A guide to developing private sector leasing schemes to meet the housing needs of refugees

Anyone who is thinking about developing a housing project for refugees needs to read this guide . . . It pulls together the lessons which HACT has distilled from its Accommodate refugee housing initiative. In particular it is based on the Accommodate West Midlands project, which developed a successful Private Sector Leasing project. The guide takes the form of a step-by-step consideration of the issues which arise in developing a Private Sector Leasing project. PSL is not the only option for procuring housing for refugees – organisations which want to get involved in this area of work can also act as managing agents for private sector landlords, or simply as introduction agencies, providing a range of different incentives for landlords who are prepared to let to their “clients”. However, many of the issues are the same, whatever form of procurement your project decides on. So while this guide will be particularly useful to organisations planning a PSL project, it is essential reading for anyone who is thinking about getting involved in developing housing for refugees. We hope that you will enjoy reading it and, more important, that you will find it helpful.

August 2010

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Table of Contents PART ONE: The Accommodate Private Rented Sector (APRS) Project and the potential of Private Sector Leasing Schemes .................................................................................................................. 3 1.

Introduction ......................................................................................................................... 3

2.

Developing Housing Services for Refugees and the Potential of Private Sector Leasing .... 5

3.

Setting Up a PSL Scheme for Refugees; The Importance of Careful Planning and Preparation ........................................................................................................................ 10

PART TWO: Developing a Successful Private Sector Leasing Scheme for Refugees: Nine Building Blocks............................................................................................................................................. 14 1.

Building Block One: Clarity of Purpose .............................................................................. 15

2.

Building Block Two: The Capacity to Deliver ..................................................................... 17

3.

Building Block Three: Partnership Building ....................................................................... 19

4.

Building Block Four: The Property Standard ..................................................................... 23

5.

Building Block Five: The Lease ........................................................................................... 25

6.

Building Block Six: The Business Model ............................................................................. 27

7.

Building Block Seven: Marketing the Scheme ................................................................... 30

8.

Building Block Eight: Responsive Housing Management .................................................. 33

9.

Building Block Nine: Long Term Housing Solutions ........................................................... 37

USEFUL PUBLICATIONS .................................................................................................................. 38

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PART ONE The Accommodate Private Rented Sector (APRS) Project and the Potential of Private Sector Leasing Schemes 1. Introduction This Guide is based on the work carried out on a succession of refugee housing projects sponsored by HACT and carried out by partner housing providers and refugee support organisations across the country. HACT is a national charity that exists to improve the wellbeing and living conditions of poor and marginalised people. Our projects deliver lasting change by harnessing the energy and enthusiasm of local people, housing providers and other organisations. We provide the expertise, know-how and new resources to make change a reality. We invest in work that benefits local people but has national resonance and influences national housing policy. The Accommodate Private Rented Sector (APRS) project: PSL Guide The APRS project aims to address the challenges of housing provision for refugees; by looking at how the quality, cost and security of the accommodation that is accessed by refugees in the private rented sector can be significantly improved. Specifically the project plans to draw on the experience of earlier HACT projects to develop a number of pilot projects which demonstrate ways in which PRS-based solutions can work; we expect that some of these will take the form of private sector leasing (PSL) initiatives. For more information about the APRS project, please e-mail [email protected] This Guide is designed to assist organisations that wish to set up PSL schemes by providing them with a checklist of key considerations, with useful support information. It is in two parts. The first part sets out the key features of PSL schemes and looks in detail at how they can be developed for and with refugees. The second part consists of series of ‘building blocks’, which are designed to provide guidance to any potential PSL provider (typically a housing association or other registered social landlord) in setting up a scheme.

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The Guide draws heavily on the Accommodate West Midlands project, which was run by Birmingham Co-operative Housing Services (part of the Accord Group) working with selected refugee support groups and with three Local Authorities, Birmingham, Sandwell and Wolverhampton. Accommodate West Midlands was successful in establishing a number of PSL schemes; some of these were directly targeted at refugees but others were general needs schemes with the potential for an access channel for refugees. AWM also developed a number of different approaches to partnership; some were more successful than others. What AWM was able to do was to show how PSL can work for refugee housing and the experience gained has been important in constructing this Guide. The housing experiences of refugees The work of HACT and its partners has highlighted the difficulty which refugees and other newcomer communities experience in gaining access to secure housing and how this in turn, seriously hinders the process of integration. Difficult and often chaotic housing conditions add to the problems faced by refugees including accessing education, employment and training opportunities. This hinders the development of stable and productive lifestyles and can alienate refugees from the wider community. The Refugee Integration and Employment Service The previous Government recognised the importance of refugee integration and established a new service, the Refugee Integration and Employment Service, which is designed to support refugees in settling in to their newly adopted country and in becoming economically active, where this is appropriate. RIES has been in operation across the UK since the end of 2008. It provides support to people who have been given leave to remain through the New Asylum Model in the period immediately after they have received a positive decision. However RIES focuses on personal support and on access to jobs and training and it has limited capacity to deal with housing issues. It also does not support all refugees who have been given leave to remain; in particular, it is not available to those whose status has been determined as a legacy case. Agencies that are delivering RIES liaise closely with local housing authorities and with social housing providers in seeking to find satisfactory accommodation for refugees. In some cases refugees are able to gain direct access to social housing but, contrary to popular mythology, this is only a small proportion of refugees (mainly families with children who fall into the priority homeless category). The great majority of refugees end up in private rented accommodation; frequently in overcrowded, poor quality, expensive and insecure housing. As a group they are particularly open to exploitation

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and mistreatment. EHRC estimate that more than 60% of new migrants end up in PRS (and this will include many refugees, particularly given that majority are single people).

2. Developing Housing Services for Refugees and the Potential of Private Sector Leasing Over the last five years HACT has undertaken a number of housing projects with and for refugees, based on partnerships between refugee organisations, housing associations and other interested parties. These projects have been written up and evaluated, and the findings from the projects provide an invaluable guide to the refugee housing experience and to various approaches to improving housing services for refugees. Details of these and other useful publications can be found at the end of this Guide Some of the projects supported by HACT looked at the direct provision of housing for refugees by housing associations either through allocating a group of existing socially rented properties for refugees (in some instances this was through the Home Office funded Gateway programme) or by securing privately rented property for refugees using Private Sector Leasing or other means. Private Sector Leasing schemes for refugees Private Sector Leasing schemes have been around for some time. Often they have been used to provide for homeless and other vulnerable people where a housing authority cannot meet their immediate needs directly. More recently, PSL has been used to meet the housing needs of refugees and other newcomer groups. In PSL, the housing agency which is running the PSL scheme enters into long term leases with owners of a suitable properties and undertakes to let and manage the properties on behalf of the owner in return for an agreed monthly rent repayment which runs for the duration of the lease. The great advantage of PSL is that it can be designed around the needs of specific groups and it can provide a relatively rapid response to those needs. This is why PSL schemes have proved of interest to refugee communities and to the groups and organisations that work with them. In some cases, refugee organisations have sought to establish schemes directly but in many cases such schemes have run into difficulty because the organisations concerned either did not have the resources or experience needed to run a housing operation and/or faced a tension in their role as a community organisation and that required of a landlord. Equally, established housing providers that have sought to enter the PSL market on behalf of refugees have often struggled to develop viable schemes because of their lack of understanding of the specific needs of refugees and the difficulty that large and/or more bureaucratic organisations can have when working ‘close to the ground’.

