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MHCLG Consultation – Reforming the Right to Buy

The Government has confirmed that it is committed to retaining the Right to Buy as an important route for social tenants to achieve home ownership. However, achieving a scheme that is both ‘sustainable and fair’ requires new protections to ensure social housing is available in the long-term to meet future housing needs alongside encouraging new supply by giving councils the confidence to build new homes.

As a first stage, the Autumn Budget announced changes to the maximum Right to Buy cash discounts. These were reduced to pre-2012 levels, namely between £16,000 and £38,000. In addition, the cost floor protection period was increased from 15 to 30 years and councils will now no longer be required to return a proportion of RTB receipts to the Treasury.

The Government is now considering wider changes which are likely to require legislation. A consultation Reforming the Right to Buy was published on 20th November seeking views on further reforms, including increased protections for new build and changes to eligibility requirements.

The key areas under consideration are set out below:

  1. Eligibility  

The consultation includes options on increasing the 3 years minimum public sector tenancy currently required to 5 years, 10 years or more than 10 years. Views are also sought on whether someone should be excluded from the scheme if they have benefitted previously.

  1. Discounts as a percentage of the property value

It is proposed to amend the current percentage discounts to align better with the new maximum cash discounts and that the same rules should apply to houses and flats.

Views are invited on reducing the minimum discount to between 0% and 5%, and the maximum discount to between 5% and 20%. The discount would increase by 1% for every extra year that an individual has been a public sector tenant, up to the maximum.

The consultation paper also asks whether maximum discounts specified in cash terms should be retained or whether they would be made unnecessary by the amendment of the maximum percentage discounts.

  1. Exemptions

The consultation seeks views on whether the current exemptions to the scheme are fit for purpose and whether new-build homes should be exempt from the Right to Buy for a specified period to better incentivise councils to invest in new stock. Views are also sought on how to protect council investments in retrofitting and other major improvement schemes.

  1. Restrictions on the use of the property after sale

Concerns have been raised around too many homes sold under the Right to Buy being let out. The Government does not propose to introduce covenants to prevent homes being let out, as this would be unduly restrictive and difficult to administer. Similarly, there is no intention to create a discount in perpetuity, as the complexity of the proposition is likely to outweigh any benefits.

Views are however sought on whether the time period in which the council has the right to ask for repayment of all or part of the discount received should be increased from 5 to 10 years.

  1. Requirements around the replacement of homes sold under the Right to Buy

The consultation asks whether replacement homes be primarily for Social Rent, and as far as possible, of the same size and in the same area as the properties that have been sold. Also – should there be a target to replace all future Right to Buy sales on a one-for-one basis?

  1. Simplification of the RTB receipts regime –

Under the current arrangements, the capital receipt generated from the sale of a home is divided into six parts (after funding the discount). Views are sought on how the system can be simplified and strengthened to better support the objective of replacement of homes.

The consultation paper also confirms that the Government will not be progressing proposals to extend the Right to Buy to housing association tenants and the previous Government’s policy on the sale of higher value assets proposed in the 2016 Housing and Planning Act will be repealed when Parliamentary time allows.

The consultation closes on 15th January 2025

MHCLG Consultation – Reforming the Right to Buy2024-12-16T10:37:57+00:00

CWAG Newsletter – October 2024

This Update includes the following

  • Government Plans for Reform of the Private Rented Sector

  • Review of Housing Policy Announcements

  • Recent Publications

Government Plans for Reform of the Private Rented Sector (PRS)

The Government has moved quickly to introduce legislation that will deliver the manifesto commitment to ban Section 21 ‘no fault’ evictions and implement wider reform of the private rented sector. The Renters Rights Bill was published on 11th September 2024 and received its second reading on 9th October.

Whilst the Bill incorporates key elements of the previous government’s Renters (Reform) Bill, this legislation goes significantly further in terms of strengthening the position of renters through reform of tenancy law, introducing new protections to challenge unreasonable rent increases alongside enhanced enforcement and redress for tenants.

Key provisions include:

  • Section 21 evictions and periodic tenancies

Section 21 evictions will be abolished alongside the introduction of changes to tenancy arrangements. Assured tenancies and assured shorthold tenancies will be replaced by periodic tenancies providing more security and flexibility for tenants who will be able to remain in their home until they decide to end the tenancy by giving 2 months’ notice. There will be limited exceptions for example, houses in multiple occupation (HMOs) and designated student accommodation.

  • Grounds for possession

Landlords will be able to recover their property where they wish to sell or move-in close family, however tenants will benefit from a 12 month protected period at the beginning of a tenancy, during which a landlord cannot evict them to move-in or sell the property. There are also new safeguards for tenants who temporarily fall into arrears and the mandatory threshold for eviction is increased from 2 to 3 months and the notice period increased from 2 to 4 weeks.   There are also various specified grounds for use in limited circumstances where accommodation is intended for a particular purpose and where the tenant no longer meets the conditions under which the tenancy was granted (e.g. supported housing).

  • Rent Increases

New arrangements will be introduced designed to empower tenants to challenge unreasonable rent increases (often used as a backdoor means of eviction). If a tenant believes the proposed rent exceeds the market rate, they can challenge this at the First-tier Tribunal which will determine what the rent should be, either confirming the proposed level or setting a lower figure.

  • Private Rented Sector Ombudsman

Private landlords in England with assured or regulated tenancies will be legally required to join a new PRS Ombudsman. The service will be available free of charge to tenants and funded through a charge on landlords. Local councils will have the power to levy fines where landlords fail to join the Ombudsman.

