Written evidence submitted by the Office of the West Midlands Police and Crime Commissioner [EXA 061]

LUHC committee call for evidence on exempt accommodation

This response has been formulated by the Office of the West Midlands Police and Crime Commissioner. The West Midlands Police and Crime Commissioner (PCC), Simon Foster, holds the West Midlands Police force to account, to ensure an efficient and effective police force with a focus on strategic oversight and scrutiny.

There are of course, many good landlords of exempt accommodation, genuinely providing an important service for those in housing need. However, the consequences of poor landlords and bad practice can include criminality and anti-social behaviour, that can have a seriously damaging impact on local communities.

It can also mean people in need of supported housing who are vulnerable, due for example, to mental ill health and drug and/or alcohol addiction, are frightened of accessing it, because they are at serious risk of becoming victims of crime or criminal exploitation.

Are there significant geographical and regional differences in the provision and the problems of exempt accommodation?

There will be geographical differences in the provision and problems of exempt accommodation due to a variety of factors that include, the availability of social housing, individual differences of landlords, the local housing market, societal and neighbourhood perceptions of exempt accommodation and social-economic factors.

However, it is important to understand that the provision and the problems that exist in relation to exempt accommodation are part of the well documented, wider national housing crisis and in particular the lack of genuinely affordable, decent, safe, secure and sustainable social housing. In addition, the provision and problems of exempt accommodation are a consequence of the lack of a regulatory regime that is fit for purpose. 

In recent years, the exempt accommodation numbers in Birmingham have dramatically increased, with more than 22,000 exempt accommodation claimants living in the city. This has grown from 3,679 exempt accommodation claimants living in Birmingham in 2014. Birmingham exempt accommodation was significantly higher in comparison with other areas within the West Midlands, let alone within the UK, with Birmingham having a key problem with this kind of accommodation.

The high number of properties in Birmingham, may be due to multiple factors, one of which is that providers of exempt accommodation favour having their properties within Birmingham as their financial income is certain here. This might be because exempt accommodation and Housing Benefit claims are processed more frequently in Birmingham. It is worth noting that issues with exempt accommodation are far more common in Birmingham than they are in the wider West Midlands. For that reason, our response will primarily be focused on Birmingham.

What is the quality of exempt accommodation provision?

When exempt accommodation is delivered well it can play a vital role in supporting those at risk of homelessness, those with support needs, or those with disabilities. However, concerns have been raised by local authorities and the citizens of Birmingham that the quality of exempt accommodation in the city is too often of poor quality.

In Birmingham, there is a problem with exempt accommodation that is poorly managed, in disrepair and unfit for human habitation. Too often, the vulnerable people living in exempt accommodation are not receiving the support they need and are entitled to. It would appear that there are no, or no adequate inspections conducted to check either the level of support that is actually being provided and/or the condition of the property in which exempt accommodation is being provided.

There are concerns that tenants are being exploited and being provided with unsatisfactory and insufficient support. The poor quality of too many of these properties and the lack of adequate support for the vulnerable people who live in them, is having a profound impact on the neighbourhoods they are based in, with suburbs that have significant amounts of exempt accommodation, experiencing a consequential adverse impact on crime, anti-social behaviour, criminal exploitation, increased drug-dealing and taking, violence, and adverse environmental issues.

How should exempt accommodation be provided and what should the service cost?

Exempt accommodation must be of good quality and provide for the support needs of the people who live in the accommodation. It must also be considerate of other local residents and ensure that communities are safe, supported, and exempt accommodation is not allowed to proliferate unchecked in particular areas.

Within the PCCs West Midlands Police and Crime Plan 2021-2025, it was suggested that the challenges provided by exempt accommodation required a multi-agency approach. This would involve agencies across the West Midlands, working together to tackle the current issues that have arisen in connection with this type of housing.

The need that exempt accommodation meets should be provided by way of social housing and the rent levels should then be commensurate with social rent levels.

Is there sufficient publicly available information about exempt accommodation?

There is information publicly available about exempt accommodation, but there is a need for this information to be more accessible. Currently, to access information about exempt accommodation in Birmingham, it has to be sought online. This raises a concern about accessibility and inclusion. It means people without access to the internet and who are unaware of what exempt accommodation is, will be unable to access the information they need.

It is important for information to be provided publicly in person, as well as online. For example, having leaflets/posters in GP services which signpost to services or drop-in sessions at support services. Additionally, the information provided to tenants living in exempt accommodation is not sufficient, with tenants being unaware of what their rights are and what support is out there for them. Tenants could be provided with welcome packs containing all of this information.

What should be the regulations governing exempt accommodation and how should those regulations be enforced?

The regulatory regime relating to exempt accommodation is unfit for purpose. It requires urgent attention.

Currently, the only part of exempt accommodation that has regulations governing it, available to local authorities, is Housing Benefits and rent. A possibility would be to review the levels of Housing Benefit that are paid for exempt accommodation and enhance the level of oversight and scrutiny applied to Housing Benefit claims that relate exempt accommodation. However, this would need to be balanced with consideration for the needs and welfare of the vulnerable people who often rely on exempt accommodation for housing.

