10th October 2018
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HOUSING LAW NEWS & POLICY ISSUES
 

Borrowing restrictions on councils removed
On 3 October 2018 the government announced that the Housing Revenue Account borrowing cap for council house building will be lifted, ‘enabling councils to deliver the homes their communities need’. The MHCLG said that removing the borrowing cap entirely is likely to diversify the house building market, with councils being better able to take on projects and sites that private developers would consider too small. According to the announcement, the cap will be lifted as soon as possible, with further details confirmed in the Budget. For the announcement, click here For the response of the Local Government Association, click here For the response of CIH, click here

Backdating of legal aid certificates
On 5 October 2018 Duncan Lewis Solicitors reported that the government has agreed to amend regulations in response to a claim by the firm for judicial review of the Legal Aid Agency's refusal to backdate legal aid certificates, even where solicitors have made a legal aid application as promptly as possible and it is necessary to begin work in order to secure access to justice for a client before the Legal Aid Agency has granted a certificate.
In response to that claim, the government has agreed, in open correspondence, to amend the Civil Legal Aid (Procedure) Regulations 2012 to expressly allow for legal aid certificates to be backdated to the date of application for legal aid.

Duncan Lewis says that the government's concession will help countless people to challenge decisions made by public bodies, such as the failure of local authorities to provide accommodation for people at risk of being made homeless. It will avoid strong claims being stifled because of delays in the grant of legal aid. It will also ensure that solicitors can begin work as and when needed to secure the legal rights of their clients.

For more information, click here

Right to buy costs councils £300 million a year: new analysis
On 2 October 2018 the Chartered Institute of Housing published its UK Housing Review 2018 Autumn briefing paper, including analysis which states that total right to buy discounts have climbed to £1 billion a year, leading to a net loss of about £300 million. CIH chief executive Terrie Alafat CBE said:

“Not only are we failing to build enough new homes for social rent, we are losing them at a time when we need them more than ever. Our research shows that we lost more than 150,000 social rented homes between 2012 and 2017 due to right to buy and other factors, and that figure will reach 230,000 by 2020 unless we take action now.”

For the briefing paper, click here For the related news release, click here

People traffickers jailed after exploiting homeless people
On 4 October 2018 the Crown Prosecution Service reported that a gang of human traffickers had been jailed for more than 24 years for trafficking and exploiting vulnerable and homeless people. Between 2007 and 2013, the traffickers coaxed a number of Slovakian men and women to travel to the north of England with the promise of better work and better lives. Several of the victims were homeless when they were lured to Leeds for work.

The traffickers exploited the victims when they arrived, making them renovate and clean properties in return for pitiful wages – in one case, around £4 a day. One victim was paid just £3,000 for work over a three to four-year period.

For further details, click here

Fire door tests
On 4 October 2018 the MHCLG published correspondence with various fire door makers confirming the test results of their products. For that to Vista Panels, click here For that to Britdoors By System, click here For that to Sovereign Group Ltd, click here

Domestic Abuse Bill
The All-Party Parliamentary Group on Domestic Violence and Abuse has published a report – Creating a Truly Transformative Domestic Abuse Bill – which sets out what it considers to be the key requirements of the bill. They are:

  • A sustainable, long-term and secure funding model for specialist domestic abuse services, most urgently refuges, including those specific services for BME women, LGBT women and disabled women, and specialist support for children who have experienced domestic abuse
  • A violence against women and girls (VAWG) commissioner, who has the power to effectively enforce a clear framework of national accountability for the resourcing, quality and provision of services
  • Full and equal access to all the services and support needed by migrant survivors, including survivors on non-spousal visas and all those who have no recourse to public funds due to their immigration status
  • Extension of ‘priority need’ status for housing to all survivors of domestic abuse, with clear guidance that local authorities should accept all survivors of domestic abuse who present themselves as homeless, regardless of their local connection, under the local connection criteria of the homelessness legislation.

