HOUSING LAW NEWS & POLICY ISSUES

Social housing green paper
On 14 August 2018 the Communities Secretary, James Brokenshire, launched the long-awaited social housing green paper. The government says that A new deal for social housing “aims to rebalance the relationship between tenants and landlords, tackle stigma and ensure that social housing can be both a safety net and springboard into home ownership”. The green paper is intended to start “a national discussion to collect views on how to improve social housing”, based around five stated core principle. The green paper’s proposals comprise:

• steps to speed up the complaints process, providing access to effective dispute resolution and giving tenants more support in accessing the redress options available to them
• new reforms to make it easier for tenants to progress into home ownership, such as allowing them to purchase as little as 1 per cent of their property each year through the government’s Shared Ownership programme
• strengthening the Regulator of Social Housing so that it can focus on issues that matter most to tenants and has ‘sharper teeth’ to intervene when needed, ensuring social homes are well managed and of decent quality
• allowing councils to continue to have choice over their use of fixed term tenancies, enabling them to offer residents greater security in their homes
• the introduction of performance indicators and new league tables, rebalancing the landlord/tenant relationship to hold bad practice to account and ensure residents are treated with dignity and respect.

For a web accessible version of the green paper, click here For a print-ready version, click here To respond to the green paper, see Housing Law Consultations below. For the government’s announcement, click here For the response of the Local Government Association, click here For the response of the Chartered Institute of Housing, click here For coverage in The Guardian, click here

Consultation launched on Right to Buy
On 14 August 2018 the government launched a consultation into how councils spend the money from Right to Buy sales. It also looks at reforming the Right to Buy replacement target, to give a broader measure of government’s impact on social housing. The consultation sets out proposals “to make it easier for councils to replace properties sold under Right to Buy and build the affordable homes their communities need”. For the announcement (incorporated within the announcement of the green paper), click here For more information of the consultation itself, see Housing Law Consultations below.

New rough sleeping strategy announced
On 13 August 2018 the MHCLG launched a strategy to end rough sleeping by 2027.  The government said that the strategy will be backed by an additional £100 million and developed across government in conjunction with charities and experts. The key focus of its plans will be to stop people becoming homeless in the first place. The strategy lays out a 3-pronged approach to tackling rough sleeping, including:

• preventing rough sleeping by providing timely support to those at risk
• intervening to help people already on the streets get swift, targeted support and
• helping people recover, find a new home quickly and rebuild their lives.

For the strategy document, click here For CIH’s response, click here For the response of those housing and homelessness organisations who were part of the strategy’s Rough Sleeping Advisory Panel, click here

Supported housing funding to be retained in welfare system
On 8 August 2018 the government announced that housing benefit will be kept in place for all those living in supported housing. Ministers have recognised that “supported housing is a vital service for some of the most vulnerable people in our communities”. Last year the government consulted on possible alternative funding options. Having listened to views from providers, stakeholders and councils, the government has decided housing benefit will remain in place to fund this accommodation.

For the response to the consultation and for the original consultation document, click here For the government announcement of its decision, click here For the Local Government Association’s response, click here

Letting agent jailed for spending £700,000 of his clients’ money
On 2 August 2018, the Crown Prosecution Service reported that a letting agent who misspent £700,000 in rent he had collected for his clients has been sentenced to five years in prison. Jeffrey Gadsden collected rent and service charges on behalf of landlords for more than 150 properties across the east of England. These funds were kept in client accounts, with rent normally sent to the property owners on a regular basis. However, by June 2013 Gadsden’s business had run into financial difficulty and he had begun spending his clients’ money on the day-to-day running of his business. He received five years in prison for the first count of fraud and four years in prison for the remaining seven counts to run concurrently.

