HOUSING LAW NEWS & POLICY ISSUES

Housing White Paper: Fixing our broken housing market
On 7 February 2017 the DCLG published its long-awaited housing white paper setting out the government’s plans to reform the housing market and boost the supply of new homes in England. It includes measures which, the DCLG says, will ensure that the country: plans for the right homes in the right places; builds homes faster; diversifies the housing market; and helps people now. For the white paper, click here For the associated DCLG announcement, click here For the oral statement to Parliament of the Secretary of State, Sajid Javid, click here

As part of the white paper, the DCLG is also consulting on changes to planning policy and legislation in relation to planning for housing, sustainable development and the environment. For brief details, see Housing Law Consultations.

Alongside the white paper the DCLG has also published a number of supporting technical documents which provided the evidence underpinning many of the white paper proposals. The supporting documents comprise a number of responses to prior consultations, as well as new consultations on permitted development rights and Build to Rent. To access those supporting documents, click here

Affordable renting
On 2 February 2017 the Joseph Rowntree Foundation responded to the latest inflation figures by calling on the Government (amongst other measures) to take action to reduce the high cost of housing in its forthcoming white paper, by including an affordable rented offer for people on low incomes. For the Foundation’s press release, click here

Housing Benefit
On 3 February 2017 the DWP published the latest issue of HB Direct (issue 174) which contains information about: National Fraud Initiative 2016/17; Young Persons and Mental Health Community Partner positions now open for applications; update on Wider use of Real Time Information; and update on Universal Credit housing costs and the award of Discretionary Housing Payments. To read the issue, click here

Housing Benefit (2)
On 3 February 2017 the DWP published the latest issue of HB Bulletin (G12/2016) for all local authority housing benefit staff. This bulletin contains information about: the Fraud and Error Reduction Incentive Scheme 2017/18; an update to the Discretionary Housing Payments guidance manual; Universal Credit: benefit cap information update; Local Housing Allowance rates: Targeted Affordability Funding 2017/18; volunteers for the General Referral Matching Service on-boarding Project; HB decisions by the Upper Tribunal; and statutory instruments. To read the bulletin, click here

Housing for older people
On 2 February 2017 the House of Commons Communities and Local Government Committee  launched an inquiry into whether the housing on offer in England for older people is sufficiently available and suitable for their needs. The inquiry follows research published by Legal & General and Centre for Economic and Business Research which indicated that pensioners are stuck in oversized properties worth £820bn. For more information about the inquiry, click here For the research itself, click here

Social housing rent restrictions
On 2 February 2017 the Social Housing Rents (Exceptions and Miscellaneous Provisions) (Amendment) Regulations 2017 (‘the 2017 Amendment Regulations’) were laid before Parliament. The individual regulations come into force on various dates between 1 March 2017 and 6 April 2017. The Social Housing Rents (Exceptions and Miscellaneous Provisions) Regulations 2016 (‘the Principal Regulations’) provided for exceptions from the social rent requirements introduced by section 23 of, and Schedule 2 to, the Welfare Reform and Work Act 2016 (‘the Act’). In particular, the Principal Regulations excepted from the social rent requirements and made provision for the maximum rent that may be charged for almshouse accommodation and accommodation provided by a co-operative housing association, a fully mutual housing association or a community land trust and for supported housing, the effect of which was essentially to defer the effect of the introduction of the social rent requirements of the Act by a year. The Principal Regulations also excepted intermediate rent accommodation the definition of which included accommodation funded by an intermediate rent accommodation enabling programme named in the regulations and defined affordable rent housing. The 2017 Amendment Regulations amend the Principal Regulations. Notably they amend certain of the exceptions made by the Principal Regulations and related provision regarding maximum rents for those cases and make provision for exceptions in circumstances where a provider is under housing administration or accommodation has been sold by a housing administrator. For the 2017 Amendment regulations, click here For the Principal Regulations, click here

