Homelessness prevention by Citizen Housing

 ‘Fresh Start’ re-let standard

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The context

The condition of a new social property can be a key factor in determining the extent to which tenants settle in and make a home. In some cases, poor condition can lead to applicants refusing an offer. People who are homeless may be forced to take the property, then find completing, organising and paying for decoration and furniture overwhelming. Poor condition and lack of furniture were highlighted by people who were homeless as key reasons for abandoning social homes in recent Scottish research.

Whilst many RRTPs contain local authority solutions to such issues – such as ‘property ready’ or decoration funds, enhanced starter packs or fast-tracking of grants – there are relatively few examples of social landlords questioning, then improving, their own relet standards in order to remove the need for such extensive schemes. This is exactly what West Midlands social landlord Citizen has been working on since reviewing its relet standards in 2019.

The intervention

In common across the social sector, Citizen’s relet standards had, over the years, been cut back to reduce costs, with some benchmarking schemes rating low void investment as a high performance indicator. Research with tenants found most were shocked by the condition of properties at viewing. Almost all underlined the mental health impacts of moving into an undecorated, uncarpeted home. Some had got into debt trying to make the property habitable. Research with voids staff found many felt demotivated by handing over such a minimal offer to lettings teams.

Statistics showed 93% of new tenants requested repairs within the first three months. 30% of negative feedback from new customers related to relet standards. These issues were intensified in bedsit and one bed flats in city centres, with higher turnover and refusal rates. Property condition was a key factor in both refusals and abandonments. These homes are most frequently offered to, and tenanted by, single people moving from homelessness –who often have the least means to rectify such problems.

Citizen worked with innovation company What If! to understand the problem with tenants, applicants and staff, innovate ideas, then rapidly test solutions. In early 2020, they piloted ‘Fresh Start’: a home with a relet standard meeting customer - not sector standard - expectations. Homes were deep cleaned, professionally, neutrally redecorated and new flooring laid. Whilst this cost more and took longer at void stage, it was hoped lower refusals, repairs, complaints and turnover would offset costs in time. Therefore, no service charge was applied. Fresh Start was trialled in ten bedsits with high turnover in Coventry, then extended to 70 one-bed and studio flats in late 2020.

The outcome

Citizen has been able to show the Fresh Start void standard has improved sustainability, with 50% lower turnover than similar properties in the first 6-12 months. It has also improved uptake, with 56% more bids for the targeted homes. There is evidence that an average Fresh Start home will take longer to prepare than a regular void, but this will be more than offset by quicker lettings. Issues with COVID-19 related have made it difficult to verify this to date, but current data is positive.

Fresh Start has had a positive impact on customer satisfaction. 80% of applicants viewing were impressed, compared to 24% viewing routine voids. Fresh Start has doubled the number of staff who felt satisfied in their role and proud of the homes offered. Citizen is now rolling out the scheme to 250 further homes.

Key insights

• providing an enhanced relet standard can address a significant area of stress, difficulty and financial outlay for new tenants, start tenant/landlord relations on a positive note, and raise staff satisfaction
• tenancy sustainment is more cost effective for landlords than high ‘churn’ – so where it can be shown higher relet standards improve sustainment, the investment can be justified
• the ability to collect and analyse granular data which can show potential savings or offsets is crucial in making a business case for any scheme which increases upfront investment costs

Find out more…

Peter Gill, Director of Housing, Citizen Housing
peter.gill@citizenhousing.org.uk