For the Crown Prosecution Service report of the case, click here

Social housing lettings – England
On 6 August 2018 the MHCLG published statistics on social housing lettings in England provided by local authorities and private registered providers for the period April 2016 to March 2017. During that period, social housing lettings by private registered providers decreased by 11 per cent to 231,000, continuing the fall from the previous year. Lettings as a proportion of total stock decreased to 7 per cent from 8 per cent in 2015/16. Local authority lettings decreased by 9 per cent, to 103,000 in 2016/17, a continuation of their long-term trend. 45,000 properties were let at affordable rents, down 6 per cent from 2015/16. Affordable rent general needs lettings made up a quarter (25 per cent) of all private registered providers’ general needs lettings. The proportion of general needs private registered provider lettings let at social rent levels on a fixed term basis increased to 23 per cent in 2016/17, up from 18 per cent in 2015/16, whereas for local authority lettings it went down to 8 per cent.

Average median weekly rents for social rent general needs lettings decreased for the first time since 2007 in 2016/17, in England and in London. The average (median) net weekly social rent of general needs properties let in 2016/17 was £82. Despite the general decrease in affordable rents in England for all sizes in 2016/17, average median affordable rents in London continued to increase for lettings of all sizes.

For the full statistics, click here

Lettings agents and property managers: redress schemes
On 2 August 2018 the MHCLG published an updated version of its guidance on the requirement for lettings agents and property managers in England to belong to a government approved redress scheme. The latest version reflects that from 6 August 2018 Ombudsman Services: Property is no longer a redress scheme. For the updated guidance, click here

Advice for building owners on assurance and replacing of flat entrance fire doors
On 31 July 2018 the MHCLG published an updated version of its advice note for those responsible for the fire safety of residential flats in respect of the fire and smoke resistance performance of flat entrance front doors. The note was developed by the Ministry’s Independent Expert Advisory Panel on building safety drawing on the advice of industry experts. It has been developed to support those who want to replace their fire doors or review their performance. For the update advice note, click here

Landlord possession statistics – England and Wales
On 9 August 2018 the Ministry of Justice published quarterly national statistics on possession claim actions in county courts by mortgage lenders and social and private landlords. The statistics cover the period from April to June 2018. Landlord possession claims (29,440) and orders for possession (22,785) decreased by 8 and 9 per cent respectively, compared to the same quarter last year. Warrants of possession (14,093) also decreased (by 14 per cent). Repossessions by county court bailiffs (8,169) were down 8 per cent compared to the same quarter last year. For the statistics (combined with those for mortgage possession below), click here

Landlord possession statistics – Wales only
On 10 August 2018 the Ministry of Justice published quarterly national statistics, specific to Wales, on possession claim actions in county courts by mortgage lenders and social and private landlords. There were 1,147 landlord possession claims made during April to June 2018, a decrease of 14 per cent on the same quarter of 2017. There were 953 landlord possession orders made during the quarter, down by 6 per cent compared with April to June 2017. For the statistics (combined with those for mortgage possession in Wales below), click here

Mortgage possession statistics – England and Wales
On 9 August 2018 the Ministry of Justice published quarterly national statistics on possession claim actions in county courts by mortgage lenders and social and private landlords. The statistics cover the period from April to June 2018. Mortgage possession claims (4,453) and orders for possession (2,880) have both decreased by 14 and 14 per cent respectively compared to the same quarter last year. Warrants issued (3,432) and repossessions (952) have decreased by 18 and 11 per cent respectively For the statistics (combined with those for landlord possession above), click here

Mortgage possession statistics – Wales only
On 10 August 2018 the Ministry of Justice published quarterly national statistics, specific to Wales, on possession claim actions in county courts by mortgage lenders and social and private landlords. During April to June 2018, there were 305 mortgage possession claims and 221 mortgage possession orders made, down by 21 and 15 per cent respectively, on the same quarter of 2017. For the statistics (combined with those for landlord possession in Wales above), click here

Ombudsman’s report: Man forced to sleep on sofa after council offers inadequate support
On 9 August 2018 the Local Government and Social Care Ombudsman reported its finding in a case where a man with mental health problems was forced to sleep on his parents’ sofa for 18 months because London Borough of Hounslow failed to support him properly. The Ombudsman found the council did not do enough to protect the man from potential harm, or support his parents adequately. The man had lived in supported accommodation but because he was not receiving the right support, struggled with debt, lost weight and failed to keep to his medical appointments. He also had difficulty keeping both himself and his room clean, and there were concerns he was being exploited at his voluntary work placement.

