10th July 2019
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HOUSING LAW NEWS & POLICY ISSUES
 

Leasehold reform: government response to the Select Committee report
On 3 July 2019 the MHCLG published its response to the HCLG Select Committee’s report on leasehold reform published on 20 March 2019. The Government agrees with the following measures recommended in that report:

  • give clearer information to consumers on how to buy and sell leasehold properties;
  • consider the Committee’s views on commonhold in light of the Law Commission’s report;
  • work with developers on a standardised ‘key features’ document so consumers have clear details on the lease before they buy;
  • remove any financial value from future ground rent;
  • ensure the Law Commission is able to fully consider the application of unfair terms;
  • update planning guidance to state there should be clear and transparent agreement between developers and local authorities on public areas and utilities to be adopted;
  • consider the Committee’s recommendations on permission fees, major works (including a code of practice) and other charges in light of Lord Best’s report (due later this summer);
  • explore further the best means to challenge unjustifiable legal costs, including what changes to legislation are needed;
  • explore legal changes to forfeiture by asking the Law Commission to update their work on forfeiture;
  • extend mandatory membership of a redress scheme to all freeholders of leasehold properties;
  • implement improvements to enfranchisement as soon as possible.

Clive Betts, chair of the HCLG Select Committee, welcomed the Government’s response but said:
“[W]e believe that the Government need to do more to intervene on behalf of leaseholders who continue to be trapped in leasehold properties they cannot re-mortgage or sell.”
For the Select Committee’s report, click here. For the Government’s response, click here. For Clive Betts’s comments in full, click here.

Leasehold and commonhold reform
On 6 July 2019 the House of Commons Library published a briefing paper considering trends in leasehold ownership and ongoing problems associated with the sector. The Government has committed to legislate in this area. In September 2018 the Law Commission published detailed proposals on leasehold enfranchisement and lease extensions; in December 2018 it launched an additional consultation exercise on commonhold; and in January 2019 it opened a consultation on the Right to Manage. On 27 June 2019 the Government announced proposals to legislate to tackle onerous ground rents and to ban the sale of leasehold houses (see above). Legislation is promised "as soon as Parliamentary time allows". For the briefing paper, click here.

Support for Grenfell survivors: Select Committee hears from Grenfell United
On 8 July 2019 the  HCLG Select Committee heard from Grenfell United and a range of organisations involved in building construction and management. The session afforded the committee the opportunity to hear from survivors about their present experience, including the quality of the permanent accommodation provided to residents and the adequacy of wider support, particularly mental health provision. The Committee also looked at relations with Kensington and Chelsea Council, and how residents can be given a stronger voice in the management of their buildings in the future.

The session scrutinised proposals made by the Government in its consultation into reform of the building safety regulatory system, and considered the Government’s wider work to remediate existing buildings with potentially dangerous cladding. To watch the session, click here.

Leaseholders in social housing: paying for major works – England
On 5 July 2019 the House of Commons Library published an explanation of the assistance available to assist long leaseholders of social landlords in paying for major works. In August 2014 the Coalition Government introduced a cap on the amount that can be recovered from these long leaseholders where the work has been carried out with funding from central Government. The cap has been referred to as "Florrie's law." The HCLG Select Committee has recommended the introduction of a Code of Practice for social landlords. For the HoC Library paper, click here.

Housing Ombudsman
On 4 July 2019 the HCLG Select Committee endorsed Richard Blakeway’s appointment to the position of Housing Ombudsman, subject to him resigning from his roles at Home England and BexleyCo Ltd, and ensuring that Tudor Blakeway Consultants Ltd is not active for the duration of his appointment. The Committee will evaluate Mr Blakeway’s performance against his ambitions as stated to it by conducting a follow-up evidence session six months after his appointment. For the Committee’s report, click here.

Decent and accessible homes for older people
On 4 July 2019 the All-Party Parliamentary Group for Ageing and Older People launched a report Decent and accessible homes for older people. The report was published after an in-depth inquiry to understand the detrimental impact of poor housing on older people's physical, mental and social wellbeing. The report contains thirteen recommendations that look at the impact of poor quality, inaccessible housing on health, issues in supported housing and the private rented sector and the importance of home improvement agencies. For the report, click here.

