HOUSING LAW NEWS & POLICY ISSUES

Statutory homelessness in England: July to September 2021
On 27 January 2022 the DLUHC published statistics on statutory homelessness applications, duties, and outcomes for local authorities in England. Between July to September 2021:

• 67,820 households were initially assessed as homeless or threatened with homelessness and owed a statutory homelessness duty, down 4.4 per cent from July to September 2020.
• 31,310 households were assessed as being threatened with homelessness, and therefore owed a prevention duty which is down 4.0 per cent from the same quarter last year. This includes 4,440 households threatened with homelessness due to service of a Section 21 notice to end an assured shorthold tenancy – an increase of 59.7 per cent from the same quarter last year. This is likely to reflect the removal of restrictions on private rented sector evictions from May 2021. However, this remains below July to September 2019 before Covid-19, where 37,930 households were owed a prevention duty, of which 4,580 were due to service of a Section 21 notice.
• 36,510 households were initially assessed as homeless and therefore owed a relief duty, down 4.6 per cent from the same quarter last year, driven by a 10.2 per cent fall in single households owed a relief duty. However, this is above July to September 2019 before Covid-19, where 35,890 households were owed a relief duty. Households with children owed a relief duty increased 15.1 per cent from the same quarter last year to 9,730 households in July to September 2021 – this is also an increase (8.6 per cent) from July to September 2019.
• 10,010 households were accepted as owed a main homelessness duty, up 9.5 per cent from July to September 2020. This reflects the increase in households with children owed a relief duty this quarter and last quarter compared to the previous year.

On 30 September 2021, 96,060 households were in temporary accommodation, up 1.5 per cent from 30 September 2020. This increase is driven by an increase in single households by 7.4 per cent, while households with children reduced by 1.8 per cent to 59,130. Compared to the previous quarter, the number of households in temporary accommodation has risen 0.2 per cent from June 2021. For the full statistics, click here. For analysis of the figures, organised according to various criteria, click here. For comment by Shelter, click here.

Spending on temporary accommodation – England: Crisis responds
On 27 January 2022 Matt Downie, Chief Executive at Crisis, commented in response to the publication of new Government data (above): “Over a billion pounds has been spent in one year to extend people’s homelessness rather than end it. That is a false economy with a devastating human cost. It is near impossible for anyone to rebuild their lives when they are cramped into one room, sometimes miles away from their support networks and often with no facilities to wash their clothes or cook their own meals … To help prevent untold numbers of families being forced into poverty and homelessness, we urge the UK government to get serious on providing the genuinely affordable homes we need and unfreeze housing benefit to cover the true cost of renting.” For the Crisis press release, click here.

Youth homelessness in 2020/21: Centrepoint research
On 25 January 2022 Centrepoint released the latest round of figures from its Youth Homelessness Databank, which shows that between April 2020 and the end of March 2021, there were nearly 122,000 young people facing homelessness in the UK. In England, 104,400 young people presented as homeless or at risk of homelessness to their local authority in 2020/21, an increase of 2,300 (2 per cent) from the year prior (102,100). Northern Ireland also saw an increase, but Scotland and Wales saw slight decreases in the numbers compared to the previous financial year. For the report, click here.

Rough sleeping – London
On 31 January 2022 Crisis reported the release of new figures by the Combined Homelessness and Information Network (CHAIN) which show that from October – December 2021:

• 2,949 people were sleeping rough across London. This is a similar level to the previous quarter, an 11 per cent drop on the same period in 2020 and below pre-pandemic levels. 
• 1,611 people rough sleeping had one or more support needs, including 1,128 with mental health needs.
• 491 people were seen ‘living on the streets’ (long-term rough sleeping) – 16 per cent more than in the previous quarter and 19 per cent higher than the same period in 2020.

For the report and comment by Crisis, click here. For comment by Homeless Link, click here.

