Texmoore Ltd, is a UK property developer which focuses on highly profitable, high demand segments of the uk real estate market.

1. Texmoore Seminar: Supported Housing
May 2017
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Ethical Property Development
in the Social Housing Sector

2. Background
• 2015 Summer Budget: it was announced plans “to reduce rents paid by tenants in
social housing in England by 1% a year for 4 years from 2016.”
• 2015 Spending Review/Autumn Statement: the government announced plans to
“cap the amount of rent that Housing Benefit will cover in the social sector to the
relevant LHA”, including “the SAR for single claimants under 35” from April 2016.
• Early 2015: DWP and DCLG commissioned a piece of research from IPSOS Mori
• Sector lobbying resulted in:
• An exemption of supported housing from LHA cap until April 2019
• Service charges removed from 1% rent reduction and delayed until April 2017
• November 2016 – February 2017: Government consultation on LHA cap
• April 2017 – Government publish policy statement and further consultation on
short term and sheltered accommodation
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Ethical Property Development
in the Social Housing Sector

3. Introduction of LHA caps and localised top-up fund
November 2016 Proposals
• From April 2019, Local Housing Allowance (LHA) applied to supported housing
at on bedroom rate
• Rents and service charges up to the LHA rate will be paid for through Universal
Credit/Housing Benefit
• Where the local LHA rate does not fully cover the costs of rent and service
charges, a localised ring-fenced funding pot will be available to fund any gaps
• Alternative solution needed for short-term accommodation given current
structure of Universal Credit
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Ethical Property Development
in the Social Housing Sector

4. November 2016 consultation - feedback
Nearly 600 responses to the consultation
Four task and finish groups convened to support the development of the new model,
focusing on four key areas:
1. Fair access to funding (Texmoore attended)
2. Local roles and responsibilities, including ensuring value for money, quality and
appropriate oversight
3. Ensuring new supply of supported housing
4. Short term accommodation (Texmoore attended)
Joint Select Committee report published in May 2017 critical of proposals
Overwhelming opposition to the LHA cap
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Ethical Property Development
in the Social Housing Sector

5. November 2016 consultation - feedback
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Ethical Property Development
in the Social Housing Sector

6. October 2017 proposals
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2016 2017
LHA cap applied to supported and
sheltered housing
No LHA cap for supported
housing
Long-term supported and
sheltered housing have same
model
Separate models announced for
sheltered and long-term
supported housing
Separate model for short-term
accommodation
Fully grant funded model for
short-term accommodation
April 2019 implementation April 2020 implementation
Intention to increase local
government oversight
National Statement of Expectation
alongside each model
- October 25th: Announcement at PMQs that LHA cap would not be applied to
supported housing
- October 31st: Government published policy statement and consultation
Ethical Property Development
in the Social Housing Sector

7. Aims of new proposals
Rationale for reforming supported housing funding:
To secure supply now and in the future
To strengthen focus on outcomes, oversight and cost control
To ensure it works with the modernised welfare system
Four objectives of new system:
People-focused: respond to need, focused on outcomes
Funding certainty: deliver new supply to meet need
Flexible and deliverable: providers
and commissioners can implement
Value for money: for tenants and
taxpayers
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Ethical Property Development
in the Social Housing Sector

8. National Statement of Expectation
New supported housing funding models
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Outlines an overall expectation that local planning, commissioning and services
should:
1. Meet local needs
2. Ensure fair access
3. Support collaborative working
4. Promote delivery to a decent standard
5. Encourage innovation in commissioning through a strategic approach
Local authorities should be transparent in how they deliver against local plans
Additional expectations for each of the
three types of supported housing
Ethical Property Development
in the Social Housing Sector

9. Long-term supported housing
New supported housing funding models
100% of housing costs (rent inclusive of eligible service charges) will be funded
through the welfare system (subject to the application of the existing HB/UC rules)
Government will work with the sector to develop and deliver improvements to cost
control, quality and outcomes
No consultation at this stage
Additional expectations:
1. Provide support which keeps people
independent, offers a real alternative to
residential care, and enables efficient use
of stock
2. Provide transparency in reporting
against delivery
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Ethical Property Development
in the Social Housing Sector

10. Sheltered and extra care housing
New supported housing funding models
A ‘Sheltered Rent’, which keeps funding for sheltered and extra care housing in the
welfare system.
Sheltered Rent = ((Formula rent +/- 10% flexibility for supported
housing) + (£X for eligible service charge) up to a level of £Y).
Social housing regulator will use existing powers to regulate gross eligible rent
(rent inclusive of eligible service charges) charged by registered providers.
Additional expectations:
1. Plan and facilitate new supply
2. Provide support which keeps people
independent, offers real alternative to
residential care, and enables efficient use of
Stock
3. Provide transparency in reporting against
delivery.
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Ethical Property Development
in the Social Housing Sector

11. Sheltered and extra care housing
New supported housing funding models
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Key questions in the consultation:
- How should sheltered and extra care accommodation be defined?
- How can the model be designed to best support future supply?
- What are the key factors in setting service charges and what drives
variation?
- How could this model be tested?
- What are your views on the National Statement of Expectation?
Ethical Property Development
in the Social Housing Sector

12. Short-term supported housing
New supported housing funding models
Commissioned at a local level, fully funded through a local ring-fenced grant
(intended to be long term) and underpinned by a new local planning and oversight
regime
Short-term accommodation defined as:
Accommodation with support, accessed following a point of crisis or as
part of a transition to living independently, and provided for a period of
up to two years or until transition to suitable long-term stable
accommodation is found, whichever occurs first.
All funding for housing costs previously met
from Housing Benefit will be allocated to
local authorities to fund services
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Ethical Property Development
in the Social Housing Sector

13. Short-term supported housing
New supported housing funding models
Funding to be set on current projections of future need, informed by discussions
with local authorities, and held at upper tier
Model designed to give local authorities enhanced role in planning and oversight
Introduction of strategic supported housing plans, supported by a needs
assessment, which outline:
- Description of provision for all client groups
- Description of provision for those with no local connection
- Joint working with out-of-boundary local authorities
- Detail of consultation with other partners
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Ethical Property Development
in the Social Housing Sector

14. Short-term supported housing
New supported housing funding models
Additional expectations
1. Enable fair access, even where no local connection has been established
2. Support individuals to move on to independent accommodation
3. Report against spend
Local authorities will report on spend twice a year, broken down by client groups
Focus on move-on as a key outcome for people
Removes short-term accommodation costs
from welfare system but individual
entitlement will be unchanged
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Ethical Property Development
in the Social Housing Sector

15. Short-term supported housing
New supported housing funding models
Key questions in the consultation:
- What are your views on the definition of short term accommodation?
- What design features are needed to provide assurance that costs will be met?
- What are existing arrangements around supported housing plans and needs
assessments in your local area?
- What arrangements are currently in place for supporting people with no local
connection?
- What are your views on the National Statement of Expectation and the new
oversight arrangements?
- How can commissioning be better aligned between housing and support?
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Ethical Property Development
in the Social Housing Sector

16. Consultation information
Consultation papers and the task and finish group reports can be found on the
Government website, deadline is Tuesday 23rd January 2018:
https://www.gov.uk/government/publications/funding-for-supported-housing
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Ethical Property Development
in the Social Housing Sector