For the report, click here

Homes adaptations
On 8 October 2018 the Centre for Ageing Better and Care & Repair England published a joint report – Adapting for Ageing – which highlights how councils and service providers are working to help local people live in their homes for longer through home adaptations. The research reveals innovative approaches and calls for other councils and service providers to learn from the good practice it has uncovered. These include proactively raising awareness of available support and how to access it, delivering home adaptations quickly and without means-testing, linking adaptation services with vital home improvements and working with handyperson services.

For the report, click here For the response of the Local Government Association, click here

Tenant Fees Bill
On 3 October 2018 the House of Commons Library published a briefing providing information on the Tenant Fees Bill ahead of its second reading in the House of Lords on 10 October 2018 (as to which see Housing Laws in the Pipeline). For the briefing, click here

Tenants’ Associations (Provisions Relating to Recognition and Provision of Information) (England) Regulations 2018
These Regulations, which come into force on 1 November 2018, make provisions in relation to recognised tenants’ associations and relevant tenants’ associations. Part 2 makes provision in relation to certificates given by the First-tier Tribunal under section 29(1)(b)(i) of the Landlord and Tenant Act 1985 recognising a tenants’ association. Part 3 makes provision in relation to relevant tenants’ associations and imposes certain duties on landlords in relation to the provision of known information. For the Regulations, click here

‘Incentivise landlords to sell to long-term tenants’: policy paper
On 8 October 2018 Onward, the conservative think-tank, published a policy paper – Make a house a home – arguing for a new route to ownership for private renters and greater incentives for landlords to offer long-term tenancies. Under the proposals, Onward recommends:

  • Existing buy-to-let properties would be eligible for 100 per cent capital gains tax relief if the property was sold to a sitting tenant who had lived there for three years or more.
  • The gain from this tax relief would be split evenly between the landlord and the tenant, giving the landlord a windfall when they sold and the tenant thousands of pounds towards their mortgage deposit.
  • The Treasury should pay for this policy by tightening other tax reliefs for buy-to-let investors, including reducing the Private Residence Relief period from 18 months to 6 months and abolishing Lettings Relief of up to £40,000.

For a summary of the proposals, click here For the policy paper, click here

Accessible housing in local plans
On 5 October 2018 Habinteg published research showing how many local planning authorities across England mention accessible housing and how many have committed to providing a proportion of accessible housing within their local plans. The findings reveal that 171 of 263 local planning authorities make reference to accessible housing Lifetime Homes standard or Category 2. 75 of those local planning authorities mentioned either the Wheelchair Housing Design standard or Category 3. 84 of those local planning authorities make a firm commitment to building all or a proportion of accessible housing. For the paper, click here and click on the link at the foot of the page.

Homeless deaths
On 8 October 2018 the Bureau of Investigative Journalism reported that 449 people had died homeless in the last year. The Bureau says that after learning that no official body counted the number of homeless people who have died, it set out to record all such deaths over the course of one year. The Bureau has compiled a ‘first-of-its-kind database which lists the names of the dead and, more importantly, tells their stories’. For more details, click here and follow the links. For the response of Crisis, click here

Welsh housing quality
On 4 October 2018 the Welsh Government published an annual report which includes information on the progress made by social landlords (local authorities and registered social landlords) in achieving the Welsh Housing Quality Standard (WHQS) for all their stock. The report shows that at 31 March 2018:

  • 91 per cent of social housing dwellings (204,468 dwellings) were compliant with the WHQS (including ‘acceptable fails’) compared to 86 per cent a year earlier.
  • Excluding acceptable fails, 63 per cent of all social housing dwellings (142,621 dwellings) were fully compliant with the WHQS.
  • 99 per cent of RSL dwellings achieved WHQS compliance (including acceptable fails) compared to 77 per cent of local authority dwellings.
  • Across all social housing, the most common reason given for an acceptable fail was ‘Timing of Remedy’; occurring in over half of all compliant dwellings that contained at least one acceptable fail (54 per cent).
  • The components that showed the highest percentage of WHQS compliance (including acceptable fails) were ‘Mains powered smoke detectors’, ‘Kitchens’ and ‘Central heating Systems’, all at 99 per cent respectively.