Social housing sales and demolitions 2020-21 – England
On 27 January 2022 the DLUHC published statistics on the number of sales and demolitions of existing social housing stock in England for 2020 to 2021. In 2020-21 there were:

• 17,262 sales of social housing dwellings, a decrease of 29 per cent compared to 2019-20;
• 12,923 sales of low cost rental dwellings, a decrease of 34 per cent compared to 2019-20;
• 4,339 fully staircased sales of Low Cost Home Ownership dwellings, a decrease of 3 per cent compared to 2019-20; and
• 3,977 demolitions of social housing dwellings, a decrease of 16 per cent compared to 2019-20.

For the full statistics, click here. For tables showing social housing sales organised according to various criteria, click here.

Buildings insurance for multiple-occupancy residential buildings
On 28 January 2022 Michael Gove, the Secretary of State for Levelling Up, Housing and Communities, published a letter to the Financial Conduct Authority (FCA) and Competition and Markets Authority (CMA) requesting a review into the buildings insurance market for multiple-occupancy residential buildings. For the letter, click here.

Waking Watch Replacement Fund opens for applications
On 27 January 2022 the DLUHC announced additional £27 million to install fire alarms in all buildings where a Waking Watch is in place. The funding will be available for buildings of all heights, rather than just being limited to those over 18 metres. It is hoped that this will help end the misuse of Waking Watch and encourage the installation in an estimated 300 additional buildings of fire alarms, which are proven to be both more effective and cheaper in the long term. For the announcement, click here. For the application form, click here.

Parliamentary Levelling Up Committee opens building safety inquiry
On 31 January 2022 the Levelling Up, Housing and Communities (LUHC) Committee began the evidence hearings for its new inquiry into building safety and issues relating to funding and remediation. To watch the session, click here. For full details of the inquiry, click here.

Parliamentary Committee investigates proposals to reform the Human Rights Act
On 25 January 2022 the Parliamentary Joint Committee on Human Rights held the opening session of a new inquiry into the Government’s proposals to reform the Human Rights Act. In December 2021, the Government launched a consultation into proposals to reform the Human Rights Act. The proposals include replacing the Human Rights Act with a Bill of Rights, reducing both the role played by the case law of the European Court of Human Rights and the ability of the domestic courts to ensure that legislation is read compatibly with our rights. In this opening session, the Committee explored the implications of the proposed reforms, focusing on the potential change in the relationship between domestic courts, Parliament and the government. It also heard evidence on how the Government’s proposals would alter the relationship between UK courts and the European Courts of Human Rights. To watch the session, click here. For the Government’s consultation document, click here.

Domestic Abuse Act 2021 (Commencement No. 3) Regulations 2022
These Regulations are the third commencement regulations made under the Domestic Abuse Act 2021. They bring into force section 3 (so far as not already in force) on 31st January 2022. Section 3 of the Act makes provision in relation to children as victims of domestic abuse. For the Domestic Abuse Act 2021, click here. For the Domestic Abuse Act 2021 (Commencement No. 3) Regulations 2022, click here. For a Home Office factsheet on the 'Statutory definition of domestic abuse’, newly updated with changes related to recognising children as victims of domestic abuse, click here.

10,000 people have received one-to-one legal support as result of Litigants in Person Grant
On 26 January 2022 the Ministry of Justice published a new report providing an interim update on progress made by the Legal Support for Litigants in Person (LSLIP) Grant. Among the key findings are that LSLIP grantees have provided a range of legal advice, practical support and procedural information to thousands of people across England and Wales with civil (including housing) and family problems. The grants have enabled around 10,000 people to receive one-to-one personalised support on their civil and family problems, and significantly higher volumes to access public legal information and guidance. For the report, click here.

