20th March 2019
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HOUSING LAW NEWS & POLICY ISSUES
 

Revenge evictions
On 18 March 2019 The Guardian reported research by Generation Rent which found that only one in twenty private tenants who complain to their council about poor living conditions gets protection from eviction by their landlord. Ninety-nine English councils responded to the housing campaign group’s FOI request. The councils received a total of 67,026 complaints about housing in 2017-18. Those complaints resulted in 3,043 improvement notices on landlords, by which 5 per cent of those tenants were protected from eviction (because section 21 evictions are invalid for six months after a council has served an improvement notice on the relevant property). For the Guardian article, click here.

Deaths of homeless people
On 11 March 2019 the Bureau of Investigative Journalism reported research shared with it by University College London, which found that “nearly a third of homeless people die from treatable illnesses, such as tuberculosis, pneumonia or gastric ulcers which could potentially have improved with the right medical care.” The research stated that homeless people were twice as likely to die of strokes as the poorest people who had proper accommodation. A fifth of the 600 deaths explored by UCL were caused by cancer. Another fifth died from digestive diseases such as intestinal obstruction or pancreatitis. For the Bureau’s article, click here.

Client money protection for letting and managing agents
On 12 March 2019 the MHCLG published guidance confirming that the government has approved the following client money protection (CMP) schemes for letting and property management agents in the private rented sector: Client Money Protect; Money Shield; NALS Client Money Protection; Propertymark; and UKALA Client Money Protection. The guidance contains links to each of those bodies. The guidance reminds letting and property management agents in the private rented sector who hold client money, that they are required to belong to a government-approved CMP scheme by 1 April 2019. Agents must also:

  • hold client money in a client money account with a bank or building society authorised by the Financial Conduct Authority (or be making all reasonable efforts to do so: CMP schemes are permitted to offer a grace period until 1 April 2020 to allow agents to open such accounts)
  • hold and maintain appropriate professional indemnity insurance
  • have appropriate client money protection handling procedures
  • obtain a certificate confirming membership of an approved CMP scheme and display this prominently in each of their offices where they deal with the public and on their website
  • provide a copy of the certificate to any person who may reasonably require it, free of charge.

CMP schemes may set additional requirements on membership. For details of the guidance, click here.

Zoopla to end ‘No DSS’ wording in rental adverts
On 15 March 2019 Zoopla announced that it is removing ‘No DSS’ wording in rental listings in an effort to help stop blanket restrictions on renters who receive housing benefit. The decision supports the recommendations from the National Landlords Association and Residential Landlords Association and has been backed by Shelter. Technical measures will be implemented in the coming weeks to remove ‘No DSS’ references from new and existing listings on the website.

The Commons Select Committee on Work and Pensions will return to the commitments made by Natwest and Zoopla when it hears oral evidence from lenders, landlords, agents and benefit recipients. Natwest and Co-op Banks, Kensington Mortgages, Nationwide Building Society, Shepherd’s Bush Housing Group, Hunters and YourMove estate agents, and OpenRent ad platform were invited to attend Parliament to give evidence on their policies, and the Committee will also hear from a panel of benefit claimants and private landlords. The Committee has postponed the session originally scheduled for 20 March 2019. A new date will be announced as soon as possible.

For Zoopla’s announcement, click here. For details of the Select Committee’s investigation into ‘no DSS’ discrimination, click here.

Councils to use borrowing powers to accelerate homebuilding: LGA survey
On 14 March 2019 the Local Government Association published the results of a survey in which 94 per cent of housing stock-owning councils (59) said that they will use their new powers to borrow and invest in order to accelerate or increase their housebuilding programmes. The survey also reveals that:

  • Responding councils called for reform of Right to Buy (RtB) so that they have the power to retain 100 per cent of RtB receipts and to set discounts locally.
  • 97 per cent said more national advice and guidance is needed, while others saw homelessness as a key driver behind building more homes, with 81 per cent of respondents saying additional future housing supply would help address homelessness in their area.
  • The growing national and local skills gap was also a cause for concern, with councils’ ability to reskill and upskill crucial to accelerating their homebuilding plans.

For further details, click here.

Selective licensing of private landlords – England & Wales
On 13 March 2019 the House of Commons Library published a briefing paper explaining the history and operation of selective licensing schemes for private rented properties since local authorities in England and Wales acquired the power to introduce them in April 2006. The Government is currently conducting an independent review of selective licensing with a report due in spring 2019. For the briefing, click here.

Housing (Wales) Act 2014 (Commencement No 9) Order 2019
This Order brings into force section 131 of the Housing (Wales) Act 2014 on 20 March 2019 for all remaining purposes. Section 131 provides for the abolition of the subsidy payable in relation to the Housing Revenue Accounts of local authorities under the Local Government and Housing Act 1989. For the Order, click here. For the 2014 Act, click here.