Social housing regulation
On 30 January 2017 the Housing and Planning Act 2016 (Commencement No. 4 and Transitional Provisions) Regulations 2017 were made. They bring into force, for the most part on 3 February 2017, various provisions of the Housing and Planning Act 2016 (‘the Act’), including: s 93 for the purpose of making regulations to reduce the influence of local authorities over private registered providers (as defined in Part 2 of the Housing and Regeneration Act 2008); s 94 which removes the Homes and Communities Agency’s ability to recover financial assistance in circumstances where social housing provided as a result of that assistance is disposed of outside the regulated sector in consequence of either a lender enforcing its security or the winding up or administration (including a housing administration under Chapter 5 of Part 4 of this Act) of the recipient or a successor in title; s 102 (subsections (2) to (6)) which enables the Secretary of State to make regulations to apply a housing administration scheme to a registered society or a charitable incorporated organisation which is also a registered provider of social housing. For the Regulations, click here For the Act, click here

Private renting solutions for homeless and vulnerable people
On 8 February 2017 there will be in the House of Commons a Westminster Hall debate on 'Private renting solutions for homeless and vulnerable people'. On 6 February 20i7 the House of Commons Library published a debate pack which provides background information on the use of the PRS to prevent and relieve homelessness. To read the pack, click here

Low cost housing
On 8 February 2017 there will be in the House of Commons a Westminster Hall debate on ‘low cost housing’. The House of Commons Library has published a debate pack for the debate. To read the pack, click here

Rough sleeping
On 3 February 2017 the Men and Boys Coalition announced that it had made an official complaint to the UK Statistics Authority regarding the DCLG’s exclusion of the overall numbers of male rough sleepers and their proportion in the latest statistics published on 25 January 2017. The Coalition said that the statistical release was the first Government report to include the gender of those rough sleeping; however, it included only statistics on female rough sleepers, even though it can be deduced that the overwhelming majority (88%) of rough sleepers are male. For the Coalition’s statement, click here For the statistics, click here

Rough sleeping – Wales
On 1 February 2017 the Welsh Government published latest statistics for rough sleeping in Wales. Based on the information gathered by various agencies and organisations, in the two weeks between 10 and 23 October 2016, local authorities estimate that 313 persons were sleeping rough across Wales. Local authorities reported a total of 141 individuals observed sleeping rough in Wales between the hours of 10pm on 3 and 5am on the 4 November 2016.Local authorities reported that there were 168 emergency bed spaces across Wales of which 40 bed spaces (24 per cent) were unoccupied and available for use on 3 November 2016. For more details, click here

Rental prices
On 3 February 2017 HomeLet reported that rents in the UK rose by an average of just 0.7% in January, compared to the same month of 2016. This is down from an annual rate of inflation of 1.7% in December 2016. HomeLet says that the decline means that UK rental price inflation has now dropped in each of the past seven months. At the peak of the market in June 2016, rents were increasing at an annual rate of 4.7%. For more details, click here

National Housing Pathway for Ex-Service Personnel Wales
On 2 February 2017 Cabinet Secretary for Communities and Children, Carl Sargeant thanked organisations in the housing and Armed Forces sectors who have worked with the Welsh Government to develop the National Housing Pathway for Ex-Service Personnel. The Pathway aims to prevent homelessness amongst ex-Service personnel and help them find suitable accommodation. For more details about the latest announcement, click here For more information about the Pathway, click here

Supported housing consultation
On 2 February 2017, in anticipation of the deadline for responses to the Government consultation on funding for supported housing (as to which see Housing Law Consultations),  Homeless Link updated its set of resources to include a summary of its key policy positions. To access those resources, click here

Registered providers of social housing
On 1 February 2017 the Homes and Communities Agency published this month’s list of current registered providers of social housing plus new registrations and deregistrations. To access the list, click here

