HOUSING LAW NEWS & POLICY ISSUES

Right to Rent: incompatible with human rights
On 1 March 2019 the High Court held in Joint Council for the Welfare of Immigrants, R (On the Application Of) v Secretary of State for the Home Department [2019] EWHC 452 (Admin) that the UK Government’s Right to Rent policy is incompatible with human rights and in breach of the Equality Act 2010. The judgment prevents the UK Government from rolling out the policy in Scotland and Wales. The court also found that the policy in England breaches human rights law.

The Equality and Human Rights Commission (EHRC), which intervened in the case with Liberty and the Residential Landlords Association (RLA), said of the policy, which requires all landlords to check the immigration status of any potential tenant and has been in force in England since 2016: “We warned that the policy would increase racial discrimination as landlords would opt simply not to rent to anyone they suspected might not be eligible.”

For the judgment, click here. For a response by the EHRC, click here. For a comment by the RLA on the implications of the judgment for landlords, click here. For coverage of the judgment in The Guardian, click here. For an article on the Nearly Legal website by Giles Peaker, who acted for the RLA, click here.

Housing homeless persons in the private rented sector
On 1 March 2019 the MHCLG announced that over £19.5 million would be provided to local authorities to help homeless people, or those at risk of homelessness, to access a home in the private rented sector. The fund will be shared among 54 projects across England which will use it to help vulnerable people secure their own tenancy through support, such as paying deposits or putting down the first months’ rent. For the announcement, click here.

Discrimination against tenants on housing benefit
On 1 March 2019, in the same announcement as above, the MHCLG outlined plans to review letting adverts which potentially discriminate against would-be tenants on Housing Benefit. Of 4.5 million households living in private rental accommodation, 889,000 receive housing benefit to help pay their rent. The latest figures show around half of landlords said they would not be willing to let to tenants on housing benefit. Therefore, ministers will meet leading industry representatives, including mortgage providers, landlord associations, tenant groups, and property websites, to clamp down on blanket exclusions in adverts, with a view to stopping them completely. For the announcement, click here. For a response from the Residential Landlords Association, click here.

Support for rough sleepers
On 1 March 2019 the MHCLG announced that it is making available a fund of £26 million to councils which will be able to use the funding to:

• create teams of ‘Navigators’ – specialist support workers who will act as a single point of contact to help people off the streets and into recovery by directing them to the services they need, such as mental health support, substance misuse counselling and housing advice services;
• establish dedicated lettings agencies for rough sleepers;
• set up specialist rough sleeping ‘Somewhere Safe to Stay hubs’ which will ensure those on the streets have access to professional help and guidance to start their recovery, including immediate shelter and tailored mental health support; and
• introduce Supported Lettings schemes – helping vulnerable people sleeping rough to sustain tenancies.

The closing date for applications for funding is 29 March 2019. For the full announcement, click here. For guidance about applying for funding, click here.

Leasehold and commonhold reform
On 21 February 2019 the House of Commons Library published a briefing paper considering trends in leasehold ownership and ongoing problems associated with the sector. The Government has committed to legislation; on 20 September 2018 the Law Commission published detailed proposals on leasehold enfranchisement and lease extensions; an additional consultation exercise on commonhold was launched on 10 December 2018; and consultation on the Right to Manage was opened at the end of January 2019. For the briefing, click here.

Help to Buy: ISA scheme statistics
On 26 February 2019 HM Treasury published statistics for the Help to Buy: ISA scheme for the period between 1 December 2015 and 30 September 2018. Since the launch of the Help to Buy: ISA, 194,379 property completions have been supported by the scheme. 256,313 bonuses have been paid through the scheme with an average bonus value of £870. The mean value of a property purchased through the scheme is £173,353 compared to an average first-time buyer house price of £195,404 and a national average house price of £232,554. For the full statistics, click here.

Help to Buy: Equity Loan scheme statistics
On 26 February 2019 the MHCLG published statistics for the Help to Buy: ISA scheme for the period between 1 April 2013 and 30 September 2018. Over that period 195,219 properties were bought with an equity loan. The total value of these equity loans was £10.66 billion, with the value of the properties sold under the scheme totalling £49.89 billion. Most of the home purchases in the Help to Buy: Equity Loan scheme were made by first time buyers, accounting for 158,013 (81 per cent) of total purchases. The mean purchase price of a property bought under the scheme was £255,542, with buyers using a mean equity loan of £54,630. For the full statistics, click here.

Deaths of homeless people in England and Wales – local authority estimates: 2013 to 2017
On 25 February 2019 the Office for National Statistics published statistics of the number of deaths of homeless people in England and Wales at local authority level. Figures given are for deaths registered in the years 2013 to 2017. In 2017, the highest estimated numbers of deaths of homeless people were in major urban areas such as Manchester and Birmingham. The highest estimated rates of deaths of homeless people, relative to the total population of each area, included some smaller towns such as Blackburn with Darwen. Local areas in England with the highest deprivation had around nine times more deaths of homeless people relative to their population than the least disadvantaged areas. Many more deaths of homeless people occurred in urban areas (574 in 2017) compared with rural areas (only 26). For the statistical release, click here.

