News Updates

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.

2. 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.

3. 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.

4. 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.

5. 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?

6. 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 15^th January 2025

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.

The Competence and Conduct Standard Consultation sets out the implementation arrangements for the new regulatory standard requiring senior housing managers and executives within social housing to either have, or be working towards, a relevant professional qualification.

Whilst recognising the value relevant professional qualifications in driving up standards in the social rented sector, the CWAG consultation response highlighted concerns around the tight implementation timescales and the potential for these to negatively impact staff recruitment and retention in the short-term. The proposed timescales do not offer sufficient time to implement the necessary organisational and training challenges alongside succession planning.

In addition, the costs associated with introducing these measures are likely to be significantly higher than estimated in the impact assessment. No additional resources have been identified to cover implementation and associated costs which will need to be funded from already stretched Housing Revenue Accounts.

Other issues highlighted include that role descriptions are a poor fit with ALMO clienting arrangements. In addition, organisations using external contractors may face difficult challenges if these roles are deemed in scope of the new regulations.

Awaab’s Law Consultation

The Social Housing Regulation Act 2023 included provisions for the introduction of Awaab’s Law which aims to protect residents from health and safety risks in their homes by requiring landlords to investigate and fix reported health hazards within specified timeframes. The consultation seeks views on how Awaab’s Law should be implemented, specifically regarding time scales for investigations and carrying out repairs.

The consultation proposes the introduction of a new legal obligation to investigate hazards within 14 calendar days with a requirement to start work on remedying identified hazards within 7 days. Where emergency works are identified, these must be actioned within 24 hours. If the property cannot be made safe within the specified timescales, the registered provider must offer to arrange for the occupant(s) to stay in suitable alternative accommodation until it is safe to return. These new rules will form part of a tenancy agreement, so that tenants can hold landlords to account by law if they fail to respond to issues and provide a decent home.

The consultation proposes that Awaab’s Law should take into account the 29 health and safety hazards set out in the Housing Health and Safety Rating System (HHSRS) but must additionally take into account the vulnerabilities of those living in the household.

Hazards in scope are those that pose a significant risk to the health or safety of the actual residents of the property, therefore, identifying whether a repair meets the threshold of Awaab’s Law will not necessarily match current routine or emergency repair definitions. Where residents have vulnerabilities, routine repairs will potentially fall within the scope of Awaab’s Law.

The consultation sets out new higher expectations in terms of record keeping around repairs. There is also a new requirement to provide residents with a written summary of findings within 48 hours of the investigation setting out if a hazard was found along with details of the follow up response and timescales as well as how to contact the landlord with any queries.

Cost Implications

The consultation makes an assessment of the cost implications for landlords of implementing Awaab’s Law. It is assumed that for the most part implementation costs will be relatively low as any works required are not a new burden but reflect existing landlord responsibilities and therefore shouldn’t cost more than under current arrangements. In practice, the introduction of tight timescales and increased demand for some specialist contractors are likely to increase costs in some areas.

It is estimated that the cost of preparing and sending written summaries to residents following property inspections will cost local authority registered providers around £5.1m annually, but the assumption is that automation will significantly reduce this figure over time. In addition, a small one-off element of transition costs is identified relating to staff training and familiarisation with the new arrangements (amounting to a total of a total of £513,000 across the local authority sector overall).

This is an 8-week consultation closing on 5^th March 2024.

Following the passage of the Social Housing Regulation Act which received Royal Assent on 21st July 2023, the Regulator of Social Housing (RSH) has launched its consultation on the proposed new consumer standards that will underpin the regulation of the sector from April 2024. The consultation will run for 12 weeks ending on Tuesday 17^th October 2023

These new standards reflect the RSH’s expanded consumer regulation objective which now includes safety, transparency, and energy efficiency. Changes will strengthen the accountability of landlords for ensuring the quality and safety of their homes as well as driving greater landlord accountability to their tenants. There is also a much greater focus on transparency, organisational culture and giving tenants greater power to hold landlords to account.

Overview of the proposed new standards

1. Safety and Quality Standard

• Replaces the existing Home Standard with a broader focus that explicitly includes safety.
• Landlords must have accurate up-to-date stock condition information and ensure their homes comply with ‘all relevant requirements’. This will require detailed knowledge based on a physical inspection of all homes at an individual property level.
• Properties must be maintained to at least the Decent Homes Standard (or its replacement) with effective systems to identify and tackle any non-decency where it occurs.
• Timescales will be introduced for acting on health and safety assessments.
• On repairs, maintenance, and planned improvement programmes there will be a greater emphasis on the outcome for tenants. Services must be ‘effective, efficient and timely.’
• On adaptations there is an expectation that registered providers assist tenants seeking adaptations to access appropriate services, with the objective of improving outcomes for tenants.