Estimates of dwellings and households by tenure 2020 – England
On 31 January 2022 the Office for National Statistics published estimates which provide the breakdown of dwellings and households by tenure, for local authority districts in England in 2020. The key points are:

• Across local authority areas in England there was an increase of 1.6 million dwellings owned outright between 2012 and 2020, but a decrease of 0.6 million dwellings owned with a mortgage.
• All local authorities contained more dwellings owned outright in 2020 than in 2012; 99 per cent of local authorities contained more privately rented dwellings, and three-quarters (74 per cent) more social-rented dwellings.
• It is estimated that in 2020, Castle Point in the East of England had the highest percentage of dwellings that were owner-occupied (82 per cent), and Hackney in Inner London had the lowest (28 per cent).
• Hackney had the highest percentage of social-rented dwellings, at 41 per cent in 2020, while Castle Point had the lowest proportion, at 5.4 per cent.
• Westminster had the highest proportion of private-rented dwellings, at 43 per cent in 2020, and North East Derbyshire had the lowest (18 per cent).
• There is a wide variation in tenures within local authorities across England, with local authority areas on the outskirts of towns and cities showing different patterns from those in more urban areas.

For the document, click here.

Armed forces family housing and Annington Homes
On 28 January 2022 the House of Commons Library published a briefing paper explaining the key points of the agreement made by the Ministry of Defence by which it sold thousands of properties to Annington Homes in 1996. The MoD now wants to regain full ownership of them. For the paper, click here.

Local Housing Allowance rates from April 2022 to March 2023 – Wales
On 31 January 2022 the Welsh Government published tables showing the method used to work out Local Housing Allowance (LHA) rates from April 2022 to March 2023. For the tables, go to wales.gov and then to ‘Housing’ and then to ‘Publications’.

Social Housing Grant: updated guidance for registered social landlords and local authorities – Wales
On 25 January 2022 the Welsh Government published updated guidance explaining how to submit a scheme and fill out the forms needed at each stage. For the guidance, click here.

Grenfell Tower Inquiry January 2022 Newsletter
On 28 January 2022 the Grenfell Tower Inquiry published an update on its work. The update contains information about: Module 6 hearings; attendance at hearings; monthly community drop-in sessions; disclosure; Core Participant numbers; arrangements for support during hearings; and contact information. For the update, click here.

Illegal eviction brings suspended prison sentence
Sedgemoor District Council has reported that it successfully prosecuted a Somerset landlord from Bridgwater who illegally evicted his tenant, locked him out of the house and disposed of all his belongings. All of this was planned whilst the tenant was working night shifts. The tenant returned home early in the morning after work to find himself homeless and possession-less. Sedgemoor District Council welcomed the recent decision by the Taunton Magistrates Court to sentence the landlord with illegal eviction with a prison sentence of six months (suspended for twelve months), compensation to his tenant of £3,000 and costs of £250 to Sedgemoor District Council. For the report, click here.

‘Cladding removal plans ill thought’: NRLA
On 31 January 2022 the National Residential Landlords Association warned that Government plans to rectify dangerous cladding are riddled with confusion and risk needless delays to addressing the problem. The NRLA also complained that that the Government’s plans are not treating all leaseholders equally. For more details, click here.

HOUSING LAWS IN THE PIPELINE

Fire Safety Remediation Charges (Recovery and Enforcement) Bill
This Private Members’ Bill would introduce a moratorium on recovery and enforcement action by freeholders and managing agents relating to service charges increases, fees or demands for payment in respect of leaseholders’ share of the costs of fire safety remediation work. It was presented to Parliament on 24 January 2022. Second reading is scheduled to take place on 18 March 2022. The Bill awaits publication. To follow progress of the Bill, click here.

Caravan Site Licensing (Exemptions of Motor Homes) Bill
This Private Members’ Bill, sponsored by Sir Christopher Chope, would exempt motor homes from caravan site licensing requirements. It was presented to Parliament on 21 June 2021. Second reading was further postponed to 14 January 2022 but was nit debated on that day. The Bill awaits publication. To follow progress of the Bill, click here.

Homeless People (Current Accounts) Bill
This Private Members’ Bill, sponsored by Peter Bone, would require banks to provide current accounts for homeless people seeking work. It was presented to Parliament on 21 June 2021. Second reading has been further postponed to 4 February 2022. The Bill awaits publication. To follow progress of the Bill, click here.

