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CWAG Newsletter – March 2025

Burton Crescent Houses

This Update includes the following

  • £2 billion for social and affordable house building announced

  • Planning and Infrastructure Bill 

  • Update on Association of Directors of Housing Group

  • Current Consultations

  • Recent Publications

£2 billion for social and affordable house building announced

An unexpected funding announcement by the Chancellor in advance of the Spring Statement is described as a ‘downpayment from the Treasury’ ahead of a more long-term investment settlement for social and affordable housing due to be announced as part of the Spending Review later this year.

This interim funding is intended to signal the government’s commitment to delivering 1.5 million homes during this Parliament. The early announcement will enable projects to be worked up, addressing concerns that waiting for the full Spending Review would cause significant disruption and delays to programme delivery.

Most of this funding will fall in 2026/27 and funding arrangements are on the same terms as the Affordable Homes Programme for 2021-26. This £2 billion tranche of funding will act as a bridge to the future grant programme to be announced at Spending Review. The government is keen to support schemes for social rent and expects at least half of the programme to be for this tenure. The programme is expected to deliver around 18.000 new homes. All projects funded through this £2 billion will need to start by March 2027, and will need to finish by June 2029.

Full details of the long – term future grant settlement for 2026/ 27 and beyond will be announced at the Spending Review on 11th June 2025.

The Planning and Infrastructure Bill.

The Planning and Infrastructure Bill received its second reading in the House of Commons on 24th March 2025. The legislation involves a significant overhaul of the planning system with the aim of increasing housing and infrastructure delivery; changes will modernise local planning authorities, speed up decision making and the overall planning process.

Key measures in the Bill include:

  • A new national scheme of delegation will set out which types of planning applications should be determined by officers, and which should go to committee, speeding up the approval process for new development.
  • Controls will be put in place over the size of planning committees, to encourage ‘more effective debates and decision making.’ Training will also be made mandatory for planning committee members.
  • Councils will be able to set their own planning fees to allow them to cover their costs and address current operating deficits.
  • Builders will be able to pay into a new National Restoration Fund to meet their environmental obligations on individual projects. This will allow construction to proceed more quickly, removing costly and time-intensive local schemes. The pooled funds will be available to deliver larger environmental interventions and improvements.
  • Changes will be introduced to strengthen the compulsory purchase process allowing acquisition of land for projects that are in the public interest whilst ensuring compensation paid to landowners is not excessive.
  • Additional powers for development corporations to make it easier when delivering large-scale developments, including the next generation of new towns.
  • A new system of ‘‘spatial development strategies’ will be developed spanning multiple local planning authorities and identifying the most sustainable areas to build. These plans aim to ensure ‘a clear join-up between development needs and infrastructure requirements’ and will be produced by mayors and local authorities.
  • A new National Significant Infrastructure Project (NSIP) regime will streamline consultation requirements for major infrastructure projects – such as windfarms, roads and railway lines – in order to deliver infrastructure projects faster. It is also proposed to limit the number of times that government decisions on major infrastructure projects can be legally challenged.
  • Prioritising approved clean energy projects, such as wind and solar, for grid connections with a new ‘first ready, first connected’ system.
  • People living near new electricity transmission infrastructure will also receive up to £2,500 over 10 years off their energy bills, to encourage those likely to be most affected to support new infrastructure proposals.

New Association of Directors of Housing (AdOH) receives start-up funding from MHCLG

Proposals to set up a new representative body for council housing directors moved a step closer with the announcement of startup funding from MHCLG. The announcement was made by Housing Minister Matthew Pennycook at a housing Summit hosted by Sheffield City Council on 6th March 2025.

The new association aims to deliver a more unified sector-wide voice on housing policy issues as well as improved outcomes through enhanced collaboration and good practice sharing. The proposals have the backing of the LGA and over 100 councils.

MHCLG funding is intended to cover initial work on recruitment and setting up arrangements. A steering group led by Louise Wood, service director for planning and housing at Cornwall Council and Hakeem Osinaike, strategic director of housing at Southwark Council, is in place to progress the project and establish the new body in 2025/26.

CWAG is represented on the steering group by Geoff Beales who as Chair of CWAG is working to ensure the interests of Councils with ALMOs are reflected in the new arrangements for representation in the sector.

