Roadmap for improving access to social housing in Jersey.

Roadmap for

improving access to social housing in Jersey

R.121/2023

JULY 2023

Ministerial Foreword

In Jersey, we should be proud of the standard of social housing we have available to support Islanders. This is in no small part thanks to our own housing provider, Andium Homes, who have in the last decade not only transformed the standard of social housing in Jersey but are also now well on-course to realise their ambitious programme to deliver 3,000 new homes by 2030.

As a result of this success, Jersey is in a position where it can start to widen access to social housing, with the confidence that demand for social housing is going to be met as a result of the increased supply of homes.  

As Minister for Housing and Communities, I would like to see social housing – where rents are set at a maximum of 80% of market rate – being accessible to all Islanders who may need help with housing costs, which is especially important as Jersey continues to experience housing and cost of living pressures.  

We have an opportunity now to not only make changes to the Affordable Housing Gateway eligibility in light of additional housing supply that is becoming available, but I would also like to see greater investment in how we manage and promote access to social housing. This includes taking the opportunities to rebalance demand across the gateway to help people get housed more quickly, whilst taking the time to ensure that the true level of social housing demand is better understood.

We are striving to achieve a housing market that can meet the needs of everyone in our community, and over the next couple of years we should see the waiting list for social housing reduce whilst new homes for purchase are also delivered.

I am very grateful for the hard work of Andium Homes and the ongoing support of the housing trusts who help us to make sure great homes are available to our Islanders who are in greatest need, now and in the future.  

Deputy David Warr

Minister for Housing and Communi es

[1]Roadmap for improving access to social housing in Jersey

1. Background

1. Social housing plays a vitally important role in our community, providing affordable, good standard and secure accommodation to people in housing need. Andium Homes and the housing trusts have a strong record in the provision of social housing, and today they provide accommodation to more than 5,800 households in Jersey, representing 13% of Jersey's overall housing market1.
2. A well-functioning housing market has a range of housing types to meet the spectrum of needs across a community. Whilst there exists a long-term aspiration to increase the rate of home ownership in Jersey, it is also essential that Islanders are given fair and equitable access to decent housing that they can afford, and thus it is also necessary to provide housing that can support those at the lower end of affordability and for those with additional health and social care needs.
3. Access to social housing in Jersey is prioritised for those with the greatest need for financial or health and social care support. Islanders who wish to access social housing are required to register on the Affordable Housing Gateway ("the Gateway"), which is subject to meeting defined eligibility criteria. Eligible persons are scored on a simple three-band priority system[2], which helps to ensure that people in greatest housing need are prioritised above people with lower needs.
4. Previous reviews of social housing have highlighted concern that the Gateway does not provide a true picture of housing need in Jersey because it excludes households who do not currently meet the eligibility criteria for social housing. The former Environment, Housing and Technical Services Scrutiny Panel's Supply of Housing Review'[3] (2015) found that "the Affordable Housing Gateway does not reflect the true extent of the affordable housing need in Jersey" (p.19). Similarly, the Environment, Housing and Infrastructure Scrutiny Panel's review of Affordable Housing: Supply and Delivery' (2021)[4] suggested "It is apparent that the Affordable Housing Gateway eligibility criteria is too restrictive and prohibits legitimate access to individuals in need of social housing. There is, however, concern that widening the eligibility criteria without much-needed supply of housing will lead to longer wait times for those on the waiting list."  
5. Eligibility to access social housing begins at age 18 for households with children (See Appendix 1), but for households with no children, the age of eligibility has traditionally been much higher. The 2019 Gateway Review recommended that eligibility for households without children should be lowered from 50 to 25 in due course, which was also reflected as a recommendation of the Housing Policy Development Board[5].