Tenant involvement – Wales
On 3 July 2019 the Regulatory Board for Wales published three reports as part of its review of tenant engagement. One paper was commissioned to support the review in relation to understanding the current landscape of tenant involvement/ engagement. For that report, click here. A second was commissioned to conduct a survey and focus groups with residents, staff, board members and other stakeholders in social housing in Wales, to research resident engagement, focusing on aspirations now and in the future. For that report, click here. The RBW also published a review entitled The Right Stuff – Hearing the Tenants’ Voice. For that review, click here.

No-fault evictions – Wales
On 4 July 2019 the Welsh Minister for Housing, Julie James, announced at the Shelter Cymru Conference that the Welsh Government is to consult on extending the notice period for ‘no-fault’ evictions of private renters from two to six months. Under Section 173 of the Renting Homes (Wales) Act 2016 (the equivalent of Section 21 of the Housing Act 1988), private landlords cannot repossess properties in Wales during the first six months of the tenancy. Extending the subsequent notice period to six months would, in effect, forestall any repossession until twelve months had elapsed. For areport in Welsh Housing Quarterly, click here. For the response of the Residential Landlords Association, click here.

Prison release protocol guidance to reduce the risk of homelessness
On 5 July 2019 the MHCLG published a report offering guidance on how local authorities and criminal justice stakeholders can start to develop prison release protocols. It complements the published ‘duty to refer’ guidance for the Homelessness Reduction Act and provides practical suggestions on developing and implementing prison release protocols. Protocols are designed to guide stakeholders on the steps they can take to reduce the risk of homelessness for offenders upon release from prison. 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

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 was due to take place on 1 February 2019 but Parliament did not sit on that day and the second reading will now take place on a date to be announced. 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 and was due to receive its second reading on 23 November 2018 but was not called. 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 and was due to receive its second reading on 23 November 2018 but was not called. 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 was due to receive its second reading on 23 November 2018 but was not called. The Bill itself has not yet been published. 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. Second reading had been further postponed until 22 March 2019 but the Bill was not called. The Bill is now expected to have its second reading debate on a date to be announced. 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. Second reading has been postponed to a date to be announced. 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. Second reading has been postponed to a date to be announced. For the Bill as introduced, click here 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. Second reading has been further postponed and will now take place on a date to be announced. For the Bill as introduced, 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. Second reading has been postponed to a date to be announced. The Bill is being prepared for publication. To follow progress of the Bill, click here

Freehold Properties (Management Charges and Shared Facilities) Bill
This Private Members' Bill, sponsored by Helen Goodman, seeks to make provision for the regulation of fees charged by management companies to freeholders of residential properties; to make provision for self-management of shared facilities by such freeholders; and to require management companies to ensure shared facilities are of an adequate standard. It received its first reading on 14 November 2018. Second reading has been further postponed and is now expected to be on a date to be announced. The Bill is being prepared for publication. To follow progress of the Bill, click here

Fire Safety (Leasehold Properties) Bill
This Private Members' Bill, sponsored by Marsha De Cordova, would require freeholders of certain properties that have failed fire safety tests to carry out remedial work; to make provision for sanctions for such freeholders who fail to carry out such work; to ensure that leaseholders are not held liable for the costs of such work; and to make provision for a loan scheme to assist freeholders in carrying out such work. It received a first reading on 28 November 2018 and will have its second reading on a date to be announced. To follow progress of the Bill, click here.

Tenancy (Deposits and Arbitration) Bill
This Private Members' Bill, sponsored by Lloyd Russell-Moyle, would establish a single custodial tenancy deposit scheme; to provide for that scheme to invest deposits; to require interest on such investments to be used for the provision of tenant advocacy, tenant support and arbitration services; to establish a mandatory arbitration service for the resolution of disputes between landlords and tenants. The Bill received its first reading in the House of Commons on 13 March 2019. The second reading is scheduled to take place on a date to be announced. The Bill is being prepared for publication. To follow progress of the Bill, click here.