New home registrations
On 3 February 2017 NHBC reported that 151,687 new homes were registered by it in 2016, a decrease of 2% compared to 2015 when 155,504 new homes were registered. 115,689 new homes were registered in the private sector, compared to 117,506 in 2015 with 35,998 registered in the affordable sector, compared to 37,998 the previous year. For the full figures and regional breakdown, click here

Anti-social behaviour
On 6 February 2017 Nottingham Post reported that a major new study is being conducted by Nottingham Trent University's School of Social Sciences, funded by the Economic and Social Research Council, to find the people most likely to become victims of anti-social behaviour. It is hoped the results of the 18-month study will lead to improvements in a wide range of areas, including house planning policies. To read more, click here

Homelessness reduction – Scotland
On 6 February 2017 BBC News reported that a scheme to assist people before they reach a crisis has helped cut homeless applications in Glasgow. A study suggested there was a 29% reduction in homeless applications in the city over three years to 2016, compared to an average fall in Scotland of 13%. For more details of the scheme, described in the BBC News report, click here

HOUSING LAWS IN THE PIPELINE

Homelessness Reduction Bill
This is a Private Members’ Bill introduced in the House of Commons by Bob Blackman which seeks to amend the Housing Act 1996 to make provision about measures for reducing homelessness; and for connected purposes. The Bill has won the support of the Government; for the DCLG press statement in that respect, click here On 17 January 2017 the DCLG announced that councils would receive a further £48 million funding to help deliver new and expanded services under the Bill; for the announcement, click here and for the Local Government Association’s response to the announcement, click here The Bill has now completed all its stages in the House of Commons. The Bill received its First Reading in the House of Lords on 30 January 2017. It is due to receive its Second Reading on 24 February 2017. For the Bill as introduced in the House of Lords, click here For progress of the Bill, click here For all the debates on all stages of the Bill click here The House of Commons Select Committee for Communities and Local Government has published a report following its pre-legislative scrutiny of the Bill; to read the report, click here For the Law Society’s parliament briefing on the Bill, click here For the House of Commons Library briefing paper prepared for the Commons Committee Stage of the Bill, click here.

Renters’ Rights Bill
This is a Private Members’ Bill introduced in the House of Lords by Baroness Grender which seeks to provide tenants and prospective tenants with certain rights, including affording access to a local housing authority’s database of rogue landlords, ending certain letting fees and providing for certain mandatory electrical safety checks. The Bill had its Second Reading on 10 June 2016 and completed its Committee stage on 18 November 2016; for a record of the debate, click here It will enter its Report stage on a date to be announced. For the Bill as amended in Committee, click here To read debates at all stages of the Bill’s passage, click here For progress of the Bill, click here

Crown Tenancies Bill
This is a Private Members’ Bill introduced in the House of Commons by Wendy Morton which seeks to provide that ​Crown tenancies may be assured tenancies for the purposes of the Housing Act 1988, subject to certain exceptions; to modify the assured tenancies regime in relation to certain Crown tenancies; and for connected purposes. The Bill received its Second Reading on 3 February 2017. It will enter its Committee stage on a date to be announced. For the Bill as introduced, click here For progress of the Bill, click here For a research briefing from the House of Commons Library providing background on the Bill, click here

Housing (Tenants' Rights) Bill
This is a Private Members’ Bill introduced by Caroline Lucas which seeks to establish a Living Rent Commission to conduct research into, and provide proposals for, reducing rent levels in the private rented sector and improving terms and conditions for tenants; to require the Secretary of State to report the recommendations of the Commission to Parliament; to introduce measures to promote long-term tenancies; to establish a mandatory national register of ​landlords and lettings agents; to prohibit the charging of letting or management agent fees to tenants; and for connected purposes. The Bill is being prepared for publication and is due to have its Second Reading on 24 March 2017. For progress of the Bill, click here

NEW HOUSING CASES

The London Borough of Hounslow v Waaler [2017] EWCA Civ 45
The local authority landlord appealed against the decision of Siobhan McGrath, Chamber President - First Tier Tribunal (Property Chamber) sitting as a Judge of the Upper Tribunal (Lands Chamber) on 26 January 2015 when she allowed part of the tenant’s appeal by remitting the case back to the FtT to calculate the amount of the service charge reduction.