For the report, click here

Section 21 flowchart
Nearly Legal has published an updated section 21 flowchart, including ‘grey areas’. The grey areas are those ‘where current case law, or the operation of statute, mean that things may change, or there is a question still to be decided between different views’. For the flowchart, click here

EU citizens as tenants post-Brexit
On 8 October 2018 the Residential Landlords Association reported that it had joined forces with campaign group ‘the3million’, to write to Home Secretary Sajid Javid, asking that the Home Office provide EU citizens with hard copy documentation proving their status in the UK post-Brexit. The letter states:

“Without issuing a clear and understandable hard copy document to those whose rights would be protected, there is a very real danger of a repeat of the difficulties caused for many in the Windrush Generation who were in the country legally but unable to easily prove it.

“Such a document must be issued now so that, as tenancies come up for renewal between now and next March, landlords can be confident that they can continue to let to EU citizens, even in the event of a no deal Brexit.”

For more information and full text of the letter., click here

HOUSING LAWS IN THE PIPELINE
 

Parliament returned on 9 October 2018.

Local Housing Authority Debt Bill
This Bill, which had its first reading in the House of Lords on 4 July 2017, seeks to replace the current regime of limits on local housing authorities’ debt with limits determined by the existing prudential regime for local authority borrowing for non-housing-related purposes. The second reading is yet to be scheduled. For the Bill as introduced, click here To follow progress of the Bill, click here

Homes (Fitness for Human Habitation) Bill
This is a Private Member’s Bill introduced in the House of Commons by Karen Buck. The Bill aims to amend the Landlord and Tenant Act 1985 to require that residential rented accommodation is provided and maintained in a state of fitness for human habitation; to amend the Building Act 1984 to make provision about the liability for works on residential accommodation that do not comply with Building Regulations; and for connected purposes. On 14 January 2018 the government confirmed that it would support the Bill. It completed its committee stage on 20 June 2018 (when its original title was simplified to that above) and will have its report stage on 26 October 2018. For the Bill as amended in committee, click here For a House of Commons Library research briefing, click here . To follow progress of the Bill, click here

Homeless People (Current Accounts) Bill
This is a Private Member’s Bill introduced in the House of Commons by Peter Bone. The Bill is intended to require banks to provide current accounts for homeless people seeking work; and for connected purposes. The Bill is being prepared for publication. The Bill received its first reading on 5 September 2017. The second reading is due to take place on 1 February 2019. To follow progress of the Bill, click here

Sublet Property (Offences) Bill
This is a Private Member’s Bill introduced in the House of Commons by Christopher Chope. It is intended to make the breach of certain rules relating to sub-letting rented accommodation a criminal offence; to make provision for criminal sanctions in respect of unauthorised sub-letting; and for connected purposes. The Bill is being prepared for publication. The Bill received its first reading on 5 September 2017. The second reading has been postponed and is now due to take place on 26 October 2018. To follow progress of the Bill, click here

Mobile Homes and Park Homes Bill
This is a Private Member’s Bill introduced in the House of Commons, also by Christopher Chope. It is intended to require the use of published criteria to determine whether mobile homes and park homes are liable for council tax or non-domestic rates; to make provision in relation to the residential status of such homes; to amend the Mobile Home Acts; and for connected purposes. The Bill is being prepared for publication. The Bill received its first reading on 5 September 2017. The second reading has been postponed until 26 October 2018. To follow progress of the Bill, click here

Affordable Home Ownership Bill
This Bill was introduced to Parliament on Tuesday 24 October 2017, also by Christopher Chope, under the Ten Minute Rule and is a Private Member’s Bill. It was said by him to make provision for affordable home ownership; to require the inclusion of rent to buy homes in the definition of affordable housing; to make provision for a minimum proportion of new affordable housing to be available on affordable rent to buy terms; to provide relief from stamp duty when an affordable rent to buy home is purchased; and for connected purposes. The Bill itself has not yet been published. Its second reading has been postponed to 26 October 2018. To follow progress of the Bill, click here

