CWAG Newsletter – October 2024

• Section 21 evictions and periodic tenancies

Section 21 evictions will be abolished alongside the introduction of changes to tenancy arrangements. Assured tenancies and assured shorthold tenancies will be replaced by periodic tenancies providing more security and flexibility for tenants who will be able to remain in their home until they decide to end the tenancy by giving 2 months’ notice. There will be limited exceptions for example, houses in multiple occupation (HMOs) and designated student accommodation.

• Grounds for possession

Landlords will be able to recover their property where they wish to sell or move-in close family, however tenants will benefit from a 12 month protected period at the beginning of a tenancy, during which a landlord cannot evict them to move-in or sell the property. There are also new safeguards for tenants who temporarily fall into arrears and the mandatory threshold for eviction is increased from 2 to 3 months and the notice period increased from 2 to 4 weeks.   There are also various specified grounds for use in limited circumstances where accommodation is intended for a particular purpose and where the tenant no longer meets the conditions under which the tenancy was granted (e.g. supported housing).

• Rent Increases

New arrangements will be introduced designed to empower tenants to challenge unreasonable rent increases (often used as a backdoor means of eviction). If a tenant believes the proposed rent exceeds the market rate, they can challenge this at the First-tier Tribunal which will determine what the rent should be, either confirming the proposed level or setting a lower figure.

• Private Rented Sector Ombudsman

Private landlords in England with assured or regulated tenancies will be legally required to join a new PRS Ombudsman. The service will be available free of charge to tenants and funded through a charge on landlords. Local councils will have the power to levy fines where landlords fail to join the Ombudsman.

• Renting with Pets

Tenants will gain the right to request a pet in the property. Landlords must consider these requests and cannot unreasonably refuse. However, landlords will be able to require pet insurance to cover any damage to their property.

• New Private Rented Sector Database

Landlords will be required by law to register with a new Private Rented Sector Database with penalties for those who fail to comply. The database will help landlords understand their legal obligations and provide information to tenants about landlord performance. It will also help local authorities to target enforcement activity. Landlords will need to be registered on the database to have access to certain possession grounds.

• Discriminatory Practices

New measures will address discrimination against prospective tenants in receipt of benefits or with children with financial penalties for those who fail to comply.

• Decent Homes Standard

The DH standard will be enforced within the PRS giving renters better value homes and removing the blight of poor property condition.

• Awaab’s Law

The Bill confirms that Awaab’s Law will be extended to the PRS, setting clear legal expectations about the timeframes within which landlords must take action to make homes safe where they contain serious hazards.

• Rental Bidding

Landlords and agents will be required to publish an asking rent for their property, and it will be illegal to accept offers made above this rate.

• Local authority enforcement

There will be a new requirement for local authorities to report on enforcement activity along with expanded civil penalties for non-compliance (including fines between £7,000 and £40,000)

• Rent repayment Orders

New measures will increase the deterrent effect of rent repayment orders making them easier for tenants and local authorities to access.

Review of Housing Policy Announcements

There have been a number of announcements relating to social housing policy in the first three months of the Labour Government:

Social Housing Quality and Professionalisation

The Secretary of State confirmed at the Labour Party Conference that Awaab’s Law will be introduced for the social rented sector this autumn, with plans to introduce it to the private rented sector at a later date, once the legislation is in place (see Renter’s Rights Bill above).

The government has also confirmed its intention to press ahead with the Competence and Conduct standard for the social rented sector to ensure tenants receive a professional service and are treated with respect and dignity. The timetable for implementation has yet to be confirmed.

The Secretary of State has also confirmed the government’s intention to consult on a new Decent Homes Standard for social and privately rented homes, however no specific timescales have been indicated to date.

Measures to ensure decent homes for all – GOV.UK (www.gov.uk)

Building New Homes

Since the election there have been a number of announcements to promote newbuild development and wider economic growth, in line with the Labour Manifesto commitment to build 1.5 million new homes over the next 5 years.  These include:

• Consultation on a revised Planning Policy Framework to overhaul the planning system, opening up new areas for development as well as speeding up planning approvals and delivering wider economic growth. (for further details see August Newsletter)
• New Towns Taskforce to advise and support government aspirations to develop a programme of new towns.
• New Homes Accelerator programme to bring together key agencies, leveraging resources to unblock large development sites around the country where progress has stalled.
• Brownfield Land Release Fund will provide £68 million to 54 councils to fund demolition of empty buildings, site clearance and decontamination of industrial land.

The Autumn Budget on 30th October should provide more detail around funding for new social housing development.

Local Authority Housing Fund

The existing proposals for a third round of the Local Authority Housing Fund are going ahead as planned over two financial years (2024-25 and 2025-26). The £450 million programme announced by the previous government will be made available to councils to acquire better quality temporary accommodation for families at risk of homelessness as well as providing suitable housing for those on the Afghan citizens resettlement scheme.

Right to Buy

The government moved quickly to announce new flexibilities for RTB receipts which will be in place for an initial period of 2 years, subject to review at the end of 2025/26:

• Councils can use up to 100% retained receipts to fund replacement homes, a significant increase from the previous 50% cap.
• Right to Buy receipts may be combined with section 106 contributions.
• The cap on the percentage of replacements delivered as acquisitions has been lifted.

A wider review of the RTB scheme is underway within MHCLG with a consultation due later in the Autumn. This is likely to focus on the level of RTB discounts, particularly the increased levels in place since 2012. The Secretary of State has indicated that the intention is to restrict rather than abolish the scheme.

Retained Right to Buy receipts and their use for replacement supply: guidance – GOV.UK (www.gov.uk)

Local Connection or residency rules

The majority of stockholding councils have allocations schemes which include a local connection or residency test as part of the housing application process. However, in line with Labour’s election manifesto commitment that UK Armed Forces Veterans will be exempt from rules which require a local connection to access social housing, the government has recently written to councils setting out the policy position with formal regulations to follow in due course. The government has also clarified that a similar exemption will apply to other priority groups where demonstrating a local connection can be difficult, including care leavers and victims of domestic abuse.

UK Armed Forces Veterans given social housing exemption – GOV.UK (www.gov.uk)