  • Renting with Pets

Tenants will gain the right to request a pet in the property. Landlords must consider these requests and cannot unreasonably refuse. However, landlords will be able to require pet insurance to cover any damage to their property.

  • New Private Rented Sector Database

Landlords will be required by law to register with a new Private Rented Sector Database with penalties for those who fail to comply. The database will help landlords understand their legal obligations and provide information to tenants about landlord performance. It will also help local authorities to target enforcement activity. Landlords will need to be registered on the database to have access to certain possession grounds.

  • Discriminatory Practices

New measures will address discrimination against prospective tenants in receipt of benefits or with children with financial penalties for those who fail to comply.

  • Decent Homes Standard

The DH standard will be enforced within the PRS giving renters better value homes and removing the blight of poor property condition.

  • Awaab’s Law

The Bill confirms that Awaab’s Law will be extended to the PRS, setting clear legal expectations about the timeframes within which landlords must take action to make homes safe where they contain serious hazards.

  • Rental Bidding

Landlords and agents will be required to publish an asking rent for their property, and it will be illegal to accept offers made above this rate.

  • Local authority enforcement

There will be a new requirement for local authorities to report on enforcement activity along with expanded civil penalties for non-compliance (including fines between £7,000 and £40,000)

  • Rent repayment Orders

New measures will increase the deterrent effect of rent repayment orders making them easier for tenants and local authorities to access.

Review of Housing Policy Announcements

There have been a number of announcements relating to social housing policy in the first three months of the Labour Government:

Social Housing Quality and Professionalisation

The Secretary of State confirmed at the Labour Party Conference that Awaab’s Law will be introduced for the social rented sector this autumn, with plans to introduce it to the private rented sector at a later date, once the legislation is in place (see Renter’s Rights Bill above).

The government has also confirmed its intention to press ahead with the Competence and Conduct standard for the social rented sector to ensure tenants receive a professional service and are treated with respect and dignity. The timetable for implementation has yet to be confirmed.

The Secretary of State has also confirmed the government’s intention to consult on a new Decent Homes Standard for social and privately rented homes, however no specific timescales have been indicated to date.

Measures to ensure decent homes for all – GOV.UK (www.gov.uk)

Building New Homes

Since the election there have been a number of announcements to promote newbuild development and wider economic growth, in line with the Labour Manifesto commitment to build 1.5 million new homes over the next 5 years.  These include:

  • Consultation on a revised Planning Policy Framework to overhaul the planning system, opening up new areas for development as well as speeding up planning approvals and delivering wider economic growth. (for further details see August Newsletter)
  • New Towns Taskforce to advise and support government aspirations to develop a programme of new towns.
  • New Homes Accelerator programme to bring together key agencies, leveraging resources to unblock large development sites around the country where progress has stalled.
  • Brownfield Land Release Fund will provide £68 million to 54 councils to fund demolition of empty buildings, site clearance and decontamination of industrial land.

The Autumn Budget on 30th October should provide more detail around funding for new social housing development.

Energy Efficiency, Decarbonisation and the Warm Homes Plan

Currently, properties in the private rented sector can be rented out if they meet EPC E and there is no minimum energy efficiency standard for social rented homes. At the Labour Party Conference, the energy secretary announced plans to raise the energy efficiency rules applicable to social housing as part of the governments Warm Homes Plan. The government will consult before the end of the year on proposals for private and social rented homes to achieve EPC C or equivalent by 2030.

The Warm Homes: local grant scheme has also been relaunched to help low-income homeowners and private tenants with energy performance upgrades and cleaner heating. Home upgrade revolution as renters set for warmer homes and cheaper bills – GOV.UK (www.gov.uk)

In the social housing sector, Wave 3 of the Social Housing Decarbonisation Fund, now renamed Warm Homes: Social Housing Fund opened for applications on 30th September. Warm Homes: Social Housing Fund Wave 3 – GOV.UK (www.gov.uk)

Local Authority Housing Fund

The existing proposals for a third round of the Local Authority Housing Fund are going ahead as planned over two financial years (2024-25 and 2025-26). The £450 million programme announced by the previous government will be made available to councils to acquire better quality temporary accommodation for families at risk of homelessness as well as providing suitable housing for those on the Afghan citizens resettlement scheme.

housing silhouette

Right to Buy

The government moved quickly to announce new flexibilities for RTB receipts which will be in place for an initial period of 2 years, subject to review at the end of 2025/26:

  • Councils can use up to 100% retained receipts to fund replacement homes, a significant increase from the previous 50% cap.
  • Right to Buy receipts may be combined with section 106 contributions.
  • The cap on the percentage of replacements delivered as acquisitions has been lifted.

A wider review of the RTB scheme is underway within MHCLG with a consultation due later in the Autumn. This is likely to focus on the level of RTB discounts, particularly the increased levels in place since 2012. The Secretary of State has indicated that the intention is to restrict rather than abolish the scheme.

Retained Right to Buy receipts and their use for replacement supply: guidance – GOV.UK (www.gov.uk)

Local Connection or residency rules

The majority of stockholding councils have allocations schemes which include a local connection or residency test as part of the housing application process. However, in line with Labour’s election manifesto commitment that UK Armed Forces Veterans will be exempt from rules which require a local connection to access social housing, the government has recently written to councils setting out the policy position with formal regulations to follow in due course. The government has also clarified that a similar exemption will apply to other priority groups where demonstrating a local connection can be difficult, including care leavers and victims of domestic abuse.

