17th July 2019
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HOUSING LAW NEWS & POLICY ISSUES
 

Ending leasehold ownership: Labour Party proposals
On 9 July 2019 the Labour Party published plans to end leasehold ownership of houses and flats in a report titled Ending the Scandal: Labour’s new deal for leaseholders. It proposes five key changes:

1. End the sale of new private leasehold houses with direct effect and the sale of private leasehold flats by the end of the party’s first term in Government.

2. End ground rents for new leasehold homes, and cap ground rents for existing leaseholders at 0.1 per cent of the property value, up to a maximum of £250 a year.

3. Set a simple formula for leaseholders to buy the freehold to their home, or commonhold in the case of a flat, capped at 1 per cent of the property value.

4. Crack down on unfair fees and contract terms by publishing a reference list of reasonable charges, requiring transparency on service charges and giving leaseholders a right to challenge rip-off fees and conditions or poor performance from service companies.

5. Give residents greater powers over the management of their homes, with new rights for flat owners to form residents associations and by simplifying the Right to Manage.

The document sets out a series of questions to which the party seeks responses by 30 September 2019. For the consultation document, click here. For the response of the Law Society, click here. For that of the Conveyancing Association, click here.

National Domestic Violence Helpline
On 9 July 2019 the Home Office announced that domestic abuse charity Refuge has been awarded a grant of £1.2 million to operate the National Domestic Violence Helpline which provides confidential advice for domestic abuse victims. The service is free to call on 0808 2000 247. It is staffed 24 hours a day, every day of the year, by a dedicated team of experts.

Refuge has also secured additional funding to develop new digital and mobile resources to support victims. This includes increasing capacity to answer more live calls, developing webchat services and publishing information on social media channels to widen the availability of the helpline service. The grant funding for Refuge will run from November 2019 to March 2022. For the announcement, click here.

Housing Health and Safety Rating System: outcomes of the scoping review
On 11 July 2019 the MHCLG published the outcomes of its scoping review to consider whether the Housing Health and Safety Rating System (HHSRS) should be updated and, if so, to what extent. Housing Minister Heather Wheeler announced that there will be a comprehensive overhaul of the HHSRS to begin later this year. The HHSRS, which has not been updated for twelve years, is used by local authorities to assess a range of potential hazards in rented properties, such as damp, excess cold and electrical faults as well as fire and falls.

The overhaul is intended to make it simpler and quicker for local authorities to assess health and safety standards in rented homes, helping them to improve conditions for tenants and better tackle rogue landlords. It will introduce minimum standards for common health and safety hazards and explore digital solutions for inspecting rented houses and flats.

For the outcomes document, click here. For a House of Commons Library briefing paper on the subject (including the outcomes of the scoping review), click here.

Discretionary Housing Payments
On 11 July 2019 the Department for Work and Pensions published analysis of local authorities' use of Discretionary Housing Payment funds, based on end-of-year monitoring and financial returns, for the financial year 2018-2019. For the analysis, click here.

Leasehold and freehold residential property transactions in England and Wales: 2018
On 15 July 2019 the Office for National Statistics published the number of transactions for leasehold and freehold residential properties for various areas in England and Wales. Statistics are reported for different types of house including newly built properties, existing properties, all house types combined, detached, semi-detached, terraced houses and flats or maisonettes. The data show that:

  • In England and Wales, 4.2 per cent of all new houses were sold as leasehold in 2018, down from 13.3 per cent in 2017.
  • Terraced houses were the most likely type of new house to be sold as leasehold in 2018.
  • In the North West of England, 21.8 per cent of all new houses were sold as leasehold in 2018, more than any other area but down from 58.5 per cent in 2017.
  • Out of all leasehold sales of new houses in 2018, two-thirds were in the North West, continuing historical trends.
  • Within the North West, the Greater Manchester area had the highest percentage of new house sales that were leasehold in 2018.

For the statistical release, click here.

Age-friendly homes: ‘England’s hidden housing crisis’
On 15 July 2019 the Royal Institute of British Architects (RIBA) launched a call for urgent action to tackle the severe lack of age-friendly housing. RIBA’s report, A home for the ages: Planning for the future through age-friendly design, emphasises the importance of well-designed, purpose built new homes that enable people to play a more active role in their communities as they age. The report includes new data from Centre for Towns and ComRes revealing:

  • Populations in towns and villages all over the country, inland and coastal, have aged significantly in the last 40 years – a trend that is set to continue;
  • The cost to the NHS of inappropriate housing for people over-55 is projected to reach £1billion per year by 2041 in first year treatment alone;
  • A quarter of over-55s are currently considering moving home but over half feel that the housing options available are inadequate;
  • Demand for age-friendly housing outstrips supply.