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Housing partnerships between refugee organisations and housing providers In recent years, HACT has supported a whole range of housing providers, refugee organisations and housing partnerships to jointly address housing needs and develop new forms of provision. Anyone entering the field of refugee housing, needs to draw on this experience and to think carefully about how they develop networks and establish working relationships with a wide range of organisations. Partnerships have to be constructed that can accommodate large well-resourced public bodies, on the one hand, and small under-resourced refugee community organisations, on the other. The HACT publication, Success factors – making partnerships work, published in 2009, summarises the experience of five housing association/refugee group partnerships set up under the Accommodate programme. It is an invaluable guide to partnership working (more detailed information can be found in the full HACT report from which the ‘success factors’ are drawn Accommodate – better together published in November 2008). Details of both reports are in the bibliography at the end of this Guide. Success factors provides some important pointers for successful partnership working. They include;  Ensuring that all partners have clear understanding of the purpose of the partnership and that they have realistic understanding of what they might get out of it and what is expected of them  Building understanding across the partnership of the key issues to be addressed and of the likely resources and back up that can realistically be applied  Setting joint targets whilst making sure that expectations are not raised unduly and that all parties understand the potential delays and pitfalls, as well as the opportunities that can be grasped  Making sure that partners are able to contribute according to their means; that larger partners do not dominate; and that smaller partners don’t try to take on too much  Putting in place some form of partnership agreement/understanding that commits all of the partners to an agreed programme of work and which can prevent difficulties that can arise as a result of changes in personnel and changes in priorities.  Allowing the partnership to grow and develop, and ensuring that channels of communication are kept open so that partners can come forward with new ideas and suggestions and so that any difficulties and misunderstandings can be dealt with 6 www.hact.org.uk

 And building on success in a way that benefits all partners. Any new provider entering the refugee housing market needs to draw on the extensive body of experience built up by HACT and others. This market has its own dynamic and the world of refugees is one that mainstream organisations need to engage effectively in a sensitive and considered way. One of the difficulties facing any organisation that wants to work with refugees is the range and diversity of organisations that they will come across; it takes time to make sense of what is a rich and lively sector. Equally, groups and individuals who are part of it have to adapt and adjust to a new and unfamiliar society, with cultural norms that can be very different from those of the country from which they came. This means that building understanding and trust on both sides requires good will and the ability to see things from another perspective. Building partnerships around Private Sector Leasing schemes Some specific lessons were learnt in the Accommodate West Midlands project about building partnerships around Private Sector Leasing schemes. 1) There is an urgent and pressing need to secure better housing for refugees, but it is a politically sensitive area. On the one hand, any potential provider will find that organisations that represent or support refugees want quick results for understandable reasons. On the other hand, Local Authorities and other public bodies will tend to be cautious about providing services that are specific to refugees and they are in any case likely to move slowly. 2) If a housing provider is taking the lead and seeking out partners from refugee organisations, it is important to explore fully what the refugee organisations want to contribute, what their capacity is, and how the provider will have to adapt and change its methods of working to meet such aspirations and expectations. Housing providers may also want to think about whether they want to work with one community in which there is a high level of unmet need in the areas in which they operate 3) Running a full-blown PSL scheme is demanding both technically and in terms of the skills and experience needed. The contribution that can be made to such schemes by different types of refugee organisations will vary considerably and matching capacity and scale to needs is important, as is consideration and resourcing of capacity building needs.

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The potential contribution to PSL schemes by different refugee organisations Accommodate WM used a typology of refugee organisations to think through the types of assistance that could be expected from different organisations and the potential role they could play. The typology is schematic but it had an important bearing on how Accommodate West Midlands tried to construct delivery partnerships and assign roles. It is used here as a framework for considering respective roles different types of organisations can play. Gatekeeper organisations In most areas there will be designated Local Authority staff and sections that work with asylum seekers and refugees. In larger authorities there may be Local Authority run advice and support agencies that may have a specific role in housing refugees. When establishing a PSL scheme, Local Authority and other public sector staff with grass-roots experience are able to provide direct information about refugee housing issues and about the nature of the local refugee housing market. They can also play an important role in establishing links and connections into the mainstream departments that deal with housing in the authority. In some areas, staff from different bodies working with refugees will be part of a local or regional forum, which can be an important sounding board. Refugee ‘councils/forums’ In many areas there will be representative bodies, interest groups, councils or forums for refugee groups and these can be an excellent starting point for initial discussions and explorations around housing. The politics of such bodies can be complex, because of competing interests, and there may be an understandable caution amongst members about engaging with an unknown housing provider. Refugee councils/forums can provide an overview of the market and highlight specific difficulties but they may not be cohesive enough to act as a partner organisation. Refugee support organisations There are number of organisations that provide direct advice, support and services to refugees and asylum seekers. Some of these are central government funded, some of them local authority funded and others rely on charitable and other forms of grant funding. Many of them draw funding from all three sources. In recent years, a small number of refugee support organisations have developed that are led by refugees themselves. Some of these have emerged from local refugee councils and some from individual refugee community organisations. All support organisations of this kind can be key partners in PSL schemes. In most cases, such bodies will want to have an advisory and referral role. In other cases, they will have 8 www.hact.org.uk

support workers who need to be part of the PSL process (although this can bring its own difficulties as is highlighted in the building block on Responsive Housing Management below). Finally, there will be some support organisations that have the capacity and the staff to act as a delivery partner for PSL. Refugee community organisations At the local level there is a proliferation of refugee community organisations (RCO’s), which normally support or represent people from a particular national and/or cultural background. These organisations develop for a range of reasons but in many cases in response to basic necessities within their communities. They act as an important focal point for their communities. Over time they may develop specific services and they may even employ their own staff. Employment of a member of staff is a first important step in their development and can place new organisational pressures on groups that have been volunteer led self help groups. A small number of them have transformed themselves into generic refugee support organisations. For a PSL provider, such groups can offer a real insight into local needs and priorities and they can act as referral and befriending agencies. The best RCOs understand the needs of and are trusted by their communities and can be critical in dispelling myths and encouraging refugees to make use of PSL schemes. There is, however, a danger that some RCO’s want to become direct service providers when they lack the necessary skills and resources. This can create tensions in working relationships, if it is not handled with care and sensitivity. Some RCOs may purport to ‘represent’ or have an important role in communities but in fact be dominated by a small number of individuals whose rootedness in their communities is questionable. Close working with refugee forums and community development organisations can be important in identifying credible partners who can really add value to development and delivery of schemes. Voluntary and community organisations working with refugees Also at the local level, there can be a number of voluntary and community organisations (often faith based) that work with refugees as part of their wider work in the community. These groups can provide an important local connection for any PSL provider and they may even wish to take on a more extended role. A rich and rewarding mix The work undertaken on establishing a number of pilot PSL schemes in the West Midlands met with varying levels of success and, in some instances, it was difficult to 9 www.hact.org.uk

maintain the focus on refugee housing. Some of this was because of local political sensitivities; some of it was to do with competition between differing refugee interests; and much of it was to do with the steep learning curve that the provider was on. However, it is important to recognise what a rich and rewarding mix of experiences and achievements such work offers. Refugee communities are nothing if not dynamic and resourceful; they have immediate and continuing needs but they also have a huge amount to contribute to the development of projects such as PSL and wider integration outcomes.

3. Setting Up a PSL Scheme for Refugees; The Importance of Careful Planning and Preparation Private Sector Leasing schemes are not without risks, particularly for the delivery agents, and successful schemes require careful planning and preparation. In developing a scheme for refugees (or any other client group) housing associations need to understand that the business of leasing and managing private sector properties may have strong similarities to their mainstream activities, but it also has specific differences that must be factored in. Below are some general considerations, which apply to PSL schemes for refugees. Multi partnership working across a Local Authority As discussed in the previous section PSL for refugees is normally based on multipartnership working between the agent, refugee referral/support agencies and Local Authorities. In particular PSL schemes connect with the activities of several departments and sections of the Local Authority. Typically some of the referrals to the scheme can either come directly from the LA via their allocation system or indirectly via a specific allocation arrangement; the procurement of properties and relationships with landlords is likely to be guided by the private sector division of the housing service; and the effective running of the scheme will depend on clear arrangements for payment of Housing Benefit. For example Effective partnership working with Local Authority private sector staff is important for most PSL schemes. The LA is likely to have an overall strategy for the management and regulation of the private rented sector and within that they will have established working arrangements with private sector landlords and various schemes to improving access and raising standards. The PSL agent can benefit hugely from the market intelligence of Local Authorities and they in turn can use PSL schemes as part of a strategic response to the private rented sector and to neighbourhood renewal.

