Agenda item

Report from the Strategic Director of Adult Care, Housing and Public Health.

Recommendations:

That Cabinet:

1. Approves the recommissioning and procurement of Housing First for a five-year contract term on a 3 year plus up to 2-year basis.

2. Note the intention through the recommission to align more closely to the principles of Housing First, recognising that this is key to driving sustainable change and securing long-term impact for residents.

Consideration was given to the report which set out recommendations for the future commissioning of Housing First provision in Rotherham. Housing First was a non-statutory, established approach to supporting residents to move away from long term homelessness. It provided intensive support where the provider also sourced suitable accommodation for the client. It was reserved for the most complex and disengaged people within the homeless population, complementing the Council’s offer to alleviate and prevent homelessness. Housing First had been delivered in Rotherham since 2018 by South Yorkshire Housing Association (SYHA) following a direct award.

Housing First was an established approach to successfully reducing long-term homelessness for the most complex and disengaged people within the homeless population. People accessing the service were not required to meet specific conditions beyond a willingness to maintain a tenancy, as they would be with more traditional approaches. Support services were offered but were not mandatory, allowing individuals to choose when and how they engaged with them. Support was individualised to meet the specific needs of each person, empowering them to take control of their lives. According to research published by Homeless Link in November 2024, Housing First reduced anti-social and offending behaviours. 84% of participants were involved in ASB or offending at entry, dropping to 45% by the end of year 3.

Housing First in Rotherham was approved as a pilot project by Cabinet on 16th October 2017 (Background Papers Agenda item 11. Rotherham Side by Side - Housing Related Support Review Pages 124 - 160) and had been operational for over 6 years. This followed a recommendation that a pathway be created for people with complex needs based on a Housing First model to support 20–30 clients. The current contract was delivered by South Yorkshire Housing Association (SYHA) which sub-contracted part of the service to Target Housing Ltd, with a total capacity for 35 service users, following an increase of 10 units from 25 units in 2021. This contract would end on the 31st May 2026.

As Housing First had proved a successful solution for some of the most complex people experiencing homelessness, it was recommended that this service continue. Due to the principle of the service offering a longer-term housing option, compared with more traditional models, a longer-term contract would be most suited to the project. The current service had delivered approximately 90% occupancy (based on the last full year figures for 2024/25). This meant that of the 35 units commissioned, around 32 were being delivered at any one time. The slight undercapacity allowed for the contractor to make changes and repairs to the property as required. The tender process would require a minimum of 30 units but providers might be able to provide more with the increase in budget.

The total current annual contract value was £229,189 (for 35 people this was equivalent to £6,548 per person, per annum). These costs had not increased since 2018 and, for the financial year 2023/24, the lead provider reported making a significant deficit which would suggest these costings were no longer viable. Benchmarking had shown that it was difficult to determine a cost per unit as it was dependent on usage and service model and therefore fluctuated. However, Housing First project costs on average were between £7,000 and £9,000 per person, per annum. The uplift to the contract value would be included when the tender was advertised and would bring the service in line with other Housing First programmes. This would be more attractive to the market when undertaking the procurement and would allow for the provider to source properties outside of their existing portfolio as it would be less reliant on rental income to supplement the income of the project.

Research conducted by Homeless Link on the approach showed that the effectiveness of services is linked to how closely they adhered to the set of key principles underpinning delivery. The separation of the provider for the housing and support elements was a core principle of the Housing First model. The Rotherham model was not fully aligned with principle 3 because, in many cases, the support was being provided by the same organisation as the landlord. Providers reported that this created a conflict of interest when housing management issues occurred, which could lead to a breakdown in relationships and support with the client.

Separating the landlord from the support provider would adhere to the evidence base as support relationships could remain in place regardless of tenancy issues and would allow support to continue should the person leave their tenancy. In the re-commissioned service, support providers would be required to offer assistance in sourcing a suitable tenancy that could become a long-term solution. The proposed model would focus on identifying suitably sized and located properties for each customer moving away from allocated housing stock. The successful provider would need to demonstrate their ability to do this and manage any risk. This early engagement and support to find the most suitable property would also ensure greater choice and control to individuals (and align closer to the Housing First principles).

Resolved:

That Cabinet:

1.    Approves the recommissioning and procurement of Housing First for a five-year contract term on a 3 year plus up to 2 year basis.

2.    Note the intention through the recommission to align more closely to the principles of Housing First, recognising that this is key to driving sustainable change and securing long-term impact for residents.