Direction on the rent standard from 1 April 2020
On 26 February 2019 the MHCLG directed the regulator of social housing to set a new rent standard for registered providers of social housing with effect from 1 April 2020. This direction will replace the direction on rent issued in May 2014 and will permit registered providers of social housing to increase their rents by up to CPI+1% each year, for a period of at least 5 years. It will apply to local authority registered providers (as well as to private registered providers). The direction follows a consultation on the proposal and is accompanied by a policy statement which sets out the government’s policy on rents for social housing from 1 April 2020 onwards. For the terms of the direction, click here. For the government response to the consultation, click here.

Domestic violence and abuse: help available from DWP
On 22 February 2019 the Department for Work and Pensions published a guide providing information for victims of domestic violence and abuse about the services and support offered by DWP.

This includes special conditions for:

• Housing Benefit
• Jobseeker's Allowance
• Employment and Support Allowance
• Universal Credit
• the benefit cap
• removal of the spare room subsidy
• Discretionary Housing Payments
• Migrant partner support
• Child maintenance.

For the guide, click here.

Property agent rating scheme – Teignbridge Council
Teignbridge Council has introduced a property agent rating scheme (PARS). The scheme, which is designed to be similar to the ‘food hygiene rating scheme’, is a means of ensuring that all letting agents and property managers comply with letting related legislation. PARS will see participating agents displaying window stickers and certificates at their premises and ratings on their websites. This will enable landlords and tenants to easily identify who they can trust to look after their interests. For more details, 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

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 was due to take place on 1 February 2019 but Parliament did not sit on that day and the second reading will now take place on a date to be announced. 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 and was due to receive its second reading on 23 November 2018 but was not called. 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 and was due to receive its second reading on 23 November 2018 but was not called. 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 was due to receive its second reading on 23 November 2018 but was not called. The Bill itself has not yet been published. 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. The Bill has completed all stages in the Lords. It received its first reading in the Commons on 12 September 2018. Second reading has been postponed until 15 March 2019. For the Bill as brought from the Lords, click here 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. Second reading has been postponed to a date to be announced. 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. Second reading has been postponed to a date to be announced. For the Bill as introduced, click here 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. Second reading has been postponed to 22 March 2019. For the Bill as introduced, 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. Second reading has been postponed to a date to be announced. The Bill is being prepared for publication. To follow progress of the Bill, click here

Freehold Properties (Management Charges and Shared Facilities) Bill
This Private Members' Bill, sponsored by Helen Goodman, seeks to make provision for the regulation of fees charged by management companies to freeholders of residential properties; to make provision for self-management of shared facilities by such freeholders; and to require management companies to ensure shared facilities are of an adequate standard. It received its first reading on 14 November 2018. Second reading has been further postponed to 22 March 2019. The Bill is being prepared for publication. To follow progress of the Bill, click here

Gypsy and Traveller Communities (Housing, Planning and Education) Bill
This Private Members' Bill, sponsored by Andrew Selous, seeks to make provision about periodical local authority reviews of the housing needs of Gypsy and Traveller communities; to make provision for the conversion of caravan sites into settled accommodation; to require local authorities to provide temporary caravan stopping sites where there is a demonstrated need; to create a criminal offence of unauthorised encampment; to make provision about the education of Gypsy and Traveller children; and to require schools to have regard to Gypsy and Traveller culture and heritage in teaching. The bill received its first reading on 13 November 2018. Its second reading has been further postponed until 15 March 2019. 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. Stage 3 commenced on 30 November 2018. Stage 3 consideration will take place in Plenary on 19 March 2019 to consider amendments to the Bill (as amended at Stage 2).  For the Bill, as amended at Stage 2, associated information and to follow its progress, click here

HOUSING LAW CONSULTATIONS

Law Commission – Reinvigorating commonhold: the alternative to leasehold ownership
The Law Commission has published a consultation paper in which it makes provisional proposals “to make commonhold work for homeowners, developers, mortgage lenders and across the wider property sector”. The Paper includes proposals which would:

• Enable commonhold to be used for larger, mixed-use developments which accommodate not only residential properties but also shops, restaurants and leisure facilities.
• Allow shared ownership leases and other forms of affordable housing to be included within commonhold.
• Make it easier for existing leaseholders to convert to commonhold and gain greater control over their properties.
• Improve mortgage lenders’ confidence in commonhold to increase the choice of financing available for home buyers.
• Provide homeowners with a greater say in how the costs of running their commonhold are met.
• Enable homeowners to end unattractive long-term contracts imposed by developers.

