HOUSING LAW NEWS & POLICY ISSUES

Law Commission: proposals to help leaseholders buy freeholds
On 19 July 2018 the Law Commission published proposed measures to help existing leasehold homeowners buy the freehold of their houses. These include:

• options for changing the valuation formula, having been asked by Government to examine how to reduce the price while providing sufficient compensation to landlords
• making it easier for homeowners to buy the freehold
• removing the requirement that leaseholders must have owned their house for two years before making a claim.

The Law Commission says that the proposals will give leaseholders security and control over their homes. Law Commissioner Professor Nick Hopkins said:

“Enfranchisement offers a route out of leasehold but the law is failing homeowners: it’s complex and expensive, and leads to unnecessary conflict, costs and delay … [O]ur solutions for leasehold houses will provide a better deal for leaseholders and make sure that the law works in the best interests of house owners.”

For the Law Commission’s proposals, click here For a summary, click here

Empty homes: powers to charge greater Council Tax premiums
On 18 July 2018 the Government introduced an amendment to the Rating (Property in Common Occupation) and Council Tax (Empty Dwellings) Bill at the third reading in the House of Lords. It would allow councils to triple the council tax on homes left empty. Under the new provision, decisions on whether to charge a premium, and the exact rates to be charged would remain a matter for councils, taking local circumstances into account. It is anticipated that councils would be able to charge 100% premiums from April 2019, 200% premiums from April 2020 and 300% premiums from 2021.

For the MHCLG’s announcement of the amendment, click here For further details of the Bill, see Housing Laws in the Pipeline.

Legal Aid Lawyer of the Year Awards 2018
At the recent Legal Aid Lawyer of the Year (LALY) Awards for 2018, the Housing Law award (sponsored by Garden Court Chambers) was received by Giles Peaker, of Anthony Gold Solicitors. Giles is the author of the popular Nearly Legal blog. The award for the Legal aid firm/Not-for-profit agency (sponsored by The Law Society) was won by Ealing Law Centre. For all the awards, click here

Grenfell Tower: written statement on rehousing and building safety
On 19 July 2018 the Communities Secretary, James Brokenshire, provided a written statement to Parliament marking the first anniversary of the Grenfell Tower fire. In particular, he addressed the rehousing of residents and building safety. With regard to the former, he said:

“[O]f 204 households from Grenfell Tower and Walk who need rehousing, 200 households (over 98 per cent) have accepted an offer of either permanent or temporary accommodation. 142 households have now moved in; of which 96 have moved into their permanent homes and 46 households are currently living in good quality interim accommodation. The number of households in hotels has reduced to 40, with 19 in serviced apartments and three living with friends and family … I have been assured by the Council that the majority of [the necessary] work is now complete. 24 properties that have been accepted by residents are still being finalised and the vast majority of these are expected to be completed over the summer.”

On building safety, he announced the launch of a consultation on the clarified building regulations fire safety guidance (Approved Document B) (see Housing Law Consultations) and gave details of the latest developments in the delivery of the reforms recommended by the Hackitt Review.

For the written statement, click here For the response of the National Housing Federation, click here

Grenfell Tower: letter to residents
On 18 July 2018 the Government published a letter to the former residents of Grenfell Tower from the Communities Secretary, James Brokenshire, and the Minister of State for Policing and the Fire Service, Nick Hurd. The letter concerned resettlement support for residents; the future of the Grenfell Tower site; a possible Memorial Commission that will seek to reach community consensus as to the future of the site; immigration policy and core participants; and the return in September 2018 of Kensington Aldridge Academy to its original location. To read the letter, click here

Building fire safety: Select Committee report
On 18 July 2018 the Housing, Communities and Local Government Committee called for the Government to take “urgent and wide-ranging action to ensure the safety of people living in high-rise buildings”. The Committee’s latest report recommends that the combustible cladding ban be extended and action be taken to tackle conflicts of interest in the construction industry.

For the report, click here For a summary, click here For the report’s conclusions and recommendations, click here

Ombudsman’s report: Council places woman and autistic son in flat below nuisance neighbour
On 18 July 2018 the Local Government and Social Care Ombudsman published a report of a finding that a mother and her autistic son were caused severe distress after they were placed by Brighton and Hove Council in temporary accommodation below a neighbour who had previous warnings for anti-social behaviour. The Ombudsman’s investigation found that they were placed in the unsuitable accommodation after the council told them they would not be provided with another flat if they refused. The council was also found to have delayed in reimbursing storage charges and in responding to the mother’s complaints.

