HOUSING LAW NEWS & POLICY ISSUES

New Housing Secretary appointed
On 30 April 2018 James Brokenshire was appointed as Secretary of State for Housing, Communities and Local Government, replacing Sajid Javid who has been named as the new Home Secretary. Mr Brokenshire said: “One of my top priorities is going to be ensuring everyone affected by the Grenfell Tower fire gets the support they need and we learn lessons from the tragedy so something like this can never happen again.” For the official announcement, click here

Homelessness and young people
On 30 April 2018 the MHCLG published updated statutory guidance on the provision of accommodation for 16 and 17 year old young people who may be homeless and/or require accommodation. To access the guidance, click here

Housing and ‘baby boomers’ – NHF report
On 30 April 2018 the National Housing Federation published new research which reveals “the staggering numbers of ‘hidden’ baby boomers that have been hit by the housing crisis”. The findings show that in the last year more than two-fifths (44%) of private renters in England aged 50 and over – almost 500,000 people – were forced to make potentially drastic decisions to cover the cost of their rent, including borrowing money from their own children, taking out loans and cutting down on food and heating. A quarter (25%) of those aged 50 plus – around 52,000 people – who moved house in the last three years have been forced to do so against their will. The research, which includes a YouGov poll of 3,935 people in England aged 50 and over, shows that in order to pay their rent in the last 12 months: more than one in ten (12%) private renters – around 130,000 people – have borrowed money from family and friends; around 40,000 people (3%) have borrowed money from their own children; at least 194,000 (17%) private renters have had to cut down on food and heating; and at least 113,000 (10%) have had to take out a loan, use their overdraft, or use a credit card. For the report, click here For the NHF press release, click here For a response from the Joseph Rowntree Foundation, click here

Help to Buy (equity loan scheme) and Help to Buy: NewBuy statistics
On 26 April 2018 the MHCLG published figures on the number of home purchases and the value of equity loans under the above schemes. Over the period since the launch of the Help to Buy: Equity Loan scheme (1 April 2013 to 31 December 2017), 158,883 properties were bought with an equity loan. The total value of these equity loans was £8.27 billion, with the value of the properties sold under the scheme totalling £39.28 billion. Most of the home purchases in the Help to Buy: Equity Loan scheme were made by first time buyers, accounting for 128,317 (81 per cent) of total purchases. The mean purchase price of a property bought under the scheme was £247,230, compared with a mean equity loan of £52,026. In London, the maximum equity loan was increased from 20% to 40% from February 2016, and since then to December 2017, there were 6,867 completions in London, of which 5,546 were made with an equity loan higher than 20%. For the Help to Buy: NewBuy scheme, 5,694 house purchases were made since the launch of the scheme in March 2012. There were no new transactions in Q4 2017 due to the scheme having closed to new mortgage offers. For the full statistics, click here

Help to Buy: ISA Scheme
On 26 April 2018 HM Treasury published statistics for the above scheme. Since its launch, 128, 328 property completions have been supported by the scheme. 172,068 bonuses have been paid through the scheme with an average bonus value of £767. The highest proportion of property completions with the support of the scheme is in the North West, Yorkshire and The Humber and West Midlands, with a lower proportion in the North East and Northern Ireland. The mean value of a property purchased through the scheme is £172,076 compared to an average first-time buyer house price of £190,722 and a national average house price of £226,756. The median age of a first-time buyer in the scheme is 27 compared to a national first-time buyer median age of 30. For the full statistics, click here

Forces Help to Buy quarterly statistics
On 26 April 2018 the Ministry of Defence published statistics for the Forces Help to Buy Scheme for the quarter to the end of March 2018. During that period: 2,435 First Stage applications were received; 1,087 Second Stage applications were received; 851 payments were made to Service personnel. Since the Scheme began: 29,873 First Stage applications have been received; 17,278 of these applications have proceeded to the Second Stage; payment has been made to around 14,300 applicants, totalling around £215 million, an average of approximately £15,000 per claim. For the full statistics, click here

Leasehold law reform
On 27 April 2018 Professor Nick Hopkins pledged that the Law Commission’s leasehold reform recommendations to government will provide a “better deal for leaseholders”. Announced as part of the 13th Programme of Law Reform, the Law Commission residential leasehold and commonhold project aims to improve consumer choice, provide greater fairness, and make the process of enfranchisement easier, quicker and more cost effective. Speaking to parliamentarians involved in the Leasehold and Commonhold All-Party Parliamentary Group, the Property, Family and Trust Law Commissioner said: “The purpose of our project is to provide a better deal for leaseholders as consumers. Our work is an opportunity to streamline and simplify the law, and to make it cheaper for people to enfranchise. I’m certain that this project will improve the position of millions of leaseholders in England and Wales.” For more details of the project, click here