The RIBA is calling on the UK Government and the construction sector to tackle this ‘hidden’ housing crisis. To read the report, click here. For the related press release, click here. For an article on the matter in The Guardian, click here.

Future management of the Grenfell site
On 16 July 2019 Secretary of State for Communities, Housing and Local Government, James Brokenshire, and the Independent Site Management Lead, Doug Patterson, exchanged letters on the future management of the Grenfell Tower site. This follows the Government taking freehold ownership of the Grenfell Tower site. The Communities Secretary undertook to “closely engage with the community at every step of the way to a lasting memorial”. For the correspondence, click here. On 15 July 2019 the Communities Secretary and the Minister for Grenfell Victims, Nick Hurd, wrote to residents updating them on progress being made in relation to the management of the Grenfell Tower and Memorial Commission. For that letter, click here. For a factsheet concerning the Government’s ownership of the Grenfell site, click here.

Gender and disability inequalities in housing
On 12 July 2019 the Prime Minister announced the establishment of “a new independent body responsible for challenging social injustices and creating a fairer country”. The Office for Tackling Injustices (OfTI) is being created to present future Governments with more effective, data-driven, evidence-based analysis to help drive forward reforms to tackle wide-ranging disparities in society. In particular, the OfTI will use data to help Government to look at gender and disability inequalities in the workplace and in housing. For the announcement, click here. For the response of the Equalities and Human Rights Commission to the announcement, click here.

Impact of Universal Credit on landlords and tenants: NFA and ARCH survey
On 15 July 2019 the National Federation of ALMOs published a survey into the impact of Universal Credit. The survey of 39 respondents managing over half a million social and affordable properties found that:

  • 12 per cent of households are on UC, increased from 4 per cent last year.
  • 30 per cent of all households have arrears, owing an average of four weeks’ rent (£320).
  • 21 per cent of households on HB have arrears, owing three weeks’ rent (£221).
  • 67 per cent of households on UC have arrears, owing seven weeks’ rent (£564).

For the survey, click here.

Supporting prison leavers into housing – Wales
On 12 July 2019 the Welsh Government announced the grant of £273,000 to support men leaving prison in HMP Cardiff and women leaving prison in HMP Eastwood Park, Gloucestershire, including ten Housing First places provided by Cardiff Council. The funding will also be used to develop a housing project to support prison leavers into stable accommodation in Rhondda Cynon Taf. For the announcement, click here.

Increasing the notice period for ‘no-fault’ eviction – Wales
On 11 July 2019 the Welsh Government launched a consultation asking for views about amending the Renting Homes (Wales) Act 2016 before it comes into force. Under consultation are proposals for periodic contracts (those contracts with no end-date):

  • Extending the minimum notice period applicable to a section 173 notice from two to six months;
  • Restricting a landlord from serving a section 173 notice within the first six months of a periodic contract, rather than four months as currently provided for;
  • Placing a six-month restriction on issuing a section 173 notice following the expiry of a previous notice.

The main proposals for fixed-term contracts (those contracts with a pre-agreed end-date) are:

  • Removal of a landlord’s ability to end a fixed term standard contract under section 186;
  • To consider the use of break clauses in fixed term contracts.
For the announcement, click here. For more details of the consultation, see Housing Law Consultations (below).
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 had been further postponed until 22 March 2019 but the Bill was not called. The Bill is now expected to have its second reading debate on a date to be announced. 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 further postponed and will now take place on a date to be announced. 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 and is now expected to be on a date to be announced. The Bill is being prepared for publication. To follow progress of the Bill, click here

Fire Safety (Leasehold Properties) Bill
This Private Members' Bill, sponsored by Marsha De Cordova, would require freeholders of certain properties that have failed fire safety tests to carry out remedial work; to make provision for sanctions for such freeholders who fail to carry out such work; to ensure that leaseholders are not held liable for the costs of such work; and to make provision for a loan scheme to assist freeholders in carrying out such work. It received a first reading on 28 November 2018 and will have its second reading on a date to be announced. To follow progress of the Bill, click here.

Tenancy (Deposits and Arbitration) Bill
This Private Members' Bill, sponsored by Lloyd Russell-Moyle, would establish a single custodial tenancy deposit scheme; to provide for that scheme to invest deposits; to require interest on such investments to be used for the provision of tenant advocacy, tenant support and arbitration services; to establish a mandatory arbitration service for the resolution of disputes between landlords and tenants. The Bill received its first reading in the House of Commons on 13 March 2019. The second reading is scheduled to take place on a date to be announced. The Bill is being prepared for publication. To follow progress of the Bill, click here.