Background
The landlord had carried out a block renovation programme costing over £8million on an estate where 850 residents were secure tenants and 140 were long leaseholders (whose leases were created under the right to buy scheme). The tenant bought her flat (in a block four storeys high containing 19 flats) under the right to buy and along with other leaseholders was served with a demand to pay more than £55,000 in service charges towards the work. The tenant sought a determination of her liability to pay the requested service charge under s.27A of the Landlord and Tenant Act 1954. The FtT was satisfied that the landlord’s decision to incur the costs was reasonable and recoverable in full. The tenant sought a review of this decision and appealed to the UT. The appeal was granted in part. The two items in issue at the UT were:

1.  The replacement of a flat roof with a pitched roof; and
2.  The replacement of the original wooden-framed windows with new metal framed units, which in turn required the replacement of the external cladding and removal of asbestos.

Only those works that were identified as constituting repairs were payable. The UT held that the FtT was entitled to find that i) was a recoverable charge but was wrong to also find that ii) was.

In order to recover the cost of optional improvements as service charges, the UT stated that a landlord “must take particular account of the extent of the interests of the lessees, their views on the proposals and the financial impact of proceeding.” The improvement work costs were disallowed and the UT invited the parties to agree a reduced amount otherwise the case would be remitted back to the FtT to determine the amount of the service charge reduction. The landlord appealed (with permission) against the decision relating to the windows and the cladding stating that all costs had been “reasonably incurred” and were payable under the Landlord and Tenant Act 1985 s.19(1)(a).

The tenant (as Respondent) sought permission from the Court of Appeal to cross-appeal against the UT’s decision on other ancillary grounds.

Law
Under the lease, the landlord had an obligation to repair and a discretion to improve; it was entitled to seek contribution to either from the tenants. The works carried out by the landlord were of a reasonable standard and thus the dispute was whether the cost of the works was reasonably incurred.

Sections 18 and 19 of the LTA 1985 make no distinction between repairs and improvements to categories of work falling within the definition of ‘service charge’. Nevertheless, the approach is different: with repairs a landlord fulfils an obligation under the lease; whereas improvements can be a matter of choice.

Before carrying out works of any size the landlord is obliged to comply with the Service Charges (Consultation Requirements) (England) Regulations 2003 so that it’s informed about the tenants’ views. However, lessees don’t have any kind of veto over what the landlord finally decides to do.

When a landlord acts reasonably the choice is his and tenants can’t complain because a cheaper method is adopted. Lewison L.J. held at [37] that whether costs have been reasonably incurred is not simply a question of process: it is also a question of outcome.

Thus, when a landlord goes beyond what’s needed for repair and seeks contributions from leaseholders, then he should take into account the extent of their interests, their views and the financial impact made (as per Sheffield City Council v Oliver Lands Tr. 18 August 2008).
At [42] Lewison L.J. held that:

         “There is, to my mind, a real difference between works which the landlord is obliged to
         carry out on the one hand, and work which is an optional improvement on the other... It
         is one thing to require the lessee to contribute towards the cost of works which can... be
         identified in advance and quite another to require the lessees to contribute towards the
         cost of works whose scale and extent are unknown and unknowable.”

It’s appropriate to decide whether works are repairs, improvements or a mixture. Thus, replacing the roof was reasonable and within case-law guidelines (Post Office v Aquarius Properties Ltd [1987] 1 All ER 1055 and Quick v Taff Ely BC [1986] QB 809). The cost of works to the windows and replacement cladding was significant and the landlord should have made more of an effort to explore cheaper solutions and considered the financial impact on residents.