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A robust business model PSL agents need to develop a robust business model for their scheme and they need to carry out a rigorous risk assessment in which they examine carefully the impact of different risk factors on the viability of the scheme. For example A critical area in any PSL scheme is the question of the estimated vs. actual costs of dilapidations i.e. the cost of reinstatement works to a leased property when it is returned to the owner at the end of the lease. If the works required are subject to dispute and if the costs run out of control then the whole scheme will be undermined. It is essential therefore to have an agreed record of state of the property at initial handover attached to the lease. This should include a photographic record of all aspects of the property and a register of all fixtures and fittings and their condition. Whilst the property is being leased, complete records are needed of works undertaken by the owner and works undertaken by the agent. All properties will need to be routinely inspected to note any deterioration to the property not resulting from the activity of the tenants. If all of this is done then the costs of reinstatement will be kept to a minimum. Section Two of this Guide provides more detailed guidance on the main risk areas which prospective providers need to consider. Flexible allocations within a clear policy framework PSL schemes sit outside the regulatory framework for social housing, but if they are being administered by a registered Housing Association it is important that the scheme is aligned with the overall policies and procedures of the association. At the same time, the flexibility and responsiveness which can be achieved by PSL bring significant benefits as long as suitable guidelines are in place. For example PSL schemes are of particular value when they offer housing to people who ‘fall through the net’. Allocations to PSL schemes can be more flexible than mainstream allocations and they can be based on criteria that are specific to an identified group of people in housing need, such as refugees. This does not obviate the need for clear and transparent policies and procedures covering eligibility and access priorities but it does give providers greater opportunity to take into account particular needs/preferences. A separate operating domain PSL schemes can benefit from being part of a mainstream housing service but they need to be managed in a way that recognises the specific characteristics of PSL. Staff working on PSL may have joint responsibilities initially but they need distinct and separate 11 www.hact.org.uk

targets and reporting lines. PSL also requires its own policies and procedures and its own administration and IT systems. These may or may not be part of overall systems but they must have their operating own domain. For example In PSL schemes the delivery agent will administer repairs, but it will still be the owner who is responsible for carrying out repairs under the terms of the lease. This means that the repairs system for PSL is different from mainstream repairs systems in which repairs authorisation and commissioning rests with the provider. Repairs systems for PSL have to be developed with their own distinctive procedures and checks, and the systems have to be kept separate from mainstream repairs systems (and from mainstream computerised management systems).

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Synopsis of the Benefits of Private Sector Leasing Schemes for Refugees Well-executed PSL schemes for refugees (and other marginal or excluded groups) can offer a number of clear benefits to all parties involved. For refugees in housing need who cannot or do not wish to access social housing; PSL -

offers access to good quality, well managed housing at a reasonable rents, normally in an area of choice

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provides a long-term sustainable tenancy that gives them the opportunity to put down roots

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acts as a platform for securing long-term housing solutions.

For responsible owners of rented property; PSL -

provides a guaranteed income stream and it limits the responsibility/risk in managing the property associated with low income/benefit dependent tenants

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secures and maintains the value of their housing asset

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improves their standing in neighbourhoods where private landlordism may have a bad name.

For housing authorities; PSL -

provides a way of increasing the supply of housing for ‘non priority’ groups such as refugees

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offers a method of provision which can offer a rapid response to newly emerging need groups and one which avoids some the political sensitivities over the allocation of social housing.

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can form part of a wider private sector strategy designed to regulate and control dysfunctional housing markets and to bring empty properties into use

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acts as a tool for building community cohesion in high-pressure neighbourhoods.

For housing associations and refugee partner organisations as delivery agents; PSL -

creates a way of procuring new housing stock for refugees and other excluded groups in a rapid and flexible way

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expands the role of the association in meeting a wide range of housing needs

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provides a basis for partnership working between HA’s, refugee groups and community and voluntary groups in selected neighbourhoods.

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PART TWO Developing a Successful Private Sector Leasing Scheme for Refugees: Nine Building Blocks When developing a Private Sector Leasing scheme, the organisation that is going to act as the delivery agent needs to plan carefully for the project and to put in place appropriate partnership, staffing and administrative arrangements. The nine ‘building blocks’, which are set out below, draw on the experience of the Accommodate West Midlands project and on other HACT projects. They take the form of worksheets, which set out key issues to be considered and which suggest ways in which the issues should be addressed.

It must be stressed that the ‘building blocks’ do not in themselves constitute a definitive guide to Private Sector Leasing and any organisation entering into PSL will still need to take appropriate financial, technical and legal advice.

The nine PSL Building Blocks are: 1. 2. 3. 4. 5. 6. 7. 8. 9.

Clarity of Purpose The Capacity to Deliver Partnership Building The Property Standard The Lease The Business Model Marketing the Scheme Responsive Housing Management Long-Term Housing Solutions

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1. Building Block One: Clarity of Purpose When designing a housing scheme that seeks to address the specific needs of a marginalised and, to some extent, misunderstood group, it is important to be well briefed and to ensure that there is clarity of purpose from the outset. In particular, a prospective provider needs to be able to answer two questions: is there a clear need for a scheme of this sort; and, do we have the will and capacity to be able to meet it? 

Understanding the world of asylum seekers and refugees The whole question of asylum seekers and refugees attracts a great deal of, generally, negative press coverage. There is a great deal of misinformation about the reasons why people seek asylum, how they achieve refugee status and the rights and entitlements they have thereafter? An organisation seeking to work with refugees (asylum seekers who have gained some form of right to remain in the UK) must make sure that it is well briefed and that within the organisation there is a real understanding of why they are considering a housing project aimed at refugees. Talking to local refugee organisations and groups is good starting point in building awareness and understanding and HACT has produced series of publications that are very useful in clearing up misconceptions and in explaining important legal issues. (Details can be found in the bibliography at the end of this Guide).

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The housing needs of refugees When asylum seekers are given ‘leave to remain’, they lose the temporary accommodation that has been allocated to them through the NASS scheme (National Asylum Support Service). At this point they gain broadly the same rights and entitlements as UK citizens, but they also find themselves potentially homeless, with a very limited period in which to find alternative accommodation1. Contrary to popular mythology only a small proportion of refugees gain immediate access to social housing; the great majority end up living in the private rented sector. Often this is in very poor quality, high rental and insecure accommodation.

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The maximum is 28 days, but delays in receiving decisions can often mean that in practice the time available to find alternative housing is much less. At this stage (because asylum seekers are not allowed to work) the majority of refugees do not have paid employment, and the fact that they have to rely on benefits limits still further their ability to find adequate housing. 15 www.hact.org.uk

Many refugees find themselves actually homeless at some point. The UK Border Agency’s Survey of New Refugees in the United Kingdom found that 4% of the respondents in their survey had slept rough, and a further 8% had at some point lived in a shelter for homeless people. The Home Office Research Report in which these figures are quoted points out that they are likely to understate the true level of homelessness, since the Survey of New Refugees was a postal survey that required a fixed postal address. 

The scale and extent of those needs The scale and extent of refugee housing needs and difficulties varies considerably depending on: the town or city where they are living; the group they belong to; and how organised it is in terms of self-help solutions and so on. There are also variations in how housing authorities have responded to those needs, with some being much more proactive than others.

