HOUSING LAW NEWS & POLICY ISSUES

Council housing: Local Government Association report
On 21 June 2020 the Local Government Association published a report – Delivery of Council Housing – Developing a Stimulus Package Post-Pandemic – which stated that a post-pandemic building boom of 100,000 affordable homes a year is needed to provide housing fit for social care, health and other key workers who have fought coronavirus on the frontline and the families of those who lost their lives. The LGA sets out a range of key issues and recommendations to government to deliver a new major building programme of social homes, including:

• The Government should expand council housing delivery by bringing forward and increasing the £12 billion extension of the Affordable Homes Programme announced in the budget earlier this year, with an increased focus on homes for social rent.
• Right to Buy should be reformed with councils able to retain 100 per cent of receipts from the sale of homes under the scheme, the deadline to spend the money from sales should be extended to at least five years, and councils need the power to set the size of discounts locally.
• To increase the capacity of the building industry, which will have suffered following coronavirus, a skills and jobs strategy is needed to meet the needs of accelerating a social housing building programme.

To read the report, click here. For a news item published by the LGA concerning the report, click here. For a news report in The Guardian, click here.

Hotels used to house rough sleepers return to business
On 18 June 2020 The Guardian reported that two of the hotels block-booked to house rough sleepers during the coronavirus pandemic have ceased doing so in preparation for returning to regular business, raising concern for those accommodated in hotels by the Government for almost three months. Around 100 organisations have written an open letter to the Housing Secretary, Robert Jenrick, requesting a meeting by 30 June, to discuss how they might work together to prevent the return of thousands of people to the streets. In particular, the organisations emphasise the need to focus on the immediate extension of housing support for all people regardless of their immigration status. For the letter, click here. For the report, click here.

Atlas of London’s Homelessness Services 2020 published
On 19 June 2020 London Housing Foundation (LHF) published the 2020 version of its interactive website providing an overview of homelessness services in London. The Atlas, compiled and designed by Homeless Link, focuses on services that work with people or households without dependent children and primarily those who are rough sleeping or at risk of rough sleeping. The data for the current Atlas were collected between September 2019 and February 2020. For the Atlas, click here.

Gas safety certificates and section 21 notices
On 18 June 2020 the Court of Appeal handed down judgment in Trecarrell House Ltd v Rouncefield [2020] EWCA Civ holding that failure to provide a gas safety certificate prior to a tenant’s occupation does not prevent a landlord serving notice under s. 21 of the Housing Act 1988 provided that the relevant certificate has been given before service of the s. 21 notice. For the judgment, click here. For a summary of the judgment by Morgan Brien of Trinity Chambers, see New Housing Cases below.

Leasehold high-rise flats: who pays for fire safety work?
On 16 June 2020 the House of Commons Library published a paper considering the debate about who is responsible for paying for fire safety works on blocks of flats in the wake of the Grenfell Tower fire. It covers progress in implementing the Government decision to fund remediation work for affected blocks with ACM cladding in the social and private sectors. In March 2020, a £1 billion Building Safety Fund was announced to finance the removal of unsafe non-ACM cladding on high-rise blocks in the social and private sectors. For the paper, click here.

‘Legal loophole’ leaves vulnerable children facing homelessness to look after themselves
On 11 June 2020 Just for Kids Law published new data, compiled from Freedom of Information requests, showing that an estimated 1,498 children aged 16 and 17 who are at risk of homelessness and should be in the care of local authorities are put in unregulated children’s homes. The homes include hostels and supported accommodation with minimal adult supervision, which, the charity says, leaves them exposed to exploitation or abuse. As homeless children, they should be taken into care by the local authority but, according to Just for Kids Law, a legal loophole allows councils to give them a bare minimum of support by housing them under the Housing Act 1996 and placing them in unregulated accommodation. For more information, click here.

