Guidance

Letting accommodation funded through the Rough Sleeping Accommodation Programme: guidance for local authorities and private registered providers

Updated 23 February 2021

Applies to England

Context

1. The Rough Sleeping Accommodation Programme (RSAP) aims to deliver up to 6,000 units of supported move-on accommodation for rough sleepers over the course of this parliament. The £433 million programme includes funding for capital and revenue based longer-term accommodation schemes as well as provision for the support people need to recover from rough sleeping. This investment from central government will bring forward accommodation that forms a long-term national asset which will support our efforts to tackle rough sleeping for years to come. Tenancies for the homes provided through this programme will be for a maximum of two years (with three years being permissible in certain circumstances) ensuring that this accommodation continues to be available for rough sleepers for many years.

2. On 29 October 2020, we announced allocations of the first tranche of this funding. Schemes for more than 3,300 new long-term homes for rough sleepers across the country have been approved, backed by government investment of more than £150 million.

3. As set out above and in the guidance for this programme, accommodation funded through RSAP must meet certain requirements. These include the following:

• Each unit of property must be made available for rough sleepers (or where there is no further need from this group due to reductions in rough sleeping, those at risk of rough sleeping and homelessness).
• Tenancies under this scheme will be for a maximum of 2 or 3 years. The RSAP units will be part of a pathway to settled accommodation, providing a genuine home with support that will help prepare former rough sleepers for fully independent housing.

4. This guidance sets out options for how local authorities (LAs) and registered providers (RPs) in receipt of RSAP funding can grant tenancies which meet the requirements of RSAP, and the amendments to allocation schemes that may be necessary. The options listed below are not mutually exclusive and LAs may choose to adopt more than one of these approaches.

Flexible tenancies

5. LAs are able to grant secure flexible tenancies for a minimum two year fixed term, provided their published tenancy policy includes their use. For most LAs the use of flexible tenancies to meet the requirements of RSAP is likely to require amendments to the tenancy policy, including setting out the length of the term of tenancy and the circumstances in which LAs may or may not grant another tenancy, including a process for move-on to alternative accommodation, at the end of the fixed term.

Non-secure tenancies

6. LAs are able to create non-secure tenancies to deliver their homelessness duties under Part 7 of the Housing Act 1996 (paragraph 4, schedule 1, Housing Act 1985). Although LA housing has long been used as temporary accommodation for homeless households owed the ‘main’ homelessness duty, since the introduction of the Homelessness Reduction Act, LAs can also offer their properties to those owed the ‘relief duty’ under powers to secure accommodation for people who are not owed the main duty. This could include rough sleepers who do not have priority need or are considered intentionally homeless. For those who are not owed the main duty the LA has powers to both extend their relief duty beyond 56 days, and to secure accommodation as a reasonable step towards relieving homelessness. RSAP properties let in this way would deliver a form of high-quality temporary housing with appropriate support which is much needed for rough sleepers working towards independence, without creating a lifetime tenancy that would take the RSAP unit out of the pool of properties available for those needing such a stepping stone in the future.

7. Offers of non-secure tenancies are not allocations under Part 6 of the Housing Act 1996, and therefore their use for RSAP units would not necessitate any amendments to an LA’s allocation scheme. However, LAs are strongly encouraged to develop a policy to ensure available units are offered to rough sleepers with greatest need. This could be a stand-alone policy document, or incorporated within an LA temporary accommodation placement policy. A policy and associated procedures should also address:

• notification that the relief duty is to be extended for those who are not owed the main duty
• regular review and updating of Personalised Housing Plans
• arrangements for rehousing that will bring the relief duty and non-secure tenancy to an end

8. As Housing Act 1996 Part 6 provides reasonable preference to applicants who are homeless, former rough sleepers owed the relief duty are likely to have priority within allocations schemes. However, local policies should also include how the relief duty and tenancy will be ended where there is no reasonable prospect of a social housing offer, through an offer of a suitable PRS tenancy.

Local lettings policies

9. LAs are able to develop ‘local lettings policies’ (LLPs) within their allocation schemes which enable them to allocate housing for individuals who meet a particular description, although LAs are still required to demonstrate that their overall approach meets the statutory requirements for groups with reasonable preference.

10. LAs could therefore adopt a new LLP to cover lettings to RSAP units to ensure they are offered to rough sleepers in-line with the requirements of the programme. We expect LLPs being used in this way to set out:

a. That LAs will let their own properties, or make nominations to properties held by RPs, that are made available through RSAP.
b. That lets for the RSAP units will be made to those with a history of rough sleeping, except where there are no applicants within this cohort, at which point they will be offered according to an individual’s risk of rough sleeping and suitability for the letting.
c. The maximum tenancy term.
d. That properties belonging to RPs will be let on an AST with a fixed period of x term.
e. [If appropriate] That LA properties will be let as flexible secure tenancies (see above) with a fixed period of 2 years.
f. The process for onward moves into permanent settled housing, including through the allocation scheme where rehousing preference is to be awarded to RSAP tenants.

11. LAs must consult with their RP partners on any major changes to their allocations scheme, and bring it to the attention of those who are affected by the change. It will be for LAs to decide on the level of consultation required to amend schemes to facilitate lettings and nominations to the additional units made available through RSAP.

Lettings by Registered Providers

12. RPs are required to operate allocations policies that are fair and transparent, and will therefore need to consider whether arrangements for identifying tenants for their RSAP funded units are included within their existing policy and nominations arrangements.

13. RPs are able to create Assured Shorthold Tenancies (ASTs) that meet the requirements of the RSAP programme without the tenancies defaulting to lifetime status after the initial letting period.

14. In the absence of, or in advance of introduction of an LLP which sets out how nominations will be made by LAs to RSAP units owned by RPs, local arrangements will be needed to ensure close collaboration between the LA and RPs to match highest priority applicants to available RSAP properties. This could be achieved, as is commonly the approach with supported housing pathways, through a ‘gateway’ approach in which the LA, RP and relevant partners jointly identify RSAP solutions for people in need, alongside a multi-agency plan to deliver necessary support to make sure the offer is appropriate and is sustained.

Amending allocations schemes

15. Where LAs are letting RSAP units as secure flexible tenancies, or as ASTs through nomination to an RP, these will be allocations under Housing Act 1996 Part 6. There will need to be consideration of what amendments are required to the allocation scheme to enable these lettings to be properly targeted to former rough sleepers with the greatest need. Although the RSAP properties can be used to accommodate people at risk of homelessness where local areas have effectively ended rough sleeping; the priority must be to offer the accommodation to move on rough sleepers and former rough sleepers where there continues to be this need.

Licences

16. The nature of the units funded through RSAP will generally mean that offering licence agreements – as opposed to tenancies – will not be appropriate. MHCLG will consider requests for exceptions to this position from LAs/RPs providing units with significant on-site support where the nature of the letting might constitute a genuine licence arrangement. Where this is the case, MHCLG may agree that a periodic licence agreement is permissible, but it will be for the LA/RP to satisfy themselves, taking legal advice where necessary, that the use of a licence is appropriate. There are no circumstances in which an excluded licence agreement will be considered appropriate.

Continuation of tenancies

17. LAs and RPs may wish to have the potential to offer a lifetime tenancy of the same property at the end of a fixed term, particularly where a former rough sleeper is settled and engaged with local services. MHCLG will consider sympathetically any requests to remove a property from the RSAP programme in these circumstances, but will require an alternative and equivalent unit to be provided in its place.