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Why might a PSL scheme be an effective means of addressing refugee housing needs? As noted above, the great majority of refugees end up living in the private rented sector in unsatisfactory conditions. Private Sector Leasing is a way of ‘appropriating’ part of the private rented sector so that refugees can be offered better quality and more secure accommodation at a reasonable cost.

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What links and connections would assist in the development of the scheme? It should be recognised that the world of refugee housing is a complex one and that no organisation should enter this world without undertaking some research and without consulting other stakeholders. This includes: research about the private rented sector market and ensuring effective procurement expertise is in place; engagement with a range of organisations working with refugees; and drawing on the existing body of learning about engaging with refugee organisations (see bibliography at the end of this Guide.) This process needs to be built into the project development process.

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Moving into business development After the initial scoping work, a decision has to be made whether to proceed to the business development stage. If research has demonstrated clear need and if the organisation has the will to develop the project, the next step is to look at its capacity to do so.

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2. Building Block Two: The Capacity to Deliver In setting up a Private Sector Leasing scheme for refugees from scratch the organisation concerned needs to ensure that it has the capacity to deliver. No-one should go into a PSL project assuming that it is a simple or straightforward extension of what they are already doing. All housing associations should be aware of refugee housing needs in their area and look at how they are able to respond to those needs. However, developing a PSL scheme targeted at refugees needs careful consideration and planning with clear organisational support and commitment. Before too much work is done on developing a scheme, a prospective developer needs to ask itself: As an organisation, are we equipped to work in this area or are there other organisations that might do it better? Developing a successful PSL project for refugees requires:

Organisational leadership that supports a project which sits outside the mainstream activities Developing a housing project to work with refugees is a commitment that requires strong and effective leadership. Unfortunately such schemes can be politically contentious and an organisation that wishes to work in this area needs to be fully aware of the local political implications. Sensitive negotiations may be needed at key stages of project development.

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Staff with the right range of skills required At different stages the project will require input from staff from across the organisation. The organisation will need to look at its staff skills and capacity and to consider how a cohesive ‘team’ can be brought together. In particular, there needs to be a member of the team who has – or can acquire – a good knowledge of the workings of the PRS locally, and the ability to negotiate, and form good relationships, with landlords Whatever mix of staff is available, it is likely that some form of external support from specialised agencies will be needed; as will staff training in the issues around working with refugees.

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Ability to cover the initial investment required Well-constructed PSL schemes can become self-financing within a relatively short time frame; potentially 12 months from start up. However funding and other 17 www.hact.org.uk

resources will be needed during the development period (anything from 6 months upwards depending on local circumstances) and during the take-off period. Organisations need to factor these costs into their plans and also consider whether, and how, additional funding might be sought to cover the development and start-up periods. In larger organisations some, if not all, of these costs can be absorbed, but in smaller organisations this can be more difficult. External support and the role of HACT As noted above housing projects for refugees can benefit from external support and consultancy. HACT has played this role in developing a range of projects; it can offer direct support to some projects and, in other cases, can refer interested organisations to a network of support and advice agencies, including a number of groups that are run by refugees. Building a convincing and coherent business case The business case for working on refugee housing schemes is about social purpose, organisational capacity and the development of a sound business model. Experience elsewhere shows that, in the right circumstances, this can be a very rewarding and worthwhile direction for a housing provider to go in. In constructing an initial business case all of the above factors and considerations will need to be taken into account. Ultimately any project has to work financially and this involves building a robust business model. Before that stage is reached the key elements of the project have to be put in place. Chief among these is the network of partnerships which will be needed for a project to succeed.

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3. Building Block Three: Partnership Building Building effective and robust partnerships is a difficult business and requires a great deal of determination and patience. The differing interests and values of variety of organisations have to be brought into some kind of alignment and an agreement reached as to the distinctive roles that each partner would perform. In establishing a refugee housing partnership, there are two main interest groupings that need to be addressed; those of the ‘refugee communities’ that are seeking housing for their members and those of the ‘housing authorities’ that act as enablers and gatekeepers. The delivery agent will often find themselves caught between the sometimes contradictory views and priorities of either grouping and may, of course, have to deal with internal differences as well! Whilst it is important to work with both external groupings progressively, there is merit in concentrating on the housing authorities initially as their actions (or inactions!) can determine whether or not a scheme of any kind can get off the ground. Working with Local Authorities 

The importance of Local Authority input

Any PSL scheme which has a social purpose, and any scheme that is run by a registered housing association, is likely to require some level of Local Authority input. As indicated below a number of Local Authority departments and sections are likely to have an interest in any PSL scheme. The degree and extent of this interest will vary. In some cases the LA will want to take on a commissioning role and will want to have overall control of the scheme; in other cases the LA will want to have a co-operative relationship with the scheme; and sometimes they will simply wish to be briefed and informed. 

Who to talk to? -

Housing strategy. All Local Authorities have an overall responsibility for developing a housing strategy for their area. In some cases this will address the housing needs of refugees, in other cases they will not feature. Either way, the housing strategy team needs to be consulted and if they want to take a pro-active position they may be able to co-ordinate discussions with other parts of the authority.

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Refugee support services. Some authorities will have dedicated workers/teams that lead on responding to the needs of asylum seekers and 19 www.hact.org.uk

refugees. They may be located within different departments or they may work across the authority. Sometimes they can be isolated within the authority but, either way, they need to be consulted and drawn in to the process early on. -

Private rented sector housing services. Most large authorities have a separate section that deals with the private rented sector. Some authorities take a ‘limited intervention’ approach concentrating on enforcement and licensing activities. Increasingly, as the strategic importance of the private rented sector is recognised, authorities are taking a more pro-active approach. This includes supporting schemes that actively seek to raise standards in the private rented sector, based on partnership working with landlords and the introduction of various incentives. This may extend to various forms of PSL, developed and/or promoted by the authority. A close working relationship with this section can be invaluable for any PSL scheme.

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Housing allocations. All Local Authorities have to develop a scheme for allocating social housing in their area, within a framework laid down in law and following guidance from the Government (in some authorities the administration of allocations has been outsourced to an ALMO or LSVT). In recent years there have been moves to open up the allocation process and to introduce greater flexibility, through Choice Based Lettings schemes for example. But this not aimed at making it easier for refugees to move into social housing! Strictly speaking PSL schemes sit outside of formal allocation processes for social housing but some authorities will want to see PSL as an extension of social housing provision and allocate it accordingly. This can create a real tension if the aim is to develop a PSL scheme that is targeted at refugees. There may be a need for careful negotiations about how refugees are given their own access channel and whether this is an exclusive channel or part of a wider scheme. Such considerations can be a real stumbling block for any LA sponsored scheme aimed at refugees.

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The Housing Benefit service. Although many refugees are keen to become economically active (and this is a key driver of the RIES service), they are likely to rely initially on either full or partial Housing Benefit to cover their housing costs. This means that any PSL scheme is going to need an effective partnership with the HB service and a distinctive working relationship around the processing and payment of claims. PSL schemes are a form of private renting and tenants/ refugees will be able to claim Local Housing Allowance. If a PSL scheme is administered by a housing association, this allowance can normally be paid directly to the association, which is not the case for unregistered private landlords. The issue of rent direct can be contentious one but, in terms of building a credible financial model, it is undoubtedly very helpful that this facility exists for housing associations acting as PSL agents. 20 www.hact.org.uk

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Other Local Authority funding streams. It is worth noting that there may be other funding streams that the Local Authority can make available to support PSL schemes; these can include:• funding for homelessness prevention and/or to deal with temporary homelessness • funding to support specific categories of asylum seekers/refugees, such as unaccompanied minors. This funding can be helpful but it may skew the shape and purpose of a PSL scheme for refugees. • payments made to individual claimants under the Discretionary Housing Payments rules

Promoting/developing the idea of a PSL scheme for refugees. Given the number of Local Authority departments and sections with an interest in any scheme, it is clear that liaising with any authority can be time consuming and at times frustrating process. The key to success is to find a section/individual with sufficient authority to drive the process through and to recognise that competing interests may have to be accommodated. There may be pressure to ‘water down’ any scheme that is aimed at specifically at refugees and this may require some difficult compromises.