Caravan Sites Bill
This Private Members’ Bill, sponsored by Sir Christopher Chope, would amend the requirements for caravan site licence applications made under the Caravan Sites and Control of Development Act 1960. It was presented to Parliament on 21 June 2021 and its second reading was been further postponed to 28 January 2022.The Bill awaits publication. To follow progress of the Bill, click here.

Asylum Seekers (Accommodation Eviction Procedures) Bill
This Private Members’ Bill, sponsored by Chris Stephens, would make provision for asylum seekers to challenge the proportionality of a proposed eviction from accommodation before an independent court or tribunal; and establish asylum seeker accommodation eviction procedures for public authorities. It was presented to Parliament on 21 June 2021. The second reading was postponed to 14 January 2022 but was not debated on that day.The Bill awaits publication. To follow progress of the Bill, click here.

Leasehold Reform (Ground Rent) Bill
This Government Bill would make provision about the rent payable under long leases of dwellings. The Bill completed its House of Lords stages on 14 September 2021 and was presented to the House of Commons on 15 September 2021. The Bill received its second reading debate on 29 November 2021. The Public Bill Committee reported the Bill with amendments to the House on 9 December 2021. The Bill had its third reading on 24 January 2022. For the Bill as brought from the House of Lords, click here. For a House of Commons Library briefing concerning the Bill, published on 20 January 2022, click here. To follow progress of the Bill, click here.

Building Safety Bill
This Government Bill would make provision about the safety of people in or about buildings and the standard of buildings, to amend the Architects Act 1997, and to amend provision about complaints made to a housing ombudsman. The Bill completed its passage through the House of Commons on 19 January 2022. It received its first reading in the House of Lords on 20 February 2022. It is due to receive its second reading on 2 February 2022. For the Bill as brought from the House of Commons, click here. For the Government response to the Housing, Communities and Local Government Committee's pre-legislative scrutiny of the Bill, click here. For a House of Commons Library briefing about the Bill, published on 17 January 2022, click here. For a briefing produced by the Local Government Association in advance of the second reading in the House of Commons, click here. To follow progress of the Bill, click here.

Fire and Building Safety (Public Inquiry) Bill
This Bill, sponsored by Daisy Cooper, would establish an independent public inquiry into the Government’s response to concerns about fire and building safety. It was introduced to Parliament on Tuesday 6 July 2021 under the Ten Minute Rule. Second reading has been rescheduled to 18 March 2022. For the Bill, as introduced, click here. 

Evictions (Universal Credit) Bill
This Private Members’ Bill, sponsored by Chris Stephens, would place a duty on the Secretary of State to prevent the evictions of Universal Credit claimants in rent arrears. It was presented to Parliament on 21 June 2021 and will receive its second reading on 28 January 2022.The Bill awaits publication. To follow progress of the Bill, click here.

Housing Standards (Refugees and Asylum Seekers) Bill
This Private Members’ Bill, sponsored by Chris Stephens, would make provision for national minimum standards in accommodation offered to refugees and asylum seekers. It was presented to Parliament on 21 June 2021 and will receive its second reading on 4 February 2022.The Bill awaits publication. To follow progress of the Bill, click here.

Under-Occupancy Penalty (Report) Bill
This Private Members’ Bill, sponsored by Chris Stephens, would require the Secretary of State to report to Parliament on the merits of repealing those provisions of the Welfare Reform Act 2012 which provide for persons to be paid reduced rates of housing benefit or Universal Credit because their accommodation is deemed to be under-occupied. It was presented to Parliament on 21 June 2021 and will receive its second reading on 14 January 2022.The Bill awaits publication. To follow progress of the Bill, click here.

Mobile Homes Act 1983 (Amendment) Bill
This Private Members’ Bill, sponsored by Sir Christopher Chope, would amend the Mobile Homes Act 1983. It was presented to Parliament on 21 June 2021 and will receive its second reading on 28 January 2022. The Bill awaits publication. To follow progress of the Bill, click here.

