1st July 2020
Quick Links
HOUSING LAW NEWS & POLICY ISSUES
 

Increased household debts in May: IFS report
On 29 June 2020 the Institute for Fiscal Studies reported that new IFS research had revealed that “non-payment of household bills, which had already increased sharply after lockdown, increased further between April and May.” In particular, the research noted that by May 2020, numbers of mortgage, rental and council tax payments were, respectively, 14, 11 and 9 per cent lower. This represents a further deterioration since April, suggesting that some households were increasingly struggling to make ends meet as the crisis persists. For more details, click here.

Government support for private renters: Select Committee
On 29 January 2020 the Housing, Communities and Local Government Select Committee continued its inquiry into the impact of Covid-19 on homelessness and the private rented sector by taking evidence from Shelter, Generation Rent and the National Residential Landlords Association. The Committee investigated the scale of the problem and the likely consequences for renters when the moratorium on evictions comes to an end. It also considered what more the Government might do to support renters given the ongoing economic consequences of Covid-19. To watch the session, click here. To read the Committee’s interim report (published on 22 May 2020), click here. To read the Government’s response (published on 25 June 2020), click here. For more details of the inquiry on homelessness and the private rented sector, click here.
First-tier Tribunal (Property Chamber): Practice Direction on property inspections
On 23 June 2020 the Senior President of Tribunals issued a new Practice Direction amending the Pilot Practice Direction: Contingency Arrangements in the First-tier Tribunal and the Upper Tribunal, under which property inspections have been suspended since March 2020 due to the pandemic. The amended Practice Direction allows the tribunals to inspect the exterior of buildings or parcels of land, but retains the previous suspension of internal inspections. For the amended Practice Direction, click here.

Legal aid and housing cases: January to March 2020
On 25 June 2020 the Ministry of Justice published legal aid statistics for January to March 2020. In that period, there were 8,000 legally aided housing cases (down 14 per cent on a year ago) costing £6 million (down 11 per cent on a year ago). About 75 per cent of housing work volume is made up of legal help (ie advice and assistance about a legal problem, but not including representation or advocacy in proceedings). In January to March 2020 there was a 27per cent decrease in housing work starts compared to the same quarter the previous year. There were also decreases in completed claims (16 per cent) and expenditure (12 per cent). Since the January to March 2020 quarter Covid-19 has led to a considerable downturn in legal aid activity. For the full statistics, click here.

Local Government and Social Care Ombudsman resumes casework
On 25 June 2020 the Local Government and Social Care Ombudsman announced that the Ombudsman will resume all existing casework and take on new complaints through its website from 29 June 2020. The Ombudsman paused all casework which needed input from councils and care providers at the end of March, to protect their capacity to provide frontline services during the Covid-19 crisis. In early May it re-opened its helpline, on reduced hours, to give general advice to the public, and more recently restarted existing investigations with those councils that indicated to the Ombudsman they had capacity to deal with complaints. For the announcement, click here.

Universal Credit (Miscellaneous Amendments) Regulations 2020
These regulations, which come into force on 13 July 2020, amend the Universal Credit Regulations 2013 and the Universal Credit, Personal Independence Payment, Jobseeker’s Allowance and Employment and Support Allowance (Claims and Payments) Regulations 2013. In particular, regulation 3 amends regulations 38 and 40 of the Claims and Payments Regulations to enable the Secretary of State to request, and landlords to provide, evidence regarding a claimant’s housing costs where a change of circumstances has occurred. For the Amendment Regulations, click here. For the Claims and Payments Regulations, click here.

Social housing for members of Armed Forces
On 27 June 2020 (Armed Forces Day) the Housing Minister, Christopher Pincher, announced new measures to ensure access to social housing is improved for members of the Armed Forces, veterans and their families. The Government has set out how councils should ensure members of the Armed Forces and veterans who need support with their mental health, because of conditions such as post-traumatic stress disorder, are given priority for social housing. Former spouses or civil partners of serving personnel will be given extra support when applying for social housing. They will be exempted from rules requiring them to be a local resident before being given social housing in the area to ensure they are not disadvantaged when applying.

The announcement follows a consultation on the issue; for the consultation document and a summary of responses, click here. For statutory guidance for local authorities on the issue, click here. For the announcement, click here.