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PSL schemes with limited Local Authority involvement. Although some form of Local Authority involvement is necessary in a PSL scheme for refugees, it is possible to develop schemes with limited LA involvement. If negotiations with an authority are unproductive or if the political climate makes it difficult to engage fully in the first place, then this route could be considered. Such a route will still require arrangements around HB payments and it should still connect to the refugee support role of the authority but it could sit outside the strategic framework and outside the allocations system.

Working with refugee organisations This is a precondition for developing a worthwhile scheme and a whole section of the first part of this Guide is devoted to the subject. In building relationships it is important to take into account the timetables that most public sector organisations work to. Public sector organisations will tend to be cautious and risk averse and they can be slow to respond to any proposition that sits outside their comfort zone. This can be very frustrating for refugee organisations and for any organisation committed to working with them. At the same time it should be recognised that some refugee organisations may want to ‘proceed in haste’ without a viable business model and without the skills required. It 21 www.hact.org.uk

should also be acknowledged that the housing provider/agent will have their own limiting factors. The key is building partnerships that: play to the partners’ strengths; have clearly articulated roles and relationships; and allow for the growth, development and resourcing of the smaller more inexperienced partners. Partnership agreements 

Delivery partners

PSL schemes for refugees are likely to depend on several partnership agreements. On the basis of experience there are likely to be two kinds of agreements needed, although there can and will be overlap between the two. Firstly if a project is based on a delivery agent (likely to be a housing association) providing housing for refugees then there will be need for an agreement that sets out how any delivery partners are going to be involved. The possible nature and extent of this involvement is explored in the section on Developing Housing Services for Refugees in Part One of this Guide (particularly pages 5-8). 

Service Level Agreements

Where there is direct Local Authority involvement in a PSL scheme then it is important to set out the agreed arrangements in a Service Level Agreement between the authority and the PSL provider and this agreement should be comprehensive covering the input from all LA departments/divisions. Such agreements are needed to ensure that all parties adhere to agreed processes and they may include the performance targets for the PSL provider.

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4. Building Block Four: The Property Standard Private Sector Leasing is about taking on properties from the private rented sector and renting them out to people in housing need, in this case refugees. Responsible housing providers such as housing associations will want to ensure that such properties are of a good standard and that they conform to the legal obligations, which any landlord has to meet. Experience has shown that in most cities and towns there is likely to be a reasonable supply of suitable properties. Moreover there is anecdotal evidence that established PSL schemes act to drive up property standards. 

Setting a property standard

Various factors come into play when setting a suitable standard; they include legal requirements, the standard which the provider applies to its own social housing stock (based on the Decent Homes standard), Local Authority standards for private rented stock and, importantly, achieving the highest possible standard for tenants. It is also worth noting that some refugees may have different expectations and understanding about the minimum standards of housing. 

The Housing Health and Safety Rating System (HHSRS)

The starting point for any assessment of property condition is the HHSRS, which was introduced by the Housing Act 2004. This is a system which is designed to eliminate/minimise risks in properties, and it doesn’t set a defined standard as such. It covers 29 individual hazards and most Local Authorities have developed some form of HHSR checklist, which they will expect any property procured for PSL to conform to. In some instances they may wish to carry out inspections themselves. 

Safety and other certificates

Housing associations will be familiar with the legal obligations that landlords have in relation to safety. In PSL it is the owner who has to supply the Gas Safety Certificate. It is also recommended that for PSL schemes an NICEC Electrical Safety Certificate and an Energy Performance Certificate are obtained from the owner. 

Fire safety

There are no specific fire regulations for residential tenanted properties in England and Wales (apart from Houses in Multiple Occupation; see below). Regulations do apply to any furniture/furnishings provided and to the provision of alarms. All properties built after 1992 must have mains operated fire alarms at every level and properties built before then should have battery operated alarms, with clear guidance as to who is 23 www.hact.org.uk

responsible for testing/maintaining it. It is good practice to specify a fire extinguisher and fire blanket in kitchen areas. 

Decent Homes Standard plus

The full Decent Homes Standard does not currently apply to private rented housing but again for PSL purposes it is recommended that a standard in line with Decent Homes is applied. It may even make sense to go beyond Decent Homes and for example to specify central heating and double-glazing throughout. It is also important to insist that any property is in good decorative order, that it is clean and tidy and that it has specified white goods. On the whole, furnished properties are to be avoided as damage to/loss of furniture can lead to disputes. It makes sense to encourage new tenants to acquire their own furniture etc. as part of the process of developing a sustainable way of life. Refugees who have been granted leave to remain are able to apply for an Integration Loan of up to £5002 from the UK Borders Agency, which can be used to cover housing, education and employment-related costs. 

Applying the standard

When approaching owners and when inspecting potential properties, it is important that the staff member responsible is thorough and that any potential risks are identified. Negotiating with owners is a critical part of the process and, with a firm but reasonable approach, it is normally possible to get owners of potential properties to carry out any works needed. When the property reaches the agreed standard and prior to entering into the lease, a detailed schedule of fixtures and fittings and a photographic record of the condition of each room needs to be mutually agreed. 

A note on Houses in Multiple Occupation

Mandatory HMO licensing applies to all privately rented HMOs of three or more storeys and occupied by five or more people who form more than one household. PSL providers need to be aware of this requirement and to establish if it applies to any property they are looking to lease. More information on this should be obtained from the Local Authority.

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This is the maximum as at September 2010; the loan is interest-free and must be paid back within 5 years; there is a cap on weekly repayments for those on benefit – currently £3.30. 24 www.hact.org.uk

5. Building Block Five: The Lease A clear, comprehensive and well-structured lease is by definition essential to any Private Sector Leasing scheme. Any omissions or weaknesses in the lease will seriously undermine the viability of the scheme. It is not the intention in this work sheet to provide a model lease. Key aspects of any PSL lease are highlighted below but this is not an exhaustive list; it is essential that any provider that is setting up a PSL scheme seeks legal advice over the lease. 

Lease structure A standard lease will contain a number of sections including; the parties to the lease; the particulars or details of the lease; the tenant’s (PSL agent’s) obligations and responsibilities; the landlord’s (owner’s) obligations and responsibilities; ending the lease; supporting schedules.

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The parties to the lease Clearly the lease has to be between the property owner and the PSL agent. Often a managing agent will act on behalf of the owner but it is essential that the actual owner enters into the lease. If in doubt it may be necessary to obtain proof of ownership with undertakings that there is no reason why the owner cannot lease the property out (i.e. any mortgage conditions).

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The particulars These set out the terms and conditions under which the lease is being entered into. If the lease is for less than seven years it does not have to be registered with the Land Registry but it is important to record full details of the property, the term of the lease and any other conditions that apply to the lease.