Housing Ombudsman’s Insight report
On 22 June 2020 the Housing Ombudsman published the second Insight report, examining complaints data and case studies from the second half of 2019-20, together with some key lessons drawn from them to share with landlords. Richard Blakeway, Housing Ombudsman, said:
“[W]e believe the report contains learning of long-term value to landlords as they remobilise. We have also included a focus on anti-social behaviour as we know from landlords that handling these cases has presented challenges during Covid-19. Overall the report illustrates the range of our work and the key learning points to support landlords with their complaint handling.”
Over the next year, the frequency of the Insight reports will increase from six-monthly to quarterly, providing greater insight into the Ombudsman’s work and opportunities to share learning. The next report will include a look at changes to the volume and type of complaints received since the Covid-19 restrictions came into effect. For the latest Insight report, click here

Tackling loneliness
On 16 June 2020 the House of Commons Library published a briefing paper explaining the Government's Loneliness Strategy, published in October 2018, and the steps taken so far by the Government pursuant to it. The strategy set out a wide variety of cross-departmental measures to provide 'national leadership' to tackle loneliness in England, including in the housing system. The briefing also looks at research into the causes and impact of loneliness and possible interventions. The impact of the Covid-19 pandemic on loneliness is also considered, alongside the measures introduced by the Government in response. Finally, this paper briefly outlines the situation in Wales, Scotland and Northern Ireland. For the paper, click here.

Private housing rental prices: May 2020
On 17 June 2020 the Office for National Statistics published a price index tracking the prices paid for renting property from private landlords in the UK. It showed that:

• Private rental prices paid by tenants in the UK rose by 1.5 per cent in the 12 months to May 2020, unchanged since April 2020.
• Private rental prices grew by 1.5 per cent in England, 1.2 per cent in Wales and 0.6 per cent in Scotland in the 12 months to May 2020.
• London private rental prices rose by 1.2 per cent in the 12 months to May 2020.

For the full data, click here.

Re-opening the housing market – Wales
On 19 June 2020 the Welsh First Minister, Mark Drakeford, announced that a series of changes would be made to the coronavirus regulations, from 22 June 2020. The changes included restarting the housing market in Wales by enabling house viewings to take place in vacant properties and house moves where a sale has been agreed but not yet completed. For the announcement, click here. For the response of the Residential Landlords Association, which welcomed the announcement, click here.

Private rental market summary statistics in England: April 2019 to March 2020
On 17 June 2020 the Office for National Statistics published median monthly rental prices for the private rental market in England, calculated using data from the Valuation Office Agency. The release shows that between April 2019 and March 2020:

• The median monthly rent was £700 for England; it has not been higher.
• London had the highest median monthly rent at £1,425; this is more than double the median monthly rent for England.
• The North East had the lowest median monthly rent at £495.
• The difference in monthly rental price between the most and least expensive local authorities was nearly £2,100.

For the release, click here. For a report in The Guardian, click here.

Universal credit: research by JRF and Save the Children
On 15 June 2020 the Joseph Rowntree Foundation and Save the Children published the findings from a large-scale survey of families which showed that:

• Six in ten families on universal credit and child tax credits have been forced to borrow money since the start of the coronavirus crisis, with many relying on payday loans or credit cards.
• Seventy per cent of families have had to cut back on food and other essentials, while half have fallen behind on rent or other household bills, sparking fears of more hardship ahead if unemployment rises further.

JRF and Save the Children have called on the Government “to extend an urgent lifeline for families in the form of a £20 a week increase to the child element of universal credit and child tax credit”. For more details, click here.

Leaseholder pays EastendHomes £48,000 for unlawfully renting out his flat
On 18 June 2020 EastendHomes reported that a man who breached the terms of his lease by using his flat in Tower Hamlets as a holiday let has agreed to pay back EastendHomes, the lessor, nearly £48,000. EastendHomes has pledged to re-invest the money back into Holland estate in Spitalfields (where the first floor flat is based) in consultation with the local resident Estate Management Board.

The lessee, Mr Singh, was repeatedly advised by EastendHomes that he was breaking the law and breaching the terms of his lease by renting out his flat as a holiday let from 2016-2020. Despite this, Mr Singh continued to allow the two-bedroom flat to be advertised on various websites for up to £220 a night.

EastendHomes applied to the First-Tier Tribunal who found that Mr Singh had breached the terms of his lease. Despite the Tribunal’s ruling, Mr Singh continued to maintain that he had done nothing wrong. EastendHomes decided to forfeit the lease. Faced with losing the flat, Mr Singh agreed to pay EastendHomes £48,000 including legal costs. For the report, click here.

Brent approves ending use of fixed term tenancies
On 18 June 2020 Brent Council’s Cabinet approved a new approach to tenancies across the borough. The Tenancy Strategy sets out the council’s aim to make sure that all Brent residents who are renting have a guaranteed level of security in their home. The main changes to the way the council manages its own tenancies are:

• Ending of fixed-term tenancies, and replacing them with lifetime tenancies
• Introducing demoted tenancies to tackle anti-social behaviour, where necessary
• Offering joint tenancies to cohabiting couples so that both people are protected.