Rough sleeping and Covid-19
On 23 June 2020 the MHCLG announced new funding of £105 million to provide interim support for 15,000 vulnerable people accommodated during the pandemic. The money will be used to support rough sleepers and those at risk of homelessness into tenancies of their own, including through help with deposits for accommodation, and securing thousands of alternative rooms already available and ready for use, such as student accommodation. For the announcement, click here. For the response of Crisis, click here. For the Government’s response to the Housing, Communities and Local Government Committee's report on protecting rough sleepers and renters, click here.

Discretionary Housing Payments
On 29 June 2020 the House of Commons Library published a research briefing explaining the funding position and considering evidence on how Discretionary Housing Payments (DHPs) are allocated by local authorities. DHPs are applied to help with shortfalls between Housing Benefit and the rent due in certain circumstances. For the briefing, click here.

Coronavirus: A ban on evictions and help for rough sleepers
On 25 June 2020 the House of Commons Library published a research briefing explaining measures the Government has put in place during the coronavirus outbreak to assist households to retain their homes and to enable local authorities to tackle the specific challenges faced by rough sleepers. The paper is being updated regularly to take account of new developments. For the briefing, click here.

Domestic abuse and the family courts
On 25 June 2020 the Ministry of Justice announced a major overhaul of how the family courts deal with domestic abuse in order to protect survivors and their children. The reforms will see more victims of domestic abuse given access to separate building entrances and waiting rooms as well as protective screens to shield them from their alleged abuser in court. It will also be easier for judges to issue barring orders which prevent abusive ex-partners from pursuing repeated applications to the courts. For the announcement, click here. For coverage of the announcement in our sister publication Family Law Week, click here.

According to official statistics released by the Ministry of Justice on 25 June 2020, between January and March 2020 the number of domestic violence remedy order applications (8,022) increased by 12 per cent compared to the equivalent quarter in 2019, while the number of orders made (8,716) increased by 8 per cent over the same period. For the statistics (see section 9 on page 12), click here.

No recourse to public funds: Citizens Advice research
On 26 June 2020 Citizens Advice published the results of research conducted by The Migration Observatory at the University of Oxford. It suggests that nearly 1.4 million people have no recourse to public funds (NRPF) in the UK. This is an increase on previous estimates, based on 2016 data, which put the figure at 1.1 million. A person with NRPF cannot access benefits, homelessness assistance from the council or an allocation of social housing through the council's register. For more details of the research findings, click here.

End Fuel Poverty Coalition writes to Prime Minister
On 23 June 2020 the End Fuel Poverty Coalition (EFPC) wrote to the Prime Minister urging him to take action to prevent “tens of thousands of needless deaths, which could overwhelm the country this coming winter”. EFPC points to evidence from Public Health England indicating that fuel poverty puts households more at risk from the worst effects of Covid-19, which, EFPC says, is especially worrying should a second wave of the virus hit during the colder months. It notes that poor quality housing already costs the NHS around £1.4bn and wider society around £18bn every year. For the letter, click here.

Homelessness code of guidance for local authorities
On 29 June 2020 the MHCLG published an updated version of its homelessness code of guidance for local authorities. The changes are that in Chapter 8 (priority need), paras 8.44 and 8.45 have been added. The two paragraphs relate to the vulnerability of applicants in the context of Covid-19. To read the code, click here.

Help to Buy – Wales repayment holiday form: Covid-19
On 22 June 2020 the Welsh Government published an updated form for use when requesting a pause in interest payments under the Help to Buy scheme. For the updated form, click here.

Cladding of high-rise residential buildings: UN warning
On 28 June The Guardian reported that Leilani Farha, the United Nations special rapporteur on adequate housing, wrote to the UK Government to express “serious concern about allegations of multiple violations of the human right to adequate housing, of which safety is a key component – contrary to international human rights law”. Ms Farha said that as a result of the failure to replace dangerous cladding: “Leaseholders’ flats are unmortgageable and unsellable, with many only discovering this when they were in the process of moving home, therefore heavily impacting their lives and consigning them to remain in homes that are at considerable risk from fire.” For the report, click here.

