23rd November 2016
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HOUSING LAW NEWS & POLICY ISSUES

Redfern Review into the decline of homeownership
On 16 November 2016 the Redfern Review was published. Led by Pete Redfern, Chief Executive of Taylor Wimpey, it is an independent report commissioned by Shadow Secretary of State for Housing, John Healey MP, supported by an advisory panel of Terrie Alafat CBE, Dame Kate Barker CBE, Andy Gray and Ian Mulheirn. The review draws on bespoke polling, focus group evidence and expert analysis as well as new modelling from Oxford Economics. The review states that ‘the financial squeeze on young people is at the heart of the decline in the number of home owners and calls for a long-term, cross-party approach to housing issues’. The report also finds that home ownership is the tenure of choice for 80% of people; declines in home ownership have been steepest amongst young people – over 20% in 12 years; the two biggest drivers of the fall in home ownership since 2008 have been the marked relative fall in incomes of would-be first time buyers and their access to mortgage finance.For the review itself, click here For the home ownership modelling by Oxford Economics, click here For articles arising from the review, see Housing Law Articles below.

Supported accommodation – review and funding consultation
On 21 November 2016 the Government published both a review and a consultation paper in respect of supported accommodation. The review sets out research estimating the scale, scope and cost of the supported housing sector in Great Britain. An estimated 71% of units accommodate older people; 29% of units accommodate working-age people with a very wide range of support needs. Housing associations are the most prevalent landlords, providing 71% of supported housing units. The annualised cost of the supported housing sector covered by Housing Benefit across Great Britain at the end of 2015 is estimated at £4.12bn. The review also conservatively estimates that the additional annualised spend on support and care services (that is in addition to Housing Benefit spend) at the end of 2015 is around £2.05bn. To read the review, click here For details of the associated consultation, see Housing Law Consultations below.

Local Housing Allowance cap introduction postponed
On 21 November 2016 Lord Freud, Minister of State at the DWP, announced in a written statement to the House of Lords that the introduction of a cap on Housing Benefit for older people to Local Housing Allowance levels (so introducing, in effect, another form of ‘bedroom tax’) will be postponed from April 2018 until April 2019. For the written statement, which also refers to the supported accommodation proposals (above), click here

Compulsory ‘pay to stay’ policy dropped
On 21 November 2016 Gavin Barwell, Minister of State for Housing, announced in a written statement to the House of Commons that the Government has decided not to proceed with its ‘pay to stay’ policy which would have required local authorities to set higher rents for higher income council tenants. He said: “The Government remains committed to delivering its objective of ensuring social housing is occupied by those who need it most. But we need to do so in a way that supports those ordinary working class families who can struggle to get by, and in a way which delivers real savings to the taxpayer. The policy as previously envisaged did not meet those aims.” To read the written statement, click here

Travellers – count of caravans in England
On 16 November 2016 the DCLG published statistics showing that the total number of traveller caravans in England in July 2016 was 21,419, which was 335 more than in July 2015. 6,292 caravans were on authorised socially rented sites (a decrease of 181 since July 2015). 11,646 caravans were on authorised privately funded sites (168 more than in July 2015). 2,216 caravans were on unauthorised developments, on land owned by travellers (284 more than in July 2015). 1,265 caravans were on unauthorised encampments, on land not owned by travellers (64 more than in July 2015). To access the statistics, click here

What is ‘affordable housing’?
On 17 November 2016 the House of Commons Library published a research briefing which considers how affordable housing is defined in England and looks at key trends in the affordability of different tenure types. It also examines the supply of affordable housing and the role of Housing Benefit in enabling households to access and retain affordable housing. To read the briefing, click here

Buy to let mortgages
BM Solutions has announced that it will apply the Prudential Regulation Authority’s 5.5% stress test on all buy-to-let mortgages including those fixed for more than five years (despite the PRA’s exemption in respect of such fixed rate mortgages). For the coverage in Mortgage Introducer, click here

Human rights judgments
On 18 November 2016 the Ministry of Justice published a report setting out the government's position on the implementation of human rights judgments (in all relevant areas of law) from the domestic courts (declarations of incompatibility under the Human Rights Act 1998) and the European Court of Human Rights for the last two years. In 2014 and 2015 there were respectively 14 and 13 judgments in the European Court of Human Rights involving the UK. In each year there were four findings of violations by the UK. Since the Human Rights Act 1998 came into force on 2 October 2000 until the end of July 2016, 34 declarations of incompatibility have been made. Of these: 22 have become final (in whole or in part) and are not subject to further appeal; four are or may be subject to appeal; and eight have been overturned on appeal. To read the report, click here