Both the overall Tenancy Strategy and council-specific Tenancy Management Policy were agreed in consultation with existing council tenants and Brent residents in temporary accommodation. For more details, click here.

Building safety in high-rise residential buildings – Wales
On 19 June 2020 the Welsh Government announced its intention to publish a White Paper on building safety in high-rise residential buildings within this term of the Welsh Assembly. In advance of publication, the Government set out in a position statement the progress made and its vision for the full range of reforms required to make the necessary improvements on fire and building safety. For the position statement, click here.

HOUSING LAWS IN THE PIPELINE

Fire Safety Bill
This Government bill would make provision about the application of the Regulatory Reform (Fire Safety) Order 2005 where a building contains two or more sets of domestic premises; and would confer power to amend that order in future for the purposes of changing the premises to which it applies. The bill received its first reading in the House of Commons on 19 March 2020 and its second reading on 29 April 2020. For the second reading debate, click here.  It is now being considered by a Public Bill Committee which will scrutinise the bill line by line and is expected to report to the House by 25 June 2020. For the bill, as introduced, click here. To follow progress of the bill, click here.

Domestic Premises (Energy Performance) Bill
This private member’s bill, sponsored by Lord Foster of Bath, would require the Secretary of State to ensure that domestic properties have a minimum energy performance rating of C on an Energy Performance Certificate; to make provision regarding performance and insulation of new heating systems in existing properties. The first reading was on 8 January 2020 and the second reading on 7 February 2020. The committee stage will commence on a date to be appointed. For the bill, as introduced, click here. To follow progress of the bill, click here.

Rented Homes Bill
This private member’s bill, sponsored by Baroness Grender, would amend the Housing Act 1988 to abolish assured shorthold tenancies; and to extend the grounds upon which landlords of residential housing may recover possession. First reading took place on 22 January 2020. The second reading will be on a date to be announced. For the bill, as introduced, click here. To follow progress of the bill, click here.

Telecommunications Infrastructure (Leasehold Property) Bill
This Government bill would amend the electronic communications code set out in Schedule 3A to the Communications Act 2003; by doing so, it would address one stated policy barrier: making it easier for telecoms companies to access multi-dwelling buildings (such as blocks of flats) where a tenant has requested a new connection, but the landlord has not responded to requests for access rights. The bill received its first reading in the House of Commons on 8 January 2020 and its second reading on 22 January 2020. For the second reading debate, click here. The committee stage was completed on 11 February 2020. For the committee debate, click here. The third reading in the House of Commons was on 10 March 2020; for the debate, click here. First reading in the House of Lords was on 11 March 2020. The second reading was on 22 April 2020. The committee stage was completed on 2 June 2020. The report stage will be on 29 June 2020. For the bill, as introduced in the House of Lords, click here. To follow progress of the bill, click here. For a briefing, prepared by the House of Commons Library after second reading in the House of Commons, click here.

Renting Homes (Amendment) (Wales) Bill
This Welsh Government bill seeks to amend the Renting Homes (Wales) Act 2016 to provide greater security for people who rent their homes in Wales. This will particularly affect those who live in the private rented sector and occupy their homes under a ‘standard occupation contract’, the equivalent to the current assured shorthold tenancy, after the 2016 Act comes into force. This additional security will primarily be achieved by extending the minimum notice period for issuing a section 173 notice under the 2016 Act (the equivalent of the current section 21 notice under the Housing Act 1988) from two months to six months. Landlords will also be prevented from issuing such a notice until at least six months from the date of occupancy. Further provisions will also ensure that landlords are unable to issue rolling ‘speculative’ notices on a ‘just in case’ basis. The bill was introduced in the Senedd on 10 February 2020. The Equality, Local Government and Communities Committee considered the bill on various dates up to 12 March 2020. The Legislation, Justice and Constitution Committee and the Finance Committee are due to consider the Bill on dates to be appointed. On 1 April 2020 the First Minister issued a statement on the Welsh Government’s approach to legislation in light of COVID-19 in which he confirmed that this bill was not one of the Welsh Government’s current priorities and that the legislative programme remains under continual review. For the bill, as introduced, all other documents relating to it, and to follow progress on the  bill, click here.

Caravan Sites Bill
This private members’ bill, sponsored by Sir Christopher Chope, would amend the Caravan Sites and Control of Development Act 1960 to remove planning permission requirements for caravan site licence applicants. The bill is being prepared for publication. It received its first reading in the House of Commons on 10 February 2020. The second reading has been brought forward to 23 October 2020. To follow progress of the bill, click here.

