This Update includes the following
Awaab’s Law implementation arrangements announced
The Government has announced that Awaab’s Law will come into force from October 2025. This will require social landlords to investigate and fix dangerous damp and mould within a set time frame, and also to repair all emergency hazards within 24 hours. Tenants will have recourse to legal action where landlords fail to comply.
Full implementation of Awaab’s Law will be phased in over several years to allow any learning from the initial phase to be applied to later phases. The phased approach will work as follows:
- From October 2025 social landlords will have to address damp and mould hazards that present a significant risk of harm to tenants within fixed timescales.
- From October 2025 social landlords will also have to address all emergency repairs including for damp and mould or other hazards as soon as possible and within no longer than 24 hours.
- In 2026, requirements will expand to apply to a wider range of hazards. In addition to damp and mould, the second stage of implementation will include excess cold and excess heat; falls; structural collapse; fire, electrical and explosions; and hygiene hazards.
- In 2027, requirements will expand to the remaining hazards as defined by the Housing Health and Safety Rating System (HHSRS) with the exception of overcrowding. The full list of hazards can be found in schedule 1 to the Housing Health and Safety Rating System (England) Regulations 2005.
Tackling Homelessness Report
The Public Accounts Committee has completed an enquiry focussing on the Government’s understanding of the extent, causes and costs of homelessness. The Committee also examined delivery and leadership by MHCLG as well as the response of and support for local authorities as the providers of frontline services for the homeless.
The Committee’s findings and recommendations are set out in its highly critical ‘Tackling Homelessness’ report which sets out the scale of the homelessness crisis and the unsustainable financial pressures facing councils as a result. The report is calling for a much more effective national policy response and identifies seven key areas with recommendations for action by government.
Summary Findings and Recommendations
Local authorities need more resources to focus on preventing homelessness.
In 2023/24 local authorities spent around £3.1 billion on homelessness of which £2.1 billion was used to provide temporary accommodation. Homelessness Prevention Grant funding amounted to about £440 million. In practice, the high numbers of people already in the homelessness system mean that local authorities use a significant portion of available resources to fund the provision of temporary accommodation, particularly in areas of poor affordability, rather than spending on homelessness prevention activities.
Recommendation: MHCLG needs to set out plans to incentivise and work with local authorities to improve homelessness prevention.
It is unacceptable that B&B accommodation is being used routinely to house people rather than as a last resort
As at June 2024 almost 6,000 homeless families with children were being housed in B&Bs, and almost 4,000 of these families had been there for longer than the statutory maximum period of six weeks.
Recommendation: MHCLG should strengthen its use of HAST advisers in supporting local authorities to reduce their use of B&B accommodation and provide support to local authorities with high rates of temporary accommodation to plan how to reduce their reliance on it.
Too many people are being placed in temporary accommodation outside of their local area
The homelessness legislation and code of guidance state that local authorities should, as far as possible, avoid placing households out of area, however, over the period 2018–19 to 2023–24, the number of households placed out of area increased by 42%. There is a lack of data around how far away from their local areas people are being placed and the wider consequences resulting from this.
Recommendation: MHCLG should improve its data on out of area placements as a matter of urgency and use the data to encourage better coordination between local authorities, to minimise the number of households placed out of area and incentivise councils to use local providers.
The government is not considering the impact on homelessness when setting Local Housing Allowance (LHA) rates
Capping and freezing LHA rates have reduced the income households can derive from benefits in real terms and 45% of households now face a shortfall between the LHA they receive and the rent they pay. Also, local authority temporary accommodation funding is essentially based on the 2011 LHA rate and has not kept up with rising temporary accommodation costs.
Recommendation: DWP should set out for the Committee its justification for the levels of LHA it has set, both for individuals and for local authorities
The homelessness problem is being exacerbated by a severe shortage in housing supply, and especially affordable housing.
A significant ramping up of the affordable housing supply is required to achieve a substantial impact on homelessness levels, particularly in areas where homelessness pressures are acute.
Recommendation: MHCLG should provide the Committee with an update on how its proposed new housing strategy will achieve practical improvements in the delivery of new homes, including targets for new and affordable homes.
Despite legislation designed to tackle well-established problems and gaps in regulation, MHCLG has made no progress in improving the oversight of the supported housing sector.
The Supported Housing (Regulatory Oversight) Act came into force in August 2023. This brought forward national standards for support and looked to give local authorities power to tackle poor quality supported housing in their area, yet by the end of 2024 the Act had not been implemented. Ongoing gaps in regulation mean landlords can provide costly, sub-standard housing with little support, supervision or care.
Recommendation: MHCLG should implement the provisions of the Supported Housing (Regulatory Oversight) Act as quickly as possible. In addition, both MHCLG and Homes England should detail why Homes England fell short of its targets for new homes (including affordable homes) in 2023– 24, and what steps they are taking to ensure targets for 2024–25 and beyond will be achieved.
Consultation on future funding arrangements for the Homelessness Prevention Grant
Following the recommendations in the PAC Homelessness Report, MHCLG has published a consultation on the funding arrangements for the Homelessness Prevention Grant (HPG). Proposals include shifting the focus from spending on temporary accommodation to measures to prevent homelessness. In 2023-24, local authorities spent 49% of HPG funding on temporary accommodation and 51% on prevention and relief. The consultation proposes a new distribution formula for allocating HPG resources between authorities based on applying 45% towards temporary accommodation costs and 55% on homelessness prevention. The consultation does not address the future level of HPG funding as this will be determined by the Spending Review.