UK Armed Forces Veterans given social housing exemption – GOV.UK (www.gov.uk)

Recent Publications

Planning Consultation

LGA response to the Government’s consultation on the National Planning Policy Framework (NPPF) is available on the LGA website. A useful summary of key points is available in the accompanying press release.

CWAG Newsletter – October 20242024-10-15T09:01:48+00:00

CWAG Newsletter – September 2024

This Update includes the following

  • Submission to the Autumn Budget and Spending Review

  • Consultation outcome – Proposed reform of social housing allocations dropped.

  • Recent Publications

  • 2023/24 RTB sales and replacements

  • CWAG Organisational Changes

Submission to the Autumn Budget and Spending Review

CWAG has linked up with ARCH and the NFA on a joint submission covering both the Autumn Budget and the Spending Review.

The submission sets out the scale of the current funding crisis facing many council Housing Revenue Accounts (HRAs) and outlines its origins including the abandonment of both rent convergence and the formula for annual rent increases agreed within the 2012 self-financing settlement. The requirement to reduce rents by 1% per year between 2016 and 2020 significantly undermined capacity within HRAs reducing council income by an estimated £2.4 billion (amounting to an estimated loss of £42 billion from business plans by 2042). In addition, the further cap on rent rises in 2023-24 is estimated to have cut income by £644 million.

The income shortfall created by these measures has undermined the capacity of business plans to keep pace with stock investment needs, a situation further exacerbated by the emergence of new expenditure pressures including the cost of compliance with the new fire and building safety requirements, the new consumer regulatory regime, the need to improve energy efficiency and progress decarbonisation.

Drawing on the latest Savills research the submission sets out the scale of the current funding shortfall in relation to the existing stock and calls for a longer-term strategy to address this whilst setting out the necessary conditions for councils to deliver on the government’s ambition to build a new generation of council homes.

Joint ARCH NFA CWAG Autumn Budget  and Spending Review Submission

Consultation outcome – Proposed reform of social housing allocations dropped.

The previous government held an 8-week consultation between January and March this year setting out a series of proposed reforms to social housing allocations.

The proposals included a UK connection test; mandatory local connection, income, and anti-social behaviour (ASB) tests; a new ground for eviction for those convicted of terrorism offences and a ‘three strikes and you’re out’ policy for ASB.

The new government has now indicated that it will not be taking forward these proposals on the basis that the changes are either unnecessary, given there are already stringent national and local rules in place determining who is eligible and who qualifies for social housing; costly, given implementation requirements and likely increases in homelessness or TA numbers; or would potentially harm communities and individuals by increasing the public safety risk or risk of reoffending.

Consultation on reforms to social housing allocations – GOV.UK (www.gov.uk)

Recent Publications

A new rent settlement – Savills – September 2024

A 10-year rent settlement which allows councils and housing associations to increase general needs rents by a maximum of CPI+1% each year has been trailed in the media ahead of the Autumn budget. This briefing note looks at the impact of increasing general needs rent by CPI+1% over the next 10 years and how this compares to likely future growth in market rents.

Savills has modelled increases in general needs and market rents to assess how the proposed rent settlement will affect the level of discount that social housing offers tenants. Broadly speaking, such a policy, if it came to pass, would not fundamentally affect relative prices across the country – in fact since 2016 the gap between social rents and PRS rents has been widening. This research and analysis provide helpful context for the debate around affordability.

Read Article

Securing the Future of council housing – Five solutions from 100 of England’s council landlords – Commissioned by Southwark Council – September 2024

The starting point of the report is that the council housing financial model is ‘broken’ and facing an expected £2.2billion black hole by 2028. Unless something is done soon, most council landlords will struggle to maintain their existing homes adequately or meet the huge new demands to improve them, let alone build new homes for social rent. The report calls for an immediate cash injection of £644 million, equivalent to the income lost from the 2023-25 rent cap to stabilise HRAs and prevent further waste caused by delaying or cancelling investment plans.

The five longer term policy recommendations to government are:

  • Establish a new fair and sustainable HRA model: including a long-term and certain rent-settlement, an adjustment of HRA debts and more favourable conditions for council investment.
  • Reform unsustainable Right to Buy policies: by reducing discount levels and eligibility, as well as protecting newly built council homes from sale.
  • Remove red tape on the Affordable Homes Programme and other funds: funding should be streamlined, allocated simply, reflect recent cost inflation, and allowed to be used flexibly to meet local housing need.
  • A Green & Decent Homes Programme: long-term funding to bring all council housing up to the new standard of safety, decency and energy efficiency by 2030 – and a road map for achieving net zero by 2050.
  • Fund new and replacement council homes: utilising new council house building to underpin the housebuilding sector.

Read report

Learning from Severe Maladministration – Housing Ombudsman Report – August 2024

This Housing Ombudsman report focusses on severe maladministration cases involving windows and follows earlier concerns raised by the Ombudsman regarding the handling of complaints regarding windows – see copy of earlier open letter sent to Chief Executives. The report is part of a series helping landlords prepare for the introduction of Awaab’s Law.

Read Report

2023/24 Right to Buy Sales and Replacements

MHCLG has published the statistics for Right to Buy sales and replacements between April 2023 and March 2024.

  • Total sales since the introduction of RTB reached 2,026,893.
  • Sales in 2023/24 were 6,275 (down 43% on 2022/23)
  • 3046 replacements achieved from receipts in the same period.
  • The average sales receipt was £98,454.

Read report

housing silhouette

CWAG Organisational Changes

Following the AGM we are pleased to welcome two new representatives to the Executive Group – Jenny Daisley from Shropshire Council and Henry Gregory from West Northamptonshire Council.