6. A commitment to gradually lower the age of access to 25 was made in the Fair Rents Plan (2021)[1] and the current Minister for Housing and Communities affirmed his commitment to this in his 2023 Ministerial Plan, with his priority to deliver "fair and sustainable changes to the affordable housing gateway eligibility criteria, further reducing the age requirement to 25 as soon as possible and reviewing the level of savings that are allowed."[2]
7. In April 2022, changes were made to the gateway criteria, by increasing income limits to better reflect household composition, introducing a household savings limit of £70,000 and, lowering the eligibility age (without children) from 50 to 40. On 1 January 2023 the current Minister for Housing and Communities further increased income thresholds to bring them in line with Income Support, recognising the increase in the cost-of-living pressures in Jersey.

2. Improving access to social housing through the Affordable Housing Gateway

1. There has been a long-standing commitment to continually widen access to social housing and itis right that this is done as the supply of social housing increases, to ensure that any such changes to do not lead to an unmanageable level of demand on the Gateway.
2. It is also the case that widening eligibility to join the Gateway sooner rather than later has the benefit of ensuring that the true level of demand can be identified, which will enable the right type and mix of homes to be delivered in the future.
3. This Roadmap for improving access to social housing in Jersey provides a transparent and step-wise approach to changes that will help to ensure access to social housing in Jersey is improved. Whilst there is a long-term need and aspiration to widen access to social housing - especially as more supply is becoming available - there is also a need to ensure that the management of the Gateway is improved; that the benefits of social housing remain targeted to those in greatest need, and, to ensure that access to social housing is appropriately promoted towards those who will benefit most.

3. Current demand for social housing

1. As of July 2023, there were a total of 813 applicants registered on the Gateway.
2. The total number of registered applicants includes 338 people who wish to transfer within the social housing stock. When a tenant moves within social housing, they will vacate a home, which then becomes available for a new tenant. The reason for someone requiring a transfer will be unique to the individual, such as wanting to relocate to a different area, or wanting to move to a larger or smaller home that will better meet their needs.
3. This means that, relative to the current Gateway figures, there are 475 applicants looking to enter social housing as new demand'. It is important to note, however, that this demand does not necessarily translate into a direct need for additional new homes. There is a continual flow of people leaving social housing due changes in personal circumstances, such as deciding to move to a home in the private sector, moving into care or passing away, and this natural change also contributes towards meeting the demand registered on the Gateway.

Figure 1: Affordable Housing Gateway statistics, June 2023

4. Whilst the Housing Advice Service seeks to ensure that the Gateway statistics are kept up-to-date, they are currently reliant on applicants advising when circumstances change, such as if they become adequately housed on their own or if their household income has changed. It is also true that not all applicants will be ready or in a position to move, and hence the level of demand registered on the Gateway is likely to be an over-representation of the true level of active demand at any given time.
5. As an example, through a combination of new supply and natural change, an additional 100 two- bedroom homes are due to become available through Andium Homes by the end of August 2023. Whilst there are currently 109 households registered as needing a two-bedroom home, the level of active demand for this type of home is believed to be currently less than twenty applicants, meaning the active demand on the gateway is imminently due to be exceeded with new supply. It is reasonable to expect a similar pattern of over-representation of demand across all types of home on the Gateway.  

6. It is important that sufficient active demand exists on the Gateway to allow the timely allocation of homes as they become available. Considering the low level of active Gateway demand for two- bedroom homes, it is timely to introduce policy changes that will ensure these homes are not left empty whilst there is clearly still a demand for social housing in Jersey. Action will be taken to introduce policy changes that will help to re-balance demand between one- and two-bedroom homes, and to prioritise an increase in maximum income thresholds in the near-term.
7. The position with two-bedroom homes also highlights the importance of demand that is represented through the Gateway to be as accurate as possible. Since the Gateway was established in 2012, no comprehensive review of applicants has been undertaken and there is increasing uncertainty as to the accuracy of the level of demand being shown. To enable social housing providers to plan for the future and to guide the Minister for Housing and Communities in making policy changes, it is considered necessary to ensure a review of Gateway applicants is undertaken as soon as possible.