The council has been told to apologise to the mother and pay her £750 “to recognise the injustice caused to her and her son for leaving them in unsuitable accommodation.” The Ombudsman has said that the council should also pay them £100 for the six month delay in reimbursing storage charges and a further £150 for the time and trouble caused by its delay and poor handling of the complaint.

For a summary of the case, and to access the full report, click here

Homes England: annual report
On 23 July 2018 Homes England published its annual report including that of predecessor organisation Homes and Communities Agency. For the report, click here

Regulation of Registered Social Landlords (Wales) Act 2018 (Consequential Amendments) Regulations 2018
These regulations, which come into force on 15 August 2018, make consequential amendments arising from the Regulation of Registered Social Landlords (Wales) Act 2018 (the Act). Regulations 2 and 3 amend primary legislation to update cross-references to “exempt disposals” as a result of changes made by the Act and as a result of the repeal of the requirements to obtain Welsh Ministers’ consent to certain activities carried out by registered social landlords by the Act. Regulation 4 amends the Land Registration Rules 2003 as a result of the repeal of requirements to obtain Welsh Ministers’ consent to certain activities carried out by registered social landlords by the Act. For the Regulations, click here For the Act, click here

Index of private housing rental prices, Great Britain: June 2018
On 18 July 2018 the Office for National Statistics published an experimental price index tracking the prices paid for renting property from private landlords in Great Britain. The main points are:

• Private rental prices paid by tenants in Great Britain rose by 1.0% in the 12 months to June 2018; unchanged since April 2018.
• In England, private rental prices grew by 1.0%, Wales saw growth of 1.1% while Scotland saw rental prices increase by 0.6% in the 12 months to June 2018.
• London private rental prices decreased by 0.2% in the 12 months to June 2018; unchanged from May 2018.

For the index, click here

Administrative Court judicial review guide
On 20 July 2018 HM Courts and Tribunal Service published an updated version of the Administrative Court judicial review guide which provides detailed legal guidance on bringing a judicial review case in the Administrative Court. The July 2018 edition reflects legislative and practice changes relevant to the Administrative Court over the last year. For the guide, click here

Housing First: tackling homelessness for those with complex needs
On 17 July 2018 the House of Commons Library published a research briefing on Housing First, the alternative homelessness intervention strategy, aimed at people with complex needs, particularly rough sleepers. The paper describes the principles behind Housing First and outlines some of the evidence behind it. The paper also sets out how Housing First has developed in the UK, and what support that it has been offered by the governments of the UK, Scotland, Wales and Northern Ireland. For the briefing, click here

Homeless families and working
On 23 July 2018 Channel 4 broadcast an episode of Dispatches, the documentary series, on homelessness among working people. The episode was based on Shelter research. A BBC feature about the topic noted that, according to Shelter, more than half of families living in temporary accommodation in England are in employment. Its analysis suggests that 55% of families (33,000) living in temporary homes in 2017 were also working, representing an increase of 73% on 2013. The charity blames expensive private rents, a freeze on housing benefit and a chronic lack of social housing for the situation. For the Dispatches episode, click here For the BBC report, click here

Rogue landlord: consumer protection and housing law applied
On 19 July 2018 EHN Online reported that a Nottingham landlord who intimidated his student tenants so that their lives were an ‘utter misery’, has been sentenced to pay fines which, with costs, amount to £30,000, failing which he faces a four-month prison term. Nottingham magistrates heard that council trading standards and housing officers investigated after receiving a complaint from the students living at the property that the defendant had failed to protect their security deposits, failed to manage the property and acted aggressively towards them. The defendant pleaded guilty to 16 offences under the Housing Act 2004 and Consumer Protection from Unfair Trading Regulations. For a report by EHN Online, click here

Evaluation of homelessness legislation – Wales
On 19 July 2018 the Welsh Government published a report evaluating Part 2 of the Housing Act (Wales) 2014. The overall aim of the evaluation was to understand how the Act has been implemented by organisations involved in supporting people at risk of homelessness (local authorities, housing associations and third sector organisations). There was unanimous support for the ethos and intent of the Act, from respondents to the local authority survey and among service providers. There is evidence of increased prevention activity and improved outcomes for service users. Similarly, ‘reasonable steps’ have been strategically embraced by local authorities and this has also resulted in better outcomes for people presenting as homeless/threatened with homelessness. It was found that the Act, therefore, provides a framework within which it is possible to prevent and relieve homelessness for a wide range of people who would not have been included under the previous arrangements.