Southend on Sea City Council has taken over from Manchester City Council as the Administrative Authority for CWAG. The TUPE transfer of the CWAG Policy Officer post took place on 2nd September 2024 and the transfer of financial responsibilities will be completed shortly.

CWAG Newsletter – September 20242024-09-19T12:37:56+00:00

Review of RTB and new flexibilities on using RTB receipts announced

The Government has announced a review of the Right to Buy including eligibility criteria and protections for new homes. A consultation on changes will be issued in the autumn. The increased Right to Buy discounts introduced in 2012 will also be reviewed and changes implemented via secondary legislation.

Increased flexibilities on how councils can use Right to Buy receipts have also been announced. The following changes will come into effect immediately and will apply for 2 years initially, subject to review:

  • Removing the cap on the percentage of replacements homes that can be delivered as acquisitions.
  • Removing the 50% cap on the level of RTB receipts that can be used to fund the cost of a replacement home.
  • Allowing councils to combine Right to Buy receipts with section 106 contributions.
Review of RTB and new flexibilities on using RTB receipts announced2024-08-06T14:12:35+00:00

Planning Reform Consultation

Reform of the planning system is a central priority for the new government as it offers the potential to address the current housing crisis whilst also delivering wider economic growth.

A consultation covering changes to the National Planning Policy Framework (NPPF) has been issued setting out the government’s plans including:

  • A new methodology for calculating local authority housing targets designed to support delivery of the Government’s manifesto commitment of 1.5 million new homes in this Parliament.
  • A broader definition of brownfield land and an assumption that applications to develop brownfield land will be approved.
  • Recognition that to achieve housebuilding targets, councils will need to consider development on parts of the Green Belt that are of low environmental quality, referred to as the ‘grey belt’.
  • Clarifications around the ‘presumption in favour of sustainable development’ including new safeguards against poor quality development.
  • Raising building densities in urban areas.
  • Measures to improve the delivery of affordable and social housing with an increased priority and focus on social rent.

The consultation runs from 30th August 2024 to 24th September 2024

Planning Reform Consultation2024-08-06T14:20:31+00:00

CWAG Newsletter – August 2024

This Update includes the following

  • Housing Policy Update

  • Housing Legislation in the King’s Speech

  • Recent Publications

  • Diary Date – CWAG Annual General Meeting

Housing Policy Update

In a major policy speech on 30th July Angela Raynor, Deputy Prime Minister and Housing Secretary, set out how the new government intends to deliver on the Party’s manifesto commitments on housing. The Secretary of State has also written to local authorities setting out the detail of the government’s programme. Read letter here

Planning Reform

Reform of the planning system is regarded as the key to addressing current housing shortages and delivering wider economic growth. A consultation covering changes to the National Planning Policy Framework (NPPF) was issued to coincide with Angela Raynor’s policy statement. The consultation includes the following proposed changes:

  • A new mandatory standard methodology for assessing housing need and a requirement for local authorities to plan for the resulting figure.
  • A requirement to identify ‘grey belt’ land within the Green Belt, to be brought forward into the planning system.
  • New “golden rules” for land released in the Green Belt to ensure it delivers in the public interest including a requirement that development should include 50% affordable homes along infrastructure such as schools and GP surgeries.
  • Broadening the existing definition of brownfield land and a strengthened expectation that applications on brownfield sites will be approved.
  • Raising building densities in urban areas.
  • Clarifications around the ‘presumption in favour of sustainable development’ including new safeguards against poor quality development.

Housing Targets

Mandatory housing targets are to be reinstated requiring all councils in England to plan for increased housebuilding in their areas. The target set out in the Labour manifesto of 1.5 million homes over the life of the Parliament has been uplifted from 300,000 homes per year to just over 370,000 homes per year. This reflects a change in the methodology for calculating targets to ensure development is proportionate to the size of existing communities, while adding an extra level of ambition in the most unaffordable areas. The target for London has been reduced from 100,000 homes to around 80,000 homes per year.

 Green Belt Land

Commitments to focus development on previously developed brownfield sites remain, however there is an expectation that in order to achieve housebuilding targets, councils will need to consider development on parts of the Green Belt that are of low environmental quality, referred to as the ‘grey belt’.

Social Housing

The Secretary of State confirmed that the government has ambitious plans for social and affordable housing, namely to ‘deliver the biggest boost to social and  affordable housing in a generation’.  Detailed plans will be brought forward as part of the multiyear spending review due to conclude in Spring 2025.

There will also be an announcement on future social housing rents as part of the Autumn Budget Statement on the 30th October which will ensure council housing finances are put onto a secure footing with rent stability enabling councils ‘to be able to borrow and invest in new and existing homes’.

Right to Buy

The Government has announced a review of the Right to Buy including eligibility criteria and protections for new homes. A consultation on changes will be issued in the autumn. The increased Right to Buy discounts introduced in 2012 will also be reviewed and changes implemented via secondary legislation.

Increased flexibilities on how councils can use Right to Buy receipts have also been announced. The following changes will come into effect immediately and will apply for 2 years initially, subject to review:

  • Removing the cap on the percentage of replacements homes that can be delivered as acquisitions.
  • Removing the 50% cap on the level of RTB receipts that can be used to fund the cost of a replacement home.
  • Allowing councils to combine Right to Buy receipts with section 106 contributions.

Awaab’s Law

The Government has also confirmed that Awaab’s Law will be introduced into the social rented sector, with more detail and secondary legislation to implement this in due course.