4. Supply of new homes

1. Andium Homes has a well-publicised capital programme to deliver 3,000 new affordable homes by 2030; 2,000 of which are due to be social rented homes. Andium is making good progress in delivering on this programme, with over 1,000 new homes in the process of being delivered between now and early 2027.
2. Key projects currently in the process of delivery include:

Table 1: Homes in delivery by Andium Homes

3. The Bridging Island Plan also identifies a number of new affordable housing sites that will contribute to the supply of new social housing, where approximately 380 new homes are expected to yield a split of social rented (45%) and assisted purchase (55%). These sites are expected to be weighted towards the delivery of larger family homes with some supply of smaller homes in accordance with the Island Plan's housing mix and density policies. These homes will, therefore, also help to meet social housing demand, and in the case of larger three-or-four-bedroom homes, will potentially exceed the level of demand presently registered on the Gateway.

4. Whilst the current Gateway statistics continue to show a high level of demand, it is clear that through planned delivery and the realisation of longer-term capital programme expectations, the current demand can be met and taking measured steps to widen eligibility for to access social housing should not lead to a long-term, unmanageable level of demand.
   5. Roadmap for improved access to social housing in Jersey

1. The tables below set-out the roadmap approach for policy actions intended to widen, manage and promote access to social housing in Jersey.
2. The actions to widen access to social housing and their timing for implementation have been carefully considered, having regard to the new housing supply that is due to be delivered, and where specific opportunities exist to rebalance demand towards the areas of greatest supply whilst providing additional social benefits.

Table 2: Widen access to social housing measures.

3. In accordance with action W3: Further widen maximum income thresholds, the table below sets out the new thresholds that will be applicable from September 2023 (highlighted green). The proposed maximum income for households without children will not be implemented until a later date when the impact of additional one bedroom housing supply and further age reductions has become clearer:

None  £32,300  £40,700  £38,818 (indicative  £52,462 pending review in  (indicative

2024)  pending review in 2024)

1 child  £51,200  £56,400  £61,956  £68,960 2 children  £61,800  £66,900  £76,415  £83,288 3 or more children  £67,600  £72,700  £85,132  £92,079 Second  -  -  £61,956  £68,960

parent/grandparent

household (2 bed

home)

Table 3: Household income limits to qualify for the affordable housing gateway

4. Actions to improve how we manage access to social housing will help to ensure a more accurate reflection of the true level of demand for social housing exists, whilst ensuring that access to social housing benefits remain targeted towards those in greatest need in the long- term:

M3: Review social rents policy  Develop as part of  It is important that the social rents policy is We will review the social rents policy,  the long-term  designed in a way that ensures the benefits to ensure access to a rental subsidy  housing strategy in  of social housing remain targeted and remains targeted and effective for  2024  effective for those who are in greatest need. those in greatest housing need in the

long-term.  The present structure of the social rents

policy has been in place since Andium was established in 2014, with a key decision in 2021 to reduce the maximum rent threshold from 90% to 80%. Access to this subsidy is only tested at the point of entry into social housing, whilst personal circumstances can change considerably over time.

It is timely to consider the effectiveness of the current policy as part of the development of a long-term housing strategy.

Table 4: Actions to manage access to social housing.

5. The actions to promote access to social housing seek to address ongoing improvements to how we communicate with people who can benefit from access to social housing; those who may need additional support to access housing that better meets their needs, and, to ensure that we stay in contact with Islanders who have self-declared as being in housing need:

Table 5: Actions to promote access to social housing in Jersey

Appendix 1: Social housing eligibility and prioritisation prior to the implementation of specific changes highlighted the July 2023 roadmap

The eligibility criteria to access the Affordable Housing Gateway requires applicants to be:

• be aged 18 or over

• have housing qualifications (Entitled status)

• have a registration card

• have savings or assets worth less than £70,000

Applicants must also meet at least one of the following criteria:

• be over 40 years of age with a maximum gross income of £32,300 (single applicant) or £40,700 (joint applicant)

• have a medical, physical or mental disability and be in need of a special type of housing

• have a family with young children and have an annual household income below the limits set out in the following table:

When an applicant meets this criteria, they are then permitted to join the Affordable Housing Gateway, which enables them to access social housing on a prioritised basis (data as of May 2023):