Freehold Properties (Management Charges) Bill
This Private Members' Bill, sponsored by Preet Kaur Gill, would require landlords to provide accounts of management charges payable under section 19 of the Leasehold Reform Act 1967 to freehold property owners. The Bill received its first reading in the House of Commons on 5 June 2019. The second reading is yet to be scheduled. The Bill is being prepared for publication. To follow progress of the Bill, click here.

Ground Rents (Leasehold Properties) Bill
This Private Members' Bill, sponsored by Eddie Hughes, would regulate ground rents charged on leasehold properties; make provision for a cap on ground rents; and make property developers liable for the legal costs of leaseholders seeking to vary certain ground rent contracts. The Bill received its first reading in the House of Commons on 25 June 2019. The second reading is yet to be scheduled. The Bill is being prepared for publication. To follow progress of the Bill, click here.

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HOUSING LAW CONSULTATIONS
 

Consultation on a new Rent Standard from 2020
The Regulator of Social Housing is proposing to replace the existing 2015 Rent Standard with a new Rent Standard for registered providers of social housing from 1 April 2020. The proposed changes have come about as a result of the Secretary of State for Housing, Communities and Local Government issuing a Direction in February 2019 to the Regulator of the Social Housing to set a new Rent Standard. The new Standard will also have regard to the Rent Policy Statement published alongside the Direction. The consultation closes on 30 July 2019. For the consultation document, click here.

Support for victims of domestic abuse in safe accommodation
This paper seeks views on the government’s proposals for a new approach to support victims of domestic abuse and their children in accommodation-based services in England. It is consulting on a new delivery model for accommodation-based support. This includes the introduction of a statutory duty on local authorities to provide support that meets the diverse needs of victims of domestic abuse and their children, ensuring they have access to provision that is right for them.
Views are sought on:

  • the definition of accommodation-based services and support
  • leadership and responsibilities
  • local and national accountability
  • guidance.

The government would like to hear from victims and survivors, service providers, local authorities, police and crime commissioners and other public agencies, as well as other professionals who support victims and their children.

The consultation closes on 2 August 2019. For the consultation document, click here.

Building a safer future: proposals for reform of the building safety regulatory system
This consultation builds on the recommendations from Dame Judith Hackitt’s Independent Review of Building Regulations and Fire Safety. It proposes fundamental reform of building safety requirements so that residents are safe, and feel safe, in their homes. The proposals span five broad areas:

  • the scope of the new regime
  • the concept of duty holders who have clear responsibilities throughout a building’s design, construction and occupation
  • giving residents a stronger voice in the system and ensuring their concerns are never ignored
  • plans for a new building safety regulator to provide oversight of the new building safety regulatory regime
  • strengthened enforcement and sanctions to deter non-compliance with the new regime.

The Home Office, simultaneously with this document, has issued a call for evidence on the Regulatory Reform (Fire Safety Order) 2005. The consultation closes on 31 July 2019. For the consultation document, click here.

For more details of the inquiry, click here.

Renting Homes (Fees etc.) (Wales) Act 2019: default fees and prescribed information
The Welsh Government is consulting on making two sets of regulations under paragraph 6 of Schedule 1, and paragraph 11 of Schedule 2, to the Renting Homes (Fees etc.) (Wales) Act 2019:

  • To prescribe the description and the limits of payments in default which are to be regarded as permitted payments.
  • To specify information a landlord (or their agent) should provide to a prospective tenant before a holding deposit is taken.

The consultation closes on 19 July 2019. For the consultation document and for methods of responding to it, click here.

Changes to the intervention, enforcement and use of powers guidance by Regulator of Social Housing
The Regulator of Social Housing is running a consultation, closing on 16 August 2019, on changes to its guidance on intervention, enforcement and use of powers. The proposed updates reflect legislative changes, including the introduction of the Housing and Administration regime, the Co-operative and Community Benefit Societies Act 2014 and the move to a standalone status for the Regulator. The guidance sets out the Regulator’s general approach to intervention and enforcement of registered providers and reinforces the high-level objectives and principles underpinning its approach to dealing with poor performance in a rapidly-changing social housing sector. For the consultation document and annexes, click here.

Tenancy deposit reform: a call for evidence
This call for evidence seeks to understand the barriers tenants face providing a second deposit when moving from one tenancy to the next. It looks at what can be done to speed up the return of deposits to tenants at the end of the tenancy.

It considers whether existing initiatives to address deposit affordability are meeting tenants’ needs and whether the market can offer improved products. It also explores innovative approaches that could be taken to help tenants move more easily, including allowing tenants to passport their deposit between tenancies.

