Councils are at the sharp end of the housing crisis as waiting lists grow by the day (along with temporary accommodation costs). But with social housing at a premium, allocation policies are key to ensuring people in most need are at the front of the queue. Neil Merrick investigates the changes different councils are making to ensure a consistent and equitable approach.

Earlier this year, residents in Sheffield were asked to suggest their preferred ways of allocating council homes. The consultation wasn’t only aimed at council tenants or people on the waiting list – anyone living in the city could have their say.

It will be up to a year before changes are made to Sheffield’s allocations policy, with councillors due to come up with more concrete proposals soon.

But, as in many parts of the UK, change is in the air. After years of their allocation schemes gathering dust, many councils are reviewing bands or points systems, as well as residency rules and how many times people can reject a home and remain on the waiting list.

In Sheffield, the current method of prioritising need and allocating homes (based on a 12-year-old policy) is simply not practical given rising demand and the shortage of social housing,

The number of households in priority bands A to C has doubled since Covid, with about 70 priority rehousing requests submitted each week. More than half of such requests come from people who are homeless, some of whom may live in general needs council homes now used as temporary accommodation.

“Sheffield is facing the same pressure on its council housing and the same extent of homelessness and overspending on temporary accommodation as other local authorities,” says Douglas Johnson, chair of the council’s housing committee.

The last time most local authorities in England made major changes to allocation schemes, roughly a decade ago, it led to a significant reduction in waiting lists, as people with little chance of getting a home were unceremoniously removed.

‘Local connection’

Many councils also increased residency requirements so that people needed to live in an area for longer to show a ‘local connection’.

A decade later, the shortage of social housing has become even more acute, with 1.33 million people on housing registers or waiting lists in England in March 2024, up 3% on the previous year and the highest figure since 2014.

A new allocations scheme was introduced in Salford in April, with residency criteria raised from two years to five, unless someone works locally and holds a permanent contract. The residency rule doesn’t apply to refugees and people needing medical care and support, but a family association no longer helps to get a home faster.

Tracy Kelly, cabinet member for housing, says each application is assessed on its merits, with exceptional circumstances taken into account. “The policy enables the council to deliver a consistent and equitable approach,” she adds.

“We need to be confident this is fair for everybody, but some people will always say it isn’t. We’re doing our best with the limited accommodation we have”
Anne Callaghan, cabinet member for housing, Mansfield District Council

A new allocations policy is also in operation in Southampton, with four bands replacing the old points system. Local connection criteria were amended so people only need to have lived in the city for three years out of the past five (instead of three continuous years), helping people who leave the area briefly to find temporary accommodation.

Applicants who refuse three suitable offers are placed in band D (the lowest band), along with people deemed to be intentionally homeless or who owe rent to a social landlord.

The consultation prior to this year’s changes wasn’t without controversy, admits Andy Frampton, Southampton City Council’s cabinet member for housing. A majority of residents wanted to keep things as they were, believing any changes might work against those already on the waiting list.

“We had to confess that there’s no silver bullet that will solve the housing crisis,” says Cllr Frampton. “We’re never shy of having the conversation so people understand it’s about making the system fairer and treating people in most need more appropriately.”

Allocations policies in England are based on the 1996 Housing Act, as well as the 2002 Homelessness Act and the 2011 Localism Act [see below]. Slightly different rules apply in Wales, and in Scotland, where housing associations are legally required to comply with local authority requests to house someone who’s homeless.

Care leavers

From this month [July], care leavers under 25 and survivors of domestic abuse can no longer be penalised by councils in England if they don’t have a local connection. Similar rules are already in force for army veterans.

Jasmine Basran, head of policy and campaigns at the homelessness charity Crisis, says housing waiting lists are growing longer because the level of need, including the complexity of some people’s circumstances, is also increasing.

“Sheffield is facing the same pressure on its council housing and the same extent of homelessness and overspending on temporary accommodation as other local authorities”
Douglas Johnson, chair, Sheffield City Council housing committee

She urged local authorities that consult over changes to allocation schemes not to overlook people currently without anywhere to live. “If you sleep rough, then you’re less likely to engage in these things,” she adds.

A consultation on changes to Southwark’s allocations scheme closed at the start of June. If approved, people leaving care will automatically be placed in the highest band, alongside single homeless adults and rough sleepers.

‘Beserk’

Tim Brown, a HQN consultant, says councils should ideally review their allocations scheme at least every five years. Any review needs to be wholescale and tackle thorny issues (such as long-standing policies that give preference to certain people) or little will be achieved. “Local councillors and residents can go berserk, and the review ends up as no more than a tidying up exercise,” he warns.

Residents in Mansfield have until the end of July to comment on possible changes. A new minimum income threshold may lead to households being excluded from the register on the basis they have enough money (including savings) to buy a home or rent privately.

At present, 4,728 households are waiting for a home in Mansfield, while the council owns 6,303. Last year, it received 584 bids for just one two-bedroom flat. Anne Callaghan, the district council’s cabinet member for housing, wants the policy to encompass people’s wider circumstances, such as their health, not just what they can afford.

“We need to be confident this is fair for everybody, but some people will always say it isn’t,” she says. “We’re doing our best with the limited accommodation we have.”

How do housing allocations work?

In theory, it’s up to local authorities in England to decide how homes are allocated to people on the housing waiting list.

Besides giving ‘reasonable preference’ to people in need, they have discretion over who’s more likely to be offered a council tenancy, or be nominated by the council to move into a housing association property.

Government guidance suggests that priority should be given to people with a local connection, based on living in the area for at least two years. Councils can opt for a longer residency period if they wish.

Local authorities must also ensure they only allocate homes to ‘eligible persons’ (as defined by the 1996 Housing Act). After that, they should give reasonable preference to people who are:

• Homeless
• Living in overcrowded or insanitary conditions
• Need to move for medical or welfare reasons
• Likely to suffer hardship if they don’t move to the area.

The allocation scheme must be linked to a council’s homelessness strategy, with a free summary of the scheme available to members of the public who request one.

Wales stresses allocations in tackling homelessness

A bill launched by the Welsh government is designed to not just improve support for homeless people but potentially change the way social housing is allocated.

The Homelessness and Social Housing Allocation (Wales) Bill proposes giving local authorities greater discretion over who qualifies for social housing.

In theory, this should mean people suffering the greatest disadvantage are more likely to be offered a home. The bill’s introduction in the Senedd in May coincided with some Welsh councils already reviewing their allocation schemes.

From the end of October, Caerphilly is increasing the number of priority bands from three to five and allowing applicants to make two ‘unreasonable’ refusals instead of three. People with £75,000 in savings or assets (up from £50,000) will be able to join the waiting list.

Debt rules are also being revised. At present, the council suspends bids if applicants owe more than £500 until a debt repayment plan is agreed. In future, people owing more than £500 will be able to join the register, though anyone owing more than £2,000 will only be offered hard-to-let properties.

In North Wales, Wrexham has scrapped a policy that gave people over 50 priority access to social housing, regardless of need. The change is designed to increase the number of one-bed properties available for younger people who are homeless.

“We’re trying to make sure that we have a consistent process on how we allocate houses across the county borough,” says David Bithell, Wrexham’s cabinet member for housing.