Decision
The local authority had a responsibility for its secure tenants and as a landlord to the leaseholders. The right to recover the cost of improvements was not enough to justify embarking on a scheme of very expensive works. Whilst there was no clear difference between repairs and improvements - in this case, improvement went beyond repair as the final structure was substantially different from the original demise.

The decision to incur costs by the landlord had been taken without making a concerted effort to explore cheaper alternatives or considering the financial impact on lessees and was thus unreasonable. Consequently, the UT made no error in law in deciding to grant the tenant a reduction in the service charges demanded by the landlord for its major works scheme. The appeal was dismissed.

The tenant wasn’t given permission to challenge the UT’s conclusions by way of a cross-appeal because the points being raised had not been taken before and didn’t meet the requisite test.

Case summary by Naveen Agnihotri, barrister, Arden Chambers. For the full judgment click here.

HOUSING LAW CONSULTATIONS

Proposals to seek reversal of the reclassification of registered social housing providers in Northern Ireland
This consultation is on the proposals of the Department for Communities to amend current housing legislation and policy so as to facilitate a reversal of the recent ONS decision to classify registered social housing providers in Northern Ireland as public sector bodies. For the consultation document, click here The consultation closes on 8 February 2017.

Funding for supported housing
On 21 November 2016 the DCLG and DWP launched a consultation seeking views on the government’s plans for a new housing costs funding model for supported housing as well as views on how funding for emergency and short term placements should work. It covers the following areas: devolved top-up funding to local authorities in England; and funding for emergency and short term supported housing placements across Great Britain. At the same time the government has published an evidence review of supported accommodation in Great Britain which seeks to provide a helpful insight into the estimated scale, scope and cost of the sector which respondents may find useful in responding to the consultation. For the consultation, click here For the evidence review, click here The consultation closes on 13 February 2017.

Consultation on extending coverage of the Freedom of Information (Scotland) Act 2002 to registered social landlords
The consultation sets out proposals to extend coverage of the Freedom of Information (Scotland) Act 2002 (FOISA) to registered social landlords (RSLs). Extending coverage of FOISA would give the same 'access to information' rights to tenants of RSLs as local authority housing tenants currently have. RSLs would have a statutory responsibility to reply to information requests within set timescales. Under FOISA, if an applicant is dissatisfied with how an authority responds they can ultimately appeal to the Scottish Information Commissioner who is the independent regulator of the legislation. For the consultation document, click here. To respond online, click here.  The consultation closes on 23 February 2017.

Procedure of the First Tier Tribunal Housing and Property Chamber
The Tribunals (Scotland) Act 2014 establishes an integrated structure of tribunals with a First-tier Tribunal (FTT) and an Upper Tribunal. Jurisdictions within the First-tier Tribunal will be organised into ‘chambers’ according to the nature of the dispute. On 1 December 2016, the Private Rented the Private Rented Housing Panel/Homeowner Housing Panel transferred to the FTT – the first of the existing tribunals to move to the new structure. A single set of operational rules is being developed to apply across all jurisdictions in the Housing and Property Chamber. These are required for the expansion of the Chamber to other private rented sector disputes. Views are sought on the operational procedure of the Housing & Property Chamber for hearing the disputes transferring from the Sheriff court, disputes under the new letting agents’ regime and disputes involving the new tenancies established by the Private Tenancies (Scotland) Act 2016.  For the consultation document, click here The consultation closes on 31 March 2017.  

Private Rented Sector in Northern Ireland – Proposals for Change
This consultation document is the second stage in the Department for Communities’ review of the role and regulation of the private rented sector. It proposes a number of changes which will impact on both landlords and tenants. The document sets out proposals on: supply, affordability, security of tenure, tenancy management, property standards and dispute resolution. The Department will hold four public events to facilitate discussion on this document. For the consultation document and details of the discussion events, click here The consultation closes on 3 April 2017.