Professionals working with the man had noted their concerns for at least four years, but the council didn’t address them. When the council investigated in 2016, the son’s accommodation was described as ‘almost derelict’. The council decided the best option was to surrender the man’s tenancy, and for him to live with his parents until an alternative could be found. The parents disagreed as they did not have enough room for their son.

The council has agreed to the Ombudsman’s recommendations to apologise, make amends to the family, and make changes to its processes to avoid other people being affected by the same issue.

For the Ombudsman’s summary of the case and to access the finding itself, click here

Rental deposits: new report
On 5 August 2018 the Centre for Policy Studies published a report – Down with deposits: the case for rental insurance – which proposes that the government should promote a deposit replacement insurance system as an alternative to deposits, which would allow renters to insure against potential damage or missed rent payments without having to find a large up-front deposit, estimated to average around £1,041. The report says that such insurance schemes, which could easily be developed within the existing insurance market, would enable renters to retain more of their own money when moving into a property, enjoy the interest accruing during their tenancy, and avoid borrowing from friends, family, or pay-day lenders to gather enough funds for a deposit. The latter would be especially important for the 31 per cent of private renters who have less than £100 in the bank.

For the report, click here For the Centre’s press release in respect of the report, click here

Customer satisfaction in the social housing sector
On 3 August 2018 HACT published research that highlights a need for a new approach to customer satisfaction by the social housing sector. Rethinking Customer Insight: Moving beyond the numbers follows a two-year research project funded by seven leading housing associations. The report highlights two key issues for the future of customer satisfaction:

• Rather than collect data to demonstrate how good social housing providers are, they need to collect data to improve how good they are.
• Communicating with customers needs to be more targeted, more intelligent and more responsive.

The report concludes that there is “no one-size-fits-all model for customer satisfaction” and recommends a “new approach”. For the report, click here For more information about the report, click here

Social landlord housing stock and rents – Wales
On 8 August 2018 the Welsh Government published an annual report which includes information on the number of housing units (including bedsits and bed spaces) owned or partly owned and managed by the 11 local authorities who retain stock and by all Registered Social Landlords (RSLs) in Wales.  There continued to be a slight increase (1 per cent) in social housing with 230,044 social housing units (including bedsits and bed spaces) at 31 March 2018 compared with 228,805 a year earlier. Of these, RSLs owned 62 per cent and local authorities owned the rest. At 31 March 2018, there were a further 15,296 other non-social housing units owned or partly owned by social landlords of which 99 per cent were owned by RSLs. The average weekly rents set by local authorities at 1 April 2018 for 2018-19 for all self-contained social housing (including general needs, sheltered, other supported and extra care housing) was £89.35. This is an increase of 6 per cent compared to the previous year. The corresponding average weekly rent set by RSLs for 2018-19 was £91.16. This is an increase of 5 per cent compared to the previous year. The gap between local authority and RSL average weekly rent levels has been generally closing in recent years. For the full data, click here

Judicial review challenge to Right to Rent
The Residential Landlords Association has confirmed that the hearing of the High Court challenge by  the Joint Council for the Welfare of Immigrants to the Government’s Right to Rent scheme will take place on 18 and 19 December 2018. The legal challenge, is being supported by the RLA, with both the JCWI and the RLA arguing that the policy discriminates against foreign nationals. A study by the RLA’s research arm PEARL has found that as a result of the right to rent policy, 42 per cent of landlords are now less likely to rent to someone without a British passport for fear of prosecution for getting things wrong.

