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Changing the face of settingsThe UK's first choice-based lettings pilot for affordable rented housing is underway in Mansfield, and is already throwing up some compelling findings. HomeChoice was launched in March 2000 by LHA (Leicester Housing Association), with funding from the Housing Corporation and in partnership with the local authority and another RSL. Based on the Dutch 'Delft' model of lettings, the pilot is a radical approach to allocations, which evolved from research undertaken by LHA into the local housing market place. Within two months of the start of the project, over 600 local tenants and applicants had registered for HomeChoice lettings. If as expected, the 12 month pilot proves successful, it is likely to be replicated elsewhere, leading to a potential overhaul of traditional allocations policies. Back to TopObjectivesHomeChoice aims to:
Back to TopRationaleThe pilot is based on the premise that if people are allowed to live where they would choose to live, they are more likely to stay there and become part of the community. Far simpler and more transparent than the traditional points-based system, it labels properties rather than people, encouraging home hunting by customers, rather than points chasing by applicants. Ian Jennings, LHA Project Officer for HomeChoice: Every landlord has a different definition of what 'housing need' means. Traditional allocations are about rationing, properties, itself dubious proposition given patterns of changing demand: as housing professionals however well intentioned, who are we to judge what is best for our customers? There is not even any consistency in the process; there are at least 360 different points systems in the UK. Another weakness of the traditional system, which perplexes applicants, is that no information can be disclosed about why a property has been allocated to someone else. HomeChoice lets customers know exactly where they stand in relation to a successful application. Staff at LHA freely acknowledges that the decision to create consumer choice will be, revealing. By liberating market forces, landlords will be judged on the quality of their product or service as increased fluidity throws patterns of supply and demand into sharp focus. For Brian Griffiths, the experience represents a valuable opportunity: HomeChoice is not just about fairer and more customer-friendly lettings. We are using the pilot to ascertain why some areas are more popular than others, and significantly, to examine what we can do to address issues in neighbourhoods where demand has declined. As an Association we have developed localised Community Action Plans in areas of the East Midlands where problems associated with social exclusion threaten to undermine neighbourhood stability. They comprise analysis of local issues, the development of a response strategy, and evaluation involving local tenants. The pilot is a tremendous opportunity to test the impact of many of the initiatives contained within the Community Action Plans, which include environmental enhancements, anti-crime partnerships, home improvement packages, tenants' surgeries and training schemes. LHA will also use HomeChoice advertising to test the effects of varying occupancy levels, rent levels and property use on demand. A useful corollary of the pilot is savings in time and money, which would otherwise be expended in making offers, which might be refused. Back to TopEarly findingsAn important element of the pilot is the continuous analysis of performance indicators. Data is collected to enable monitoring of:
And to allow the three partner landlords to compare their performance in each area. After just eight weeks into the pilot, the HomeChoice regidtert has grown to over twice the size of the pervious waiting list. Just eight weeks into the pilot, there were already more than 600 HomeChoice registrations, a number that continues to rise. The response rate per property has varied from zero to 39 applications in the same advertisement, revealing substantial local variations in demand. One of the partners has begun testing the impact of 20% rent reductions on lettings, but it is as yet too early to make informed judgements about the result. What is already clear is that advertising does not of itself make an unpopular property popular. LHA is introducing packages of various incentives to improve the marketability of its less popular stock, using HomeChoice as the vehicle to test the efficacy of home improvements and adaptations, local lettings plans, rent discounts and other inducements. A very positive outcome which is becoming increasingly visible according to Ian Jennings, is an increase in the diversity of applicants: We are seeing a marked increase in the number of applications from working people and individuals who in the past might have been deterred by a perceived stigma 1 associated with 'social housing.' The system itself is more likely to attract a broader socio-economic spread. In the past, RSLs and local authorities might not have considered housing some groups, of people until they fell into financial difficulties. HomeChoice is now seeing applications from owner-occupiers who want or need to reduce their expenditure on for any number of reasons, perhaps as a result of divorce, separation or a change of job. The project itself is definitely generating higher levels of interest in the partners' stock all round. As the first such model to be piloted in this country, HomeChoice is being continually refined and improved with the benefit of experience. One example was the potential discrimination in favour of new applicants as opposed to transfer applicants, which began to be manifested in the first few weeks, but which has now been addressed. The issue was such that: Because all three landlords had complete discretion in terms of whether a property was designated for new applicants or transfer applicants, there was a tendency for us to prioritise new applicants because of the costs of re-letting. We recognised that transfer applicants were missing out accordingly, so we have now put both types of applicant on an equal footing, so that whether an applicant is new or a transfer, their selection will be deter-mined by their length of time on the register. That was a fairly significant decision in commercial terms, but I think the right one in terms of preserving transparency and consumer choice, which sit at the heart of the model. Similarly, the three landlords are reviewing and rationalising their existing policies on early transfers, and notice periods, which have traditionally been designed to discourage tenants from transferring, to another property -contrary to the spirit of Delft! Finally, a number of tenants who have been excluded for various reasons from the traditional register have attempted to apply for accommodation through HomeChoice. The landlords are planning to centralise the process of exclusion cheeks through HomeChoice to devote more time to housing eligible applicants. Back to TopDutch courage: the origins of HomeChoiceHomeChoice is based on the 'Delft' model of lettings (Delft is a Dutch municipality), adopted by around 80% of municipalities in the Netherlands over the last ten years, in place of a traditional points-based system. It was largely a response to varying levels of demand, and inefficiencies in the operation of that system. 'Social housing' accounts for approximately 40% of the total stock in the Netherlands. Other allocations systems were tested, including so-called 'placement policies', akin to community lettings initiatives used by many British housing providers, but these appeared to discriminate against a number of minority groups. The Delft model became widely used, partly because it reflected a growing demand for more customer-centred public services, and partly also because of its flexibility: many regional variants have been developed based on local circumstances. All involve partnership between housing associations, and most involve a seven-stage process:
It is considered a model of good practice by the Ministry of Housing, but is not imposed on providers; partners and local authorities decide for themselves the system they will operate. Back to TopFor more informationLHA can provide advice on any aspect of the development of a HomeChoice style lettings model tailored to suit the needs of your organisation, and has the experience and resources to contract to operate such a service on your behalf if appropriate. To find out more, please contact Ian Jennings, HomeChoice Project Officer at LHA. Telephone: (01623) 656249, Fax: (01623) 420480. E-mail: ian.jennings@lha.org.uk Back to TopAbout LHALHA is a housing and regeneration agency, committed to providing homes and developing highly innovative, holistic strategies for tackling social exclusion in the communities of the East Midlands and beyond. Recognising that investment in people is at least as important as investment in buildings, its core values are:
With offices in Leicester, Nottingham and Northampton, and an asset base approaching £200 million, LHA manages over 7,000 properties in 32 local authority areas.
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