CWAG

Chancellor sets rent cap at 7% in Autumn Statement

As part of the Autumn Statement on 17^th November 2022 the government announced the outcome of the Social Housing Rents Consultation with the rent cap for 2023 set at 7% but with an exception for supported housing. Registered Providers of social housing have the flexibility to apply a lower increase, or to freeze or reduce rents, if they wish to do so.

The 7% figure is higher than suggested in the earlier consultation paper where a cap of 5% was the suggested option.  The higher figure has been presented as an attempt by government to strike a balance between protecting tenants from high rent increases and ensuring that Registered Providers of social housing remain financially viable.

The government intends to consult separately next year on social housing rent policy from 2025 onwards. To inform this, DLUHC will launch a call for evidence on whether social landlords should be permitted, gradually over time, to bring rents back up to the level they would have been had 7% cap not been applied. Other factors including affordability for tenants and welfare expenditure will also be taken into account.

Housing Ombudsman call for evidence on record keeping

The Housing Ombudsman has announced that its next systemic investigation and Spotlight Report will look at record keeping and data management around complaints handling. This reflects a concern that poor record keeping is a key factor in 67% of maladministration determinations.

A call for evidence has been issues that seeks to understand more about current barriers to effective information management on complaints.

The aim is to share best practice around record keeping and data handling and help landlords develop policies and procedures that are consistent and effective and improve the experience of all residents.

Rishi Sunak’s reappointment of Michael Gove’s as Secretary of State for Levelling Up, Housing and Communities signals a return to continuity in housing policy with a focus on the 2018 election manifesto commitments including levelling up and housebuilding. However, the environment is now much more challenging than at the time of his earlier sacking by Boris Johnson back in July, raising questions around what can now realistically be achieved given high inflation and squeezed departmental budgets.

In a recent BBC interview Gove restated the government’s commitment to building 300,000 new homes a year although admitted this would be ‘difficult’ stressing the importance of having the consent of local communities, protecting the environment, and ensuring developments are ‘beautiful’ and matched with appropriate infrastructure. He also confirmed his department would be continuing with previously announced legislation to tackle rogue landlords as set out in ‘A Fairer Private Rented Sector’ White Paper.

The Fiscal Statement due on 17^th November 2022 will set out the wider financial position for DLUHC with implications for a key policy areas. It is likely that the decision on proposals to cap the level of social rent increases in 2023 will be delayed until the wider fiscal position becomes clearer.

Lee Rowley (MP for NE Derbyshire) has also retained his position as Housing Minister.

The following LGA webinars may be of interest to CWAG members and can be attended free of charge:

Webinar -Building Safety Update – Monday 7th November 2022 (11.30 am – 1.30 pm)

This free LGA webinar will provide an update on councils’ responsibilities in respect of the new Building Safety regime, the Fire Safety Act and new fire safety regulations arriving in January.

There will be speakers from the HSE, the Home Office and the National Fire Chiefs Council (NFCC). The event aims to bring attendees fully up to date on the new arrangements with a focus ensuring that residents are safe and feel safe in their homes. The LGA will also give an update on its PEEPs work.

The webinar is being held over Zoom and is open to council officers and ALMOs. To book use link

Webinar – The Social Housing Regulation Bill – Monday 21st November 2022 (10.30 am – 12.30 pm)

This LGA event is a collaboration with ARCH and the NFA. The programme will discuss the forthcoming Social Housing Regulation Bill and includes speakers from the Department for Levelling Up, Housing and Communities (DLUHC) and the Regulator of Social Housing (RSH).

The webinar is being held over Zoom and is free to LGA members. To find out more information and to book use link

Housing Ombudsman Spotlight Report – Noise Complaints: time to be heard

 This latest Spotlight Report looked in depth at noise related complaints drawing on casework and a recent ‘call for evidence’. The report highlights a fundamental unfairness in the way many social landlords approach noise complaints, with most being dealt with as anti-social behaviour (ASB) even where they relate to general household noise.

Landlords are often caught up in time consuming and futile interventions which fail to tackle the underlying issues. Whilst recognising that this is a complex area where solutions are often difficult, the sector is urged to adopt several alternative approaches to address current poor outcomes and the significant costs to residents in terms of their mental health and well-being.

The report includes a 32-point self-assessment tool setting out a range of possible measures to reduce noise related complaints including changes to the building fabric, management arrangements and the way noise complaints are categorised.

Download Report and Self-Assessment Tool

A Housing Ombudsman is holding a webinar to discuss the report and answer questions on Wednesday 16 November 2022 at 2pm. This is aimed at landlords, governing body members and engaged residents. For further details on how to book – link

The Levelling Up, Housing and Communities Select Committee Exempt Accommodation Report published 19th October 2022

 The Select Committee Report into exempt accommodation, a type of supported housing outside of Housing Benefit Regulations, sets out how the system is failing many residents and local communities at the taxpayers’ expense. The Report calls on the Government to bring forward urgent reforms including:

• compulsory national minimum standards for exempt accommodation, including on referrals, care & support, and quality of housing
• to give local councils the powers and resources to enforce these standards
• requiring all exempt accommodation providers to be registered
• creation of a National Oversight Committee to join-up existing regulators addressing the current ‘patchwork regulation’
• ensuring that providers of exempt accommodation for survivors of domestic abuse have recognised expertise to provide specialist support and a safe environment
• reviewing arrangements for exempt housing benefit claims, clamping down on the exploitation of the lease-based exempt accommodation model for profit

Download Report

 LGA, ARCH, NFA Rent and Income Analysis – Savills Affordable Housing Consultancy – October 2022

 This research set out to estimate the cumulative loss of resources within Housing Revenue Accounts of the proposal to cap rent increases to 5% per year in 2023/24 and 2024/25. The research found that a 5 per cent rent cap would cost £1.16 billion in the next two years, rising to more than £3 billion within five years. In addition, as the rent cap changes the baseline for future rent increases, the longer-term financial hit is likely to be as high as £45 million over the next four decades. Further information about this report is available on the LGA website – link