In addition, the consultation highlights that HPG represents only one element of a number of funding streams used to fund temporary accommodation and a separate review is in progress to overhaul and consolidate the various homelessness grants available.
The consultation closes on 11th March 2025
Update on the Renters Rights Bill
The Renters’ Rights Bill continues to make legislative progress having passed it’s second reading in the House of Lords on 4th February 2025. It has now passed most of its legislative hurdles and is expected to become law in Spring / Summer 2025.
The latest amendments include:
Landlords will only be permitted to charge one month’s rent in advance (alongside a security deposit of up to 5 or 6 weeks rent). This will prevent landlords demanding multiple months’ rent in advance as a condition of agreeing a tenancy.
A new rule to protect students aims to end the practice of pressuring students into commitments early into an academic year. Students will no longer be locked into an agreement where a lease is signed more than 6 months in advance of moving in.
Closing potential loopholes in rent repayment orders (RROs), ensuring superior landlords can be liable for RROs if an offence has been committed even if the rent was not paid directly to them, but through an agent or intermediate landlord.
Fees paid by landlords will directly fund the creation and work of the private rented sector Ombudsman, providing renters and landlords with access to an effective and fair dispute resolution service.
Summary of Main Measures in The Bill :
- The abolition of Section 21 notices.
- Assured Shorthold Tenancies (ASTs) will be replaced by periodic tenancies enabling tenants to end their tenancy at any time on giving 2 months’ notice.
- Rent agreed cannot be higher than advertised.
- Rent increases will be restricted to once per year (twelve months from previous increase).
- Tenants will be able challenge rent increases deemed above market via the First Tier Tribunal.
- Tenants have the right to request to keep a pet and that request cannot be unreasonably refused. However, the tenant will be required to have appropriate pet insurance.
- Landlords will be prohibited from discriminating against tenants who receive benefits or have children residing with them or visiting their premises.
- Awaab’s Law will apply to the Private Rented Sector (PRS).
- Decent Homes Standard will also apply to the PRS.
- There will be a requirement for Landlords to sign up to a Landlord Redress Scheme as well as a PRS database.
- No exemptions are proposed in respect of student housing.
- Landlord penalties – up to £7000 for the first offence and £40,000 for more serious and repeat non-compliance.
Other Proposals for Improving Standards in the Private Rented Sector
The government has issued a consultation with proposals to raise the minimum energy efficiency standard required of privately rented homes in England and Wales to the equivalent of Energy Performance Certificate (EPC) C by 2030.
Currently private landlords are only required to meet EPC E in rental properties. The government claims that requiring landlords to meet the higher EPC C standard will save private renters £240 per year on average on their energy bills.
The consultation runs until 2nd May 2025
Recent Consultation Responses
CWAG has linked up with ARCH and the NFA to submit joint responses on the consultation on Future Social Housing Rent Policy, the consultation on Reform of the Right to Buy and a submission to the Comprehensive Spending Review (CSR)
Consultation on Future social Rent Policy
Using analysis undertaken by Savills for the wider social housing sector, the response makes the case for a longer term rent settlement based on CPI plus 1% for ten years plus convergence to formula rents. The response also highlights that additional funding for newbuild will be essential in the short to medium term.
As a follow up to the consultation, a joint letter was also sent to the Deputy Prime Minister highlighting the importance of a 10-year rent settlement, based on CPI plus 1% and convergence with formula rents, to stabilise finances within the social rented sector. Other signatories include the Chartered Institute of Housing, Association of Retained Council Housing National Housing Federation, Local Government Association, National Federation of ALMOs, and the Northern Housing Consortium.
Consultation on Right to Buy Reform
The response acknowledges the government’s stated commitment to retaining the Right to Buy scheme whilst arguing for a range of measures to ensure the scheme is fairer and more sustainable, in particular that it does not compromise the ability of councils to replace homes that have been sold.
2025 Spending Review Submission
The submission sets out current pressures facing the sector. In summary, we are asking government to:
• Stabilise HRA finances in the short-term through a cash injection.
• Commit to CPI +1% for the next 10 years with full rent convergence.
• Provide funding for local authorities to meet additional requirements not included in the original Self-Financing Deal
• Substantially increase the AHP and LAHF to enable local authorities to play their part in delivering the 1.5 million homes the Government has promised.
• As part of a national long-term housing strategy, commit to reviewing and updating the self-financing settlement to ensure a sustainable future for council housing finance.
Recent Publications
Social housing sales and demolitions 2023-24 – Accredited Official Statistics (February 2025)
MHCLG has published a statistics bulletin setting out headline figures for changes in social and affordable rented stock in the year up to 31st March 2024. The bulletin also includes a figures for sales and demolitions compared with the output figures for new supply of social housing between 1997 and 2024.
Learning from Severe Maladministration – adaptations and other cases relating to mental and physical health needs – Housing Ombudsman January 2025
The Housing Ombudsman has released the latest report in the learning from severe maladministration series, focusing on adaptations and landlords’ response to mental and physical health needs.
The report is based on 35 investigations where residents have asked for an adaptation to the home or service adjustment. The report examines how landlords managed the adaptations, including liaising with Occupational Health, communication with residents and making reasonable adjustments under the Equality Act.
Whilst recognising that landlords face issues around a lack of resources, often compounded by homes designed in a different era that can be less practical and more expensive to adapt, this does not excuse the poor communication and unacceptable waiting times some residents have experienced. The casework highlights the imperative to deliver fairer, better services.