Once the AdOH group is fully established CWAG members will need to consider whether to merge with the new grouping or continue to operate as a separate entity.

Supported Housing Regulation Consultation

The Government launched a consultation on 20 February on the implementation of measures in the Supported Housing (Regulatory Oversight) Act 2023. Ministers are keen to improve the quality and consistency of accommodation and support for residents, delivering better value for the taxpayer input.

The consultation includes:

    • Proposals for a supported housing licensing regime which will give local authorities in England new powers to ensure providers are delivering the appropriate accommodation and support to residents.
    • It is intended to introduce licencing and inspection across all council areas in England so that protections are in place for all supported housing residents.
    • A new duty on local authorities to produce supported housing strategies to include details of current provision and future need for supported housing.
    • Draft National Supported Housing Standards for the support provided. These standards set out what the government expects from good quality support and will be enforced through the licensing regime.
    • The licencing regime will be linked to Housing Benefit entitlement which will raise the quality of supported housing provision for residents and provide better value for money for taxpayers.
    • Details of DWP proposals to link enhanced Housing Benefit payments to the licensing regime in England including proposals on defining care, support and supervision in Housing Benefit regulations and possible links between that definition and respective regulatory frameworks in England, Scotland and Wales.

The consultation closes on 15th May 2025

Commonhold White Paper

The government has published a White Paper proposing the introduction of new form of ownership for flats based on commonhold. Under the proposals new leasehold flats will be banned with commonhold becoming the default tenure. Commonhold gives flat owners a stake in the ownership of their buildings, providing them with greater control, power and security over their properties.

Whilst it is not proposed to require changes to leasehold arrangements for existing flats, the White Paper includes for the possibility of conversion of existing leasehold blocks to commonhold if this is supported by a majority of owners.

The White Paper also includes proposals for accommodating shared ownership leases within the commonhold framework.

Recent Publications

Learning from Severe Maladministration Cases – Housing Ombudsman (March 2025)

The Housing Ombudsman has released its latest ‘learning from severe maladministration’ report, focusing on the ‘Big 6’ building safety compliance areas.

The 23 complaints involve safety in asbestos, fire, water, gas, electrics and lifts, with issues sometimes interfacing with other disrepair concerns. The cases show the human impact of key obligations not being fulfilled to individuals. By grouping these cases together, it is possible to map reoccurring points of service failure and identify areas for learning.

Complaints can act as an early warning sign for landlords to test whether this is an isolated issue or further action is required to prevent repeated failings impacting other residents.

CWAG Newsletter – March 20252025-03-25T14:09:13+00:00

CWAG Newsletter – February 2025

This Update includes the following

  • Awaab’s Law Implementation arrangements announced

  • Tackling Homelessness – PAC Report

  • Homelessness Prevention Grant Consultation

  • Update on Renters’ Reform Bill

  • Other proposals for improving standards in the Private Rented Sector

  • Recent Consultation Responses

  • Recent Publications

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.

tackling-homlessness banner image

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.

CWAG Newsletter – February 20252025-02-11T14:08:53+00:00

PAC Report – Tackling Homelessness

This report sets out in stark detail the scale of the homelessness crisis with councils facing unsustainable financial pressures as a result.

The report is calling for a more effective response at a national policy level and identifies  seven specific areas with identified recommendations for action by government.

Read a copy of the report here

Summary of Conclusions and Recommendations

1. 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 it to fund the provision of temporary accommodation, particularly in areas of poor affordability, rather than spending it on prevention work.

Recommendation: MHCLG needs to set out plans to incentivise and work with local authorities to improve homelessness prevention.

 2. 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.

3. 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 incentivise councils to use local providers.

 4. 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 write to the Committee setting out, in detail, its justification for the levels of LHA it has set, both for individuals and for local authorities with regard to the temporary accommodation subsidy.

 5. Tackling homelessness has long been hampered by the absence of a joined up, cross-government approach.

 Examples

  • There are multiple funding streams that can be used to tackle homelessness, which can be challenging for local authorities to administer.
  • There are cases of the Home Office outbidding local authorities when seeking to accommodate asylum seekers in their area.

Recommendation: MHCLG should provide the Committee with further details of how its proposed cross-government homelessness strategy will generate practical improvements,

 6. 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.

7. 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.