Electrical safety regulations: guidance clarified
On 24 June 2020 the National Residential Landlords Association reported that, following a request by it, the Government had clarified how new electrical safety regulations for landlords should be interpreted. NRLA noted that previous guidance on the regulations, published at the start of June, stated that they would apply to new tenancies from 1 July 2020. However, the updated guidance (published on 19 June) stated that they would apply from 1 July 2020 for tenancies that began on or after 1 June 2020. The MHCLG had clarified that the regulations apply to tenancies granted from 1 June 2020. The requirement to provide an EICR or similar applies from 1 July 2020. Accordingly, any tenancies granted from 1 June 2020 will be required to have an EICR or similar from 1 July 2020. For full details, click here. For the 19 June guidance, click here.

Mortgage lending
On 29 June 2020 the Bank of England released statistics including those on mortgage lending. According to the Bank, the number of mortgage approvals for house purchase fell to a new series low in May, of 9,300. This was almost 90 per cent below the February level and around a third of their trough during the financial crisis in 2008. Approvals for re-mortgage (which include re-mortgaging with a different lender only) have also fallen, to 30,400; this fall was a little less sharp and they are 42 per cent lower than in February. For the statistical release, 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.  The Public Bill Committee completed its scrutiny of the bill and reported the bill without amendments to the House on 25 June 2020. The bill is now due to have its report stage and third reading on a date to be announced. 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 and the report stage on 29 June 2020. The third reading will be on a date to be announced. 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.

Make Sure you Keep Up to Date with Housing Law Week

Don’t miss out on your weekly updates!
Sign up here now to ensure you receive your own free copy of Housing Law Week straight to your desktop each week.

NEW HOUSING CASES
 

Vadamalayan v Stewart & Ors [2020] UKUT 183 (LC)

This case was a landlord’s appeal about the level of the rent repayment order made against him. He challenged the FTT’s calculation of the sum due. The approach under the Housing and Planning Act 2016 is now very different from the approach under the Housing Act 2004.

The background was the making of a rent repayment order under the Housing and Planning Act 2016 in which the FTT assessed the sum due as £17,420, against a maximum of £28,599.96.

The landlord’s appeal was a challenge to the basis the FTT calculated the deductions, more specifically that the FTT should have allowed more of the deductions he claimed, including mortgage interest, and that the FTT’s arithmetic was wrong. The Upper Tribunal also allowed the landlord to contend that the FTT had not taken into account the financial penalty paid to the local authority.

The Upper Tribunal considered the starting point for a rent repayment order being made in favour of a tenant had changed, since the references to reasonableness in section 74 of the Housing Act 2004 had been removed in enacting sections 44 and 45 of the Housing and Planning Act 2016. Consequently, the considerations in Parker v Waller [2012] UKUT 0301 (LC) and Fallon v Wilson [2014] UKUT 0300 (LC) that the rent repayment order should be limited, were no longer of relevance.

The Upper Tribunal, therefore, held that the starting point had to be the maximum, that being the rent for the relevant period, rather than profit [at paras 12–14].

Four deduction situations were considered by the Upper Tribunal: (i) ordinary landlord expenditures, (ii) utilities paid by the landlord and the costs passed on, (iii) mortgage payments by the landlord, and (iv) financial penalties imposed for HMO offences.

The Upper Tribunal, following on from its conclusion regarding landlord profits in Parker, held that it is not appropriate to deduct landlord expenditures as these are liabilities which are incurred so that the landlord meets his obligations under the lease. It is not appropriate for the landlord’s costs of meeting those obligations to be set off against a rent repayment order [para 15].

Similarly, a fine imposed by the Housing and Planning Act 2016 was a proper penalty which Parliament determined could be imposed, as well as a rent repayment order; and, absent some direction from Parliament to offset a fine, this did not affect the assessing of a rent repayment order [para 18].

Mortgage payments were held to be landlord’s investment in his own property and not expenditure which the tenant should be funding by way of deduction from a rent repayment order [para 54].

Utilities, however, could properly be deducted because they are expenses which are passed directly on to the tenant for resources the tenant directly consumed [para 16].
Therefore, the Upper Tribunal reinforced that section 44(4) of the 2016 Act requires that in determining the amount of a rent repayment order, the tribunal must, in particular, take into account:

1.         Conduct of the parties,

2.         Financial position of the landlord, and

3.         Whether the landlord has been convicted of a relevant offence.

The landlord’s appeal at its heart sought to raise significant additional deductions and challenge the FTT calculation. Those deductions included mortgage payments and a financial penalty, the latter not having been raised before the FTT.

The FTT calculation was not one which the parties could explain, nor did it agree with the FTT’s decision as to allowable and agreed deductions; as such it had to be set aside.