Human rights after Brexit
On 23 November 2016 the Parliamentary Joint Committee on Human Rights will take evidence from the Minister of State for Courts and Justice, Sir Oliver Heald, on Brexit's potential impact on human rights. To watch the session on Parliament TV, click here

Homelessness and hardship payments
On 16 November 2016 the Department for Work and Pensions announced that jobseekers who are homeless or suffer from a mental health condition will now be able to access hardship payments immediately if they receive a benefit sanction. Hardship payments act as a safety net to cover day-to-day living costs, and are issued immediately to individuals who are sanctioned and meet certain criteria like having children, or a long-term health condition. The criteria will now extend immediate access to homeless people and individuals with a mental health condition. For more details, click here

Housing benefit caseload
On 18 November 2016 the Department for Work and Pensions published summary tables showing the number of Housing Benefit claimants and average weekly spare room subsidy amount withdrawal by: region and local authority; region and local authority (by tenure and passported status); region and local authority (by spare room subsidy); tenure; average weekly award (by tenure); passported status; average weekly award (by passported status); average weekly award (by age group); age group and family type; and average weekly award (by age group and family type). To access the tables, click here

Housing Benefit bulletin published
On 17 November 2016 the Department for Work and Pensions published its latest Housing Benefit Bulletin (G11/2016) which covered: Funeral Payments Team request for contact details; benefit cap update: ‘active but not capped cases’; cases with the Upper Tribunal; statutory instruments. To access the bulletin, click here

Assured tenancies – ground for possession on basis of tenant’s immigration status
The Assured Tenancies and Agricultural Occupancies (Forms) (England) (Amendment No 2) Regulations 2016, which come into force on 1 December 2016, amend the Assured Tenancies and Agricultural Occupancies (Forms) (England) Regulations 2015. Regulation 2 substitutes a new Form No 3 for the equivalent form prescribed in the 2015 Regulations. Amendments have been made to Form No 3 to reflect the new ground for possession under section 8 of the Housing Act 1988, ground 7B, which was introduced by section 41 of the Immigration Act 2016. For the Amendment No 2 Regulations, click here For the 2015 Regulations, click here For s41 of the Immigration act 2016, click here

Private rental market statistics – England
On 17 November 2016 the Valuation Office Agency published statistics on the private rental market for England for 12 months to September 2016. London had the highest median monthly rent at £1,473, and the North East had the lowest median monthly rent at £480. These regions were consistently the highest/lowest across all bedroom categories, apart from Studio where the East Midlands had the lowest rents. The South East had the second highest median monthly rent, at £850. For the full statistics, click here

Right to Part Buy – Wandsworth proposes discounted purchase / rental scheme
On 28 November 2016 the executive of Wandsworth Council will consider Right to Part Buy proposals which, if approved, will be implemented from January, 2017. Under the proposals secure tenants not able to afford the full price of their council home would instead be able to purchase a proportion of it and pay a low rent on the rest. The percentage bought would reflect the proportion of the full £103,900 Right to Buy discount, so for example buying a 25% share would mean a discount of £25,975. There would also be the opportunity of purchasing additional shares, known as ‘staircasing’, up to 100% of the property over time. For more details, click here

Social housing policy – survey of providers’ views
On 18 November 2016 Civica published a report – ‘Changing Landscape for Social Housing’ – which surveyed the views of ‘100 senior decision makers in social housing providers’ and found that: 94% believe the government needs to improve its housing policy, with the current policy leaving them and the communities they serve at risk; 65% want central housing policy to focus on a broader range of tenures beyond home ownership and 49% want to see the annual 1% rent cut reduced or scrapped entirely. For the full findings, click here

Homes and healthcare – savings achieved in Nottingham
A service devised to get people in poor health into homes more suited to their needs is estimated to have saved Nottingham’s health, housing and care services more than £500,000 in nine months. The project is funded by NHS Nottingham City Clinical Commissioning Group and Nottingham City Council as part of the Integrated Care Programme, and is led by Nottingham City Homes and Nottingham CityCare Partnership. It has contributed to more timely discharge from hospitals and rehabilitation units across the city to free up inpatient beds for those with medical need. For more details, click here

HOUSING LAWS IN THE PIPELINE

Homelessness Reduction Bill
This is a Private Members’ Bill introduced in the House of Commons by Bob Blackman which seeks to amend the Housing Act 1996 to make provision about measures for reducing homelessness; and for connected purposes. The Bill has won the support of the Government; for the DCLG press statement in that respect, click here The Bill will enter Committee on 23 November 2016. It received its Second Reading on 28 October 2016; for a record of the debate, click here For the Bill as introduced, click here For progress of the Bill, click here The House of Commons Select Committee for Communities and Local Government has published a report following its pre-legislative scrutiny of the Bill; to read the report, click here For the Law Society’s parliament briefing on the Bill, click here