For more details of the challenge, click here For PEARL’s research, click here

Tenant Fees Bill ‘a missed opportunity’
On 3 August 2018 the Mayor of London, Sadiq Khan, declared that the government’s proposed Tenant Fees Bill is a "missed opportunity" to protect the 2.4 million private renters in the capital, and criticised Ministers for breaking their promises to publish key plans for social housing and rough sleeping before the summer (as to which see the news items above). In a joint letter to the Prime Minister, Mr Khan, along with Crisis, Generation Rent and Citizens UK set out how a reform of private renting is desperately overdue. For the Mayor’s full statement, click here To follow progress of the Bill, see Housing Laws in the Pipeline.

HOUSING LAWS IN THE PIPELINE

Parliament is now in recess. The House of Commons returns on 4 September 2018 and the House of Lords on 5 September 2018.

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) 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. On 14 January 2018 the government confirmed that it would support the Bill. It completed its committee stage on 20 June 2018 (when its original title was simplified to that above) and will have its report stage on 26 October 2018. For the Bill as amended in committee, click here For a House of Commons Library research, 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

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 26 October 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 until 26 October 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 postponed to 26 October 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 had its committee stage on 11 May 2018,its report stage on 9 July 2018 and third reading on 18 July 2018. It now goes to the Commons for consideration. For 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. The second reading of the Bill has been postponed to 26 October 2018. For the Bill, as introduced, click here 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 26 October 2018. For the Bill as introduced, click here 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. The Bill has completed its passage through the House of Commons and the House of Lords where amendments were tabled at third reading. The Commons will next consider those amendments. For those amendment, click here For the government’s announcement of the Bill, click here For the government’s announcement of its latest proposed amendments, click here To follow progress of the Bill, click here

Tenant Fees Bill
This government Bill makes provision for prohibiting landlords and letting agents from requiring certain payments to be made or certain other steps to be taken; makes provision about the payment of holding deposits; to make provision about enforcement and about the lead enforcement authority; and amends the provisions of the Consumer Rights Act 2015 about information to be provided by letting agents and the provisions of the Housing and Planning Act 2016 about client money protection schemes. It received its first reading on 2 May 2018 and its second reading on 21 May 2018. For the second reading debate, click here The Bill will next be considered at report stage on 5 September 2018. For the Bill as introduced, click here For the impact assessment, click here For a research briefing prepared for the report stage, click here To follow progress of the Bill, click here

Housing and Planning (Local Decision-Making) Bill
This Private Member’s Bill seeks to remove powers of the Secretary of State in relation to the location of and planning permission for new housing developments; to give local authorities powers to establish requirements on such developments in their area, including requirements on the proportion of affordable and social housing. It received its first reading on 13 March 2018 and is due to receive its second reading on 26 October 2018. The Bill is being prepared for publication. To follow progress of the Bill, click here

Renting Homes (Fees etc.) (Wales) Bill
This Welsh Government Bill includes provision for: prohibiting certain payments made in connection with the granting, renewal or continuance of standard occupation contracts; and the treatment of holding deposits. The Bill is currently at Stage 1 and the Equality, Local Government and Communities Committee is taking oral evidence. For the Bill, as introduced, associated information and to follow its progress, click here

HOUSING LAW CONSULTATIONS

Consultation on overcoming the barriers to longer tenancies in the private rented sector
This consultation invites view and comments on the benefits and barriers of landlords offering longer tenancies. The government is also seeking views on its proposed model for a 3-year tenancy with a 6-month break clause, and the options for implementing this. The model is designed to give tenants certainty over rents, and retains the flexibility that many desire. The consultation closes on 26 August 2018. For the consultation document, click here

Consultation on rent a room relief
On 6 July 2018 HM Treasury and HMRC published the government’s response to the consultation on rent a room relief. Rent a room relief allows individuals to earn up to £7,500 tax free from letting out furnished accommodation in their main or only residence. The government will retain rent a room relief at its current level.