PAC Report – Tackling Homelessness2025-01-28T14:20:47+00:00

Consultation on Right to Buy Reform

CWAG has linked up with ARCH and the NFA to submit a joint response to this consultation. The response accepts 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.

Consultation on Right to Buy Reform2025-01-28T08:17:06+00:00

CWAG Newsletter – January 2025

This Update includes the following

  • Social Housing Rent Consultation

  • Claims Harvesting Survey

  • Recent Publications

  • Diary Dates

Social Housing Rent Consultation

CWAG has submitted a joint response to the Social Housing Rent Consultation with the Association of Retained Council Housing (ARCH) and the National Federation of ALMOs (NFA).

The response focusses on the importance of achieving a ten-year settlement based on CPI +1% plus an annual allowance for convergence.

Drawing on analysis undertaken by Savills for the social housing sector in December 2024 the response makes the case that whilst the proposed longer term rent settlement based on CPI plus 1% would be helpful, it would be insufficient to bridge the immediate funding gap between income and expenditure requirements and will need to be bolstered by additional measures.

The Savills research demonstrates that CPI +1% over 10 years with a convergence policy to bring all local authority rents up to formula would make a material improvement both in the short and longer term, bringing the national HRA to a cumulative surplus within 10 years (based on a convergence amount of up to £3/week). In practice therefore additional funding will be required to deliver newbuild  in the short to medium term.

Consultation respons

Rent Consultation Analysis – Savills

Local Authority Claims Harvesting Survey Report

This survey of Right to Repair claims harvesting activities across the local authority sector is a joint NFA, CWAG, ARCH project, which is also supported by the Local Government Association (LGA) and Housing Ombudsman Service (HOS). The survey work was carried out by the NFA on behalf of the group.

The survey brings together currently available data on the activities of claims harvesting companies in the 31 authorities that responded to the survey. This data is a valuable starting point for developing an evidence base on the scale and cost to landlords of claims harvesting activities, as well providing detailed case studies and documentary evidence around unscrupulous practices and the impact on tenants.

The report highlights concerns that the proposed implementation arrangements for Awaab’s Law risk significantly worsening the scale and impact of claims harvesters on the sector and makes the case for a number of relatively straightforward policy changes – see recommendations below. These proposals would not impact tenants’ ability to bring disrepair cases against their landlords but would be a major step forward in tackling poor practice in the sector.

Recommendations

  • Introduce fixed recoverable costs in housing disrepair cases.
  • Cap the maximum proportion of a compensation award that a claims management company can take, and cap the referral fees that solicitors pay to Claims Management Companies.
  • Set out clearly in regulation the steps that must be taken before a disrepair claim goes to court, including giving the landlord a reasonable opportunity to resolve the problem through the landlord’s complaints process and the Housing Ombudsman Service.
  • Strengthen penalties against poor practice.
  • Review and increase the £1,000 threshold for repairs which has been in place since 1991 to stop claims harvesting companies from artificially inflating repairs costs just over the threshold.
  • Regularly gather data from local authorities on claims harvesting and disrepair so government can monitor the impact on Housing Revenue Accounts over time.

The full report is available to CWAG members – contact the Policy Officer for further details.

Recent Publications

Housing Revenue Account Research Update –  Savills (October 2024)

This report into financial pressures on council Housing Revenue Accounts (HRAs) was undertaken by Savills for the LGA, ARCH and the NFA. It updates earlier work by Savills in late 2022 and early 2023 and includes a reworking of the sector’s capital investment needs over the next 30 years (at todays prices) as well as the latest information on additional revenue pressures arising from the Awaab’s Law changes, enhanced regulation and new professional qualification requirements for housing staff.

Housing Revenue Account research update | Local Government Association

housing silhouette

Right to Buy is Broken – the case for change – Yorkshire Housing

Published at the same time as the Government’s consultation on changing the Right to Buy scheme, this report sets out more radical approach that would both reverse the loss of social housing through Right to Buy and provide a fairer system to help more people achieve their home ownership ambitions.

yhl-7807-right-to-buy-is-broken-031224.pdf

Sector Risk Profile – Regulator of Social Housing (RSH) – October 2024

The RSH has published the 2024 Sector Risk Profile which is an annual overview of the most significant risks currently facing social landlords. This year the report highlights increasing risks around viability as financial performance continues to weaken in the face of both internal and external pressures.