Renters’ Rights Bill
This is a Private Members’ Bill introduced in the House of Lords by Baroness Grender which seeks to provide tenants and prospective tenants with certain rights, including affording access to a local housing authority’s database of rogue landlords, ending certain letting fees and providing for certain mandatory electrical safety checks. The Bill had its Second Reading on 10 June 2016 and completed its Committee stage on 18 November 2016; for a record of the debate, click here It will next enter its Report stage on a date to be announced. For the Bill as amended in Committee, click here To read debates at all stages of the Bill’s passage, click here For progress of the Bill, click here

Crown Tenancies Bill

This is a Private Members’ Bill introduced in the House of Commons by Wendy Morton which seeks to provide that ​Crown tenancies may be assured tenancies for the purposes of the Housing Act 1988, subject to certain exceptions; to modify the assured tenancies regime in relation to certain Crown tenancies; and for connected purposes. The Bill is being prepared for publication and is due to have its Second Reading on 16 December 2016. For progress of the Bill, click here

Housing (Tenants' Rights) Bill
This is a Private Members’ Bill introduced by Caroline Lucas which seeks to establish a Living Rent Commission to conduct research into, and provide proposals for, reducing rent levels in the private rented sector and improving terms and conditions for tenants; to require the Secretary of State to report the recommendations of the Commission to Parliament; to introduce measures to promote long-term tenancies; to establish a mandatory national register of ​landlords and lettings agents; to prohibit the charging of letting or management agent fees to tenants; and for connected purposes. The Bill is being prepared for publication and is due to have its Second Reading on 20 January 2017. For progress of the Bill, click here

NEW HOUSING CASES

R (Cunningham) v Hertfordshire CC & Another [2016] EWCA Civ 1108
The appellant had previously issued a claim for judicial review challenging the failure of Hertfordshire County Council (“the Council”) to provide her with support for the care of her grandson [‘R’] who, it was argued, was a ‘looked after child’ for the purposes of Sections 20 to 22 of the Children Act 1989.

The appellant’s judicial review claim had been dismissed by Hickinbottom J and so she appealed to the Court of Appeal.

The prime factual issue between the parties was whether it should have appeared to the Council, on 17 October 2012, that R required accommodation because his mother was no longer able to provide him with it. Had the Council come to that conclusion and arranged accommodation for him, then after 24 hours R would have become a ‘looked after child’ with the consequence that various obligations upon the Council would have arisen, including the provision of financial support.

The Council’s argument was that R had never required accommodation on 17 October 2012 and thus never became a ‘looked after child’. R’s mother had made her own arrangements for his accommodation which involved R moving to reside with his grandmother, an arrangement which did not involve the Council.    

The appellant argued that there was no reason for the Council to conclude that she would accommodate R. On 17 October 2012, the appellant was prepared to accommodate R on an emergency basis but the Council knew nothing of the terms upon which she was prepared to do so. She took in R on a short-term basis but, by force of circumstance (the mother being remanded in custody), it became a long-term arrangement.

Lady Justice Black and Lord Justice Burnett reviewed the statutory duty under section 20(1) of the 1989 act. That duty arises when it appears to the local authority that a child in need in their area requires accommodation. The Court commented that only then are the local authority obliged to provide accommodation, and that that is an intensely fact-sensitive enquiry, which is for the local authority to assess.

The Court of Appeal concluded that Hickinbottom J had been correct to find on the facts of this case that there was no legal flaw in the Council’s conclusion that the trigger for the section 20(1) duty to arise was not present on 17 October 2012. R was housed on that date. The likely duration of the need for accommodation does not determine the answer to the question of whether it should appear to the local authority that a child requires accommodation. For the full judgment click here.

Summary by Patrick Paisley, barrister, 1 Garden Court Family Law Chambers


Brent Council report enforcement leading to “Crack- house” Closure
Residents’ complaints about nuisance behaviour at a property including fighting, a constant flow of visitors day and night as well as drug odours emanating from communal areas prompted enquiries by officers from Brent Council’s Anti-Social Behaviour Team and the local policing team. The Council reports that following investigations a closure notice was issued leading to an order being made at Willesden Magistrates’ Court on 17 November. For the full report click here.

Cambridge City Council Announces HMO amnesty following successful prosecution
Cambridge City Council reports three successful prosecutions of local landlords for offences relating to HMOs. The first relates to HMO offences related to overcrowding and dangerous living conditions resulted in a fine of £3,925 and an order to pay costs of £938 and a victim surcharge of £179. The second concerns multiple breaches of HMO regulations, including a defective fire door, a leaking toilet, large collections of waste in the front and rear gardens and damp in the front and rear of the property because of lack of gutter maintenance. A fine was imposed of of £3,750 plus costs of £2,112 and a victim surcharge of £120. The third landlord had failed to licence a HMO and was fined £11,000 and ordered to pay cots of £1,777 and a victim surcharge of £170.

