Purpose

On 5th March 2013, the Executive approved that ‘authority be delegated to the Director of Neighbourhood Services (following a restructure this role is has since been assumed by the Head of Housing and Health), in consultation with the Portfolio Holder, for any future minor procedural or process changes to be included in the policy’.
The relevant Portfolio Holder is the Executive Member for Neighbourhoods.
The current gross household income threshold of £48,000 was set in 2013 and has not been uprated since. Increasingly households are approaching the council where their gross household income is above £48,000 but they are still unable to afford or be considered for market housing due to lack of affordability. Therefore, their only remaining option is to seek affordable housing, thus there is need to increase the income threshold.
Raising the maximum gross household income to £60,000 would also have the effect of bringing our qualification threshold into line with other local authorities in Hertfordshire.
With regards to savings, currently the council does not specify a capital savings maximum so setting one at £16,000, which is also comparable to other local authorities in Hertfordshire and mirrors eligibility for benefits, would make our scheme more transparent.

Decision

Decision to:
(a)increase the gross household income threshold below which applications to the current adopted Housing Register, and Allocations Scheme can be accepted and nominations for social housing can be made, from the current threshold of £48,000 to £60,000 to reflect current housing affordability and need within the district
(b)set a maximum threshold for savings of £16,000 to qualify for affordable rented housing, with this threshold acting independently of the income threshold.

Alternative options considered

Option 1 - Keep the income threshold at £48,000 – NOT RECOMMENDED as this would have an increasingly detrimental impact on affordable housing options for the low-income households residing in the district.
Option 2 - Not introduce a maximum savings thresholds – NOT RECOMMENDED as this would continue the unsatisfactory situation of officers needing to make, if required, judgements about applicants’ ability to pay for housing.