11th September 2019
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HOUSING LAW NEWS & POLICY ISSUES
 

Prorogation of Parliament: effect on public bills
On 9 September 2019 the UK Parliament was prorogued, subject to an appeal to the Supreme Court which is due to be heard on 17 September 2019. The next session of Parliament is scheduled to commence on 14 October 2019 with the Queen’s Speech. Generally, bills in progress cannot be carried over from one session into the next unless a carry-over motion is passed. Without such a motion, they must be abandoned or reintroduced from scratch in the next parliamentary session. As of 9 September 2019, there were in progress numerous private members’ bills relating to housing. On 5 September 2019, various charities wrote to the Prime Minister seeking assurance that the Domestic Abuse Bill (a government bill) would not be dropped; at the time of going to press, there had not been a reply. For an explanation of the effect of prorogation on legislation, click here.

Spending Round and responses
On 4 September 2019 the Chancellor of the Exchequer, Sajid Javid, delivered the  Spending Round to Parliament. It set out departmental spending plans for 2020-2021. The settlement for the MHCLG included an additional £54 million to help reduce homelessness and rough sleeping. For full details, click here (MHCLG spending is covered in section 2.10). For the government’s summary, click here.

For comment by Terrie Alafat on behalf of CIH, click here. For the response of the Local Government Association, click here.

Fraudster who claimed to be Grenfell resident jailed
On 5 September 2019 the Crown Prosecution Service reported that a pharmacist technician who posed as a Grenfell Tower resident and carried out a fraud worth more than £75,000 has been jailed for three-and-a-half years. Daniel Steventon claimed he had been flat-sharing with another resident and had therefore been displaced by the fire. The resident whom Steventon said he had lived with had died in the fire.

Steventon presented himself as a victim of the fire and was put up in the Mercure Kensington Hotel with all costs paid for by the council. Between August 2017 and May 2018 Kensington and Chelsea Council paid out a total amount of £75,285 in hotel costs, food allowance at the hotel and bank payments. For the report, click here.

Select committee social housing inquiry
On 9 September 2019 the Commons Housing, Communities and Local Government Select Committee heard from campaigners representing Shelter, the Chartered Institute of Housing and the National Housing Federation, and academics as part of its inquiry into the effectiveness of the government’s current strategies to boost social and affordable housing provision. For details of the inquiry, click here.

Civil Justice Council consultation on vulnerable witnesses and parties in civil proceedings
On 3 September 2019 the Civil Justice Council launched a consultation on its report and recommendations for change in respect of vulnerable witnesses and parties in civil proceedings. The Council has approached the task by detailed consideration of the nature and extent of assistance that is currently provided in the criminal, family and civil jurisdictions and then, given their different approaches, assessing the extent to which changes are required within civil practice and procedure. The consultation period is open until 11 October 2019. For the consultation, click here.

Tenancy deposit schemes
On 2 September 2019 the House of Commons Library published a briefing paper explaining the duty on private landlords to protect tenants’ deposits and summarising how the schemes operate. The government has legislated to cap security deposits in England and has issued a call for evidence on barriers to moving deposits between tenancies (the consultation closed on 5 September 2019). For the briefing paper, click here. For the consultation document, click here.

Legal aid housing lawyers
On 5 September 2019 the Legal Aid Agency published an updated directory of legal aid providers, including housing specialists. For the directory, click here.

Empty Dwelling Management Orders
On 5 September 2019 the House of Commons Library published a research briefing explaining local authorities' powers to tackle privately owned dwellings that have been empty for two years through the imposition of an Empty Dwelling Management Order whose purpose is to bring such properties back into use. For the briefing, click here.

Sprinklers in high-rise blocks of flats
On 5 September 2019 the MHCLG announced proposals for requiring sprinklers in new buildings of 18 metres in height (approximately six floors) and above, reduced from the current 30 metres (approximately ten floors). A new Protection Board is being set-up immediately with the Home Office and National Fire Chiefs Council to provide further reassurance to residents of high-risk residential blocks that any risks are identified and acted upon. For the announcement, click here. For the consultation, click here.