The Council’s report announces a temporary amnesty running from 14 November 2016 to 31 January 2017 for any HMOs which are three or more storeys high with five or more tenants that are currently not licensed.  For further details of the prosecutions and the temporary amnesty click here.

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HOUSING LAW CONSULTATIONS

Houses in multiple occupation and residential property licensing
The DCLG has opened a consultation on extending the mandatory licensing of houses in multiple occupation. The consultation seeks views on the Government’s proposed details for: the mandatory licensing of houses in multiple occupation; the assumptions made in its associated impact assessment; national room sizes; the fit and proper person test; refuse disposal facilities; and purpose built student accommodation. For the consultation document, click here To respond online, click here  The consultation closes on 13 December 2016.

Regulations and policy supporting the Private Housing (Tenancies) (Scotland) Act 2016
The Private Housing (Tenancies) (Scotland) Act 2016 creates the new private residential tenancy which will replace current assured and short assured tenancies. The purpose of the new tenancy is to improve security of tenure for tenants balanced with appropriate safeguards for landlords, lenders and investors. This consultation seeks views on the secondary legislation and further policy to support the new tenancy. The policy proposals outlined in this document are complimentary to the provisions in the 2016 Act. For the consultation document, click here To respond online, click here The consultation closes on 25 December 2016.

Recovery of Capital Grant from Unregistered Bodies General Determination 2017
The consultation paper concerns the making of a new determination by the Homes and Communities Agency to recover Social Housing Assistance given to unregistered bodies only. It seeks views on a new determination to recover capital grant given to Unregistered Bodies (bodies that are not registered with the Social Housing Regulator as Registered Providers of Social Housing). Consultees are invited to comment on the proposed set of changes, which are shown in the form of a draft Determination included in the body of the consultation paper. For the consultation document, click here Directions for responding are set out in the document. The consultation closes on 30 November 2016.

Funding for supported housing
On 21 November 2016 the DCLG and DWP launched a consultation seeking views on the government’s plans for a new housing costs funding model for supported housing as well as views on how funding for emergency and short term placements should work. It covers the following areas: devolved top-up funding to local authorities in England; and funding for emergency and short term supported housing placements across Great Britain. At the same time the government has published an evidence review of supported accommodation in Great Britain which seeks to provide a helpful insight into the estimated scale, scope and cost of the sector which respondents may find useful in responding to the consultation. For the consultation, click here For the evidence review, click here The consultation closes on 13 February 2017.

HOUSING LAW ARTICLES & PUBLICATIONS

Initial Requirements and late prescribed information Giles Peaker [2016] Nearly Legal 15 November. To read this article, click here

Redfern review into housing: worth building on? Nils Pratley [2016] Guardian 15 November. To read this article, click here

UK housing review downplays developers' role in crisis, critics say Graham Ruddick [2016] Guardian 16 November. To read this article, click here

There can be no social mobility without more affordable housing Chris Goulden [2016] Joseph Rowntree Foundation Blog 17 November. To read this article, click here

Number of affordable homes built in England slumps to 24-year low Damien Gayle [2016] Guardian 17 November. To read this article, click here

Permitted Development Rights: A wolf in sheep’s clothing? Marcus McPhillips [2016] Shelter Blog 17 November. To read this article, click here

Recent Developments in Housing Law Jan Luba QC & Nic Madge [2016] November issue of Legal Action. Available in print and on-line for Legal Action subscribers. For the latest issue, click here For back-issues, click here

50% affordable housing in London – really revolutionary? Sheridan Treger and Tim Hellier[2016] Local Government Lawyer 17 November. To read this article, click here

Why should the Government improve land market transparency? Catharine Banks [2016] Shelter Blog 18 November. To read this article, click here

5 maps that show you just how bad the 2015/16 affordable housing stats are John Bibby [2016] Shelter Blog 21 November. To read this article, click here

Renters vary across the country; government housing investment needs to as well Sara Mahmoud [2016] Shelter Blog 21 November. To read this article, click here

Market Watch: Can Redfern achieve the impossible?
Andrew Montlake [2016] Mortgage Strategy 21 November. To read this article, click here

THE HOUSING LAW DIARY

23 November 2016        
Deadline for registration by residential landlords in Wales

30 November 2016        
Consultation closes on Recovery of Capital Grant from Unregistered Bodies General Determination 2017 (see Housing Law Consultations)


13 December 2016        
Consultation closes on houses in multiple occupation and residential property licensing (see Housing Law Consultations)

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