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The tenant’s (PSL agent’s) obligations and responsibilities This sets out the rental payments to be made, the payment schedule and the process for reviewing the rent; normally on an annual basis using some kind of agreed formula. The PSL agent undertakes to make payments irrespective of whether the property is occupied. A very important part of this section refers to the condition in which the property will be handed back to the owner and the process for agreeing any necessary works to be carried out. In practice this is a critical area of the lease and if it is not framed carefully it can cause significant problems for the PSL agent over what are called dilapidations. In some leases some kind of cost ceiling is put on such works. 25 www.hact.org.uk

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The landlord’s (owner’s) obligations and responsibilities This section deals with the landlord’s responsibilities including repairs. In PSL schemes the owner retains full responsibility for undertaking repairs. This must be spelt out at the time the lease is entered into and a process agreed for reporting and carrying out repairs. This should cover a process for carrying out repairs in default with the costs being deducted from rental payments. Also in this section the landlord’s responsibilities for insuring the property and dealing with claims are set out and the requirement for relevant safety and other certificates.

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Ending the lease The lease is for an agreed term and if all goes well it is assumed that it will run for this period. However the lease will contain break clauses on both sides (normally at least 3 months notice) and it will also set out the conditions for terminating the lease if either party breaks the conditions of the lease (for example, if an owner fails to meet the repairing obligations).

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Supporting schedules The lease is supported by a number of schedules, including details of the property condition and the schedule of fixtures and fittings and a copy of the ‘occupancy agreement’ which is the tenancy agreement which the PSL agent will offer their tenants (normally an Assured Shorthold Tenancy agreement with suitable modifications to repairing obligations).

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Ensuring owners are aware of their responsibilities under the lease Leases are legal documents and as such they can be difficult to read and understand. It is essential that property owners recognise their responsibilities under the lease when they sign it. It is helpful to provide an easy-to-read summary of these for owners.

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6. Building Block Six: The Business Model The business model for Private Sector Leasing Scheme is in one sense a familiar one to all housing associations - a housing revenue account. But it also differs from normal revenue accounts in important ways. Income assumptions 

Rental income

The rental income for a PSL scheme is based on Local Housing Allowances. These are set for every Local Authority area on monthly basis and they cover all property sizes. In projecting the likely rental income assumptions need to be made on the mix of properties to be procured, the areas in which they are located and the ‘probable’ rents to be charged. The important thing to realise is that all of these assumptions will change over time as the scheme is rolled out and rental income projections need constant monitoring and updating. 

Property turnover; rent loss and bad debts

Experience has shown that assumptions on the loss of income through high turnover and bad debts on PSL schemes need to be higher than on conventional schemes. 10% is a sensible planning figure, which can be adjusted in the light of experience. High quality rent accounting is essential for PSL schemes to keep track of actual losses. 

Additional income

As noted earlier (see p19, “Other Local Authority funding streams”), PSL schemes can attract additional income and this can be of considerable benefit for schemes working with refugees. Expenditure assumptions 

Rental payments

The main item of expenditure on the scheme will be the rental payments to be made to the owners under the terms of the lease. These payments must be set in way that ensures that the PSL agent gets a sufficient share of the rental income (based on LHA) to cover all items of expenditure plus a reasonable operating surplus. The figure for the ‘management allowance’ that should be charged needs to be based on actual costs; c£1000 per annum per property is an indicative planning figure. Owners 27 www.hact.org.uk

will want to be paid as high a proportion of the rental income as they can achieve, whilst the PSL agent will want to retain sufficient income to cover all conceivable costs. It should be remembered that conventional management agents can charge as much as 20% of rental income and that does not protect owners from loss of income when properties are unlet. PSL is a good deal for owners and needs to be promoted as such. Rent levels will to some extent be determined by affordability considerations; from October 2011, Local Housing Benefit will only cover rents which are at or below the 30 th percentile within the relevant Broad Rental Market Area. This may in turn limit the areas in which it is possible to develop PSL schemes, which need to be able to generate both a return to the landlord which will attract them to the scheme, and a management allowance which covers the PSL agent’s costs. 

Staffing costs

This is the main operating cost to be factored into any HRA account. In the start-up period, staff costs will be high and expenditure will exceed income until a critical mass of properties is achieved (depending on the level of management fee, this could be 100 plus). Staffing projections have to allow for: staff time on procurement and on negotiations with owners; the time for letting and allocating properties; and for settlingin visits. Staff costs also have to allow for repairs administration, which can be as intensive as for conventional housing schemes, even though the responsibility for repairs rests with the owners. All staff costs will be on a steep gradient initially. 

Repairs administration

As noted above the owners are responsible for all property repairs but under PSL the agent agrees to administer repairs and, in some cases, to undertake the works on behalf of the owners. It is reasonable to assume that the cost of the administration of repairs is comparable with mainstream housing accounts. 

Repairs ‘sinking fund’

Earlier in the worksheet on the lease, the question of reinstatement works at the end of the lease was explained. If the property is in good condition initially and if it is well maintained with regular inspections then these should be minimised. An annual contribution per property to a ‘sinking fund’ should be set per property. £200 is an indicative figure that can be used in planning but it needs to be adjusted according to the property type and in the light of experience.

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One-off costs

Clearly setting up a PSL scheme involves a number of one-off costs. These can include legal costs for the lease/rental agreement, the costs of promotional material and the costs of new administrative software. 

Modelling growth and development

PSL schemes can grow quite rapidly depending on; the demand for properties; the ease with which suitable properties can be procured; and the capacity of the organisation. It is important to develop any scheme in a planned way, taking advantage of growth opportunities whilst keeping a tight rein on finances so that the scheme can move to break even and then surplus as soon as is practicable. Typically schemes should be modelled for over three years. 

Risk assessment

PSL schemes carry a number of risks that have already been highlighted. It is important to examine a number of ‘what if’ questions and model their impact on the business. So for example; ‘what if rent loss/bad debts reach 15%’ or ‘what if property reinstatement costs after 3 years are £1000 rather than £600’ and so on. PSL schemes can achieve good surpluses if the business model is carefully constructed and if risks are managed. In addition it is important to consider the risks associated with this specific group; high turnover of tenants for example.

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7. Building Block Seven: Marketing the Scheme Before any PSL scheme can proceed it needs to be marketed. The scheme has to be advertised, owners approached, properties inspected and leases negotiated. The staff involved in this process need particular skills in property assessment and they need to develop an intimate knowledge of local housing markets. In dealing with owners they require good negotiating skills. The work should be guided by a marketing plan, which covers the type of properties being sought, suitable locations to be explored, information about the state of the private rented sector and an advertising strategy. 

Housing needs and the property profile Every PSL scheme for refugees must be built around local needs and priorities. Consultation with refugee support agencies and others will enable the PSL agent to develop a property profile. This should include the refugee groups to be housed (with information on their different nationalities/histories and on relevant support networks), the mix of properties needed and expressed preferences regarding localities/facilities.

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Housing localities Where refugees choose to live is dictated by the availability of properties that landlords are prepared to let to refugees (normally the poorest quality and least secure) and by an understandable tendency for individual groups to ‘cluster’ in certain neighbourhoods to provide a sense of security and to give access to certain facilities such as places of worship, social clubs etc. The traditional areas of refugee settlement typically offer the worst properties at disproportionately high rents. PSL schemes can give refugees the chance to access much better quality and more secure housing in a wider range of area, and work needs to be done with refugee groups to broaden and expand the range of suitable areas. Such areas may need to be adjoining existing areas of settlement or on good transport routes. Localities with a history of hostility to newcomers need to be ruled out or approached with caution.

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Market intelligence In considering potential locations it is important to build up knowledge of the private rented market in the area. Local Authority private sector housing staff generally possess good market intelligence and this can be invaluable. Without this, the PSL agent will need to gather intelligence by collecting market information from estate agents, the property press/websites etc.

