Report launch 3 December 2014 @futureofldn #PRSenergy
A research project from Future of London
In partnership with EDF Energy
Welcome
Lisa Taylor
Director, Future of London
Future of London • Urban policy network: independent, member-based, non-profit • 38 public-sector members – LAs, HAs, GLA, TfL, social enterprise – and variety of private-sector partners • Capacity-building and connection for practitioners at all levels in regeneration, housing, infrastructure, economic development • Focus on delivery – the how as much as the why…
Agenda 09.10 Welcome – Nigel Turner 09.15 Research overview and update – Jo Wilson 09.25 Perspectives: • Matt James, RE:NEW • Christopher Lee, LB Haringey • Richard Tacagni, LB Redbridge • Alan Whitehead MP 10.05 Questions and panel discussion 10.25 Summing up and next steps 10.30 Coffee/networking 11.00 Close
Welcome
Nigel Turner
Business Development Manager EDF Energy
Research overview and headlines
Jo Wilson
Head of Policy Future of London
Report contents •
London’s PRS landscape - spatial patterns, tenants and landlords, policy framework
•
Challenges for London boroughs engaging landlords in energy efficiency
•
Practical approaches in response to challenges
•
Policy recommendations for improving the sector’s energy performance long term
Lower standards, higher costs • 30% of PRS homes nationally are below the Decent Homes standard, in comparison with 20% of owner occupied and 20% of social rented homes • High rates of excess cold hazards • PRS and fuel poverty • London rents significantly higher than elsewhere in country
Tenure growth Spatial distribution of PRS households, by proportion of total households 2001
Source: ONS
2011
Tenants • In 2012, PRS was evenly spread across income quartiles… • but growing number low and middle income households in PRS
National household income quintile by tenure, London, 2009/10-11/12
Landlords • Available data is scant and imperfect • Indicates high level of individual and oneproperty landlords in England • Estimate of 360,000 landlords in London • Accreditation levels are low (3.7% LLAS accredited based on August 2014 data)
Policy • Energy Act 2011 • Tenant’s energy efficiency improvement regulations (1 April 2016) • Minimum standards regulations (1 April 2018) • Local authorities as enforcers
Challenges to engagement 1. An unfavourable funding landscape 2. Physical barriers to retrofit 3. Lack of communication channels with individual landlords 4. Weak incentives for landlords and tenants to act
Unfavourable funding landscape • Retrofit difficult without grant • Low uptake of Green Deal • Many smaller funding pots have finished
Physical barriers to retrofit London’s private renters are often in older, hard-to-treat homes, in conservation areas
Source: ONS
Lack of communication with individual landlords • Boroughs tend to know private landlords with whom they have a working relationship e.g. temporary housing providers • These landlords will usually attend forums and focus groups • Smaller landlords do not usually seek the attention of their local authority, so communication is more difficult
Weak incentives for landlords & tenants to act Market imbalance (low supply – high demand) disincentivises landlords and disempowers tenants Supply side: • Split incentive - person (part-)funding costs not accruing benefits • Hard to ‘sell’ other benefits to landlords Demand side: • Tenants not empowered or inspired to seek improvements
Part Two Practical ways for boroughs to work with landlords and improve standards, in response to these challenges
Unfavourable funding landscape Present funding opportunities to landlords clearly Keep abreast of national and pan-London grants and support Promote smaller-scale works Most cost-effective, least disruptive
Physical barriers to retrofit Provide technical support and advice at all stages Inform about funding, installers, planning etc. Focus on poor standards Develop balanced enforcement strategy
Lack of communication with individual landlords Target retrofit programmes at larger landlords Promote economies of scale Use leverage to engage temporary housing providers Influence landlords that have working relationship with boroughs Improve data on all landlords Gain better understanding of landlords’ motivations
Weak incentives for landlords & tenants to act Take the long view Raise awareness that new supply will make market more competitive Build the evidence base for value added Research sales/rental value uplift through retrofit Empower tenants Make tenants aware of 2016 tenant’s improvements regulations Campaign for longer tenancies Promote better security of tenure
Conclusions Eight policy recommendations in Executive Summary and Report Conclusions: • Current financial landscape is not sufficient for ‘deep’ retrofit required of PRS • Balance must be struck between improving standards and maintaining quantum of housing • Need to foster good relationships between authorities and landlords long term • Lack of data makes everything more challenging
Next steps • Full report available now on our website • 3-year research programme starting in 2015, thanks to Trust for London grant – please get involved! • Contact: Joanna@futureoflondon.org.uk
Perspectives
Matt James
RE:NEW Programme
RE:NEW Matt James RE:NEW Programme Manager, Capita
RE:NEW Support Team services
RE:NEW activities in the PRS Exploring multiple areas: GLA initiatives: Energy grants – demonstration projects to build evidence Incentives for London rental standard accredited lettings agents
Making deep retrofit measures more affordable?
Advertising total cost of living?
Research partnerships
Marketing and communication support
Summary Supporting Future of London’s recommendations by:
Providing skills and capacity
Generating, accessing and sharing evidence
Creating momentum
RE:NEW Helping to make London’s homes more energy efficient
Matt James E: matt.james@capita.co.uk T: 07500 
Creating momentum
Perspectives
Christopher Lee
Innovation and Partnerships Lead LB Haringey
Perspectives
Richard Tacagni
Head of Private Sector Housing LB Redbridge
Effective Housing Enforcement Tackling criminal landlords 3rd December 2014 Richard Tacagni, Head of Private Sector Housing richard.tacagni@redbridge.gov.uk
a better place to live
About Redbridge Redbridge Council is in North East London 279,000 population Up 40,000 (17%) in 10 years Average 22.9% PRS - approx. 23,000 properties Significant variation by ward: 12.3% in Hainault to 42.2% in Valentines 7 Enforcement Officers in Housing Standards Team Upskill enforcement staff through training & development. Building expertise in the team
a better place to live
Promotional activity
a better place to live
Housing Prosecutions on the rise
a better place to live
Achieving success Adopting an intelligence lead, risk based approach Multi-agency operations Gathering sound evidence through a thorough investigation PACE Interviews Establishing good communication between legal services and housing enforcement Promoting successful prosecutions Working as a team Encouraging higher rates of compliance in the private rented sector a better place to live
The Results… Ilford Recorder, November 2014 “Five-figure fine for Ilford Rogue Landlord” Property Industry Eye, August 2014 “Landlords must pay £65,970 after Proceeds of Crime case or go to jail” London Evening Standard, July 2014 “Landlord fined after keeping nine unrelated tenants including baby in filthy and infested family home” Landlord and Buy to Let Magazine, November 2013 “Record £24,000 fine for beds-in-shed landlord” a better place to live
Perspectives
Alan Whitehead MP
Questions & panel discussion
A research project from Future of London
In partnership with EDF Energy
Thank you!
futureoflondon.org.uk @futureofldn Future of London
A research project from Future of London
In partnership with EDF Energy