The regulatory regime governing exempt accommodation needs to consider accountability. There is insufficient accountability for landlords and organisations, especially in the process of signing up to become an exempt accommodation provider. Landlords can take advantage of the relatively cheap and easy process of registering a new company with the UK Governments Companies House. This costs as little as £12 and completion takes less than 24 hours.

Exempt accommodation is open to exploitation from the beginning, as this system does not vet applications or check the details they provide. Organisations like Companies House need to be accountable and so as to make it harder for their systems to be exploited. They need to ensure that applicants are trustworthy as currently, some landlords are using the gaps in these systems to provide inadequate and unsuitable accommodation. The regulatory regime governing exempt accommodation needs to be stricter and require landlords to be vetted, before being able to rent to tenants. This is especially important as exempt accommodation deals with vulnerable tenants.

Furthermore, regarding the regulation of landlords, it is necessary for there to be stricter expectations regarding the treatment of tenants. Landlords need to be regulated, so as to ensure tenants are provided with the support that they need and are entitled to. Recommendations have been made that all exempt ousing landlords should provide their tenants with information, including on their rights, local care services and the support that will be provided for tenants. This will allow tenants to understand what they are entitled to and will ensure that any support provided, or not provided, can be regulated – ensuring landlords are held accountable.

Accountability needs to extend up to a governance level. It is vital for local authorities and those working in governance to be accountable for the number of exempt accommodation properties allowed in areas. They need to make sure that exempt accommodation is not over represented in particular areas. This is a matter that needs to be addressed, locally, regionally and nationally. The challenges faced in Birmingham could extend to other areas within the West Midlands and across the country. Preventative factors need to be put in place to ensure that the problems we are seeing with exempt accommodation do not manifest themselves elsewhere.

The regulation of exempt accommodation needs to change and the necessary resources need to be invested in tackling this issue to prevent the exploitation of vulnerable tenants, to address any consequential criminal and anti-social behaviour, to rebalance the housing market, reduce the strain on local authorities and to ensure people feel safer in their communities.

What actions have been taken to improve the quality of exempt accommodation in the West Midlands?

West Midlands Police and Crime Commissioner:

The PCC is committed to ensuring that communities within the West Midlands have genuinely affordable, decent, safe, secure and sustainable housing. In his Police and Crime Plan, he pledged to campaign for a regulatory regime that is fit for purpose, to improve the accountability of landlords that provide exempt accommodation and the quality of exempt accommodation.

The PCC is committed to rebuilding community policing in the West Midlands. We need preventative, proactive, problem solving and visible community policing. Community policing can contribute to addressing the challenges relating to crime, anti-social behaviour and related matters that can be associated with exempt accommodation.

The PCC has supported Birmingham City Council in developing their strategy and has had conversations with Councillor Sharon Thomson, who is the relevant Birmingham City Council Cabinet Member, on HMOs and exempt accommodation and associated matters relating to policing, crime, criminal exploitation and anti-social behaviour.

Conversations, via the Office of the Police and Crime Commissioner, have also been had with Jean Templeton, chair of the West Midlands Combined Authority Homelessness Task Force. The PCC is committed to working in partnership with both Birmingham City Council and the West Midlands Combined Authority to take the action that needs to be taken to address this matter.

The PCC is committed to working with West Midlands Police, local Councils, elected representatives, local communities and others, to ensure a joined up partnership approach, because the police  cannot solve the challenges associated with exempt accommodation on their own.

West Midlands Police (WMP):

• Have a dedicated team that focuses on exempt accommodation in Erdington, a suburb in Birmingham, called the Erdington Impact Team. Long term they want to play their part in rebalancing the housing market. Short term, they identify 5 Exempt Accommodation properties every month through their demand and crime data, partners' data, and residents' views. They spend a month targeting these properties and looking for interventions that will improve things for residents. This has been successful, but WMP recognises it is not a long-term solution.
• A Safer Streets Bid has been implemented with Birmingham City Council which will bring improvements to Birmingham. This bid includes an exempt accommodation Pilot which WMP has supported the proposal of.
• WMP has been proactive in opposing planning applications for new Houses of Multiple Occupants.
• They agreed on a blanket ban on any new BASS hostels being opened in Erdington.

Birmingham City Council (BCC):

• Implemented a Safer streets bid to bring improvements into an area of Birmingham that is largely affected by the increasing amount of low-quality exempt accommodation – Stockland Green. BCC has worked closely with the Pioneer Group on a housing needs assessment which will provide an evidence base for future exempt accommodation interventions. These interventions are aimed at recovering the housing market, tackling crime and Anti-Social Behaviour, and improving street scene and community engagement.
• BCC has secured funding for an exempt accommodation Pilot which will help to explore ways to tackle the issues in this type of housing. This is a wider city-wide programme which focuses on improving understanding of the issue; support and enforcement
• Worked on the blanket ban of BASS hostels with West Midlands Police.

January 2022