With financial capacity within the sector increasingly strained, landlords are prioritising investment in existing stock, a trend that is likely to continue as government moves forward with plans for a new Decent Homes Standard, as well as Minimum Energy Efficiency Standards, and new requirements in terms of professional standards through new Competence and Conduct requirements. However, government is also expecting the sector to support delivery of a substantial newbuild social / council house building programme as part of the policy to build 1.5 million homes over the next five years.

The introduction of proactive consumer regulation and the associated inspection regime also brings new pressures and risks as landlords must demonstrate they are delivering against the consumer standards, providing assurance which is underpinned by accurate, up-to-date and complete data. Additionally for Councils with ALMOs it is essential that the landlord maintains oversight of service delivery; failure to do so risks tenants’ safety and the quality of homes, as well as damaging the landlord’s reputation.

Sector risk profile 2024 – GOV.UK

2023/24 Tenant Satisfaction Measures  (November 2024)

The RSH has published its analysis of the results from the first year of Tenant Satisfaction Measures (TSMs) as well as its National Tenant Survey.

TSMs are primarily intended to help tenants hold their landlord to account in key areas, including repairs and maintenance, and complaints handling. They also provide valuable insights which landlords can use to improve their services. Although the collection format does not allow direct comparison of TSMs between landlords, they provide an important source of information for the RSH ‘s ongoing regulation of the sector. The National Tenant Survey is an independent survey, commissioned by RSH, to provide greater insight into the factors that influence TSM results.

The key findings are:

  • The biggest driver for overall satisfaction is a tenant’s view of their landlord’s repairs service and how well their home is maintained.
  • Most social housing tenants (over 70%) are satisfied with their landlord’s service, feel their home is safe and well maintained, and that their landlord treats them with fairness and respect.
  • However, around one in five tenants not satisfied with their landlord’s service, and only one third of affected tenants are satisfied with the way their landlord handles complaints.
  • Shared owners are the least satisfied, with only around 50% satisfied with their landlord’s overall service.

Housing Ombudsman Reports – Learning from Severe Maladministration

The Housing Ombudsman has published two new reports focussed on severe maladministration cases which aim to prepare the sector for the introduction of Awaab’s Law.

Taking the key lessons from our severe maladministration decisions – (October 2024)

This report focusing on ‘damp and mould – timeliness’ considers HO casework where landlords have struggled to respond appropriately to reports of damp and mould, with unacceptable delays and deteriorating living conditions often experienced by tenants.

Several of the case studies include significant compensation orders and the rationale underpinning them. Awards are intended to reflect the impact of issues such as compromised living conditions, partial loss of the use of the property, damage to possessions as well as the circumstances of the household including health issues or the presence of children. Awards are individual and specific, rather than formulaic. The examples are intended to help landlords better understand compensation issues taking account of what is fair and reasonable in the specific circumstances.

Learning from Severe Maladministration (housing-ombudsman.org.uk)

Taking the key lessons from our severe maladministration decisions – Dealing with Hazards (December 2024)

Property condition is the top complaint category at the Ombudsman and many cases involve the presence of hazards in the home and their associated risks. The report highlights cases where landlords have failed to identify the need for more urgent action where a hazard is present.

Key learning points include the need to be much more proactive in identifying and responding where there are potential hazards. Also, the importance of taking account of household circumstances and vulnerabilities so there is effective risk assessment and triaging of cases.

Learning from Severe Maladministration Learning from severe maladministration report looking at dealing with hazards

Diary Dates

Finance and Business Planning Meeting – Wednesday 22nd January  2025

Steve Partridge – Savills Director of Housing Consultancy will be leading this event for finance officers and others with an interest in HRA strategy and business planning. The event is a free event that is open to CWAG members. To book a place, contact the CWAG Policy Officer.

LGA Webinar – Update from the Regulator of Social Housing – Monday 27 January 2025, 10.00am – 11.00am

This is an opportunity to hear Angela Holden, Director of Regulatory Engagement at the Regulator for Social Housing (RSH) give an update on the work of the Regulator since the introduction of the new inspection regime. Further details and information on how to register are available on the LGA Website 

CWAG Newsletter – January 20252025-01-10T08:59:02+00:00

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

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