However, the report expressed concern that there is significant variation across Wales and also within local authority areas regarding the extent to which the ethos of the new Act has been adopted and the effectiveness of prevention and reasonable steps.

For the report, click here

HOUSING LAWS IN THE PIPELINE

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 (prepared for the second reading debate), 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. For the Bill as introduced, click here The Bill had its committee stage on 11 May 2018,its report stage on 9 July 2018 and third reading on 18 July 2018. It now goes to the Commons for consideration. 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. It received its first reading on 2 May 2018 and its second reading on 21 May 2018. For the second reading debate, click here The Bill will next be considered at report stage on a date to be announced. For the Bill as introduced, click here For the impact assessment, click here For a research briefing prepared for the report stage, 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

Milton Keynes Council v Mr Roger Bailey [2018] UKUT 207 (LC)

Part V of the Housing Act 1985 gives most local authority tenants the right to buy the freehold of their home at a substantial discount. Certain types of housing are, however, excluded from the right to buy, including properties which are “particularly suitable…for occupation by elderly persons” (see this exclusion in paragraph 11 of Schedule 5 to the Housing Act 1985).

Background

Mr Bailey was a local authority tenant who sought to exercise the right to buy his home. Milton Keynes Council (“the Council”) refused his request on the basis that the property was particularly suitable for occupation by elderly persons and was therefore excluded from the right to buy.

Suitability for occupation by elderly persons

Prior to 1 April 2005, if a dispute arose as to whether the property was particularly suitable for elderly persons (and thereby excluded from the right to buy), the dispute fell to be determined by the Secretary of State. The Secretary of State had issued guidance on how he/she would deal with such determinations. Such guidance included a ministerial circular - circular 07/2004 – which listed various points which the Secretary of State would generally expect to be satisfied in order for a property to fall within the elderly persons exception, for example:

1. Ease of access on foot to the property;
2. The property normally being on one level;
3. If the property were above ground floor level, there being a working lift;
4. The property being located reasonably conveniently for local amenities or public transport.

Today, disputes are determined by the First Tier Tribunal rather than the Secretary of State.

The First Tier Tribunal’s decision

The FTT found for Mr Bailey, deciding that the property was not particularly suitable for occupation by elderly persons. The FTT so decided because the property was heated by an eco-biomass boiler which was run on wood pellets which had to be fed into the top of the boiler. The pellets were delivered to the property in 15kg bags which were left at the rear of the property. The FTT held that an elderly person would have difficulties transferring the wood pellets to the boiler and loading them into it. Accordingly the FTT held that the property should not be considered to be particularly suitable for occupation by elderly persons and that Mr Bailey was therefore entitled to exercise the right to buy.

The Upper Tribunal decision

The Council successfully appealed to the Upper Tribunal.

The Upper Tribunal stressed the need, when the FTT is deciding whether a property falls within the elderly persons exception, for the FTT to look at the overall picture in relation to the property rather than taking a narrow view by focussing too forensically on specific criteria contained in ministerial guidance. The Upper Tribunal held that it was not the intention of Parliament that a property would necessarily be excluded from being particularly suitable for elderly persons just because of one individual feature; Parliament had chosen not to include in the legislation a specific set of conditions which had to be fulfilled in all cases before a property could be considered to be particularly suitable for elderly persons.

The Upper Tribunal held that the FTT had focussed too narrowly on the boiler rather than making an aggregate assessment of the property as a whole and the appeal would therefore be allowed on that ground.

The Upper Tribunal also allowed the appeal on the basis that the FTT had wrongly failed to attach any weight to the Council’s representations that it had in place arrangements for the boiler to be filled with wood pellets on a regular basis, thus saving the occupant the trouble of having to do so.

The Council had also argued that the FTT had been wrong to make its own assessment of how difficult it would for an elderly person to fill the boiler with wood pellets and that the FTT had been wrong not to consider that the presence of electric heaters already in the property was an adequate substitute for the biomass boiler. The Upper Tribunal held that both of these issues were relevant matters which the FTT had been entitled to take into account and therefore no error of law arose in relation to those issues.