Older people’s housing in rural areas
On 30 April 2018 the All-Party Parliamentary Group on Housing and Care for Older People published a report calling on local planning authorities to ensure provision of new homes for older people. A nine-month inquiry found that 50% of rural households would be over the age of 65 by 2039. Inquiry chair Lord Best said: “For all the advantages of living in the countryside, life can be pretty miserable if your home is no longer right for you; if you can no longer manage the steps and stairs, if maintaining the property is costing too much, if keeping warm is a trial and your energy bill’s a nightmare, if you can no longer tend the once-beautiful garden.” For a report in Public Finance, click here For the response of the Local Government Association, click here

Grenfell Tower Inquiry
On 27 April 2018 the Grenfell Tower Inquiry issued an update on a number of areas as it prepares to begin hearings on 21 May 2018. In particular, Phase 1 of the inquiry will focus on the factual narrative of the events of the night of 14 June 2017. This will include: the existing fire safety and prevention measures at Grenfell Tower; where and how the fire started; the development of the fire and smoke; how the fire and smoke spread from its original seat to other parts of the building; the chain of events before the decision was made that there was no further saveable life in the building; and the evacuation of residents. Phase 2 will address the remainder of the issues identified in the List of Issues published on the Inquiry’s website. For this announcement, click here For the List of Issues, click here

Grenfell Tower fire – lessons for building safety systems
On 28 April 2018 Lord Porter, the Chairman of the Local Government Association, said: "The Grenfell Tower fire has exposed a system for ensuring buildings that are safe which is not fit for purpose. The use and misuse of desktop studies is at the heart of the problem." For his full comments, click here

Housing affordability in England and Wales
On 26 April 2018 the ONS published statistics on housing affordability in 2017. On average, full-time workers could expect to pay around 7.8 times their annual workplace-based earnings on purchasing a home in England and Wales in 2017, a significant increase of 2.4% since 2016. Workplace-based housing affordability significantly worsened in England between 2016 and 2017, but there were no significant changes in Wales.  In 2017, full-time employees in England and Wales could typically expect to spend 9.7 times their median gross annual earnings on purchasing a newly-built property and 7.6 times their annual earnings on an existing property. Copeland, in the North West of England, was the most affordable local authority in England and Wales in 2017, with median house prices being 2.7 times median workplace-based annual earnings. Kensington and Chelsea was the least affordable local authority in 2017, with median house prices being 40.7 times median workplace-based annual earnings. Housing affordability has worsened significantly in 69 local authorities in England and Wales over the last five years, with over three-quarters of these being in London, the South East and the East. For the full report, click here

Dwelling stock estimates – Wales
On 26 April 2018 the Welsh Government published dwelling estimates based on data from the population censuses updated annually to take account of new house building and demolitions. The number of dwellings in Wales continues to grow steadily with an estimated 1.4 million dwellings at 31 March 2017. This represents an increase of 6 per cent over the last 10 years. The estimated number of private sector dwellings has increased steadily over the last ten years. This was mainly due to an increase in the number of privately rented dwellings. The private sector accounted for 84 per cent of all dwellings in 2017 and 14 per cent of all dwellings were privately rented. The percentage of dwellings which are owner occupied has fallen over recent years. However, they continue to represent the majority of all dwellings in Wales, accounting for 70 per cent in 2017. In 2017, social sector dwellings accounted for 16 per cent of all dwellings. The proportion of dwellings rented from local authorities has decreased from 11 per cent in 2007 to 6 per cent in 2017. The proportion of all dwellings rented from Registered Social Landlords has increased from 5 to 10 percent over the same period. For the full estimates document, click here

Right to rent checks on undocumented Commonwealth citizens – ‘Windrush cases’
On 25 April 2018 the Home Office published updated guidance for landlords wishing to rent private residential property in England to Commonwealth citizens (known as ‘Windrush’ cases) who are long-term residents of the UK but do not have documents to demonstrate their status. It explains their position and what a landlord should do. The Residential Landlords Association has criticised the guidance for ‘a lack of clarity’. For the guidance, click here For the RLA’s comments, click here

HOUSING LAWS IN THE PIPELINE

Local Housing Authority Debt Bill
This Bill, which had its first reading in the House of Lords on 4 July 2017, seeks to replace the current regime of limits on local housing authorities’ debt with limits determined by the existing prudential regime for local authority borrowing for non-housing-related purposes. The second reading is yet to be scheduled. For the Bill as introduced, click here To follow progress of the Bill, click here

Homes (Fitness for Human Habitation and Liability for Housing Standards) Bill
This is a Private Member’s Bill introduced in the House of Commons by Karen Buck. The Bill aims to amend the Landlord and Tenant Act 1985 to require that residential rented accommodation is provided and maintained in a state of fitness for human habitation; to amend the Building Act 1984 to make provision about the liability for works on residential accommodation that do not comply with Building Regulations; and for connected purposes. The Bill received its second reading on 19 January 2018. It will begin its Committee stage on a date to be announced. On 14 January 2018 the government confirmed that it would support the Bill. For the Bill as introduced, click here For a House of Commons Library research briefing, click here To follow progress of the Bill, click here