Housing Legislation in the King’s Speech

The official opening of Parliament and the King’s Speech on 17th July set out the new Government’s planned legislative programme for the first parliamentary session. There are 4 Bills directly relevant to housing.

The Planning and Infrastructure Bill aims to speed up development by delivering improvements to the planning system including:

  • Modernising planning committees and increasing capacity at the local planning authority level.
  • Changing the rules surrounding Nationally Significant Infrastructure Projects to accelerate the planning permission process.
  • Unlocking more sites for development through reform of the compulsory purchase compensation rules. The proposals aim to ensure that compensation paid to landowners is “fair but not excessive” in cases involving affordable housing and other important social and physical infrastructure.
  • Using developer nature recovery contributions to help unlock stalled development sites.

The Renters Rights Bill is a carryover from the Conservative administration; a similar Bill was a casualty when the General Election was called unexpectedly. The King’s speech confirms that the Labour government will seek to continue the proposed rental sector reforms along with some additional measures. The key areas to be covered by this legislation are:

  • Abolishing Section 21 ‘no fault evictions’ alongside clear and expanded possession grounds so landlords can reclaim their properties when they need to.
  • Strengthening tenants’ rights and protections, including enabling tenants to challenge excessive rent and new laws to end the practice of rental bidding wars by landlords and letting agents.
  • Giving tenants the right to request a pet, which landlords must consider and cannot unreasonably refuse.
  • Applying a Decent Homes Standard to the private rented sector – tackling the blight of poor-quality homes.
  • Applying ‘Awaab’s Law’ to the private rented sector.
  • Creating a digital private rented sector database to bring together key information for landlords, tenants, and councils to target enforcement more effectively.
  • A new ombudsman service for the private rented sector that will set up to provide fair, impartial and binding resolution, to both landlords and tenants and reducing the need to go to court.
  • Making it illegal for landlords to discriminate against tenants in receipt of benefits or with children when choosing to let their property.
  • Measures to strengthen the enforcement powers of local councils including new investigatory powers intended to make it easier for councils to identify and fine unscrupulous landlords.

The Kings Speech also referred to a Draft Leasehold and Commonhold Reform Bill signalling the Government’s intention to re-examine the issue of commonhold and leaseholder rights, with the intention of moving beyond the Conservative government’s Leasehold and Freehold Reform Act. In addition, the English Devolution Bill includes the prospect of further devolution of housing powers to local government level.

Recent Publications

Consumer Regulation Review 2023/24 (published July 2024)

The Regulator of Social Housing has published the annual review of its consumer regulation work for the past year. Although the report covers the period prior to the new regulatory approach, the learning points and case studies are highly relevant in the context of the new standards.

Key messages:

  • Landlords must meet all health and safety requirements to keep tenants safe. The report highlights cases where required checks for fire, gas, electrical, asbestos and water safety had not been completed. There were cases where landlords could not provide assurance that all homes had smoke alarms and carbon monoxide detectors. Also, in some cases remedial actions identified in fire risk assessments had not been completed within the specified timescales.
  • Landlords are expected to know the condition of the homes they manage and have effective systems and reliable information on condition and quality which is used to ensure tenants homes are good quality, safe and well-maintained.
  • Complaints can provide an important source of insight and intelligence for landlords about how their systems are working. Landlords must have the systems in place to learn from complaints when things go wrong.
  • Boards and councillors need to understand the required outcomes of the consumer standards and have good oversight and scrutiny arrangements.
  • Landlords need to engage effectively with tenants, treating them with fairness and respect.
  • Co-regulation requires landlords to refer themselves to RSH when they find a material issue, or a potential material issue, so it can be resolved promptly if required.

Download report

Why Councils are underinvesting in housing and how an updated debt settlement could put that right – Joint CIH / Savills Report (July 2024)

This report looks at options for addressing the erosion of the 2012 HRA settlement in recent years which has left HRAs chronically under resourced.

Running through the options available to secure additional funding for council housing, the report makes the case for re-opening the 2012 settlement as the most effective and straightforward approach.

This would involve transferring the estimated £17 billion of unsustainable debt from local authorities to central government enabling council housing finance to become sustainable for the long term, in line with the goal in 2012. An intervention on this scale is required to deliver headroom for investment in existing stock and to recreate the newbuild capacity that existed in 2012.

Download report

Radix Big Tent Housing Commission – Public Memorandum to the Housing Minister from Dame Kate Barker CBE (July 2024)

Kate Barker who 20 years ago led a landmark review into housing supply in the UK is currently Chair of the above Commission which aims to propose practical solutions to current housing problems. Following the General Election, the Commission has opted to publish some early policy insights in a memorandum shared with Matthew Pennycock the incoming housing minister.

Read Key Recommendations

Download Memorandum

Switching to social rent: delivering the homes we need – New Economics Foundation (June 2024)

This paper sets out the case for the new government to reform housing grant funding and refocus the programme on social rent. Conservative administrations have concentrated on funding affordable rent and shared ownership at the expense of social rent. The paper argues that this is fiscally inefficient because much of this housing would be viable without grant and funding should therefore be freed up for social rent which is undeliverable without significant grant input.

Addressing the housing crisis will also require fundamental reform of the way housing grant is allocated and administered, bringing an end to Treasury restrictions which have left Affordable Homes Programme (AHP) funding and Housing Infrastructure Fund (HIF) grants unspent.

Download report

Diary Date – CWAG Annual General Meeting

This year the CWAG Annual General Meeting will be on Thursday 19th September 2024 (10.00 -12.00). The meeting will take place over Teams. Please note the date in your diary.