NEW HOUSING CASES

Northwood (Solihull) Ltd v Fearn & Ors [2022] EWCA Civ 40

The Court of Appeal considered the manner in which documents given to residential tenants – namely (i) a certificate under s.213 HA 2004 (“the deposit certificate”) and (ii) a notice seeking possession under s.8 HA 1988 (“the s.8 notice”) – are to be properly authenticated by a corporate body landlord.

Facts

The landlord was a limited company which granted the tenants an assured shorthold tenancy of a house in July 2014. The tenants paid a deposit at the outset which was protected under a deposit protection scheme. A deposit certificate was served on the tenants that was signed by a director of the landlord company.

By March 2017, the tenants had fallen into rent arrears and the landlord served a s.8 notice pursuant to Grounds 8, 10 and 11 of Schedule 2 HA 1988. The s.8 notice was in the correct form and set out all the required information. It was signed by a property manager employed by the landlord.

The tenants subsequently sought to defend the possession proceedings on the basis that the s.8 notice was invalid as the landlord had failed to authenticate it in the manner prescribed by s.44 of the Companies Act 2006 (“s.44 CA 2006”). The tenants also brought a counterclaim for a penalty award under s.214(4) HA 2004 on the basis that the deposit certificate required a signature by the landlord. In short, s. 44 CA 2006, requires two authorised signatories or a director to sign in the presence of a witness when a company executes a document.

Decision at first instance

The Recorder held that s.44 CA 2006 did not apply to a s.8 notice but did apply to the deposit certificate. Accordingly, the Recorder made an order for possession and awarded the tenants a sum by way of a penalty for breach of s.214 HA 2004 with such sums to be set off against the rent arrears.

The tenants appealed the Recorder’s findings in relation to the s.8 notice and the landlord cross-appealed against the finding in connection with the deposit certificate.

Appeal in the High Court

Saini J dismissed the tenants’ appeal on the s.8 notice and also dismissed the landlord’s cross-appeal. He held that the deposit certificate was invalid unless signed in the manner required by s.44 CA 2006 but that the s.8 notice was valid although it had only been signed by the landlord’s agent.

The tenants appealed against the finding on the s.8 notice and the landlord cross-appealed on the finding on the deposit certificate. 

Decision of the Court of Appeal

Lewison LJ gave the leading judgment. As to the validity of the deposit certificate, it was noted that the 2007 Order (as it then stood) merely required the certificate under paragraph to “be signed by the landlord”. The “landlord” had at that time the meaning given to it by s.212(9) HA 2004; it included a person acting on behalf of the landlord in relation to the tenancy. Accordingly, the certificate was valid as it was signed by a director of the company [46].

It was noted that the Deregulation Act 2015 retrospectively disapplied s.212(9) HA 2004. However, Article 2 (3) (a) of the Housing (Tenancy Deposits) (Prescribed Information) Order 2007 allowed the “the landlord” to be read as including a person who acts on the landlord’s behalf. In the present case, the certificate was given in the name of the landlord but it was signed by a director. It was held as the director was self-evidently not personally the landlord, the only rational conclusion is that she was a person acting on behalf of the landlord [52]. Accordingly, the certificate was and remained valid.

Even if that was wrong, s.213(6) HA 2004 permitted the giving of the information in a form substantially to the same effect. In this case, the certificate gave the tenants all of the required information and was signed by a person authorised (both by the landlord and by section 212(9)) to sign it. Lewison LJ, therefore, considered that it was substantially to the same effect and accordingly was valid [55].

In arriving at this conclusion, Lewison LJ did not consider that the reason in Hilmi & Associates Ltd v 20 Pembridge Villas Freehold Ltd [2010] EWCA Civ 314 was directly applicable to the requirement of the deposit certificate to be “signed by” the landlord [22-31].

As to the s.8 notice, it was noted that the primary legislation governing notice under s.8 HA 1988 did not require a signature, merely “service” by the landlord of a notice in a particular form.It followed from Newbold v Coal Authority [2013] EWCA Civ 584 that a landlord complies with s.8 HA 1988 if an agent serves notice on his behalf, even if the agent signs the notice in the landlord’s name. In addition, the form prescribed by the relevant regulations explicitly allowed notice to be given by and signed by an agent for the landlord[57].