Evictions (Universal Credit Claimants) Bill
This private members’ bill, sponsored by Chris Stephens, seeks to place a duty on the Secretary of State to prevent the evictions of Universal Credit claimants in rent arrears. The bill is being prepared for publication. It received its first reading in the House of Commons on 10 February 2020. The second reading has been further postponed to 29 January 2021. To follow progress of the bill, click here.

Homeless People (Current Accounts) Bill
This private members’ bill, sponsored by Peter Bone, would require banks to provide current accounts for homeless people seeking work. The bill is being prepared for publication. It received its first reading in the House of Commons on 10 February 2020. The second reading has been postponed to 5 March 2021. To follow progress of the bill, click here.

Mobile Homes Act 1983 (Amendment) Bill
This private members’ bill, sponsored by Sir Christopher Chope, seeks to amend the Mobile Homes Act 1983. The bill is being prepared for publication. It received its first reading in the House of Commons on 10 February 2020. The second reading has been further postponed to 23 October 2020. To follow progress of the bill, click here.

Mobile Homes and Park Homes Bill
This private members’ bill, sponsored by Sir Christopher Chope, would require the use of published criteria to determine whether mobile homes and park homes are liable for council tax or non-domestic rates; make provision in relation to the residential status of such homes; and amend the Mobile Home Acts. The bill is being prepared for publication. It received its first reading in the House of Commons on 10 February 2020. The second reading has been further postponed to 15 January 2021. To follow progress of the bill, click here.

Housing Act 2004 (Amendment) Bill
This private members’ bill, sponsored by Sir Christopher Chope, seeks to amend Part 3 of the Housing Act 2004 to provide that any selective licensing scheme for residential accommodation extends to social housing. The bill is being prepared for publication. It received its first reading on 10 February 2020. The second reading has been further postponed to 15 January 2021. To follow progress of the bill, click here.

Sublet Property (Offences) Bill
This private members’ bill, sponsored by Sir Christopher Chope, would make the breach of certain rules relating to sub-letting rented accommodation a criminal offence and would make provision for criminal sanctions in respect of unauthorised sub-letting. The bill is being prepared for publication. It received its first reading on 10 February 2020. The second reading has been further postponed to 13 November 2020. To follow progress of the bill, click here.

Vagrancy (Repeal) Bill
This private members’ bill, sponsored by Layla Moran, would repeal the Vagrancy Act 1824. It received its first reading in the House of Commons on 18 March 2020. The second reading has been further postponed to 23 October 2020. For the bill as introduced, click here. To follow progress of the bill, click here.

NEW HOUSING CASES

Trecarrell House Limited v Patricia Rouncefield EWCA [2020] Civ 760
In an appeal against the decision of HHJ Carr, the Claimant (the landlord) was seeking to argue that the late serving of a Gas Safety Certificate on a new tenant, pursuant to the Gas Safety (Installation and Use) Regulations 1998 (“the 1998 Regulations”), did not preclude it from relying on a s. 21 notice.

The Facts
In February 2017 the Defendant entered into an assured shorthold tenancy agreement with the Claimant for a flat in St Ives, Cornwall. The Claimant failed to provide or prominently display a copy of the Gas Safety Record (‘GSR’) prior to the Defendant’s occupation of the property.

On 1 May 2018 the Claimant served a s. 21 notice on the Defendant. A copy of a GSR dated 31 January 2017 was provided to the Defendant on 9 November 2017. It was accordingly out of date by May 2018 when the Claimant served the s. 21 notice.

A second GSR was carried out on 2 February 2018. There was a dispute as to whether this GSR was provided to the Defendant before or after service of the s. 21 notice in May.

The possession hearing took place under the accelerated procedure in the Truro County Court on 13 September 2018. Possession was initially ordered by the district judge on the erroneous finding that reg. 36 of the 1998 Regulations had no application.

The Defendant appealed to the county court and the appeal hearing took place before HHJ Carr on 13 February 2019. It was agreed that reg. 36 did apply. On the question of whether late compliance enabled the Claimant to rely on a s.21 notice, HHJ Carr found that it did not, adopting the reasoning of HHJ Luba QC in Caridon Property Limited v Shooltz.

The Claimant appealed this decision to the Court of Appeal. The principal issue was whether a breach of the prescribed requirement continues, and in the case of an historic breach, late compliance permits reliance on a subsequent s. 21 notice.