Creditworthiness Assessment Bill
This Private Member’s Bill was introduced by Lord Buck and had its second reading in the House of Lords on 24 November 2017. The Bill would require certain matters (including rental payment history) to be taken into account when assessing a borrower’s creditworthiness. The Bill has completed all stages in the Lords. It received its first reading in the Commons on 12 September 2018 and is due to have its second reading on 26 October 2018. For the Bill as brought from the Lords, click here For progress of the Bill, click here

Private Landlords (Registration) Bill
This Bill was introduced to Parliament on 17 January 2018 under the Ten Minute Rule. The Bill seeks to require all private landlords in England to be registered. The second reading of the Bill has been postponed to 26 October 2018. For the Bill, as introduced, click here To read the debate on introduction of the Bill, click here To follow progress of the Bill, click here

Leasehold Reform Bill
This Bill, introduced to Parliament on 7 November 2017 under the Ten Minute Rule and sponsored by Justin Madders, makes provision about the regulation of the purchase of freehold by leaseholders; to introduce a system for establishing the maximum charge for such freehold; to make provision about the award of legal costs in leasehold property tribunal cases; and to establish a compensation scheme for cases where misleading particulars have led to certain leasehold agreements. It is scheduled to receive a second reading on 26 October 2018. The Bill is being prepared for publication. To follow progress of the Bill, click here

Homelessness (End of Life Care) Bill
This Bill, sponsored by Sir Edward Davey, was introduced to Parliament on 7 February 2018 under the Ten Minute Rule. It makes provision about end of life care and support for homeless people with terminal illnesses, including through the provision of housing for such people. The Bill’s second reading has been further postponed to 26 October 2018. For the Bill as introduced, click here To follow progress of the Bill, click here

Rating (Property in Common Occupation) and Council Tax (Empty Dwellings) Bill
This government Bill was given its first reading in the House of Commons on 28 March 2018. It makes provision, where two or more hereditaments occupied or owned by the same person meet certain conditions as to contiguity, for those hereditaments to be treated for the purposes of non-domestic rating as one hereditament; and to increase the percentage by which a billing authority in England may increase the council tax payable in respect of a long-term empty dwelling. The Bill has completed its passage through the House of Commons and the House of Lords where amendments were tabled at third reading. The Commons will next consider those amendments. For those amendment, click here For the government’s announcement of the Bill, click here For the government’s announcement of its latest proposed amendments, click here To follow progress of the Bill, click here

Tenant Fees Bill
This government Bill makes provision for prohibiting landlords and letting agents from requiring certain payments to be made or certain other steps to be taken; makes provision about the payment of holding deposits; to make provision about enforcement and about the lead enforcement authority; and amends the provisions of the Consumer Rights Act 2015 about information to be provided by letting agents and the provisions of the Housing and Planning Act 2016 about client money protection schemes. The Bill has completed all its stages in the Commons. It received its first reading in the Lords on 6 September 2018 and is due to receive its second reading on 10 October 2018. For the Bill as introduced in the House of Lords, click here For the impact assessment, click here For a research briefing prepared for the report stage in the Commons, click here To follow progress of the Bill, click here

Housing and Planning (Local Decision-Making) Bill
This Private Member’s Bill seeks to remove powers of the Secretary of State in relation to the location of and planning permission for new housing developments; to give local authorities powers to establish requirements on such developments in their area, including requirements on the proportion of affordable and social housing. It received its first reading on 13 March 2018 and is due to receive its second reading on 26 October 2018. The Bill is being prepared for publication. To follow progress of the Bill, click here

Renting Homes (Fees etc.) (Wales) Bill
This Welsh Government Bill includes provision for: prohibiting certain payments made in connection with the granting, renewal or continuance of standard occupation contracts; and the treatment of holding deposits. The Bill is currently at Stage 1 and the Equality, Local Government and Communities Committee is taking oral evidence. For the Bill, as introduced, associated information and to follow its progress, click here

NEW HOUSING CASES
 

Nottingham City Council v Parr and another [2018] UKSC 51

Nottingham City Council (“the Appellant”) issued HMO licences to the Respondents in relation to two properties. However, because the attic rooms in the properties were below the minimum size specified in the Appellant’s guidance, it imposed conditions on those licences which prohibited use of the attic rooms for sleeping unless adapted to increase their floor space.