Freehold Properties (Management Charges) Bill
This Private Members' Bill, sponsored by Preet Kaur Gill, would require landlords to provide accounts of management charges payable under section 19 of the Leasehold Reform Act 1967 to freehold property owners. The Bill received its first reading in the House of Commons on 5 June 2019. The second reading is yet to be scheduled. The Bill is being prepared for publication. To follow progress of the Bill, click here.

Ground Rents (Leasehold Properties) Bill
This Private Members' Bill, sponsored by Eddie Hughes, would regulate ground rents charged on leasehold properties; make provision for a cap on ground rents; and make property developers liable for the legal costs of leaseholders seeking to vary certain ground rent contracts. The Bill received its first reading in the House of Commons on 25 June 2019. The second reading is yet to be scheduled. The Bill is being prepared for publication. To follow progress of the Bill, click here

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HOUSING LAW CONSULTATIONS
 

Consultation on a new Rent Standard from 2020
The Regulator of Social Housing is proposing to replace the existing 2015 Rent Standard with a new Rent Standard for registered providers of social housing from 1 April 2020. The proposed changes have come about as a result of the Secretary of State for Housing, Communities and Local Government issuing a Direction in February 2019 to the Regulator of the Social Housing to set a new Rent Standard. The new Standard will also have regard to the Rent Policy Statement published alongside the Direction. The consultation closes on 30 July 2019. For the consultation document, click here.

Support for victims of domestic abuse in safe accommodation
This paper seeks views on the government’s proposals for a new approach to support victims of domestic abuse and their children in accommodation-based services in England. It is consulting on a new delivery model for accommodation-based support. This includes the introduction of a statutory duty on local authorities to provide support that meets the diverse needs of victims of domestic abuse and their children, ensuring they have access to provision that is right for them.
Views are sought on:

  • the definition of accommodation-based services and support
  • leadership and responsibilities
  • local and national accountability
  • guidance.

The government would like to hear from victims and survivors, service providers, local authorities, police and crime commissioners and other public agencies, as well as other professionals who support victims and their children.

The consultation closes on 2 August 2019. For the consultation document, click here.

Building a safer future: proposals for reform of the building safety regulatory system
This consultation builds on the recommendations from Dame Judith Hackitt’s Independent Review of Building Regulations and Fire Safety. It proposes fundamental reform of building safety requirements so that residents are safe, and feel safe, in their homes. The proposals span five broad areas:

  • the scope of the new regime
  • the concept of duty holders who have clear responsibilities throughout a building’s design, construction and occupation
  • giving residents a stronger voice in the system and ensuring their concerns are never ignored
  • plans for a new building safety regulator to provide oversight of the new building safety regulatory regime
  • strengthened enforcement and sanctions to deter non-compliance with the new regime.

The Home Office, simultaneously with this document, has issued a call for evidence on the Regulatory Reform (Fire Safety Order) 2005. The consultation closes on 31 July 2019. For the consultation document, click here.

Inquiry into long-term delivery of social and affordable rented housing: Commons Select Committee
On 31 May 2019 the Commons Select Committee on Housing, Communities and Local Government announced a new inquiry into the effectiveness of the Government’s current strategies to boost social and affordable rented housing provision. This will include the adequacy of funding levels, as well as programmes and incentives for key stakeholders, such as local authorities and housing associations, to stimulate delivery. The Committee will also look at the challenges facing different areas of the country and consider what lessons can be learnt from successful schemes in other countries. The Committee invites written submissions to the inquiry by 12 July 2019, addressing the following terms of reference:

  • How can the Government ensure the sustainable delivery of social and affordable rented housing to meet long-term need and contribute to the Government’s overall housebuilding targets?
    • What levels of central government funding will be required to support this delivery over the next 10 years?
    • How effective existing government incentives and programmes are and what further incentives should the Government provide to key stakeholders to stimulate delivery?
    • Are supply subsidies the best way of supporting delivery, or should other approaches be considered?
  • What should the role of (a) local authorities, as enablers and providers, (b) Homes England (c) housing associations and (d) other providers be in that long-term delivery?
  • How does the Government ensure long-term provision (a) meets the needs of tenants and (b) is adequately regulated?
  • How can the Government’s approach to delivery best meet the different needs of individual regions and area?
  • What lessons can be learned from alternative approaches to social and affordable rented housing delivery in other countries and jurisdictions?