However, in order to clarify the purpose of the relief and ensure it is better targeted to achieve its original objective of incentivising the use of spare rooms, the government will introduce a new ‘shared occupancy test’. The new test, set out in draft legislation accompanying the response, will require the taxpayer to be living in the residence and physically present for at least some part of the letting period, for the income to qualify for relief. The government invites comments and submissions on the proposal for a new shared occupancy clause, before its introduction in Finance Bill 2018-19 which will come into force on 6 April 2019. The closing date for submissions is 31 August 2018.

For the consultation outcome, click here

Consultation on fire safety: clarification of statutory guidance (Approved Document B)
The MHCLG is seeking views on the proposed clarification of statutory guidance on fire safety (Approved Document B) that aims to improve usability and reduce the risk of misinterpretation by those carrying out and inspecting building work. The consultation is part of the Government’s response to Dame Judith Hackitt’s Independent Review of Building Regulations and Fire Safety. The consultation closes on 11 October 2018. For the consultation documents, click here

Consultation on A new deal for social housing green paper
The social housing green paper proposes to ensure social homes provide an essential, safe, well managed service for all those who need it. The government says that it will consider how it can re-balance the relationship between residents and landlords to ensure issues are resolved swiftly and residents’ voices are heard. To support this vision there is, in the government’s opinion, a powerful case to be made for strengthening the regulatory framework so that it not only focuses on the governance and financial viability of housing associations, but also on how residents are treated and the level of services they should expect. The government seeks to address the stigma that for too long has been associated with social housing and on which residents all around the country have voiced their concern. The green paper seeks views on the government’s vision for social housing providing safe, secure homes that help people get on with their lives. The consultation closes on 6 November 2018. To access the green paper, click here To respond online, click here

Review of social housing regulation: call for evidence
The social housing green paper set out the government’s intention to carry out a review of regulation of social housing to ensure it remains fit for purpose, reflects changes in the social housing sector and drives a focus on delivering a good service for residents. This call for evidence asks for information on how the regulatory regime is meeting its current objectives – both what works well and what does not. It marks, together with questions in the green paper, the first stage in the review process. The government says that it is keen to hear from a wide range of interested parties including residents, landlords and lenders. The consultation closes on 6 November 2018. For the consultation document, click here To respond online, click here

Use of receipts from Right to Buy sales
The government has expressed its wish to support local authorities to build more affordable homes. This consultation invites views on options to change the rules governing the money raised from Right to Buy sales to make it easier for councils to build more homes. It also seeks views on whether the commitment that every additional home sold (as a result of the increase in discounts in 2012) is replaced on a one-for-one basis nationally should be retained, or reformed to focus on the wider supply of social and affordable housing. The government is keen to hear from local authorities as well as residents and other stakeholders. The consultation closes on 9 October 2018. For the consultation document, click here To respond online click here

HOUSING LAW ARTICLES & PUBLICATIONS

ROUGH JUSTICE: Problems with monthly assessment of pay and circumstances in universal credit, and what can be done about them Findings from CPAG’s Early Warning System Josephine Tucker and Dan Norris, Child Poverty Action Group August 2018 – to read the report click here

Social housing tenants to gain powers against rogue landlords Jessica Elgot, The Guardian 14 August 2018 – to read the article click here

Social housing proposals 'to give tenants greater power' BBC News 14 August 2018 – to read the item click here

Equality Act and Evictions Giles Peaker, Nearly Legal, 5 August 2018 – to read the item click here

Gaskin HMO case could have far reaching implications for licensing schemes David Smith, Residential Landlords Association Blog 14 August 2018 – to read the item click here

HOUSING LAW DIARY

15 August 2018                        
Regulation of Registered Social Landlords (Wales) Act 2018 (Consequential Amendments) Regulations 2018 come into force

26 August 2018                        
Consultation closes on overcoming the barriers to longer tenancies in the private rented sector (see Housing Law Consultations)

31 August 2018                        
Consultation closes on rent a room relief (see Housing Law Consultations)

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