CWAG News Update – September 2022

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.

Download the consultation document here

View the 5 consultation questions here

This webinar, in collaboration with ARCH and the NFA, will give councils the opportunity to hear from, and put questions to, the Department for Levelling Up, Housing and Communities (DLUHC) and the Regulator for Social Housing (RSH) on the Social Housing Regulation Bill, and the implications of the new regulation regime for stock holding local authorities (including councils with Arms-Length Management Organisations (ALMOs) and Tenant Management Organisations (TMOs).

The webinar is being held over Zoom and is free to LGA members. To find out more information and to book follow the link: Local Government Association

The programme we will include feedback from BEIS, on lessons so far from the pilot and wave 1 programmes, and from Savills on the work they are doing with the social housing sector. There will also be case studies from councils and ALMOs on specific initiatives being developed to achieve net-zero carbon objectives.

Contact the Policy Officer for the booking link.

The programme which will focus on the implementation of Tenant Satisfaction Measures. Our speakers are:

Kate Dodsworth – Director of Consumer Regulation at the Regulator of Social Housing will be discussing the outcome of the TSM consultation, as well as practical issues around the implementation phase and next steps.

Jonathan Cox – Deputy Director of Data and Business Intelligence at Housemark will follow up with a discussion around the more complex implementation issues facing landlords and how to prepare for the introduction of TSMs next year.

To book contact the Policy Officer.

The LGA will be running three update meetings, for councillors and officers, including councils with ALMOs, on the following dates:

·         Monday 7^th November 2022 (11.30a.m – 1.30p.m)

·         Monday 19^th December 2022 (1p.m – 3p.m)

·         Thursday 9^th March 2023 (2p.m – 4p.m)

 These will include sessions from the Home Office on the impact of the Fire Safety Act and preparations for the new regulations in January 2023 and from the HSE on the Building Safety Regulator.

 Registration details will be circulated nearer to event dates.

Work on the development of the new CWAG website is progressing well and we are planning to go live with the new site around the end of September.

When we move to the new CWAG website, the forum facility on the current website will no longer be available. As an alternative, we are trialling the option of circulating member questions and feedback requests by email via the Policy Officer.

Please contact the Policy Officer for further details.

Recent Publications

Following the publication of the White Paper A fairer private rented sector in June this year, DLUHC has published a consultation seeking views on enforcement of A Decent Homes Standard in the private rented sector. The proposals have major implications for councils who would be responsible for monitoring and enforcement of the Standard. The consultation runs for 6 weeks from 2^nd  September to 14^th October.

There is a DLUHC Summary Page which sets out details of all open and closed Building Safety Consultations the four building safety consultations.

Explanatory notes to the Building Safety Act: https://www.legislation.gov.uk/ukpga/2022/30/pdfs/ukpgaen_20220030_en.pdf

 New Government guidance on the leaseholder protections: https://www.gov.uk/guidance/building-safety-leaseholder-protections-guidance-for-leaseholders