Homeless People (Current Accounts) Bill
This is a Private Member’s Bill introduced in the House of Commons by Peter Bone. The Bill is intended to require banks to provide current accounts for homeless people seeking work; and for connected purposes. The Bill is being prepared for publication. The Bill received its first reading on 5 September 2017. The second reading is due to take place on 1 February 2019. To follow progress of the Bill, click here

Housing (Amendment) Scotland Bill
This Scottish government Bill aims to amend the law on the regulation of social landlords and to reduce the influence of local authorities over registered social landlords. It was introduced on 4 September 2017 and is now at Stage 2. The Stage 1 debate was held on 29 March 2018; for the report of the debate (which commences at page 87), click here For the Bill as introduced, click here For a research briefing on the Bill, click here To follow progress of the Bill, click here

Sublet Property (Offences) Bill
This is a Private Member’s Bill introduced in the House of Commons by Christopher Chope. It is intended to make the breach of certain rules relating to sub-letting rented accommodation a criminal offence; to make provision for criminal sanctions in respect of unauthorised sub-letting; and for connected purposes. The Bill is being prepared for publication. The Bill received its first reading on 5 September 2017. The second reading has been postponed and is now due to take place on 6 July 2018. To follow progress of the Bill, click here

Mobile Homes and Park Homes Bill
This is a Private Member’s Bill introduced in the House of Commons, also by Christopher Chope. It is intended to require the use of published criteria to determine whether mobile homes and park homes are liable for council tax or non-domestic rates; to make provision in relation to the residential status of such homes; to amend the Mobile Home Acts; and for connected purposes. The Bill is being prepared for publication. The Bill received its first reading on 5 September 2017. The second reading has been postponed and is due to take place on 6 July 2018. To follow progress of the Bill, click here

Affordable Home Ownership Bill
This Bill was introduced to Parliament on Tuesday 24 October 2017, also by Christopher Chope, under the Ten Minute Rule and is a Private Member’s Bill. It was said by him to make provision for affordable home ownership; to require the inclusion of rent to buy homes in the definition of affordable housing; to make provision for a minimum proportion of new affordable housing to be available on affordable rent to buy terms; to provide relief from stamp duty when an affordable rent to buy home is purchased; and for connected purposes. The Bill itself has not yet been published. Its second reading has been further postponed to 11 May 2018. To follow progress of the Bill, click here

Creditworthiness Assessment Bill
This Private Member’s Bill was introduced by Lord Buck and had its second reading in the House of Lords on 24 November 2017. The Bill would require certain matters (including rental payment history) to be taken into account when assessing a borrower’s creditworthiness. For the Bill as introduced, click here The Bill will have its Committee stage on 11 May 2018. For progress of the Bill, click here

Regulation of Registered Social Landlords (Wales) Bill
The purpose of this Bill is to amend or remove those powers which are deemed by the Office for National Statistics (ONS) to demonstrate central and local government control over Registered Social Landlords (RSLs). These changes will enable the ONS to consider reclassifying RSLs as private sector organisations for the purpose of national accounts and other ONS economic statistics. The Bill is currently at Stage 3. Stage 3 commenced on 13 March 2018. Stage 3 consideration and disposal of amendments took place in Plenary on 24 April 2018. For progress on the Bill, click here and scroll down.

Secure Tenancies (Victims of Domestic Abuse) Bill
This government Bill seeks to make provision about the granting of old-style secure tenancies in cases of domestic abuse. The Bill completed its House of Lords stages on 13 March 2018 and was presented to the House of Commons on 13 March 2018. Committee stage in the Commons has been completed. Report stage will take place on 8 May 2018. For the Bill as brought from the House of Lords, click here For a note of impacts, click here For a House of Commons Library Briefing published after completion of the Committee stage in the Commons, click here To follow progress of the Bill, click here

Private Landlords (Registration) Bill
This Bill was introduced to Parliament on 17 January 2018 under the Ten Minute Rule. The Bill seeks to require all private landlords in England to be registered. It is due to receive a postponed second reading on 11 May 2018. The Bill is being prepared for publication. To read the debate on introduction of the Bill, click here To follow progress of the Bill, click here

Leasehold Reform Bill
This Bill, introduced to Parliament on 7 November 2017 under the Ten Minute Rule and sponsored by Justin Madders, makes provision about the regulation of the purchase of freehold by leaseholders; to introduce a system for establishing the maximum charge for such freehold; to make provision about the award of legal costs in leasehold property tribunal cases; and to establish a compensation scheme for cases where misleading particulars have led to certain leasehold agreements. It is scheduled to receive a second reading on 26 October 2018. The Bill is being prepared for publication. To follow progress of the Bill, click here

