This Update includes the following
Progress of Renters Reform Bill
After almost a year, the Renters Reform Bill finally completed its passage through the House of Commons on 24th April 2024. Delays were due to concerns around the capacity of the Courts to process possession cases.
A significant number of amendments have been made including:
- Tenants will not be able to give notice that they wish to end a tenancy for at least 6 months after taking it on, rather than after two months as previously proposed.
- Abolition of section 21 “no fault” evictions will not take place until court reforms have been implemented (the Opposition continues to press for a clearer implementation date as the legislation currently leaves the timing a matter for Ministerial judgement).
- Provisions have been added to allow landlords to recover possession of properties let to full-time students at the end of the academic year to ensure these are available for reletting to students in the next academic year.
- The Minister also committed to undertake a review of local authority private rented sector licensing schemes with “the aim of reducing burdens on landlords”.
- The Government will review the implementation of the tenancy reforms within 18 months of measures being applied to existing tenancies.
The Bill has now moved to the House of Lords receiving it’s first and second reading in the on 1st May 2024 and 15th May 2024 respectively. Secretary of State, Michael Gove has stated the government’s intention to enact the legislation by the ‘summer’ with Implementation by the Autumn.
Consultation Outcome – Changes to RSH Fee Regime
The Regulator of Social Housing (RSH) has announced the outcome of its consultation on proposed changes to the charging regime for social landlords. The Decision Statement indicates that there was broad support for the new approach which will see fees paid by social landlords to cover the full cost of regulation in the sector.
For councils, this will mean a requirement to pay fees for the first time to cover the cost of the RSH’s more active regulation against the Consumer Standards, including the new the inspections regime. Councils owning over 1000 homes will be charged at a pro rata rate of £6.63 per property.
The new arrangements come into effect on 1 July 2024. Invoices will be sent out in June. For more details see the RSH Decision Statement
Recent Publications
Reforming the Right to Buy (The Housing Forum) – April 2024
Whilst ending the Right to Buy altogether would be the best way of safeguarding the social housing stock, this report recognises that all the main political parties currently want to retain the RTB in some form. This briefing paper sets out a series of recommendations to tackle the most problematic aspects of the current scheme including:
- Removing the RTB from Newbuild homes
- Using covenants to prevent the letting out of property, or alternatively requiring properties to be offered to the council to be let if not used for owner occupation.
- Allowing councils to receive the full value of RTB sales.
- Modernising exemption criteria e.g. to include larger homes and bungalows.
- Discounts should be reduced to no more than 20%.
The Finances and Sustainability of the Social Housing Sector (LUHC Committee) – Published 29th April 2024
This report from the Levelling Up Housing and Communities Select Committee highlights the severe financial pressures currently facing the social housing sector.
Current issues have arisen because of repeated government-imposed rent caps coinciding with unprecedented costs for decarbonisation, fire safety and the regeneration of older homes. Whilst overall the sector is deemed to be generally resilient, the impact on social housing newbuild has been stark as providers retrench and focus on their existing stock.
Given the chronic shortage of social housing the Committee recommends that the Government should set and publish a target for the number of social homes it intends to build each year, prioritising grant funding for social housing rather than the current focus on affordable rent and shared ownership. The Government is also urged to use the planning system to support social housing build schemes using land value capture as a tool to ensure land price does not inhibit development of new social homes. Other proposals include greater flexibility in the net additionality guidelines used by Homes England as these are a barrier to regeneration schemes in many areas. The Government is also urged to fund fire safety works in the social housing sector on the same basis at currently available to the private sector.
Rethinking Repairs and Maintenance : 12 Guiding Principles (Chartered Institute of Housing / National Housing Federation) – Published 9th May 2024
This report relates to one of the action plan recommendations in the 2023 CIH / NHF ‘Better Social Housing Review’, namely ‘Housing associations should partner with residents, contractors and frontline staff to develop and apply new standards defining what an excellent maintenance and repairs process looks like.’
This guidance identifies twelve guiding principles for how social landlords should work with residents to improve the repairs and maintenance services. The 12 principles are grouped into themes which are intended to be addressed consecutively, starting with culture and resident engagement, tackling discrimination, and involving frontline colleagues to understand and improve performance.
Future Meetings
CWAG Finance and Business Planning Meeting Thursday 6th June 2024 (10.00 – 13.00)
New Regulatory Regimes – LGA with the Housing Ombudsman and Regulator of Social Housing – Thursday 13th June 2024 (3 pm. – 4 pm)
The LGA is hosting a webinar that will bring together the Housing Ombudsman and Regulator of Social Housing to discuss the recent changes and new requirements impacting on councils.
A representative from the Housing Ombudsman will discuss the new Complaints Handling Code, including how local authorities should identify the member responsible under a council’s statutory duty. The Regulator of Social Housing will set out the powers available to them under the new regulatory regime, including inspections and grading of local authority housing services. There will be opportunities to raise issues and question both before and during the event.
For further details see the LGA website