2.Transparency, Influence and Accountability Standard

•  This aims to remove barriers for tenants in accessing their landlord and its services. It includes explicit requirements to treat tenants with fairness and respect so they can access services, make complaints, influence decision making and hold the landlord to account.
• Landlords must consider tenants’ diverse needs, using relevant information and data to inform and adapt their services, ensuring fair access to services and equitable outcomes for all tenants.
• There should be a number of routes and meaningful opportunities for tenants to influence and scrutinise strategies, policies and services.
• Landlords need to make effective use of the information they get from engagement, taking tenants views into account in their decision making.
• Landlords must identify a dedicated person responsible for complying with the consumer standards.
• Where a significant change in management arrangements is proposed, the landlord must consult meaningfully with tenants on the actual or potential advantages and disadvantages, including costs, in both the immediate and longer-term.

3. Neighbourhood and Community Standard

• Sets out expectations in relation to ‘shared spaces’.
• Landlords are expected to work co-operatively with other organisations to resolve issues affecting the upkeep and safety of neighbourhoods in which tenants live.
• Landlords are required to have set out their approach to deterring and tackling hate crime incidents.
• Landlords are required to have clear policies to support tenants affected by anti-social behaviour and domestic abuse, working with other agencies as appropriate.

4. Tenancy Standard

• Sets out requirements on lettings, tenancy sustainment and evictions. Arrangements must be fair and transparent throughout.
• Registered providers are expected to assist local authorities to meet homelessness duties, e.g. nomination agreement obligations.
• Adapted homes should be allocated to meet needs compatible with the purpose of the housing.

Download consultation document

The Bill will provide the legal basis for implementing measures in the 2020 Social Housing White Paper. The intention is to empower residents, provide greater redress, better regulation and improve the quality of social housing. By strengthening the regulatory regime for social housing, the Bill aims to ensure landlords are held to account for their performance and focus more effectively on addressing the needs and concerns of tenants.

The Bill started out in the House of Lords in June last year, completing first and second readings in the House of Commons by November 2022. The Bill has now reached its third reading in the House of Commons (having already completed its third reading in the Lords). At this stage no further amendments can be made to the Bill. The final stage of the legislative process will see the Bill returned to the Lords for a final debate and consideration of amendments.  Royal Assent is expected before the end of the current Parliamentary session.

Important amendments added to the Bill:

Awaab’s Law

On 9 February 2023, the Secretary Of State introduced an amendment known as ‘Awaab’s Law’, which will require landlords to investigate and fix damp and mould in their properties within specified timeframes. A consultation will be held later this year to set the timeframes within which landlords will have to investigate hazards and make repairs.

Professionalisation

The Bill will introduce new rules intended to protect residents and raise standards in the sector.  Managers in the social housing sector will in future be required to have a minimum set of professional qualifications.

Amendment 47 requires the regulator to set out professional standards ensuring that those with management responsibilities within the social housing sector have, or are working towards getting, professional qualifications.

The change is intended to bring social housing into closer alignment with other sectors such as social work, teaching  and health.

Complaints and the Housing Ombudsman

The Bill identifies a new responsibility on the Regulator of Social Housing (RSH) to set standards for providers on the handling of complaints. In addition, the Housing Ombudsman will be granted powers to issue and publish guidance on good practice in the sector.

The government social housing rents consultation closed on 12th October 2022. The consultation covered options for capping social housing rent increases in 2023/24 below the agreed CPI+ 1% formula.

The CWAG submission to the consultation argues that the decision should be based on local discretion and local circumstances rather than an imposed cap. In practice most local authorities are unlikely to raise their rents in 2023 by the maximum permitted under the formula.

An imposed 5% cap will leave HRAs  constrained and under-resourced in business planning terms for years to come. Given that any reduction below inflation will represent a saving to the Exchequer as housing benefit and Universal Credit are reduced, these savings should be used to provide additional grant funding for essential building safety, maintenance and carbon reduction programmes that will inevitably be stalled by rent capping.

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 31^st August 2022 to 12^th October 2022

On 16th June 2022 DLUHC published a 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.
There will be major reform of tenancy law as all tenants are to be moved 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 for obtaining possession, defined in law. There will be a doubling of notice periods for rent increases 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.