New homelessness and rough sleeping strategy – Islington Council
On 18 March 2019 Islington Council set out its new four-year homelessness and rough sleeping strategy, which includes innovative work to prevent and reduce homelessness and to work towards ending rough sleeping. The council says that its strategy focuses on preventing people becoming homeless in the first place. It also outlines increased efforts to assist rough sleepers and to offer them pathways off the streets and into secure housing.

The strategy includes building more new council homes and affordable homes for local people in severe housing need, and enhancements to the council’s mediation service to help reduce homelessness caused by family and friend exclusions and private sector tenancy terminations. For more details, click here.

Two new housing communities to be built in London
On 14 March 2019 the MHCLG announced that “[t]wo major new housing communities will be built in London alongside new railway stations.” The government will provide: £250 million so up to 13,000 new homes can be built close to the new HS2 railway station at Old Oak Common, near East Acton, London; and £320 million for a new Brent Cross West Thameslink station which will lead to a new community of 7,500 properties being built. For the announcement, click here.

Security of tenants and landlords in the private rented sector
On 16 March 2019 the Centre for Social Justice published Putting down roots – improving security for renting families and private landlords. The report states: “The rules governing the sector have simply not adapted to the seismic demographic changes it has experienced. And the prevailing culture of insecurity has harmed both landlords and tenants alike.” The report recommends:

  • A longer standard tenancy – the Government should introduce a new tenancy regime on a mandatory basis, subject to exemptions for specific markets, such as student rental properties and holiday lets.
  • A standard fixed tenancy term of four years – but, after the first six months, tenants should be able to exit the tenancy with two months’ notice.
  • Abolishing section 21 and reforming section 8 of the Housing Act 1988 –  landlords should be able to gain possession of their property during the fixed term for a wider range of reasons, eg if they need to sell or move into the property. ‘Accelerated grounds’ should be introduced for when a tenant has incurred serious rent arrears of more than three months.
  • A specialist Housing Court
  • Restoring control –  landlords should be stopped from preventing tenants making limited cosmetic improvements to their private rented homes.

For the report, click here.

Housing Revenue Account: information and advice published
On 14 March 2019 the MHCLG published information and advice on the Housing Revenue Account (HRA) and consents for disposal of land from the HRA. Any local housing authority that owns 200 or more dwellings is required to account for them within their HRA. The information covers: who is required to hold an HRA; how to open an HRA; building in the HRA; accounting for social housing in the General Fund; HRA legislation; consents; and consents legislation. For the published information, click here.

Right to Buy profits
On 14 March 2019 BBC News reported information obtained by its Shared Data Unit obtained from HM Land Registry, the Registers of Scotland and the Northern Ireland Housing Executive. The investigation found that, since 2000, homes in Britain bought under the scheme had been sold on for £6.4bn in collective profit. 139 former council tenants who bought their homes under Right to Buy and resold them within one month, made a collective profit of £2.8m. For the BBC report, click here.

‘Grenfell breached human rights laws’: Equality and Human Rights Commission
On 13 March 2019 the Equality and Human Rights Commission published its report to the Grenfell Inquiry – Following Grenfell – which states that residents’ right to life and right to adequate housing were breached before the fire started on 14 June 2017. It says that authorities were presented with evidence that ,.the cladding was unsafe but failed to take action to prevent the loss of 72 lives. Not banning the cladding at the time, or strengthening rules for its use in the UK, breached residents’ right to life under Article 2 of the European Convention on Human Rights. This fault, the Equality and Human Rights Commission says, "lies with the authorities".

Recommendations contained in the report include:

  • more action to protect lives by removing combustible cladding from hundreds of other buildings 
  • implementing training for firefighters on combatting cladding fires
  • reconsidering the application of, or alternatives to, the ‘stay put’ policy for buildings with similar cladding combinations to Grenfell Tower, and implementing firefighter training on this issue
  • ensuring that residents are provided with sufficient fire safety advice
  • additional protective measure to meet the needs of particularly vulnerable people, in relation to evacuation policies and housing allocation
  • improving participation of survivors, bereaved families and others affected by the disaster in the inquiry itself.

For the report, click here. For a press release in respect of it, click here.

RLA campaigns to protect landlords’ repossession rights
On 18 March 2019 the Residential Landlords Association announced that it would campaign “to protect the rights of landlords to repossess their properties”. The announcement follows a recent court case in which tenants successfully appealed against a section 21 repossession order on the grounds that they had not been provided with a gas safety certificate prior to moving in. The judge said that the failure could not be remedied by serving the certificate after the moving in date and prevented the landlord relying on section 21. The RLA, which is supporting the landlord in an appeal to the Court of Appeal, argues that it should be sufficient to serve the certificate prior to service of the section 21 notice. For more details, click here.