In the present case, the notice under section 8 was signed by an authorised agent of the landlord. That complied both with the primary legislation and the prescribed form. The only possible error was that the agent had crossed out the wording “landlord’s agent”. Lewison LJ however did not think that it could have been Parliament’s intention that such an immaterial error would invalidate the notice and accordingly held that even if the s.8 notice failed to comply strictly with the statutory requirements, it was still valid[69].

Accordingly, the tenant’s appeal was dismissed and the landlord’s cross-appeal was allowed.

Summary by Henry Percy-Raine, barrister, Trinity Chambers. For the judgment, click here.

HOUSING LAW CONSULTATIONS

Regulator of Social Housing: Consultation on the introduction of tenant satisfaction measures
The Regulator of Social Housing is seeking views on its proposals for tenant satisfaction measures which are part of implementing changes to consumer regulation set out in the Government’s ‘The Charter for Social Housing Residents: Social Housing White Paper’. The measures would provide data about social housing landlords’ performance and the quality of their services to help tenants hold their landlord to account and help RSH in its future consumer regulation role. The Regulator looks forward to hearing from landlords, tenants and anyone with an interest in social housing by 3 March 2022. For the consultation documents, click here.

Reforming the leasehold and commonhold systems in England and Wales
The DLUHC is consulting on a number of Law Commission recommendations that would broaden access to enfranchisement (buying the freehold) and the ‘right to manage’ a building. The proposals would increase the ‘non-residential limit’ from 25 to 50 per cent, allowing leaseholders in buildings with up to 50 per cent non-residential floorspace to buy their freehold or claim a right to manage. The DLUHC is also considering recommendations that allow leaseholders to require that a landlord take on leases for any non-participating units following a collective enfranchisement; the introduction of a non-residential limit for individual freehold acquisitions; and changes to voting rights in right to manage companies. On Commonhold, the Department is considering how shared ownership products could work in commonhold settings; and the provision of information for buying and selling a commonhold property.

For the consultation, which closes on 22 February 2022, click here.

HOUSING LAW ARTICLES

The verdict is in: George Osborne’s help-to-buy scheme has been an utter disaster Polly Toynbee Guardian 25 January 2022 – to read the article, click here

Company landlords and signing notices Giles Peaker Nearly Legal 26 January 2022 – to read the article, click here

Deposits, possession claims and corporate landlords Justin Bates and Tom Morris Landmark Chambers 27 January 2022 – to read the article, click here

Domestic abuse rises sharply as cause of homelessness in England Damien Gayle Guardian 27 January 2022 – to read the article, click here

Why are homeless people still on the streets? We need your help Deborah Garvie Shelter Blog 28 January 2022 – to read the article, click here

No relief, no unjust enrichment Giles Peaker Nearly Legal 30 January 2022 – to read the article, click here

Housing conditions: update (Feb 22) Catherine O’Donnell Legal Action – to read the article (subscription required), click here

HOUSING LAW DIARY

2 February 2022                                   
Second reading in the House of Lords of the Building Safety Bill (see Housing Laws in the Pipeline)

4 February 2022                                   
Second reading in the House of Commons of the Housing Standards (Refugees and Asylum Seekers) Bill (see Housing Laws in the Pipeline)

4 February 2022                                   
Second reading in the House of Commons of the Homeless People (Current Accounts) Bill (see Housing Laws in the Pipeline)

22 February 2022                                 
Closing date for submissions to the consultation on Reforming the leasehold and commonhold systems in England and Wales (see Housing Law Consultations)

3 March 2022                                       
Closing date for submissions to the consultation on Regulator of Social Housing: Consultation on the introduction of tenant satisfaction measures (see Housing Law Consultations)

Advertise your vacancy to Housing Law Week Readers

Send details of the vacancy and a link to the vacancy on your website to info@limelegal.co.uk