Our speaker this year will be Eamon McGoldrick, Managing Director of the National Federation of ALMOs. Eamon will discuss progress on current proposals for sector-led improvement. Recent press reports have highlighted moves to set up a new representative body for council housing to achieve a strong coherent voice on policy matters and new arrangements to promote and share good practice. This is a timely opportunity to find out more about these proposals and consider the implications for councils with ALMOs.

The formal business of the AGM involves electing representatives of the Executive Group as well as reviewing the group’s finances and operating arrangements and Terms of Reference.

Annual General Meeting

CWAG Newsletter – August 20242024-08-01T13:39:01+00:00

CWAG Newsletter – June 2024

General Election – What the Parties are offering on Housing?

The summaries below highlight the key policy areas and approaches as set out in the Party Election Manifestos:

Parliment and River Thames

Building New Homes

Labour

Plan to build 1.5 million new homes in England over the next parliament. Proposals include:

  • Restoring mandatory housing targets and strengthening the presumption in favour of sustainable development.
  • Prioritising a ‘brownfield first’ approach and a more strategic approach to the Green Belt which would allow the release of lower quality ‘grey belt’ land under certain conditions.
  • Building a new generation of new towns.
  • Introducing new mechanisms for cross boundary strategic planning that will require Combined and Mayoral Authorities to plan strategically for growth in their areas.
  • Reform of compulsory purchase compensation rules to improve site assembly and address the inflated price premiums achieved by landowners on land should planning permission be granted.
  • Supporting local authorities to fund additional planning officers, through increasing the rate of the stamp duty surcharge paid by non-UK residents.

Conservatives

Plan to build 1.6 million new homes in England over the next parliament. Proposals include:

  • Abolishing legacy EU nutrient neutrality rules to unlock development of 100,000 new homes with existing planning permissions.
  • Fast tracking the delivery of homes on brownfield land in urban areas and setting up locally led urban development corporations.
  • Raising housing density levels in inner London (to levels comparable with other European cities).
  • Supporting small and local builders by requiring councils to set aside land for them and lifting Section 106 burdens on smaller sites.

Liberal Democrats

Plan to increase building of new homes to 380,000 per year across the UK. Proposals include:

  • Building 10 new garden cities
  • Reforming the Land Compensation Act 1961 to allow councils to buy land for housing based on current use value rather than a hope value basis.
  • Improving planning outcomes by properly funding local planning departments, by allowing local authorities to set their own fees.
  • Expanding neighbourhood planning across England.
  • Expanding rural housing provision by encouraging the use of rural exception sites.
  • Trialling Community Land Auctions to help fund vital local services and ensure local communities receive a fair share of the benefits of new development in their area.
  • Encouraging development of existing brownfield sites.
  • Introducing ‘use-it-or-lose-it’ planning permissions.
  • Investing in skills, training and modern methods of construction.

Social and Affordable Housing

Labour

The labour manifesto commits to delivering the biggest increase in social and affordable housebuilding in a generation. This will be achieved by:

  • Strengthening planning obligations to ensure new developments provide more affordable homes.
  • Prioritising the building of new social rented homes.
  • Making changes to the Affordable Homes Programme to ensure that it delivers more homes from existing funding.
  • Building capacity to enable councils and housing associations to make a greater contribution to affordable housing supply.

Conservatives

The Conservative manifesto makes only two references to social housing; to deliver on  existing commitments to introduce ‘Local Connection’ and ‘UK Connection’ tests for social housing and to implement a ‘three strikes and you’re out’ expectation of social housing landlords in cases of anti-social behaviour.

There is also a commitment to boost the availability of affordable housing for local people in rural areas and renew the Affordable Homes Programme to deliver homes of all tenures, and focus on regenerating and improving housing estates.

Liberal Democrats

The Liberal Democrat manifesto includes a target to build 150,000 new social homes per year. Also included are measures to protect the rights of social renters and proactively enforce clear standards and strict time limits for repairs.

Right to Buy

Labour

With the aim of better protecting the existing social rented stock, Labour will review the increased right to buy discounts introduced in 2012 and increase protections on newly-built social housing.

Conservatives

Plan to maintain their existing approach by ensuring RTB discounts continue to rise with inflation. They will also fight any plan by local authorities to abolish the Right to Buy altogether.

Liberal Democrats

Would give local authorities (and National Park Authorities) the powers to end Right to Buy in their areas.

Energy Efficiency / Net Zero

Labour

Labour plan to invest an extra £6.6 billion over the next parliament in initiatives to upgrade energy efficiency and cut bills for families, doubling the existing planned government investment. The Warm Homes Plan will offer offer grants and low interest loans to support investment in insulation and other improvements such as solar panels, batteries and low carbon heating to cut bills.

Conservatives

The Conservatives plan to spend £6 billion on energy efficiency over the next three years to make around a million homes warmer. In addition, an energy efficiency voucher scheme, open to every household in England, will be available to support the installation of energy efficiency measures and solar panels, helping families lower their bills.

Liberal Democrats

Liberal Democrats are committed to making homes warmer and cheaper to heat with a ten-year emergency upgrade programme. Starting with free insulation and heat pumps for those on low incomes, and ensuring that all new homes are zero-carbon.

Private Rented Sector

Labour

Labour will immediately abolish Section 21 ‘no fault’ evictions, preventing private renters being exploited and discriminated against by empowering them to challenge unreasonable rent increases. In addition, Labour will take steps to raise standards in the PRS, including extending ‘Awaab’s Law’ and ensuring homes meet minimum energy efficiency standards by 2030.