HOUSING LAWS IN THE PIPELINE
 

Gypsy and Traveller Communities (Housing, Planning and Education) Bill
This Private Members' Bill has been dropped by its sponsoring MP, Andrew Selous, and will not progress any further. For further details of the Bill, click here

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 has been further postponed until 22 March 2019. 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 postponed to 22 March 2019. 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 to 22 March 2019. The Bill is being prepared for publication. To follow progress of the Bill, click here

Renting Homes (Fees etc.) (Wales) Bill
This Welsh Government Bill includes provision for: prohibiting certain payments made in connection with the granting, renewal or continuance of standard occupation contracts; and the treatment of holding deposits. Stage 3 commenced on 30 November 2018. Stage 3 consideration was due to take place in Plenary on 19 March 2019 to consider amendments to the Bill (as amended at Stage 2).  For the Bill, as amended at Stage 2, associated information and to follow its progress, click here

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HOUSING LAW CONSULTATIONS
 

Making it easier for leaseholders to manage their properties: Law Commission
The Law Commission has released a consultation paper comprising proposals designed to make it quicker and easier for leaseholders to take control of the day-to-day management of their building. The proposals include:

  • Extending the qualifying criteria so that leasehold houses, not just flats, qualify for the ‘right to manage’ (RTM) which gives the homeowners, rather than their landlord, responsibility for management functions relating to services, repairs, maintenance and insurance.
  • Permitting multi-block RTM on estates, and removing the 25 per cent commercial space restriction.
  • Reducing the number of notices that leaseholders must serve as part of the claim process.
  • Introducing deadlines for procedures and exchanges of information between the landlord and RTM company, so that the process doesn’t stall.
  • Exploring options for a more balanced costs regime.
  • Giving the tribunal exclusive jurisdiction over RTM disputes so it can resolve disputes quickly, and waive minor procedural mistakes made in the process of claiming the RTM.

The consultation will be open until 30 April 2019. For the consultation document, click here. For a summary, click here. For a ‘Key Facts’ document, click here.

Enforcement of possession orders and alignment of procedures in the county court and high court
The Civil Procedure Rules (CPR), made by the Civil Procedure Rule Committee (CPRC), govern civil court processes including enforcement of court orders, and thus of orders for possession. The CPRC is concerned that the Rules regarding enforcement of possession orders ought to be reformed but wishes to obtain views from actual and potential court users, and those potentially affected, before determining what (if any) changes to make in the existing rules and system. The proposals in this consultation are intended to improve the process of enforcement of possession orders in order to bring it up to date with a modern justice system that is open and transparent and in tune with the needs of both the claimant and defendant and others affected.

The consultation closes on 2 May 2019. For more details and to complete the online survey, click here.

Tackling homelessness together
This consultation seeks views on how the government could improve local accountability for the delivery of homelessness services. The MHCLG is seeking views on:

  • the effectiveness of existing non-statutory and statutory local accountability and partnership structures in homelessness services
  • whether the government should introduce Homelessness Reduction Boards and, if so, how this could be done most effectively
  • how else the government might improve local accountability and partnership working in homelessness services.

The consultation closes on 16 May 2019. For the consultation document, click here.

HOUSING LAW ARTICLES & PUBLICATIONS
 

The beginning of the end for fixed-term tenancies in social housing Peter Apps, Inside Housing 15 March 2019 – to read the article click here

Hammond gives Spring Statement period poverty and affordable housing boost Liam Geraghty, The Big Issue, 13 March 2019 – to read the article click here

Study shows extent of illness and injury across UK rental sector Bill Tanner, 24 housing, 19 March 2019 – to read the article click here

Tenants in England not being protected from revenge evictions, study finds Simon Goodley, The Guardian 18 March 2019 – to read the article click here

HOUSING LAW DIARY
 

20 March 2019                                     
Homes (Fitness for Human Habitation) Act 2018 comes into force

20 March 2019                                     
Section 131 of the Housing (Wales) Act 2014 comes into force (see Housing Law News and Policy Issues)

22 March 2019                                     
Postponed second reading of Creditworthiness Assessment Bill (see Housing Laws in the Pipeline)

22 March 2019                                     
Postponed second reading of Homelessness (End of Life Care) Bill (see Housing Laws in the Pipeline)

22 March 2019                                     
Postponed second reading of Freehold Properties (Management Charges and Shared Facilities) Bill (see Housing Laws in the Pipeline)

29 March 2019                                     
Closing date for applications for Rapid Rehousing Pathway funding

1 April 2019                                          
Client Money Protection Schemes for Property Agents (Requirement to Belong to a Scheme etc.) Regulations 2018 come into force (see Housing Law News and Policy Issues)

1 April 2019                                          
Sections 21(1) and (3), and 23 of the Tenant Fees Act 2019 come into force

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