The First-tier Tribunal (“FTT”)
The Respondents challenged these restrictions in the FTT and the FTT deleted the restrictions from the licence. It considered that both properties had an over-provision of communal space and that this compensated for the small size of the attic rooms, and that those rooms were suitable for student or similar cohesive occupation.

The Upper Tribunal
The FTT decision was upheld by the Upper Tribunal, with the result that a condition was attached to each HMO licence that the attic rooms could only be used for sleeping accommodation by a student who lived in it for a maximum period of 10 months per calendar year.

The Court of Appeal
The Court of Appeal upheld the decision, adding two further conditions that the rest of the house must also be occupied by students in order to ensure cohesive living, and that the communal areas must be made available for the occupants of the attic rooms. The Appellant appealed to the Supreme Court.

The Supreme Court
The Appellant submitted that the legislation did not permit licensing conditions by reference to an occupier’s personal characteristics, and that an HMO property had to be suitable for the life of the licence for use by any type of occupier (rather than particular types) and that the conditions imposed were unclear, unworkable and therefore unenforceable.

The issues the Supreme Court considered were:

1.         Whether the Housing Act 2004 s.67, which empowers a local authority licensing an HMO to impose conditions regulating the use or occupation of the house, includes the power to limit the category of person for whom the HMO is suitable – for example, students.

2.         If conditions imposed under s.67 can so limit the class of person for whom an HMO is suitable, whether the conditions attached by the Tribunals and the Court of Appeal below are rational.

The Supreme Court unanimously dismissed the appeal, subject to varying the conditions to delete the requirement of occupation for a maximum of ten months in each year.

For the Supreme Court Press Summary click here

For the full judgment click here

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HOUSING LAW CONSULTATIONS
 

Consultation on fire safety: clarification of statutory guidance (Approved Document B)
The MHCLG is seeking views on the proposed clarification of statutory guidance on fire safety (Approved Document B) that aims to improve usability and reduce the risk of misinterpretation by those carrying out and inspecting building work. The consultation is part of the Government’s response to Dame Judith Hackitt’s Independent Review of Building Regulations and Fire Safety. The consultation closes on 11 October 2018. For the consultation documents, click here

Consultation on A new deal for social housing green paper
The social housing green paper proposes to ensure social homes provide an essential, safe, well managed service for all those who need it. The government says that it will consider how it can re-balance the relationship between residents and landlords to ensure issues are resolved swiftly and residents’ voices are heard. To support this vision there is, in the government’s opinion, a powerful case to be made for strengthening the regulatory framework so that it not only focuses on the governance and financial viability of housing associations, but also on how residents are treated and the level of services they should expect. The government seeks to address the stigma that for too long has been associated with social housing and on which residents all around the country have voiced their concern. The green paper seeks views on the government’s vision for social housing providing safe, secure homes that help people get on with their lives. The consultation closes on 6 November 2018. To access the green paper, click here To respond online, click here

Review of social housing regulation: call for evidence
The social housing green paper set out the government’s intention to carry out a review of regulation of social housing to ensure it remains fit for purpose, reflects changes in the social housing sector and drives a focus on delivering a good service for residents. This call for evidence asks for information on how the regulatory regime is meeting its current objectives – both what works well and what does not. It marks, together with questions in the green paper, the first stage in the review process. The government says that it is keen to hear from a wide range of interested parties including residents, landlords and lenders. The consultation closes on 6 November 2018. For the consultation document, click here To respond online, click here

Rents for social housing from 2020-21
The MHCLG is seeking views on a proposed direction to the Regulator of Social Housing from the Secretary of State to the Regulator of Social Housing to ensure that, from 2020 onwards, the Regulator’s rent standard:

  • reflects the Ministry’s announcement in October 2017 that it intends to permit registered providers to increase their rents by up to CPI+1% each year, for a period of at least 5 years; this announcement recognised the need for a stable financial environment to support the delivery of new homes;
  • applies to local authority registered providers (as well as to private registered providers), to reflect the roll out of Universal Credit.

The direction also sets out the basis on which social rents and affordable rents are set.

