This Update includes the following
Renter’s (Reform) Bill 2023
The Renters (Reform) Bill published on 17th May 2023 aims to tackle issues in the private rented sector in England. It includes a number of the measures set out in the June 2022 White Paper ‘A fairer private rented sector’ as well as fulfilling the 2019 Conservative Manifesto commitment to abolish so called ‘no fault’ evictions in England.
The Bill includes the following measures:
- The abolition of assured shorthold tenancies and with them, Section 21 ‘no fault’ evictions. Tenancies in the private rented sector will become more secure monthly periodic assured tenancies with no end date.
- The grounds on which landlords can seek to repossess properties will be amended and strengthened so landlords can still recover their property (including where they wish to sell or move in close family) and to make it easier to repossess properties where tenants are at fault, for example in cases of anti-social behaviour or repeated rent arrears.
- Stronger protections against backdoor eviction by ensuring tenants can contest excessive above -market rents increases which are purely designed to force them out. Landlords will still be able to increase rents to market level, however tenants will be able to appeal to an independent tribunal which will determine the market rent of the property.
- The creation of a new Private Rented Sector Ombudsman which will provide fair, impartial, and binding resolution to many issues and prove quicker, cheaper, and less adversarial than the current court system.
- A Privately Rented Property Portal will be set up to help landlords understand their legal obligations and demonstrate compliance. It will also provide better information to tenants, helping them make informed decisions when entering into a tenancy agreement. It will also support local councils’ enforcement activity.
- Tenants will have the right to request a pet in the property, which the landlord must consider and cannot unreasonably refuse. To support this, landlords will be able to require pet insurance to cover any damage to their property.
Other commitments from the White Paper not been included in this Bill:
- To apply the Decent Homes Standard to the private rented sector.
- To make it illegal for landlords and agents to have blanket bans on renting to tenants in receipt of benefits or with children.
- Strengthen local councils’ enforcement powers and introduce a new requirement for councils to report on enforcement activity – to help target criminal landlords.
Further legislation is planned to implement changes in these areas.
Housing Ombudsman Spotlight Report – Knowledge and Information Management
This latest spotlight report from the housing ombudsman is a major wake-up call for the sector highlighting widespread poor practice in record keeping and data management with major implications for service delivery.
Poor information management is a reoccurring theme in the Ombudsman’s casework, often slowing down investigations as landlords are unable to provide background information and evidence relating to cases. According to the report ‘complaints can be an exceptionally strong indicator of data gaps and information mismanagement’.
Accurate records and data management are the essential starting point; if the input data is poor, incorrectly recorded or the management systems inadequate, any use made of this data will be inherently flawed.
Service failures are generally linked to missing, inaccurate or misused resulting in a lack of appropriate responses and timely action. Using data from 2022/23, the report highlights a series of case studies to demonstrate key areas of poor performance and the consequent negative impact on residents. Examples include a disabled woman left without a suitable toilet for more than a year, and a resident having to endure water ingress for eight years because the landlord did not have a system to record customer communications. Another case involved a man losing 14 days annual leave because of appointment failings by the landlord.
Translating information and data into usable knowledge, insights, and action plans is vitally important and has a key role in governance providing assurance and contributing to business and financial planning. Interestingly, the report notes that even where a landlord has fulfilled its obligations, if it doesn’t have the data to evidence this, it is professionally vulnerable.
The report highlights the importance of governance and organisational culture to encourages clear expectations and management standards, with systems underpinned by clear quality assurance measures and performance management.
The report makes 21 detailed recommendations.
Social Housing Regulation Bill
The Bill is currently in ping-pong, having completed the Commons Report Stage on March 1st. The next stage on 27th June 2023 is the Consideration of Commons Amendments by the House of Lords. Once completed, the Bill is expected to receive Royal Assent before the end of this Parliamentary Session.
The Bill includes two late amendments:
Professionalisation: a requirements for senior housing managers and senior housing executives to hold or be working towards a Level 4 or 5 housing management qualification. This is in addition to measures already introduced through the Bill for new ‘competence and conduct’ regulatory standards.
‘Awaab’s Law’: setting timeframes for landlords to investigate and repair hazards in tenant’s homes.
Once the Bill achieves Royal Assent the way will be clear for the RSH to consult on the detail of the new consumer regulation regime.
Looking ahead
Other linked consultations planned for later in the year include:
- Consultation on time limits for repairs (Awaab’s Law)
- Consultation on minimum energy efficiency standards
- Consultation on professionalisation, competence and conduct standards
- Consultation on the future of the rent standard and call for evidence on a catch-up mechanism following rent cap applied in 2023
- Consultation on updated Decent Homes Standard proposals
Recent Publications
Critical Friends: What tenant scrutiny brings to landlord performance – NFA April
This timely NFA Report focuses on the importance of tenant scrutiny as a key tool in good housing management within the ALMO sector which is even more relevant as the Regulator of Social Housing will include feedback from tenants in its new inspections regime.
This report goes beyond a review of current scrutiny models approaches employed within the ALMO sector. The authors have spoken to tenants who are involved in scrutiny to understand why they do it and what makes it work. Much of the feedback comes down to the relationship they have with their landlord, based on honesty, trust, openness, good communication and organisational follow through that recognises the value of the work of scrutiny panels to the organisation.
Download a copy of the report here.
The NFA has also published their Annual Review, and Annual Survey which provide an interesting overview of the current state of play in the ALMO sector.
Diary Date – NFA Webinar
The NFA is holding a webinar on Wednesday 21st June 2023 on ‘Regulating Consumer Standards and learning from pilot inspections’. Now that the RSH has has completed the first round of pilot inspections across the country, there is an opportunity to take stock. This is an opportunity hear from the only council with an ALMO to be inspected so far. The event is open to CWAG members. Further details