The consultation closes on 10 March 2019. Comments may be sent using the online form. Where possible, it would be helpful if this form was used. For the consultation document and methods of response, click here

Improving access to social housing for members of the Armed Forces
The MHCLG is seeking views on proposals for new statutory guidance for local authorities to improve access to social housing for members of the Armed Forces, veterans, and their families. The consultation closes on 8 March 2019. For the consultation document and methods of response, click here

Revising the Mental Capacity Act 2005 Code of Practice: Call for evidence
The Ministry of Justice has issued a call for evidence in respect of the Mental Capacity Act 2005 Code of Practice. Since the Act came into force in 2007, the Code of Practice has provided practical guidance regarding its implementation. The Code offers examples of best practice to both carers and practitioners, who have a formal duty to adhere to the Code. It also serves as a fundamental piece of guidance to the friends and family of the individual, to enable them to better understand the practical insight the Act offers to those who lack capacity.
The call for evidence will seek to establish the extent to which the current Code of Practice reflects changes in case law and lessons learned through practical use of the Code of Practice over the last eleven years. The MoJ says that it is important to ensure that the Code remains relevant and places individuals at the very heart of the decision-making process. The questions in the call for evidence are designed to inform the Government's decision-making on which aspects of the Code require revision. The consultation closes on 7 March 2019.  To participate in the consultation, click here. To access the Mental Capacity Act 2005 Code of Practice document, click here.

Making it easier for leaseholders to manage their properties: Law Commission
The Law Commission has released a consultation paper comprising proposals designed to make it quicker and easier for leaseholders to take control of the day-to-day management of their building. The proposals include:

• Extending the qualifying criteria so that leasehold houses, not just flats, qualify for the ‘right to manage’ (RTM) which gives the homeowners, rather than their landlord, responsibility for management functions relating to services, repairs, maintenance and insurance.
• Permitting multi-block RTM on estates, and removing the 25 per cent commercial space restriction.
• Reducing the number of notices that leaseholders must serve as part of the claim process.
• Introducing deadlines for procedures and exchanges of information between the landlord and RTM company, so that the process doesn’t stall.
• Exploring options for a more balanced costs regime.
• Giving the tribunal exclusive jurisdiction over RTM disputes so it can resolve disputes quickly, and waive minor procedural mistakes made in the process of claiming the RTM.

The consultation will be open until 30 April 2019. For the consultation document, click here. For a summary, click here. For a ‘Key Facts’ document, click here.

Enforcement of possession orders and alignment of procedures in the county court and high court
The Civil Procedure Rules (CPR), made by the Civil Procedure Rule Committee (CPRC), govern civil court processes including enforcement of court orders, and thus of orders for possession. The CPRC is concerned that the Rules regarding enforcement of possession orders ought to be reformed but wishes to obtain views from actual and potential court users, and those potentially affected, before determining what (if any) changes to make in the existing rules and system. The proposals in this consultation are intended to improve the process of enforcement of possession orders in order to bring it up to date with a modern justice system that is open and transparent and in tune with the needs of both the claimant and defendant and others affected.

The consultation closes on 2 May 2019. For more details and to complete the online survey, click here.

Tackling homelessness together
This consultation seeks views on how the government could improve local accountability for the delivery of homelessness services. The MHCLG is seeking views on:

• the effectiveness of existing non-statutory and statutory local accountability and partnership structures in homelessness services
• whether the government should introduce Homelessness Reduction Boards and, if so, how this could be done most effectively
• how else the government might improve local accountability and partnership working in homelessness services.

The consultation closes on 16 May 2019. For the consultation document, click here.

HOUSING LAW ARTICLES & PUBLICATIONS

Residential property: Government’s Right to Rent scheme is incompatible with Human Rights Act CMS Law-Now, 4 March 2019 – to read the article click here

Right to Rent scheme ruled incompatible with human rights law Amelia Hill and Diane Taylor, The Guardian, 1 March 2019 – to read the article click here

Right to Rent ruling: the implications David Smith Residential Landlords Association Campaigns & News Centre 3 March 2019 – to read the article click here

On sewer covers, gardens and responsibilities Giles Peaker, Nearly Legal blog 4 March 2019, – to read the item click here

Flat owners win battle to get combustible cladding replaced, Robert Booth, The Guardian, 1 March 2019, – to read the article click here

HOUSING LAW DIARY

7 March 2019                                       
Closing date for calls for evidence to the Ministry of Justice’s consultation on Revising the Mental Capacity Act 2005 Code of Practice (see Housing Law Consultations)

8 March 2019                                       
Closing date for submissions to the MHCLG’s consultation on Improving access to social housing for members of the Armed Forces (see Housing Law Consultations)

10 March 2019                                     
Closing date for submissions to the Law Commission’s consultation on Reinvigorating commonhold: the alternative to leasehold ownership (see Housing Law Consultations)

15 March 2019                                     
Postponed second reading of Gypsy and Traveller Communities (Housing, Planning and Education) Bill (see Housing Laws in the Pipeline)

15 March 2019                                     
Postponed second reading of Creditworthiness Assessment Bill (see Housing Laws in the Pipeline)

19 March 2019                                     
Stage 3 consideration in Plenary of Renting Homes (Fees etc.) (Wales) Bill and of the amendments made at Stage 2 (see Housing Laws in the Pipeline)

22 March 2019                                     
Postponed second reading of Homelessness (End of Life Care) Bill (see Housing Laws in the Pipeline)

22 March 2019                                     
Postponed second reading of Freehold Properties (Management Charges and Shared Facilities) Bill (see Housing Laws in the Pipeline)

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