This Update includes the following
Calls for Reform of Right to Buy
The Conservative Government has signalled its ongoing commitment to the existing arrangements having recently confirmed that the maximum discounts available to tenants will be increased from April 2024 in line with the Consumer Prices Index (CPI) figure of 6.7% to £102,400 outside London and £136,400 in London.
However, in this election year, the debate around the future of the Right to Buy scheme is coming into sharper focus with calls for fundamental reform now being actively debated. Two recent publications highlight growing calls for change.
LGA Right to Buy Position Statement
On 9th February the LGA issued a new position statement on the Right to Buy calling for fundamental reform.
Set within the context of current housing challenges with more than one million people on council housing waiting lists and 106,000 households living in temporary accommodation. LGA research highlights that there has been a net loss of 24,000 social homes each year since 1991 and if nothing is done a further 100,000 social homes will be sold by 2030 with only 43,000 replacements built.
The position statement argues that the continuing depletion of the available social housing stock through the RTB scheme needs to be addressed. Whilst stopping short of calling for a ban on RTB, the LGA would like to see the scheme fundamentally reformed with local flexibility for councils to shape the scheme so it works best for the local area.
Proposals include:
- Allowing local authorities to set the discount levels at which homes can be purchased, including a possible discount of 0 per cent.
- Increasing the tenancy qualification requirement from 3 to 15 years.
- Allowing councils to retain 100% of receipts along with greater flexibility to combine with other funding and removal of restrictive time limits on using receipts.
- Granting the cost floor indefinite protection for properties purchased through Right to Buy and allowing the cost floor to be increased by inflation ( specifically with an index based on construction cost inflation).
- Possible complete exemption for newbuild properties and those that have been retrofit or improved.
UCL Direct Provision of housing: Fourth Research Report – January 2024
This latest report published in January by researchers from the Bartlett School of Planning considers current issues hindering local authority direct provision of housing. This is a wide ranging study covering different aspects of policy however the RTB policy in England is identified as a major factor undermining and disincentivising new council housing provision. There are two key recommendation on linked to RTB:
- Right to Buy reform including either abolishing it altogether or limiting it, for example so it does not apply to newly built homes for at least 15 years.
- The ability for authorities to retain 100% of Right to Buy receipts over a longer period of time and with greater flexibility over their use.
Policy Consultations
There are currently three Department for Levelling Up Housing and Communities open policy consultations impacting the the social housing sector.
The January Newsletter included an overview of proposals in the Awaab’s Law Consultation which includes strict time limits for social housing providers to address dangerous hazards in their properties. This consultation ends on 5th February 2024.
Consultation on reforms to social housing allocations
This consultation has been styled ‘British homes for British workers’ and proposes reform of the regulations governing new social housing allocations. The stated aim is to ‘crack down on rule breakers’ and ensure that ‘valuable and limited’ social housing is allocated fairly.
Most of these new tests apply to future applicants and people on waiting lists only; however, those relating to terrorism and anti- social behaviour aim to establish new grounds for evicting existing tenants in specific circumstances.
These proposals seek to ration available social housing by applying additional eligibility criteria but will do little to address the current housing shortage and the lack of new supply.
This consultation ends on 26th March 2024.
New social housing eligibility tests proposed:
- UK connection test – A requirement for social housing applicants to demonstrate a connection to the UK for at least 10 years.
- Local connection test – Applicants must demonstrate a connection to a local area for at least two years before they can be allocated social housing.
- Income test – This would set out a maximum threshold for household income which if exceeded would exclude the household from applying for social housing. The consultation does not specify what this threshold level should be but seeks views on what would be appropriate.
- Anti-social behaviour test – People who have unspent convictions for certain criminal anti-social behaviour would be disqualified from social housing for a defined period of between 1 and 5 years. A ‘three strikes and you’re out’ policy would apply for existing tenants anti-social behaviour convictions.
