Low Cost Housing Business Model

 

The upcoming funding reductions that are likely to be felt across the public sector present a real challenge for local authorities to continue delivering key services but at a reduced cost to the authority and local tax payer.

 

Settled Housing Solutions Consultancy Service’s Low Cost Housing Business Model© will significantly contribute to meeting this outcome by:

 
  • Dramatically reduce the up-front costs normally required to secure suitable Private Rented Sector accommodation.

 

  • Reduce the resource costs normally required to procure and manage Private Rented Sector accommodation by utilising the expertise of professional lettings and managing agents. 

 

  • Reduce the costs of intervening in tenancy failures caused by poor management standards in the Private Rented Sector by introducing voluntary landlord accreditation and letting agent licensing schemes. 

 
 

“Even without the accompanying demands on health or social care services, estimates drawn demonstrate that the costs of a failed tenancy can range from £4000 to £10,500 per case.

The cumulative savings resulting from preventative action can therefore be very high”.  

Chartered Institute of Housing 2006

 

 Local Letting Agency Model

 

Our Business Model is best suited to either single local authorities or several local authorities working in partnership, who are currently involved in the development of a Local Lettings Agency Model.

 

Key components of the Business Model include:

 

Reduced reliance on Government Funded Landlord Incentives

 

Do away with cash incentives, deposits and bonds currently used to secure private rented accommodation and introduce a cost effective rent arrears indemnity plan and range of landlord insurance policies as a ‘Homelessness Prevention Tool’

 

Local Housing Allowance (LHA) Tenancy Support and Sustainment Plan©   

 

Our comprehensive LHA Tenancy Support and Sustainment Plan © optimises current staff resources within both Housing Advice and Housing Benefits Service and introduces a unified housing needs assessment process, LHA safeguarding, LHA Seminars for PRS providers, referrals to local family tenancy support providers and Service Level Agreements between all parties. 

 

Example of Comparative Re-Housing Costs

 

Based on two bedroom flat @ £700 p.c.m (One month’s rent in advance + deposit @ £700 + £700 = £1,400) in comparison with Settled Housing Solutions Consultancy Service Cost Reduction Housing Model

 

Settled Housing Solutions Low Cost Business Model Costs @ £250 per tenancy x 100 tenancies £25,000
Estimated Rent Arrears Indemnity Costs x 100 tenancies £6,500
Total Re-housing Costs to the Local Authority x 100 tenancies (year one) £31,500
Former Rent Deposit Scheme Costs x 100 tenancies £140,000
Total Potential Savings to Local Authority £108,500

 

To discuss how you can introduce Settled Housing Solutions' Cost Reduction Business Plan© into your service please contact us at info@settledhousingsolutions.com

 

 

 

Settled Housing Solutions Consultancy Service have established arrangements with the following leading landlord insurance companies which can provide added security for all parties from rent arrears, malicious damage, legal fees, contents insurance and tenancy deposit protection.