The appellant landlord will have been quite disappointed as the judge had determined that the deductions he sought to have applied to the starting figure would no longer be taken into account. The Upper Tribunal declined to allow the deductions sought.

The Upper Tribunal remade the decision and in doing so considered the landlord’s financial position, being the only one of the three statutory factors which it determined to be of relevant (there being no conviction and no real issue as to conduct). There was however limited evidence on this issue before the FTT and no further evidence had been provided on the appeal. The Upper Tribunal therefore had insufficient information to be persuaded to deduct anything from the starting point.

However, as there was no cross-appeal the Upper Tribunal did not consider it appropriate to order a higher sum against a successful appellant and so ordered the rent repayment order in the same sum as the FTT had done.

Importantly, the Upper Tribunal indicated that, if it were making the decision itself, then no deductions from the maximum would have been allowed.

Summary by Chris Hegarty, barrister, Trinity Chambers. For the judgment, click here.

HOUSING LAW ARTICLES & PUBLICATIONS
 

Critical Time Intervention: from homelessness to hotels and beyond Alex Smith Homeless Link 22 June 2020 – to read the article, click here

Conversation with the Regulator of Social Housing Ian Davis Trowers and Hamlins 23 June 2020 – to read the article, click here

Hot weather and homelessness – preventing deaths in summer Homeless Link 23 June 2020 – to read the article, click here

Homelessness and COVID-19 Catherine Rowlands, Andy Lane and Tara O'Leary Local Government Lawyer 24 June 2020 – to read the article, click here

Tenancy Deposit Scheme’s lessons from lockdown: Time to improve efficiencies ARLA Propertymark 25 June 2020 – to read the article, click here

Part of the Home Office’s ‘no recourse to public funds’ policy ruled unlawful Eve Dickson Shelter Blog 25 June 2020 – to read the article, click here

Gas safety and Section 21 Notices – where are we now? Mark Prichard Blog 26 June 2020 – to read the article, click here

News bits – homelessness policies Giles Peaker Nearly Legal 27 June 2020 – to read the article, click here

Housing benefit: update 2020 Bethan Harris, Desmond Rutledge and Kevin Gannon Legal Action July/ August 2020 ‒ to read the article (subscription required), click here

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

HOUSING LAW DIARY
 

13 July 2020                                         
Commencement of the Universal Credit (Miscellaneous Amendments) Regulations 2020 (see Housing Law News and Policy Issues)

21 July 2020                                         
House of Commons rises for the summer recess

29 July 2020                                         
House of Lords rises for summer recess

Advertise your vacancy to Housing Law Week Readers

Send details of the vacancy and a link to the vacancy on your website to info@limelegal.co.uk
RECRUITMENT

Featured Job of the Week

LAA Specialist Housing Worker

Citizens Advice Bradford and Airedale and Bradford Law Centre

The Post-holder will offer Housing law advice and representation to clients under a Legal Aid Agency contract. The post-holder may also be required to provide support in relation to housing law on other contracts. We are committed to working towards equal opportunities for all groups subject to discrimination.

Closing date: 9am Wednesday 15th July 2020

Interview date: Monday 27th July 2020 (candidates will be informed on Monday 20th July 2020 if selected for Interview)

Application packs are available:

From: Naj Ilyas

Email: admin@bradfordcab.com


 
 
Social Housing Assessment & Lettings Officer
London Borough of Brent
Click here for details
 
 
Home Ownership Housing Officer
Epping Forest District Council
Click here for details
 
 
Neighbourhood Services Coordinator
Royal Borough of Kensington and Chelsea
Click here for details
 
 
Mortgage Officer
Southwark Council
Click here for details
 
 
Temporary and Emergency Accommodation Assistant
Stevenage Borough Council
Click here for details
 
 
Housing & Investment Leadership Team PA
Stevenage Borough Council
Click here for details
 
 
Tenancy Enforcement Officer
Shepherds Bush Housing Group
Click here for details
 
 
Incomes Officer
Watford Community Housing
Click here for details
 
 
Neighbourhoods Officer
Watford Community Housing
Click here for details
 
 
Tenancy Support Officer
West Kent Housing Association
Click here for details
 
 
Lime Legal Limited, Greengate House, 87 Pickwick Road, Corsham, Wiltshire, SN13 9B