- Terrorism test – Those with unspent convictions for terrorism offences could be disqualified from social housing eligibility.
- Fraudulent declaration test – This would introduce a period of disqualification for those ‘knowingly or recklessly’ making false statements when applying for social housing.
Consultation on Competence and Conduct Standard for social housing
As part of the Government’s post Grenfell drive to improve standards in the social housing sector, the government is consulting on a proposed new direction to the Regulator of Social Housing.
The measures set out aim to ensure that those in senior housing management positions in the sector have appropriate professional qualifications.
It has been estimated that around 25,000 housing management staff will fall within the scope of these measures who will be expected to secure new qualifications. The implementation of such an extensive sector wide training programme has raised questions around the capacity of the training sector to deliver within such constrained timescales as well as how the programme will be funded.
There are also concerns around organisational impacts if staff are absent from their job roles to undertake their studies or possible staff retention issues if staff are expected to undertake training in their own time.
The consultation raises a number of other potential issues including the implications for staff retention and recruitment with the prospect of staff shortages and increasing costs. It is feared that older experienced staff may opt not to undertake the required training. There are also queries around precisely which roles are in scope and whether the measures will be applied to external consultants and specialist repairs contractors.
This consultation ends on 2nd April 2024.
Key proposals
- All senior housing managers and executives who spend a significant amount of their time on housing management (defined as 50% of their job role) will be required to have or be working towards an appropriate professional qualification.
- The new arrangements will commence from April 2025 with a two-year transition period, at the end of which all affected staff must be either qualified or have commenced studying for their qualification.
- Course content must be tailored towards social housing and include appropriate knowledge of law and policy, as well as practical service delivery and customer service skills.
- The consultation makes provision for an extended 4-year transition period for small organisations (with fewer than 50 units) and allows for some flexibility around issues such as maternity leave and staff on long-term sick leave.
CWAG is planning to respond to these consultations, please send any comments on the consultations to the Policy Officer.
Recent Publications
Financial distress in local authorities LUHC Select Committee Report (published 29/01/24)
This report looks at why councils are facing financial distress and struggling to maintain services, with particular pressures in social care, children’s services and homelessness. It sets out the challenges facing the next Government, regardless of political persuasion. A fundamental review of local authority funding and taxation will be required. Download Report
The Provision of Floor Coverings in Social Housing – Learning Report 3: Landlord Perspectives – Altair (published January 2024)
Altair research report exploring the costs and benefits of landlords providing floor coverings in social housing. Download Report
Relationship of Equals – Housing Ombudsman Spotlight Report (published January 2024)
The latest report in the Housing Ombudsman Spotlight series focusses on attitudes, respect and rights. It examines what it means to be vulnerable in social housing and how landlords can better respond to the needs of vulnerable residents. The report also calls for a Royal Commission to create a long-term plan for social housing as current approaches are not working for residents with a vulnerability. Download Report
Quarterly Home Office Fire Safety Reform Bulletin. No 4 – February 2024
This bulletin provides information on the latest fire safety developments and links to recently published and updated guides.
Diary Dates
CWAG General Meeting – 27th February 2024 (10.00 -12.00)
The meeting will focus on Tenant Satisfaction Measures (TSMs) and preparing for the forthcoming changes to regulation. Speakers include Jonathan Cox from Housemark who will be discussing learning to date from TSMs, and Lucy Heath from Shropshire Council will be sharing impressions and feedback from the recent RSH pilot inspection.
Competence and Conduct Standard Consultation Roundtable – 6th March 2024 (10.00 -11.30)
The NFA has arranged a Teams /roundtable with DLUHC representatives to discuss the Competency and Conduct consultation. If any CWAG members are interested in attending, please contact the Policy Officer for further details.
CWAG Finance and Business Planning Meeting – 6th June 2024 (10.00 -13.00)
A follow up meeting date has been arranged with Steve Partridge from Savills – further details will be available nearer to the meeting date.