The Upper Tribunal declined to remit the matter to the FTT for a fresh decision, instead deciding the issue for itself, holding that the only proper conclusion available on the facts was that the property was particularly suitable for occupation by elderly persons and was therefore not eligible for the right to buy.

Summary by Alexander Campbell, barrister, Field Court Chambers. For the full judgment click here.

HOUSING LAW CONSULTATIONS

Consultation on the Energy Efficiency Standard for Social Housing post-2020 (EESSH2) – Scotland
The Scottish Government says that consultation on the Energy Efficiency Standard for Social Housing post-2020 (EESSH2) will be a critical part of Energy Efficient Scotland, and realising its vision that by 2040 homes and buildings will be ‘warmer, greener and more efficient’. When EESSH was launched in 2014, a review was proposed for 2017 to assess progress towards the 2020 target and consider future milestones beyond 2020. Phase 1 of the Review assessed progress and concluded with publication of revised EESSH Guidance for Social Landlords in December 2017. Phase 2 of the Review considered milestones and activity post 2020, with the EESSH Review Group recommending the proposals set out in this public consultation. The Scottish Government wants to hear views on these proposals for new milestones for the Energy Efficiency Standard for Social Housing. Responses will help inform how the government continues to improve energy efficiency in social housing in Scotland. The consultation closes on 27 July 2018. For the consultation document, click here

Consultation on banning the use of combustible materials in the external walls of high-rise residential buildings.
This consultation is seeking views on proposals to revise the building regulations to ban the use of combustible materials in the inner leaf, insulation and cladding that are used in external wall systems on high-rise residential buildings. The consultation closes on 14 August 2018. For the consultation paper click here For details of the various ways in which to respond to the consultation click here

Consultation on overcoming the barriers to longer tenancies in the private rented sector
This consultation invites view and comments on the benefits and barriers of landlords offering longer tenancies. The government is also seeking views on its proposed model for a 3-year tenancy with a 6-month break clause, and the options for implementing this. The model is designed to give tenants certainty over rents, and retains the flexibility that many desire. The consultation closes on 26 August 2018. For the consultation document, click here

Consultation on rent a room relief
On 6 July 2018 HM Treasury and HMRC published the government’s response to the consultation on rent a room relief. Rent a room relief allows individuals to earn up to £7,500 tax free from letting out furnished accommodation in their main or only residence. The government will retain rent a room relief at its current level.

However, in order to clarify the purpose of the relief and ensure it is better targeted to achieve its original objective of incentivising the use of spare rooms, the government will introduce a new ‘shared occupancy test’. The new test, set out in draft legislation accompanying the response, will require the taxpayer to be living in the residence and physically present for at least some part of the letting period, for the income to qualify for relief. The government invites comments and submissions on the proposal for a new shared occupancy clause, before its introduction in Finance Bill 2018-19 which will come into force on 6 April 2019. The closing date for submissions is 31 August 2018.

For the consultation outcome, click here

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

HOUSING LAW ARTICLES & PUBLICATIONS

Shelter warns of leap in working homeless as families strugglePatrick Butler, The Guardian 23 July 2018 – to read the article click here

More than half of homeless families in England are in work, figures show May Bulman,The Independent 23 July 2018– to read the article click here

Grey renting: the rising tide of older private tenants John Bibby, Shelter Blog 19 July2018– to read the article click here

MPs and peers say human rights ‘unenforceable’ due to legal aid cuts, Legal Action Group July 2018 – to read the article click here

Pressing for progress: women’s rights and gender equality in 2018, Equality and Human Rights Commission23 July 2018– to read the report click here

HOUSING LAW DIARY

27 July 2018                             
Consultation closes on the Energy Efficiency Standard for Social Housing post-2020 (EESSH2) – Scotland (see Housing Law Consultations)

14 August 2018                        
Consultation closes on banning the use of combustible materials in the external walls of high-rise residential buildings (see Housing Law Consultations)

15 August 2018                        
Regulation of Registered Social Landlords (Wales) Act 2018 (Consequential Amendments) Regulations 2018 come into force

26 August 2018                        
Consultation closes on overcoming the barriers to longer tenancies in the private rented sector (see Housing Law Consultations)

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