provide clear accounting of the costs involved in delivering the scheme (including staffing and other revenue costs)? YES Comment:
NO UNCLEAR

Action:

Q9. Does the scheme have secure electronic monitoring systems that adhere to best practice on data protection for the purpose of storing data on clients, landlords and properties? YES Comment:
NO UNCLEAR

Action:

Q10. Does the scheme have clear outcome indicators, and systems to measure outcome performance? YES Comment:
NO UNCLEAR

Action:

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Q11. Does the scheme have protocols in place with other local PRS access schemes including those in neighbouring boroughs that establish policies on competition, duplication and relocating clients? YES Comment:
NO UNCLEAR

Action:

Q12. Does the scheme have information on relevant services for signposting purposes? YES Comment:
NO UNCLEAR

Action:

Q13. Does the scheme have a named point of contact within the Housing Benefit department with whom they can raise issues that arise? YES Comment:
NO UNCLEAR

Action:

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B. Staffing
Q14. Is there staff time dedicated to the operation of the scheme? YES Comment:
NO UNCLEAR

Action:

Q15. Do staff involved in the scheme have clear roles and responsibilities? YES Comment:
NO UNCLEAR

Action:

Q16. Are there regular supervision sessions for staff working on the scheme? YES Comment:
NO UNCLEAR

Action:

Q17. Are staff supported to refresh and develop their skills in a structured way? YES Comment:
NO UNCLEAR

Action:

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C. Services for clients

Q18. Does the scheme clearly publicise the services they offer? YES Comment:
NO UNCLEAR

Action:

Q19. Does the scheme have clear referral and eligibility criteria for service providers and individuals, and are these in line with equal opportunities legislation? YES Comment:
NO UNCLEAR

Action:

Q20. Are the referral and eligibility criteria available in a format that meets the needs of the schemes client group? YES Comment:
NO UNCLEAR

Action:

Q21. Do clients receive a needs assessment in order to identify any support needs that may affect their ability to maintain a private rented tenancy? YES Comment:
NO UNCLEAR

Action:

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Q22. Where support needs are identified, is an appropriate support plan drawn up, either by the scheme itself or an appropriate support provider? YES Comment:
NO UNCLEAR

Action:

Q23. Are clients provided with assistance to enable them to access a PRS property (this may include the provision of a bond, deposit, or other incentives to landlords, including non-financial incentives such as the offer of support)? YES Comment:
NO UNCLEAR

Action:

Q24. Are clients provided with advice or assistance to enable them to provide a deposit or bond where required? YES Comment:
NO UNCLEAR

Action:

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Q25. Do clients receive assistance with, or advice on, the practicalities of setting up a tenancy? YES Comment:
NO UNCLEAR

Action:

Q26. Are clients provided with information on their rights and responsibilities as a tenant? YES Comment:
NO UNCLEAR

Action:

Q27. Are clients provided with contact details of support they can access through the duration of the tenancy, including contact details for assistance and advice that is available out of office hours? YES Comment:
NO UNCLEAR

Action:

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Q28. Are clients provided with contact details of support they can access if their landlord fails to comply with their legal responsibilities? YES Comment:
NO UNCLEAR

Action:

Q29. Are clients advised as to where they can find out about local services that provide education, volunteering and employment opportunities, and services that provide advice on benefits and returning to work? YES Comment:
NO UNCLEAR

Action:

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D. Housing Benefit and rent

Q30. Do clients have their maximum affordable rent calculated and is this calculation used to ensure that they are not moved into a property that is more expensive than this maximum? YES Comment:
NO UNCLEAR

Action:

Q31. Are clients in need of Housing Benefit able to access assistance in setting up a claim, a bank account and where necessary an application for direct payment to the landlord? YES Comment:
NO UNCLEAR

Action:

Q32. Are clients advised as to where they can access advice and information on returning to work and the benefit implications of this? YES Comment:
NO UNCLEAR

Action:

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E. Services for landlords

Q33. Does the scheme clearly publicise what services they are able to offer to landlords? YES Comment:
NO UNCLEAR

Action:

Q34. Are all landlords provided with information on their rights and responsibilities? YES Comment:
NO UNCLEAR

Action:

Q35. Are landlords advised as to the existence of accreditation schemes, landlord forums, landlord associations and other forms of general support available to them? YES Comment:
NO UNCLEAR

Action:

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Q36. Are landlords provided with details of support they can access should problems occur with the tenancy? YES Comment:
NO UNCLEAR

Action:

Q37. Are landlords provided with details of support they can access should problems occur with Housing Benefit specifically? YES Comment:
NO UNCLEAR

Action:

Q38. Are landlords directed to model tenancy agreements and inventories where required? YES Comment:
NO UNCLEAR

Action:

Q39. If bonds are issued in place of the deposit, does the scheme respond to claims within 14 days of the tenancy ending and release funds within a further 14 day period? YES Comment:
NO UNCLEAR

Action:

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F. Properties and property management

Q40. Are all properties inspected and the findings recorded before being accepted by the scheme? YES Comment:
NO UNCLEAR

Action:

Q41. Are all properties free from HHSRS category one hazards and well maintained by the landlord or managing agent? YES Comment:
NO UNCLEAR

Action:

Q42. Are landlords informed if their property fails to meet the standard of the scheme of any remedial action that is required before the property is accepted? YES Comment:
NO UNCLEAR

Action:

23

Q43. Does the scheme obtain a copy of the Gas Safety Certificate (GSC) at the outset of a tenancy and obtain a copy of the renewed GSC on an annual basis for as long as the scheme has an active interest in the tenancy? YES Comment:
NO UNCLEAR

Action:

Q44. Are tenancies formalised in a written tenancy agreement and does the scheme hold a copy of this agreement? YES Comment:
NO UNCLEAR

Action:

Q45. Is the option of longer tenancy agreements (i.e. 12 months) brought to the attention of tenants and landlords? YES Comment:
NO UNCLEAR

Action:

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Q46. Is an inventory carried out and does the scheme retain a copy of the inventory signed by both landlord and tenant for use in arbitrating in disputes? YES Comment:
NO UNCLEAR

Action:

Q47. Does the scheme ensure that it only works with landlords who have the right to let their property? YES Comment:
NO UNCLEAR

Action:

Q48. Does the scheme ensure that it only works with landlords who comply with their legal responsibilities, including the protection of cash deposits with one of the Tenancy Deposit Protection Schemes? YES Comment:
NO UNCLEAR

Action:

Q49. If there is a landlord accreditation scheme locally, are landlords required to be either accredited or willing to work towards accreditation? YES Comment:
NO UNCLEAR

Action:

25

Q50. If there is a landlord accreditation scheme locally, are information sharing protocols in place between the scheme and the accreditation service? YES Comment:
NO UNCLEAR

Action:

Q51. Is there a clear complaints procedure for tenants housed through the scheme to raise issues relating to the property or landlord? YES Comment:
NO UNCLEAR

Action:

Q52. Where complaints are upheld against the landlord, are they removed from the scheme with no further clients placed in properties managed by the landlord in question? YES Comment:
NO UNCLEAR

Action:

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6 6 C o mme r c ia l S tr ee t L ond on E1 6 LT T e l 08 44 25 1 01 11 F a x 08 44 25 1 01 10 Email e nquir ies@cr isis .or g .uk We bsi te www.crisis.org.uk
Crisis UK (trading as Crisis). Registered Charity Numbers: E&W1082947, SC040094. Company Number: 4024938
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