Housing Possession Court Duty Scheme: Commissioning Sustainable Services
This is a consultation on a competitive tendering approach for the Housing Possession Court Duty Scheme which will consolidate the current number of schemes through joining courts allowing for larger and more sustainable contracts for providers. Providers will offer their services at a price, without an administrative cap or floor, that reflects the costs of delivery in their local area and represents a fair market price for the work carried out whilst maintaining a quality service. For the consultation document, click here To participate in the consultation, click here The consultation closes on 7 March 2017. Results are expected by 28 April 2017.

Renting Homes (Wales) Act 2016 – Guidance relating to supported accommodation
The Welsh Government is consulting on: statutory guidance landlords must follow when temporarily excluding a contract-holder under a supported standard contract; and non-statutory guidance to assist landlords and local authorities in carrying out their functions relating to extending the relevant period before a tenancy or licence for supported accommodation becomes an occupation contract. The aim of the guidance is to make the legal process clearer for landlords and local authorities to follow and implement. For the consultation document and for the means by which to respond, click here The consultation ends on 28 April 2017.

Fixing our broken housing market
As part of the housing white paper the DCLG is also consulting on changes to planning policy and legislation in relation to planning for housing, sustainable development and the environment. The consultation, including details of how to respond, can be found in the white paper. For the white paper, click here To respond online, click here The consultation ends on 2 May 2017.

Planning and affordable housing for Build to Rent
This consultation seeks views on planning measures to support an increase in Build to Rent schemes across England. This includes changing the National Planning Policy Framework policy to support and to increase the number of new Build to Rent homes, and the provision of Affordable Private Rent homes as the main form of affordable housing provision on Build to Rent schemes. The consultation seeks to promote the availability of longer tenancies (of 3 years or more) in Build to Rent accommodation, to those tenants who want one. For the consultation paper, click here To respond online, click here The consultation ends on 1 May 2017.

HOUSING LAW ARTICLES & PUBLICATIONS

The dream of home ownership for all is over. Even the Tories recognise this Suzanne Moore [2017] The Guardian 6 February. To read this article, click here

The government’s white paper won’t reverse the decline of social housing Kevin Gulliver [2017] Left Foot Forward 6 February. To read this article, click here

Reasonable costs of Improvements [London Borough of Hounslow v Waaler [2017] EWCA Civ 45] Giles Peaker [2017] Nearly Legal 5 February. To read this article, click here

Time to look again at viability? Catharine Banks [2017] Shelter Blog 3 February. To read this article, click here

The response to dire housing should not be studied callousness Dawn Foster [2017] The Guardian 3 February. To read this article, click here

Public complaints—introducing the draft Public Service Ombudsman Bill Ros Foster and Patrick O’Connell [2017] Local Government Lawyer 2 February. To read this article, click here

Showing your workings Alice Richardson [2017] LAG Housing Law 2 February. To read this article, click here

Static models cannot explain the failings of a dynamic housing market Toby Lloyd [2017] Shelter Blog 2 February. To read this article, click here

Housing must be central to efforts to tackle poverty Brian Robson [2017] CIH 25 January. To read this article, click here

THE HOUSING LAW DIARY

8 February 2017
Consultation closes on Proposals to seek reversal of the reclassification of registered social housing providers in Northern Ireland (see Housing Law Consultations)

8 February 2017
House of Commons: Westminster Hall debate on 'Private renting solutions for homeless and vulnerable people’ (see Housing Law News and Policy Issues)

8 February 2017
House of Commons: Westminster Hall debate on ‘Low cost housing’ (see Housing Law News and Policy Issues)

13 February 2017
Consultation closes on Funding for supported housing (see Housing Law Consultations)

23 February 2017
Consultation closes on Proposals to extend coverage of the Freedom of Information (Scotland) Act 2002 to registered social landlords (see Housing Law Consultations)

24 February 2017
Second Reading in House of Lords of Homelessness Reduction Bill (see Housing Laws in the Pipeline)

RECRUITMENT

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