Conservatives

Conservatives will pass a Renters Reform Bill, alongside delivering the court reforms necessary to fully abolish Section 21 and strengthen other grounds for landlords to evict private tenants guilty of anti-social behaviour.

Liberal Democrats

Liberal Democrats will deliver a fair deal for renters by immediately banning no-fault evictions, making three-year tenancies the default, and creating a national register of licensed landlords

Home Ownership Initiatives / First time buyers

Labour

Labour will introduce a permanent, comprehensive mortgage guarantee scheme, to support first-time buyers who struggle to save for a deposit, lowering mortgage costs. In addition, Labour proposes to work with local authorities to give first-time buyers the first chance to buy homes on new developments, preventing off plan sales to international investors.

Conservatives

The Conservatives would continue to offer a Mortgage Guarantee scheme and permanently increase the threshold at which first time buyers pay Stamp Duty to £425,000 ( from £300,000). In addition they plan to introduce a new Help to Buy scheme which would provide first-time buyers with an equity loan of up to 20% towards the cost of a new build home, enabling first-time buyers to get onto the housing ladder with a 5% deposit. The scheme will be part funded by contributions from house builders.

Liberal Democrats

Liberal democrats would help people who cannot afford a deposit to own their own homes by introducing a new Rent to Own model for social housing where rent payments give tenants an increasing stake in the property, owning it outright after 30 years.

Homelessness and Rough Sleeping

Labour

Labour is committed to developing a new cross-government strategy, working with Mayors and Councils across the country, to put Britain back on track to ending homelessness.

Conservatives

The Conservatives plan to continue with existing plans to end rough sleeping.

Liberal Democrats

The Liberal Democrat manifesto commits to ending rough sleeping within the next parliament by:

  • Urgently publishing a cross-Whitehall plan to end all forms of homelessness.
  • Exempting groups of homeless people, and those at risk of homelessness, from the Shared Accommodation Rate.
  • Introducing a ‘somewhere safe to stay’ legal duty to ensure that everyone who is at risk of sleeping rough is provided with emergency accommodation and an assessment of their needs.
  • Ensuring sufficient financial resources for local authorities to deliver the Homelessness Reduction Act and provide accommodation for survivors of domestic abuse.

Recent Publications

This month there are a number of new reports addressing issues highlighted as part of the General Election campaign:

Report by New Economics Foundation – Reforming Right to Buy – June 2024

This is another report looking to influence the debate around the future of the Right to Buy. It outlines a package of proposed reforms that would retain the RTB in a format that no longer exacerbates the current housing crisis.

The key to delivering  meaningful change is to devolve decision making around the RTB  to local authorities, enabling councillors, who understand local housing issues, to decide on how the policy should be offered in their area.

Each local authority would have powers:

  • to suspend right to buy where it can be demonstrated that the policy is contributing to affordable housing shortages.
  • to end right to buy in respect of newly built or acquired homes.
  • to introduce measures to prevent homes sold under the right to buy from being let in the private rented sector.
  • Reduce discounts and extend qualifying periods.

In addition, Treasury rules should be amended to allow councils greater flexibility and full access to receipts to better provide replacement stock.

Download Report

Housing Subsidy’s long-term shift from supply to demand and what might be done about it – Prof Kenneth Gibb – UK Collaborative Centre for Housing Evidence – June 2024

This paper examines the long-term shift from supply side housing subsidies providing capital subsidies to build new homes to personal demand side personal housing subsidies to help people pay for housing. This shift has been in progress for the past 50 years resulting in the housing cost element of universal credit representing the largest government subsidy to housing (amounting to more than £31 billion in 2023/24 which equates to about one-tenth of the entire social security budget).

Whilst the paper makes the case for reversing the reliance on demand led subsidies, it sets out the immense difficulties involved in shifting back to capital funding in any material way. Change cannot be accomplished quickly and involves significant cost and funding challenges in advance of beneficial impacts coming into play. However, there is a clear case for rebalancing supply and demand subsidies as part of a consistent long-term policy for the housing system.

Housing subsidy’s long-term shift from supply to demand and what might be done about it – UK Collaborative Centre For Housing Evidence

English Housing Supply Update Q1 2024 – Savills

This report highlights that planning consents for new housing have fallen below current completions for the first time since 2009 with poor outlook for new home delivery. 232,500 new homes were built in the twelve months to Q1 2024, but only c. 222,000 new homes are estimated to have gained full planning consent in that time.

As a result, completions are now likely to fall even further below housing need – Savills forecasts suggest that the number of new homes being built may be as low as 160,000 in 2024/25.

Savills UK | English Housing Supply Update Q1 2024

Diary Date – LGA Webinar – New Regulatory Regimes – Postponed

The LGA webinar bringing together the Housing Ombudsman and Regulator of Social Housing to discuss recent changes and new regulatory requirements has been postponed until after the General Election.

The new date is 25th July 2024 (10am – 11am)  For further details see the LGA website

Diary Date – CWAG Annual General Meeting

This will be held on Thursday 19th September 2024 (between 10.00 and 12.00) via Teams.

CWAG Newsletter – June 20242024-06-18T15:52:32+00:00

Presentation Slides – CWAG Finance and Business Planning Workshop – June 2024 ( Cloned )

Workshop facilitated by Steve Partridge (Savills) covering

  • Economic pressures undiminished for HRA sector
  • Revising national projections
  • Impact of rising capital pressures
  • Revenue Repairs
  • Reserves and savings
  • Building safety
  • Energy efficiency and net zero carbon
  • Newbuild development – where are we?
  • Other revenue pressures
  • Future investment
Presentation Slides – CWAG Finance and Business Planning Workshop – June 2024 ( Cloned )2024-06-10T13:51:33+00:00

CWAG Newsletter – May 2024

This Update includes the following

  • Progress of Renters Reform Bill

  • Consultation Outcome – Changes to RSH Fee Regime

  • Recent Publications

  • Future Meetings

housing development

Progress of Renters Reform Bill

After almost a year, the Renters Reform Bill finally completed its passage through the House of Commons on 24th April 2024. Delays were due to concerns around the capacity of the Courts to process possession cases.