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Promotional literature Whilst developing a plan for entering the market, promotional literature needs to be developed. This should consist of a number of well-produced leaflets/handouts in plain English. The leaflet for owners/landlords should explain the key elements of PSL scheme and it should explain clearly the benefits for them in becoming part of the scheme. The status of the PSL agent and their credibility needs to be stressed. Local Authority endorsement can be helpful. The leaflet for refugees/support agencies should explain how the scheme works for tenants, the degree of security on offer, the quality of the properties, the support available and indicative rents (based on LHA). It should describe the referral/application process (including interpreting/ translation services available) and confirm the status of the PSL agent and the nature of the PSL partnership. Finally, a general leaflet for other interested parties should describe the overall scheme, setting out its broad objectives and how they will be achieved through PSL. It should include of a profile of all of the partners. 

Promotional methods A variety of promotional methods can be used to reach owners/landlords. Initially mailings via Local Authority landlord forums/accreditation schemes should be used as this both stimulates interest and gives the scheme credibility. Beyond this, a variety of methods can be used including advertisements in local press, direct leafleting in suitable areas, word of mouth etc. To reach refugees the best method of promotion is to go through support and referral agencies and via refugee community organisations. Care should be taken not to over promote the scheme thereby stimulating demand that may be difficult to meet.

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Selling the scheme to owners As inquiries from owners come in they need to be responded to swiftly, with an effective recording/booking system. Initially most owners will be sceptical. When they are interviewed the staff involved have to be able to ‘sell’ the scheme, setting out the benefits to owners and the safeguards; whilst explaining the property standards and the lease. At the same time, staff need to ‘vet’ owners to identify those owners who are genuinely interested and who can be relied on.

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Signing up owners and entering into the lease If the owner has suitable properties at appropriate rents available then the process of ‘signing up’ starts. This includes; a full property inspection and agreement re any works required and fittings to be supplied; negotiations around rent payments using the LHA minus management allowance formula; and outlining the provisions of the lease, including repairs obligations and processes, insurances, safety certificates. There also needs to be agreement regarding property viewings. It is useful to have a 31 www.hact.org.uk

checklist to ensure all points are covered. It should be explained that the leases will not normally be entered into until a suitable tenant is found. And a payment free period should be built into the lease (say 2 weeks) to allow for tenants to be signed up and moved in. 

A continuing process Marketing PSL schemes will be a continuing process as the scheme grows and as properties have to be replaced as leases come to an end. Once PSL schemes are established, owners will tend to introduce themselves and marketing will gradually become less labour intensive. Marketing activity will need to be regularly adjusted as the scheme evolves.

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8. Building Block Eight: Responsive Housing Management At the heart of a PSL scheme for refugees is a responsive and informed housing management service. A service that is sensitive to needs of the people being housed and a service which sees the scheme as a basis for refugees putting down roots and becoming part of the wider community. Many of the management processes will be similar to mainstream housing management but some of them will differ because of the nature of PSL schemes and the needs of the tenants. 

The policy and procedural framework As with any housing management service there is a need for a framework of policies and procedures covering all aspects of the operation. This framework should be similar to the one used for the management of mainstream stock. However certain features will differ in content and/or in application. The framework needs to be developed into a management manual and summarised in the tenants’ handbook.

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Housing management staff The staff employed to manage the PSL scheme need all of the skills required of good housing managers, plus an understanding of the disciplines of the PSL scheme and of the needs of refugees. It is desirable to employ a lead member of staff dedicated to the scheme and if they have a background in refugee support so much the better. HACT is currently running a scheme, Reach In, in which refugee placements receive training and work experience from a group of housing associations across the country. Many refugees have excellent transferable skills and are keen to work in the housing sector; they would be ideally suited to work on such a scheme.

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Support workers Many refugees have access to refugee support workers early on and these workers can play an important role in helping their clients to take advantage of any PSL scheme. Often these workers will be employed by a refugee support agency (such as a RIES agency – see description of RIES at start of Guide) and ideally there will be an agreement between the agency and the PSL provider as to how support workers engage with PSL. With or without such an agreement, it is essential that support workers understand the whole nature of the PSL scheme, including the responsibilities and obligations involved, so they can advise their clients accordingly. Because bad landlords often exploit refugees, there can be a tendency for support workers to take an adversarial position on behalf of their clients, which can be unhelpful. Genuine partnership working needs to develop between PSL housing managers and refugee support workers, so that refugee tenants can make the most of what the scheme offers. 33 www.hact.org.uk

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Allocating properties The process of allocating tenants to properties requires particular attention for PSL schemes aimed at refugees. Partnership working with support workers and other agencies is particular critical at this stage. Firstly, care has to be taken in finding properties that meet the particular needs of refugees, taking into account their preferences in terms of location, form of housing etc. Refugees are often ‘inexperienced’ tenants and they require guidance on the whole process of renting, their responsibilities, what they can reasonably expect and so on. Secondly, in PSL the timetable for securing the property, identifying the tenant, signing the lease and tenancy agreement and moving the tenant in has to be tightly managed in order to retain the owner’s interest and/or to avoid rent loss.

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Property visits and lettings As properties become available, then visits for prospective tenants need to be organised with the consent of the owners and/or their agents. With a good referral/allocation system the aim should be to achieve a rapid take-up of each property. Ideally support workers, if they have one, should accompany refugees when they visit properties and when the property is let to assist with translation and interpretation. If prospective tenants refuse the property then it is important to have a process that can bring forward other prospective tenants rapidly to avoid delays to the leasing process or, if the lease has been signed, to avoid undue loss of rental income.

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Signing up meetings Signing up meetings for refugee tenants need to be thorough and inclusive and ideally they should be ‘on the spot’ with a support worker, rather than in the office. This starts with going through the tenancy agreement – which is likely to be a suitably adapted Assured Shorthold Tenancy - and the tenants’ handbook. HB claims should be completed and the verification process agreed; this should be part of a wider benefit assessment covering other entitlements including accessing loans for acquiring furniture etc. Rent payment methods and repairs reporting procedures should be explained and, whenever possible, information should be supplied about local facilities and resources. This meeting is about establishing a relationship between the refugee tenant and the housing worker/the PSL provider; this relationship will be the key to developing a sustainable tenancy.

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Follow up visits. It is good practice to have a ‘settling in visit’ after 6 weeks to sort out any outstanding difficulties and queries. Thereafter, it is good practice to visit tenants 34 www.hact.org.uk

twice a year to assess how they are managing, to discuss issues with them and to keep an eye on the condition of the property. The level of tenancy support needed will, of course, vary from tenant to tenant and should be planned accordingly. 

Rent collection and owner payments Rent collection policies and procedures for a PSL scheme will be very similar to those for mainstream housing. Liaising with tenants over arrears and HB payments may require some additional attention depending on how each tenancy develops. It is important to ensure that rent arrears are tracked particularly closely on a PSL scheme and, by the same token, it is important to ensure that owner payments are checked and processed efficiently.

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Repairs administration Repairs administration on PSL schemes differs from mainstream housing in that repairs obligations remain with the owner. When the lease is signed arrangements are put in place for reporting repairs to the owner, for categorising the repairs and for tracking whether they have been undertaken. The responsibility for appointing contractors and paying for works rests with the owner unless they reach an agreement for the PSL agent to organise repair works (as authorised by the owner). The owner should also specify an out-of-hours emergency repairs service, although the agent may supply this. Repairs staff must understand exactly how the PSL repairs process is organised and act accordingly. PSL repairs must be kept apart from inhouse repairs. Repair timetables (according to conventional categories) have to allow for an extended reporting and implementation process. As noted earlier, if the landlord fails to undertake a repair within the agreed timetable and if they fail to respond to warning letters, then the agent will carry out the repair and deduct the cost from the owner’s monthly payment.