For more details of the inquiry, click here.

Renting Homes (Fees etc.) (Wales) Act 2019: default fees and prescribed information
The Welsh Government is consulting on making two sets of regulations under paragraph 6 of Schedule 1, and paragraph 11 of Schedule 2, to the Renting Homes (Fees etc.) (Wales) Act 2019:

  • To prescribe the description and the limits of payments in default which are to be regarded as permitted payments.
  • To specify information a landlord (or their agent) should provide to a prospective tenant before a holding deposit is taken.

The consultation closes on 19 July 2019. For the consultation document and for methods of responding to it, click here.

Changes to the intervention, enforcement and use of powers guidance by Regulator of Social Housing
The Regulator of Social Housing is running a consultation, closing on 16 August 2019, on changes to its guidance on intervention, enforcement and use of powers. The proposed updates reflect legislative changes, including the introduction of the Housing and Administration regime, the Co-operative and Community Benefit Societies Act 2014 and the move to a standalone status for the Regulator. The guidance sets out the Regulator’s general approach to intervention and enforcement of registered providers and reinforces the high-level objectives and principles underpinning its approach to dealing with poor performance in a rapidly-changing social housing sector. For the consultation document and annexes, click here.

Tenancy deposit reform: a call for evidence
This call for evidence seeks to understand the barriers tenants face providing a second deposit when moving from one tenancy to the next. It looks at what can be done to speed up the return of deposits to tenants at the end of the tenancy.

It considers whether existing initiatives to address deposit affordability are meeting tenants’ needs and whether the market can offer improved products. It also explores innovative approaches that could be taken to help tenants move more easily, including allowing tenants to passport their deposit between tenancies.

The call for evidence, which closes on 5 September 2019, builds on the work of the Tenancy Deposit Protection Working Group, which has been looking at whether improvements can be made to deposit protection to the benefit of tenants and landlords. For the consultation document, click here.

Redress for purchasers of new build homes and the New Homes Ombudsman
This consultation, which closes on 22 August 2019, seeks views on a New Homes Ombudsman and the detail of proposed legislation to provide better redress for purchasers of new build homes. This includes the design and delivery of the New Homes Ombudsman, its powers, remit and how to fund it. The consultation also seeks views on whether a Code of Practice should also be underpinned in statute. For the consultation document, click here
HOUSING LAW ARTICLES & PUBLICATIONS
 

How can we make homes safe and inclusive for LGBT+ residents? Tina Wathern NHF Blog 2 July 2019 – to read the article, click here

The fight for fair housing is finally shifting power from landlords to residents David Madden The Guardian 3 July 2019 – to read the article, click here

Applying for without notice injunctions Sian Evans Public Law Today 5 July 2019 – to read the article, click here

Tenant consultation in housing regeneration Karl Edwards Local Government Lawyer 5 July 2019 – to read the article, click here

Putting affordability at the heart of how we set rents in Wales Clarissa Corbisiero 24 Housing 5 July 2019 – to read the article, click here

Housing: recent developments
Sam Madge-Wyld and Jan Luba QC Legal Action July / August 2019 – to read the article (subscription required), click here

HOUSING LAW DIARY
 

10 July 2019                                         
Housing (Right to Buy) (Designated Rural Area and Designated Region) (England) Order 2019 comes into force

12 July 2019                                         
Closing date for submission to the Commons HCLG Committee’s inquiry into long-term delivery of social and affordable rented housing (see Housing Law Consultations)

19 July 2019                                         
Closing date for submission to the Welsh Government’s consultation on Renting Homes (Fees etc.) (Wales) Act 2019: default fees and prescribed information (see Housing Law Consultations)

30 July 2019                                        
Closing date for submissions to the consultation on a new Rent Standard from 2020 (see Housing Law Consultations)

31 July 2019                                        
Closing date for submissions to the consultation on building a safer future: proposals for reform of the building safety regulatory system (see Housing Law Consultations)

2 August 2019                                      
Closing date for submission to the consultation on support for victims of domestic abuse in safe accommodation (see Housing Law Consultations)

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