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How we are using shared tenancies to combat LHA caps
Many under-35s face a struggle to rent affordable rooms due to welfare reforms. Bromsgrove District Housing Trust is piloting a shared tenancy initiative in a bid to combat this, as John Whitman explains
How shared tenancies are being used to combat LHA caps #ukhousingIt is anticipated that the introduction of the Local Housing Allowance (LHA) shared room rate will cause significant issues for young people across Bromsgrove, Worcestershire.
As the local housing association, Bromsgrove District Housing Trust (BDHT) is determined to try and find creative solutions to mitigate the impact.
We recognise that single people under 35 years of age are a vulnerable group regarding homelessness, due to the broken housing market.
Wider welfare reform and the rising cost of living are contributing to a ‘perfect storm’, and it’s clear that organisations like BDHT are part of the solution.
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As part of our Shaping the Future strategy, we have developed a suite of initiatives to target this problem, including shared tenancies, converting existing properties and developing smaller, modular homes.
These run alongside an accompanying strategy, called Driving Futures, which helps people find employment through the use of dedicated job coaches.
“The customers are also carefully matched to ensure that they have the best possible chance of maintaining viable tenancies.”
The shared tenancy initiative has identified a number of existing general needs properties that will be adapted when they become void.
In partnership with Bromsgrove District Council, they are then reconfigured to provide each tenant with their own bedroom space, alongside communal kitchen, bathroom, and living areas.
Uniquely for us, the properties are provided with floor coverings, white goods and furniture.
The current pilots are based on two people sharing a property
The initiative will result in each tenant’s rent dropping below the LHA limit, while providing stable and secure accommodation. The rent on the properties previously was around £90 a week and we are now charging £60 a week.
The customers are also carefully matched to ensure that they have the best possible chance of maintaining viable tenancies.
Once they have gained stable employment and maintained it for six months, they will be given the option to move to their own property.
BDHT also recognised that the best way to ensure people are able to pay their rent is to help them into employment.
“The initiative will result in each tenant’s rent dropping below the LHA limit.”
Those on the shared tenancy scheme will be required to work with the Driving Futures team and will be given advice and support to enter employment. They will be assigned a job coach and will be provided with IT training, CV writing support and interview skills.
As we see it, the creation of shared tenancy properties, combined with support for tenants to find work, provides the opportunity for a win-win.
It offers a step on the ladder for the tenant to become more financially independent, and in turn ensures the organisation has more financially viable customers.
John Whitman, head of housing solutions, Bromsgrove District Housing Trust
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