A significant number of amendments have been made including:

  • Tenants will not be able to give notice that they wish to end a tenancy for at least 6 months after taking it on, rather than after two months as previously proposed.
  • Abolition of section 21 “no fault” evictions will not take place until court reforms have been implemented (the Opposition continues to press for a clearer implementation date as the legislation currently leaves the timing a matter for Ministerial judgement).
  • Provisions have been added to allow landlords to recover possession of properties let to full-time students at the end of the academic year to ensure these are available for reletting to students in the next academic year.
  • The Minister also committed to undertake a review of local authority private rented sector licensing schemes with “the aim of reducing burdens on landlords”.
  •  The Government will review the implementation of the tenancy reforms within 18 months of measures being applied to existing tenancies.  

The Bill has now moved to the House of Lords receiving it’s first and second reading in the on 1st May 2024 and 15th May 2024 respectively. Secretary of State, Michael Gove has stated the government’s intention to enact the legislation by the ‘summer’ with Implementation by the Autumn.

Consultation Outcome – Changes to RSH Fee Regime

The Regulator of Social Housing (RSH) has announced the outcome of its consultation on proposed changes to the charging regime for social landlords. The Decision Statement indicates that there was broad support for the new approach which will see fees paid by social landlords to cover the full cost of regulation in the sector.

For councils, this will mean a requirement to pay fees for the first time to cover the cost of the RSH’s more active regulation against the Consumer Standards, including the new the inspections regime. Councils owning over 1000 homes will be charged at a pro rata rate of £6.63 per property.

The new arrangements come into effect on 1 July 2024. Invoices will be sent out in June. For more details see the RSH Decision Statement

Recent Publications

Reforming the Right to Buy  (The Housing Forum) – April 2024

Whilst ending the Right to Buy altogether would be the best way of safeguarding the social housing stock, this report recognises that all the main political parties currently want to retain the RTB in some form. This briefing paper sets out a series of recommendations to tackle the most problematic aspects of the current scheme including:

  • Removing the RTB from Newbuild homes
  • Using covenants to prevent the letting out of property, or alternatively requiring properties to be offered to the council  to be let if not used for owner occupation.
  • Allowing councils to receive the full value of RTB sales.
  • Modernising exemption criteria e.g. to include larger homes and bungalows.
  • Discounts should be reduced to no more than 20%.

Download report

The Finances and Sustainability of the Social Housing Sector (LUHC  Committee) – Published 29th April 2024

This report from the Levelling Up Housing and Communities Select Committee highlights the severe financial pressures currently facing the social housing sector.

Current issues have arisen because of repeated government-imposed rent caps coinciding with unprecedented costs for decarbonisation, fire safety and the regeneration of older homes. Whilst overall the sector is deemed to be generally resilient, the impact on social housing newbuild has been stark as providers retrench and focus on their existing stock.

Given the chronic shortage of social housing the Committee recommends that the Government should set and publish a target for the number of social homes it intends to build each year, prioritising grant funding for social housing rather than the current focus on affordable rent and shared ownership. The Government is also urged to use the planning system to support social housing build schemes using land value capture as a tool to ensure land price does not inhibit development of new social homes. Other proposals include greater flexibility in the net additionality guidelines used by Homes England as these are a barrier to regeneration schemes in many areas. The Government is also urged to fund fire safety works in the social housing sector on the same basis at currently available to the private sector.

Download Report

Rethinking Repairs and Maintenance : 12 Guiding Principles (Chartered Institute of Housing / National Housing Federation) – Published 9th May 2024

This report relates to one of the action plan recommendations in the 2023 CIH / NHF ‘Better Social Housing Review’, namely ‘Housing associations should partner with residents, contractors and frontline staff to develop and apply new standards defining what an excellent maintenance and repairs process looks like.’

This guidance identifies twelve guiding principles for how social landlords should work with residents to improve the repairs and maintenance services. The 12 principles are grouped into themes which are intended to be addressed consecutively, starting with culture and resident engagement, tackling discrimination, and involving frontline colleagues to understand and improve performance.

Read Report

Future Meetings

CWAG Finance and Business Planning Meeting Thursday 6th June 2024 (10.00 – 13.00)

This event for finance officers and others with an interest in HRA strategy and business planning will be led by Steve Partridge from Savills.
To book a place, contact the CWAG Policy Officer.

New Regulatory Regimes – LGA with the Housing Ombudsman and Regulator of Social Housing – Thursday 13th June 2024 (3 pm. – 4 pm)

The LGA is hosting a webinar that will bring together the Housing Ombudsman and Regulator of Social Housing to discuss the recent changes and new requirements impacting on councils.

A representative from the Housing Ombudsman will discuss the new Complaints Handling Code, including how local authorities should identify the member responsible under a council’s statutory duty. The Regulator of Social Housing will set out the powers available to them under the new regulatory regime, including inspections and grading of local authority housing services. There will be opportunities to raise issues and question both before and during the event.

For further details see the LGA website

CWAG Newsletter – May 20242024-05-20T10:56:03+00:00

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