The Judgment
The Claimant argued that reg. 2(2) of the Assured Shorthold Tenancy Notices and Prescribed Requirements (England) Regulations 2015 (“2015 Regulations”) had the effect of permitting late compliance by excluding the time periods under reg. 36(6)(b) of the 1998 Regulations.

The Defendant relied on the reasoning of HHJ Luba in Shooltz, that the purpose of reg. 36(6) and (7) is to ensure the obligations pertaining to gas safety certificates are carried out.

Patten LJ gave the leading judgment with which King LJ agreed. Moylan LJ dissented. Patten LJ found that late compliance with the obligation to provide or display a GSR after each annual check is not a bar in itself to a subsequent s. 21 notice.

He found that it was clear that the 28-day period as prescribed under reg. 36(6)(a) (to existing tenants) was excluded by reg. 2(2). The argument as to whether reg. 36(6)(b) (to new tenants) was also excluded faced more difficulties.

Patten LJ interpreted reg. 2(2) to mean that the time during which the landlord “is in breach” of para. 6(b) ends for the purpose of s. 21A once the GSR is provided, thus allowing a landlord to serve a s. 21 notice where it has given a copy of the GSR to the tenant after occupation.

To support this interpretation, Patten LJ relied on the fact that the bar to service of a s. 21 notice is collateral to criminal sanctions under s. 33 of the Health and Safety at Work etc. Act 1974, and that all the other prescribed requirements are capable of being remedied. He also found that late delivery of the GSR to new tenants did provide the tenant with the relevant information.

There was a further argument raised by the Defendant in relation to the second GSR provided by the Claimant, which was whether a failure to carry out the next safety check within 12 months of the last one precludes a landlord was from relying on a s. 21 notice. This was dismissed on the basis that it was not a prescribed requirement.

As there was a factual dispute as to when the second GSR was served on the Defendant prior to service of the s. 21 notice, the matter was remitted back to the county court to determine that question

Dissenting Judgment
Moylan LJ dissented on the basis that reg. 2(2) referred to a “28-day period for compliance” which only applied to the requirement in reg. 36(6)(a) and not to para. (6)(b).

Moylan LJ accepted that this imposed a far greater sanction for a failure to provide new tenants with the GSR prior to occupation and there was no clear answer as to the disparity between new tenants and existing tenants, but there was nothing in the wording of the requirements to provide a sound basis for reaching a different conclusion.

Summary by Morgan Brien, barrister, Trinity Chambers. For the judgment, click here.

HOUSING LAW ARTICLES & PUBLICATIONS

Ending it all – duties under section 188 Giles Peaker Nearly Legal 16 June 2020 – to read this article, click here

English housebuilding heading for jobs downward spiral Tarun Bhakta Shelter Blog 16 June 2020 – to read the article, click here

The Trecarrell Conundrum Giles Peaker Nearly Legal 18 June 2020 – to read this article, click here

Coronavirus and the duty to house Tom van der Klugt Local Government Lawyer 18 June 2020 – to read the article, click here

The Electrical Safety Dance Giles Peaker Nearly Legal 18 June 2020 – to read this article, click here

Operational priorities in a post-COVID world Stuart Davies CIH Blog 18 June 2020 – to read the article, click here

Gas Safety Certificates and Section 21 Devonshires 19 June 2020 – to read the article, click here

Some good news for landlords on gas safety: Trecarrell House Limited v Patricia Rouncefield Emma Salvatore and Amy Bainbridge Trowers and Hamlins 19 June 2020 – to read the article, click here

After the eviction ban: what's next? Generation Rent 19 June 2020 – to read the article, click here

Housing: recent developments Jan Luba QC and Sam Madge-Wyld Legal Action June 2020 ‒ to read the article (subscription required), click here

HOUSING LAW DIARY

25 June 2020                           
Civil Procedure (Amendment No.2) (Coronavirus) Rules 2020 come into effect (see Housing Law News and Policy Issues)

25 June 2020
Committee scheduled to report to House of Commons on Domestic Abuse Bill

29 June 2020
Report stage in the House of Commons of Telecommunications Infrastructure (Leasehold Property) Bill (see Housing Laws in the Pipeline)

29 & 30 June 2020                    
Supreme Court hearing in R (Z and another) v Hackney London Borough Council and another as to whether a housing association can lawfully restrict the provision of its social housing to members of the Orthodox Jewish community.

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