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Harassment and anti social behaviour Unfortunately refugee tenants are more likely to experience harassment. Selecting the right kind of properties in more ‘secure’ neighbourhoods can mitigate this threat, but it is important to have effective methods for dealing with harassment in place. Support arrangements with local agencies, links with the police and so on will be part of this, as will a good relationship between refugee tenants and housing officers. In this way, incidents can be dealt with sympathetically and speedily. It should also be recognised that, in some cases, refugee tenants will act in ways that cause a nuisance. This may be to do with them adapting to the different lifestyles and customs of the UK or it may be to do with learning how to live in their new property. Either way supportive housing officers will need to intervene appropriately.

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A dedicated management system It will be clear from the above that PSL schemes require administrative and management systems that are specific to the scheme and which ensure that the performance of the scheme can be effectively tracked and monitored. Most housing association computer based management systems are unsuitable for PSL schemes, unless they have the capacity to run an entirely separate housing management account. The alternative is to develop a bespoke system using suitable software. This may need to ‘talk to’ the main system whist maintaining a discrete PSL recording and reporting capacity.

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Desirable outcomes Whatever management structures and processes are adopted they must achieve two main outcomes. They must ensure that the PSL scheme is run effectively as a self-sustaining housing business, and they must support refugee tenants in managing their tenancies, in putting down roots, including registering with a GP and getting children into school) and in using PSL as a basis for finding stable long-term housing.

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9. Building Block Nine: Long Term Housing Solutions PSL schemes for refugees are about providing a stable and secure form of housing that gives them the opportunity to establish themselves, to achieve a form of ‘integration’ that enables them to make the most of their new circumstances. They are also about host communities having the opportunity to welcome in newcomers and to benefit from the skills and enthusiasm that most refugees bring to their adopted country. Housing and support workers need to work with the refugee tenants to plan ahead. 

Housing options Housing options and alternatives need to be discussed with refugee tenants as they begin to consider ‘what next?’ Most refugees want to gain access to social housing, particularly Council housing, but there will be alternatives. They need to register with the Local Authority and they need to understand how the allocation systems for social housing work.

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End of tenancy When the tenancy comes to an end (because the lease has come to an end or been terminated) several options should be considered for the tenants. The first option is for the tenants to remain with the PSL scheme either in their existing home, if the owner wants renew the lease, or in another PSL home. The second option is tenancy conversion in which the refugee tenants become direct tenants of the owner/landlord. And a third option is rehousing into social housing or into privately rented or owned accommodation.

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End of lease PSL schemes have to be continuously aware that the ‘clock is ticking’ on their properties, in the interest of their tenants and in order to stay in control of the PSL scheme. Prior to the end of lease, discussions need to take place with the owner over their preferred options; the property will have to be inspected and a careful assessment made of any dilapidations prior to any negotiations with the owner. As noted earlier, good records are essential to minimise the potential for disagreement.

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USEFUL PUBLICATIONS From HACT Accommodate – better together. Summarises the achievements of the Accommodate project, examining each of the five partnerships in detail. It outlines a number of learning points, in boxed examples throughout the report. It also explains the changing context for refugee housing during the project’s lifecycle, and examines how and why HACT managed the project using the principles of network management. Published in November 2008. Downloads: Accommodate – better together (48pp). executive summary (12pp). Success factors – Making Partnerships Work: the five Accommodate partnerships demonstrated the benefits of partnership working – and some lessons for the future. Download: Success factors. Pioneering change: at a time when the availability of social housing was declining, the five Accommodate partnerships delivered tangible outcomes that met the housing needs of refugees. Download: Pioneering change. Accommodate newsletters. The full collection of newsletters from the Accommodate project, from May 2004 to June 2008. They include articles on: perspectives on partnership; the challenges of partnership working; strengthening community involvement in partnerships and developments within the five partnerships; the impact and outcomes of exchange visits between the five partnerships; key achievements, learning and legacy from the project. Download: all six newsletters Opening Doors Toolkit. This toolkit can help organisations starting new projects or reorienting their service delivery, to meet the needs of refugees and new migrants. Download: Opening Doors toolkit. 38 www.hact.org.uk

Opening Doors Evaluation report: The report summarises key points from the evaluation and includes recommendations for social housing providers, CIH and HACT about following up the Opening Doors project. Download: Opening Doors evaluation report. Housing rights web site: Developed jointly by HACT and CIH, this provides up-to-date information about the housing rights of refugees and new migrants. Link to site: housing-rights.info Training modules: These training modules have been developed to help housing providers develop relevant strategies and practices to provide housing and support services to refugees and new migrants. They were produced as one of the outputs of the Opening Doors project, run in collaboration with the Chartered Institute of Housing. Download: all training module material Literature review. One of the outputs from the Opening Doors project was a review of literature about refugees and new migrants. Download all four literature reviews. UCAN Drive. Part of the Opening Doors project, the UCAN Drive project was developed by St Vincent’s Housing Association in Bolton. This document is a short explanation about the project. Download UCAN Drive report. Between NASS and a Hard Place. (June, 2003). A study of the impact of the Immigration and Asylum Act 1999 on refugee housing and community development. It involved interviews with asylum seekers, refugees and representatives of relevant agencies, and focus group discussions in three cities – Hull, Sheffield, and Wakefield. Studies were made of provision for refugee housing, both public and private, and the role of government agencies, local authorities and the voluntary sector. Recommendations emerging from the study, included: greater recognition of, and support for, the role and development of refugee community organisations; measures to improve the safety and inclusion of refugees; settlement planning and policy that recognises the different stages of refugee housing need – including the vital involvement of refugees, asylum seekers and refugee community organisations at all levels of decision-making. Download: 39 www.hact.org.uk

Between NASS and a Hard Place Mapping the field: (November, 2006). A report on the outcome of a project commissioned by HACT and the Welsh Refugee Council to identify the main gaps in provision for refugees and asylum seekers, to consider how they might best be filled, to ascertain the extent of co-working and collaboration, and to highlight key barriers to greater co-operation. Download Mapping the field – report; or download the summary version of the report.

Other publications and links Research Report 37. Spotlight on refugee integration: findings from the Survey of New Refugees in the United Kingdom: A longitudinal study over 21 months of new refugees, looking at language skills, employment and housing issues. Download: http://rds.homeoffice.gov.uk/rds/pdfs10/horr37b.pdf Refugee integration loans: A link to the UK Borders Agency web page giving details of the loans scheme and how to apply: http://www.ukba.homeoffice.gov.uk/aboutus/workingwithus/workingwithasylu m/integration/integrationloan/ Housing and Support Services for Asylum Seekers, Refugees, and other New Migrants – A good practice guide: Many housing organisations provide accommodation to new migrant groups - asylum seekers, accepted refugees and other newcomers. This is the first comprehensive guide from a housing perspective. It emphasises the need for partnership approaches especially with refugee organisations. It also points out how important it is to have a strategic approach and a mechanism to establish what needs exist and whether there are services to meet them. The guide has dozens of practical examples, step-by-step checklists, and advice on training, legal issues and funding http://www.cih.org/publications/pub357.htm

Disabled people in refugee and asylum-seeking communities in Britain: This report provides:  

A review of entitlements to social and welfare services; Data on the numbers and social characteristics of disabled people in refugee and asylum-seeking communities; 40 www.hact.org.uk



Interviews with both disabled people and service providers on their experiences.

The researchers make recommendations for social care and refugee practitioners and policy-makers and those providing housing to disabled refugees and asylum-seekers. Central to these recommendations is a call for greater disability awareness and equality training for those working with refugee and asylum-seeking communities. http://www.jrf.org.uk/publications/disabled-people-refugee-and-asylum-seekingcommunities-britain

The housing pathways of new immigrants: This research explores the arrival experiences and settlement stories of new immigrants. It focuses on the housing experiences of new immigrants and considers the consequences of their arrival for local housing markets and neighbourhoods. http://www.newport.gov.uk/stellent/groups/public/documents/report/cont311220.pdf

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