The call for evidence, which closes on 5 September 2019, builds on the work of the Tenancy Deposit Protection Working Group, which has been looking at whether improvements can be made to deposit protection to the benefit of tenants and landlords. For the consultation document, click here.

Redress for purchasers of new build homes and the New Homes Ombudsman
This consultation, which closes on 22 August 2019, seeks views on a New Homes Ombudsman and the detail of proposed legislation to provide better redress for purchasers of new build homes. This includes the design and delivery of the New Homes Ombudsman, its powers, remit and how to fund it. The consultation also seeks views on whether a Code of Practice should also be underpinned in statute. For the consultation document, click here.

Increasing the minimum notice period for a no fault eviction – Wales
The Welsh Government is consulting on:

  • extending the minimum notice period from two months to six months
  • increasing the period at the beginning of a contract during which a landlord cannot give notice from four months to six months
  • placing a six-month restriction on issuing a notice following the expiry of a previous notice
  • removing a landlord’s ability to end a fixed term standard contract (under section 186)
  • the use of break clauses in fixed term contracts.

The consultation will close on 5 September 2019. For the consultation document, click here.

Ending the Scandal: Labour’s new deal for leaseholders
The Labour Party has published plans to end leasehold ownership of houses and flats. It proposes five key changes:

1. End the sale of new private leasehold houses with direct effect and the sale of private leasehold flats by the end of the party’s first term in Government.

2. End ground rents for new leasehold homes, and cap ground rents for existing leaseholders at 0.1 per cent of the property value, up to a maximum of £250 a year.

3. Set a simple formula for leaseholders to buy the freehold to their home, or commonhold in the case of a flat, capped at 1 per cent of the property value.

4. Crack down on unfair fees and contract terms by publishing a reference list of reasonable charges, requiring transparency on service charges and giving leaseholders a right to challenge rip-off fees and conditions or poor performance from service companies.

5. Give residents greater powers over the management of their homes, with new rights for flat owners to form residents associations and by simplifying the Right to Manage.

The document sets out a series of questions to which the party seeks responses by 30 September 2019. For the consultation document, click here.

Local authority housing statistics: proposed changes
This MHCLG consultation seeks views on the proposed discontinuing of the local authority housing statistics (LAHS) bulletin that is published in January every year and for its content to be published in other statistical bulletins throughout the year. The consultation closes on 9 September 2019. For the consultation document, click here.

HOUSING LAW ARTICLES & PUBLICATIONS
 

A Safe Home: breaking the link between homelessness and domestic abuse Lea Miller Homeless Link 9 July 2019 – to read the article, click here

Soup Kitchen serves up mental health support to London's homeless Sarah Marsh The Guardian 10 July 2019 – to read the article, click here

Quality versus quantity: are permitted development rights really the answer to the housing crisis? Angela Strachan Shelter Blog 10 July 2019 – to read the article, click here

What does it take to ‘feel at home’ rather than just being ‘housed’? Yoric Irving-Clarke CIH Blog 10 July 2019 – to read the article, click here

Housing allocation, religion and unlawful discrimination Christopher Baker and Rea Murray Local Government Lawyer 12 July 2019 – to read the article, click here

The homeless child – local authority duties Zia Nabi and Marisa Cohen Legal Action July 2019 – to read the article, click here

Haven or Hell? A critical debate on the implications of ageing-in-place Helen Brown CIH Blog 15 July 2019 – to read the article, click here

Housing benefit: update 2019 Bethan Harris, Desmond Rutledge and Kevin Gannon Legal Action July / August 2019 – to read the article (subscription required), click here

Housing: recent developments Sam Madge-Wyld and Jan Luba QC Legal Action July / August 2019 – to read the article (subscription required), click here

HOUSING LAW DIARY
 

19 July 2019                                         
Closing date for submission to the Welsh Government’s consultation on Renting Homes (Fees etc.) (Wales) Act 2019: default fees and prescribed information (see Housing Law Consultations)

30 July 2019                                        
Closing date for submissions to the consultation on a new Rent Standard from 2020 (see Housing Law Consultations)

31 July 2019                                        
Closing date for submissions to the consultation on building a safer future: proposals for reform of the building safety regulatory system (see Housing Law Consultations)

2 August 2019
                                     
Closing date for submission to the consultation on support for victims of domestic abuse in safe accommodation (see Housing Law Consultations)

16 August 2019                                    
Closing date for submission to the consultation on changes to the intervention, enforcement and use of powers guidance by Regulator of Social Housing (see Housing Law Consultations)

22 August 2019                                    
Closing date for submission to the consultation on redress for purchasers of new build homes and the New Homes Ombudsman (see Housing Law Consultations)

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