Homelessness (End of Life Care) Bill
This Bill, sponsored by Sir Edward Davey, was introduced to Parliament on 7 February 2018 under the Ten Minute Rule. It makes provision about end of life care and support for homeless people with terminal illnesses, including through the provision of housing for such people. The Bill’s second reading has been further postponed to 6 July 2018. The Bill itself is being prepared for publication. To follow progress of the Bill, click here

Rating (Property in Common Occupation) and Council Tax (Empty Dwellings) Bill
This government Bill was given its first reading in the House of Commons on 28 March 2018. It makes provision, where two or more hereditaments occupied or owned by the same person meet certain conditions as to contiguity, for those hereditaments to be treated for the purposes of non-domestic rating as one hereditament; and to increase the percentage by which a billing authority in England may increase the council tax payable in respect of a long-term empty dwelling. It received its second reading on 23 April 2018. For the Hansard record of the second reading debate, click here The Bill has been committed to committee commencing on 1 May 2018 For the Bill as introduced, click here For the government’s announcement of the Bill, click here To follow progress of the Bill, click here

HOUSING LAW CONSULTATIONS

Supporting housing delivery through developer contributions
Following the announcements at Autumn Budget 2017, the government is seeking views on a series of reforms to the existing system of developer contributions in the short term. These reforms will benefit the local authorities who administer them, developers who pay them and the communities in which development takes place. The consultation closes on 10 May 2018. For more details, click here

Reviewing the landlord registration fee structure and application process – Scotland
The Scottish government is consulting on proposals intended to strengthen the system of landlord registration in a proportionate way that will help to ensure that homes rented to private rented sector tenants are of good quality and are managed professionally. Responses to the consultation will help to shape changes to the application process that will require landlords to demonstrate that they meet their legal responsibilities. They will also inform amendments to the way that fees are charged so that local authorities have enough resources to make informed decisions about who can be approved to operate as a landlord. The consultation closes on 7 June 2018. For more details, click here

Powers for dealing with unauthorised development and encampments
The MHCLG and Ministry of Justice have launched a consultation seeking views on the effectiveness of powers for dealing with unauthorised development and encampments. The consultation asks a series of questions relating to powers for dealing with unauthorised development and encampments, including: local authority and police powers; court processes; trespass; planning enforcement; the provision of authorised sites; and the impacts on the travelling community. The consultation closes on 15 June 2018. For the consultation document, click here

HOUSING LAW ARTICLES & PUBLICATIONS

Paws for Thought: The High Court tackles PSPOs in a Landmark Judgment Jessica van der Meer UK Constitutional Law Association 26 April 2018. To read this article, click here

Let’s stop letting agents unfairly holding on to holding deposits Rhea Newman Shelter Blog 27 April 2018. To read this article, click here

Cause and Effect: costs in public law cases Alexander Campbell Local Government Lawyer 27 April 2018. To read this article, click here

Millennial housing crisis engulfs Britain Michael Savage Observer 28 April 2018. To read this article, click here

What is a ‘desktop study’ and should they be banned? John Bibby Shelter Blog 30 April 2018. To read this article, click here

Keeping social housing on the agenda Eamon McGoldrick National Federation of ALMOs 30 April 2018. To download this article, click here

Housing ladder has become a housing treadmill for many Karen Croucher CIH Blog 30 April 2018. To read this article, click here

Stop calling it the housing ladder. For those on low incomes, it's a treadmill Campbell Robb Guardian 30 April 2018. To read this article, click here

Young or old, we private renters are being locked out of our dream homes Dawn Foster Guardian 1 May 2018. To read this article, click here

Housing: Recent Developments Jan Luba QC & Nic Madge Legal Action May 2018 (subscription required). To read this article, click here

HOUSING LAW DIARY

3 May 2018                              
Conclusion of committee stage of Rating (Property in Common Occupation) and Council Tax (Empty Dwellings) Bill (see Housing Laws in the Pipeline)

8 May 2018                              
Report stage of Secure Tenancies (Victims of Domestic Abuse) Bill see Housing Laws in the Pipeline)

10 May 2018                            
Consultation on supporting housing delivery through developer contributions closes (see Housing Law Consultations)

11 May 2018                            
Committee stage commences on Creditworthiness Assessment Bill (see Housing Laws in the Pipeline)

11 May 2018                            
Scheduled second reading of Affordable Home Ownership Bill (see Housing Laws in the Pipeline)

11 May 2018                            
Scheduled second reading of Private Landlords (Registration) Bill (see Housing Laws in the Pipeline)

21 May 2018                            
Hearings begin in Grenfell Tower Inquiry

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