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Consultation on Social Housing Rents

Current rent policy dates back to 2019 and permits social housing rents to increase by up to the CPI rate at the previous September plus 1% point. This policy was intended to run up to 2025 providing longer-term certainty and stability for business planning and investment.

However, faced with an unprecedented rise in inflation and the exceptional cost of living pressures on households, the government is now proposing to restrict the 2023 social housing rent increase and is consulting on alternative arrangements.

Under the consultation proposals social landlords would be permitted to increase rents by up to CPI+1% or by 5%, whichever is the lower, effectively placing a 5% ceiling on increases next year.

The consultation is also inviting views on alternative ceiling options (such as 3% and 7 %) and whether restrictions should be extended beyond next year to cover the 2024 increase as well.  The government is also keen to understand what councils would opt to do in terms of rent increases if this ceiling was not to be imposed.

The intention is for the proposed rent increase ceiling to only apply to existing tenants, it will not apply on new properties and relets where the formula rent and full CPI plus 1% can be applied. The consultation also states that these arrangements will apply across the board, it is not proposed to make exceptions for certain less financially resilient categories of social housing – although feedback is sought on this. Where individual landlords face viability issues, it may under certain circumstances be possible to agree a waiver with the Regulator of Social Housing.

DLUHC has published an impact assessment alongside the consultation which estimates the loss of rental income for councils at £3.4billion in the 5-year period between 2023 and 2028.

In framing the CWAG response we are keen receive feedback from CWAG members on the consultation proposals and how these will impact locally on HRA business plans, the scale of financial loss and what this will mean on a practical level in terms of services for residents, repair programmes and investment plans including newbuild and meeting climate change targets.

The consultation runs for 6 weeks from 31st August 2022 to 12th October 2022

Consultation on Social Housing Rents2023-04-24T10:21:45+00:00

Presentation Slides – CWAG Finance and Business Planning Workshop – January 2022

Workshop facilitated by Steve Partridge (Savills) covering

  • Review of current policy and regulatory landscape
  • Implications / challenges within financial policy for housing
  • Planning / setting capacity limits for investment
  • Current issues in business planning
  • Right to Buy
  • Funding new development from developer and council/ALMO perspective
Presentation Slides – CWAG Finance and Business Planning Workshop – January 20222023-04-24T10:21:45+00:00

Use of receipts from RTB Sales: Government response to the Consultation – March 2021

The consultation on use of receipts from Right to Buy Sales was published alongside the Social Housing Green Paper in August 2018. The consultation considered the case for offering local authorities greater flexibilities in how they use Right to Buy receipts to deliver replacement homes.

Although the consultation closed in October 2018, the government response wasn’t published until March 2021, nearly two and a half years after the consultation closed.

This included the following measures:

  • Extension of the timeframe available to local authorities to spend new and existing Right to Buy receipts from 3 years to 5 years, applicable from 1 April 2021. There will also be a change to annual rather than quarterly returns and accounting. These measures will allow councils to plan more effectively and use receipts on larger more complex projects with longer lead in times.
  • An increase in the cap on the percentage cost of new homes that councils can fund from Right to Buy receipts from 30% to 40% per home. This aims to make it easier for local authorities to fund replacement homes, particularly those for social rent.
  • Allowing receipts to be used for shared ownership and First Homes as well as affordable and social housing for rent.
  • The introduction of a cap on the use of Right to Buy receipts for acquisitions. This measure is intended to ensure that RTB receipts are used to deliver new housing supply rather than for the purchase of existing stock or properties built by developers. Councils will still be able to use the first 20 units of delivery each year for existing acquisitions and will not be prevented from acquiring further existing properties above the cap using other resources.

The government also pushed back on other proposals in the consultation, for example, deciding not to make any changes to rules around interest payments on unused receipts. A proposal to allow councils to transfer receipts to ALMOs or other council housing companies to fund development was also rejected.

Use of receipts from RTB Sales: Government response to the Consultation – March 20212023-05-02T09:59:01+00:00

Changes to the Smoke and Carbon Monoxide Regulations for Social Housing

Following approval by Parliament, the Smoke and Carbon Monoxide Alarm (Amendment) Regulations have become law, introducing new requirements on smoke and carbon monoxide alarms in the social rented sector. The regulations come into force on 1st October 2022 and there is an expectation that landlords will be fully compliant from this date.

DLUHC has published a guidance document with advice for landlords and tenants on the regulations.

Changes to the Smoke and Carbon Monoxide Regulations for Social Housing2023-04-28T14:26:33+00:00

White Paper – ‘A fairer private rented sector’ – June 2022

DLUHC White Paper setting out government policy for the private rented sector (PRS) as part of the wider levelling up agenda. This includes plans for a Renters Reform Bill which will include the following:

  • Abolition of Section 21 ‘no-fault’ evictions and introduction of a simpler tenancy structure
  • Application of the Decent Homes Standard to the PRS for the first time
  • Introduction of a new Property Portal to help landlords understand their obligations
  • Introduction of a housing ombudsman covering all PRS landlords

The White Paper sets out a 12-point action plan which includes measures to strengthen local councils’ enforcement powers as well as proposals to make it illegal for landlords to have blanket bans on renting to families with children or those in receipt of benefits.

The White Paper signals a plan for major reform of tenancy law, moving all tenants onto a system of periodic tenancies, meaning that a tenancy will only end if a tenant ends it or a landlord has a valid reason (defined in law) for obtaining possession. Notice periods for rent increases will be increased and tenants will have stronger powers to challenge these.

It will also be easier for tenants to have pets, a right which the landlord must consider and cannot unreasonably refuse.

White Paper – ‘A fairer private rented sector’ – June 20222023-04-28T14:32:58+00:00

Retrofit Credits

A new scheme developed by the Housing Association Charitable Trust (HACT) in partnership with Arctica Partners may be of interest to councils putting together funding packages for energy efficiency and decarbonisation works.

Retrofit credits is a UK based carbon credits scheme that enables organisations to offset their carbon emissions by investing in social housing. The scheme involves using a tested methodology to measure both the carbon savings and social value created through retrofit activity. To ensure the environmental integrity of the issued credits, this has been developed under the Verified Carbon Standard, the world’s leading certification programme for emission reduction projects.

It is anticipated that the scheme has the potential to generate significant funding for retrofit schemes in social housing. The scheme is currently being piloted but will be formally launched in 2023.

Retrofit Credits2023-05-02T09:59:25+00:00

Presentation Slides from joint ARCH/ CWAG/ NFA Webinar – Meeting Net Zero Carbon Targets in Council Housing – 21st September 2022

This joint webinar included the following:

  • Update from BEIS on current policy and funding
  • Discussion of retrofit work and issues so far…
  • Case study – Six Towns Housing
  • Research Project Lewes and Eastbourne Councils
Presentation Slides from joint ARCH/ CWAG/ NFA Webinar – Meeting Net Zero Carbon Targets in Council Housing – 21st September 20222023-05-02T09:59:33+00:00

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