‘Pet rent’ charged by landlords
On 3 September 2019 The Guardian reported that since the introduction of the Tenant Fees Act 2019, some landlords “are charging ‘pet rent’ running into hundreds of pounds a year in an attempt to recoup losses from [the] ban on unfair letting fees”. For the report, click here.

Birmingham issues first civil penalty against HMO landlord
On 2 September 2019 Birmingham City Council announced that it had issued its first civil penalty against a House in Multiple Occupation (HMO) landlord in the Small Heath area. The landlord was ordered to pay £2,000 for failure to fit the property with appropriate fire safety measures. The property which, housed nine people, was also found to be operating without a licence. While the council’s new civil enforcement policy brings powers to issue fines of up to £30,000, mitigating factors can be taken into account by officers. In this instance, the immediate co-operation of the landlord with the investigation and the swift completion of the works to the property to a high standard meant that the fine was reduced. For the council’s report, click here.

Universal Credit: impact on tenants and landlords
On 6 September 2019 the Association of Retained Council Housing and the National Federation of ALMOs published the findings from their latest survey into the impact of Universal Credit on landlords and tenants. Thirty-nine local authorities and ALMOs responded to the survey this year, managing over half a million homes. The survey found:

  • Twelve per cent of households were on UC (up from 4 per cent last year).
  • Thirty per cent of households had arrears of rent, owing, on average, four weeks rent.
  • Twenty-one per cent of households on housing benefit had arrears, owing three weeks rent.
  • Sixty-seven per cent of households on UC had arrears, owing seven weeks rent.

For the survey, click here.

‘Right to rent” judicial review appeal
On 4 September 2019 Landmark Chambers reported that the appeal by the Secretary of State against the High Court’s judgment in R (Joint Council for the Welfare of Immigrants) v Secretary of State for the Home Department [2019] EWHC 452 (Admin) is listed to be heard in the Court of Appeal on 14 and 15 January 2020. The Residential Landlords Association has been granted permission to intervene in the appeal. The High Court held that the government’s ‘right to rent’ policy was incompatible with the Human Rights Act. For the judgment, click here.
HOUSING LAWS IN THE PIPELINE
 

The UK Parliament returned from recess on 3 September 2019. Parliament was prorogued on 9 September. Subject to legal challenge (see Housing Law News and Policy Issues), the next session is scheduled to commence on 14 October with the Queen’s Speech. This section sets out the state of progress of each of the various housing-related bills immediately prior to prorogation.

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
 

Ending the Scandal: Labour’s new deal for leaseholders
The Labour Party has published plans to end leasehold ownership of houses and flats. It proposes five key changes:

  1. End the sale of new private leasehold houses with direct effect and the sale of private leasehold flats by the end of the party’s first term in Government.

  2. End ground rents for new leasehold homes, and cap ground rents for existing leaseholders at 0.1 per cent of the property value, up to a maximum of £250 a year.

  3. Set a simple formula for leaseholders to buy the freehold to their home, or commonhold in the case of a flat, capped at 1 per cent of the property value.

  4. Crack down on unfair fees and contract terms by publishing a reference list of reasonable charges, requiring transparency on service charges and giving leaseholders a right to challenge rip-off fees and conditions or poor performance from service companies.

  5. Give residents greater powers over the management of their homes, with new rights for flat owners to form residents associations and by simplifying the Right to Manage.
The document sets out a series of questions to which the party seeks responses by 30 September 2019. For the consultation document, click here.

A new deal for renting: resetting the balance of rights and responsibilities between landlords and tenants
On 15 April 2019, the government announced that it will put an end to so called ‘no-fault’ evictions by repealing section 21 of the Housing Act 1988. Under the new framework, a tenant cannot be evicted from their home without good reason. The government says that this will provide tenants with more stability, protecting them from having to make frequent moves at short notice, and enabling them to put down roots and plan for the future. The government also proposed to strengthen the section 8 eviction process, so landlords are able to regain their property should they wish to sell it or move into it themselves. This will provide a more secure legal framework and a more stable rental market for landlords to remain and invest in.

This consultation seeks views on how section 21 of the Housing Act 1988 has been used in the past, and the circumstances in which landlords should be able to regain possession once it has been abolished, including what changes may be necessary to the existing grounds for possession in Schedule 2 to the Housing Act 1988.