The consultation closes on 8 November 2018. For the consultation documents and to respond to the consultation, click here

Law Commission consultation on leasehold enfranchisement
The Law Commission has published a consultation paper on leasehold enfranchisement reform: Leasehold home ownership: buying your freehold or extending your lease. The paper proposes reforms designed to secure a better deal for leaseholders who want to purchase the freehold or to extend the lease of their home. The Commission says that the proposals would:

  • Make the enfranchisement process easier, cheaper and quicker
  • Improve and enhance the rights of leaseholders to buy their freehold or extend their lease
  • Introduce a simpler unified procedure for houses and flats
  • Remove limitations on the right to enfranchise, including the requirement that leaseholders must have owned their property for two years before making a claim.

In addition, at the government's request, the Commission has provided options to reduce the price payable by leaseholders to buy the freehold or extend their lease while ensuring sufficient compensation is paid to landlords to reflect their legitimate property interests. It is said that the proposals, which are now open for consultation, would save leaseholders time, stress and money, reducing legal costs and helping to prevent unnecessary disputes. The consultation closes on 20 November 2018. For further details and the Consultation Paper, click here

Implementing changes to the park home commission rate – Wales
The Welsh Government is consulting on how best to introduce the decision to reduce park home commission rates; what guidance is needed to support the change (if any); and how best to communicate that change. The consultation closes on 14 December 2018. For the consultation document, click here

Housing adaptations service standards – Wales
The Welsh Government is consulting on service standards for the delivery of housing adaptations. These standards are designed to improve consistency of delivery. They will apply to service providers and occupational therapists. The government wants to determine whether:

  • the proposed standards improve the delivery of housing adaptations
  • there are any other service standards which should be included
  • the proposed timeframes for the different types of adaptations are challenging enough.

The consultation closes on 19 December 2018. For the consultation document, click here

HOUSING LAW ARTICLES & PUBLICATIONS
 

Can the ‘duty to refer’ prevent homelessness? Chris Brill homeless link 9 October 2018to read the article click here

At least 440 homeless people died in UK in past year, study shows Patrick Greenfield, Sarah Marsh and Maeve McClenaghan The Guardian 8 October 2018- to read the article click here

Doing the same thing all over again Giles Peaker Nearly Legal blog 7 October 2018 - to read the article click here

The ‘Chance to Buy’ would provide little chance of a longer tenancy John Bibby Shelter blog 8 October 2018 – to read the item click here

The cap is scrapped! Where next for council housebuilding? Rose Grayston Shelter blog 5 October 2018 – to read the item click here

Make a house a home: How to give private renters a chance to buy and encourage longer tenancies Will Tanner and Guy MiscampbellOnward October 2018 - to read the report click here

HOUSING LAW DIARY
 

10 October 2018                                   
Second reading in House of Lords of Tenant Fees Bill

10 October 2018                                   
Supreme Court will deliver judgment in Nottingham City Council v Parr and another concerning conditions relating to HMOs (see Housing Law Cases)

11 October 2018                                  
Consultation closes on fire safety: clarification of statutory guidance (Approved Document B) (see Housing Law Consultations)

26 October 2018                                   
Report stage scheduled for Homes (Fitness for Human Habitation) Bill (see Housing Laws in the Pipeline)

26 October 2018                                   
Second readings scheduled (as to each of which, see Housing Laws in the Pipeline) for:

  • Sublet Property (Offences) Bill
  • Mobile Homes and Park Homes Bill
  • Affordable Home Ownership Bill
  • Creditworthiness Assessment Bill
  • Private Landlords (Registration) Bill
  • Leasehold Reform Bill
  • Homelessness (End of Life Care) Bill
  • Housing and Planning (Local Decision-Making) Bill
1 November 2018                                 
Tenants’ Associations (Provisions Relating to Recognition and Provision of Information) (England) Regulations 2018 come into force

6 November 2018                                 
Consultation closes on A new deal for social housing green paper (see Housing Law Consultations)

8 November 2018                                 
Consultation closes on rents for social housing from 2020-21 (see Housing Law Consultations)

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