The government is also inviting views on the implications of removing the ability of landlords to grant assured shorthold tenancies in the future, how the processing of repossession orders through the courts could be improved, and whether the reforms should be extended to other types of landlords, most notably, to housing associations.

The consultation closes on 12 October 2019. For the consultation document, click here.

Rogue landlord database reform
​The database of rogue landlords and property agents was introduced in April 2018. The database is targeted at only the most serious and prolific criminals, who are convicted of the limited range of banning order offences. The database is currently an enforcement tool available to local authorities, except in certain circumstances where anonymised, aggregated data can be requested by the public.

In October 2018 the Prime Minister committed to opening up access to information on the database of rogue landlords and property agents to tenants. This consultation is seeking views on widening access to the database to allow tenants and prospective tenants access to the database. To ensure that the database is a useful tool for local authorities and tenants, we are also seeking views on expanding the scope of offences and infractions which could lead to entries on the database.

Annex A contains the current list of offences and infractions which lead to inclusion on the database. Annex B contains a list of proposed offences and infractions for inclusion on the database.

The consultation closes on 12 October 2019. For the consultation document and annexes, click here.

Mobile homes: a fit and proper person test for park home sites
In 2018, following a review of park homes legislation, the government gave a commitment to introduce a fit and proper person test for site licence holders and managers of park home sites in England, subject to a technical consultation. The purpose of the test is to improve the standards of park home site management. This consultation is intended to ensure that the regulations will support effective operation of the fit and proper person test in practice. The consultation closes on 17 September 2019. For the consultation document, click here.

Homelessness Reduction Act 2017: call for evidence
The Government regards the Homelessness Reduction Act as a key lever for reducing homelessness and helping to halve rough sleeping by 2022 and ending it altogether. This call for evidence seeks to gather evidence on:

  • the impact the Act has had and the outcomes that are being achieved;
  • how has the Act changed the approach of local housing authorities and their partners to tackling homelessness and supporting those in need;
  • the experience of people approaching their local housing authority for help;
  • how the implementation of the Act has been resourced, including the level of new burdens funding to assist this; and
  • what elements of the Act and processes are working well, and which might need adjustment.

The consultation closes on 15 October 2019. For the consultation document, click here.

New national model for shared ownership
The government is reviewing a new national model for shared ownership to make it easier for people to buy more of their own home, including allowing them to buy in 1 per cent increments.

The MHCLG is seeking views on:

  • making it easier to increase the share a person owns: allowing owners to purchase shares in much smaller increments
  • making it easier to sell the home: by giving the owner more control over the sales process
  • making it easier to get a mortgage: by ensuring there is one preferred national model for shared ownership.

The consultation closes on 29 September 2019. For the consultation document, click here.

Sprinklers and other fire safety measures in new high-rise blocks of flats
On 5 September 2019 the MHCLG launched a consultation outlining the government’s intention to reduce the “trigger height” at which sprinkler systems would be required in new high-rise blocks of flats and asking for views on the trigger height options. It also seeks views on proposals to improve wayfinding signage within blocks of flats, and to install evacuation alert systems for use by fire and rescue services. The consultation closes on 28 November 2019. For the consultation document, close here.

HOUSING LAW ARTICLES & PUBLICATIONS
 

Whose windows are these? Andrew Peaker Nearly Legal 2 September 2019 – to read the article, click here

Updated section 21 flowchart Andrew Peaker Nearly Legal 3 September 2019 – to read the article, click here

The Renting Homes (Fees etc) (Wales) Act – It’s here Tanya Barrett Blake Morgan blog 5 September 2019 – to read the article, click here

Airbnb and social tenancies Andrew Lane Local Government Lawyer 6 September 2019 – to read the article, click here

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

HOUSING LAW DIARY
 

17 September 2019                              
Closing date for submissions on the government’s consultation on mobile homes: a fit and proper person test for park home sites (see Housing Law Consultations)

29 September 2019                              
Closing date for submissions on the government’s consultation on a new national model for shared ownership (see Housing Law Consultations)

30 September 2019                              
Closing date for submissions to the Labour Party’s consultation on Labour’s new deal for leaseholders (see Housing Law Consultations)

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