Concern over HRA U-Turn

CIH has raised concerns over reform of the Housing Revenue Account (HRA) detailed in the Budget. Grainia Long, chief executive of CIH, expressed worries over the government’s plans to re-examine the amount councils are allowed to borrow after April 1 because the impact on public sector debt might be greater than expected.  She said: “Ministers stated during the passage of the Localism Bill that once set these caps wouldn’t be changed. The statement made in the budget may mean this promise is set to be broken and if so will severely disrupt council plans.”  Reform of HRA would, according to the Office of Budget Responsibility, increase public borrowing more than originally estimated.  “These are just estimates but if they do not change then the government has said it will take action to address the increase in public debt. This is very concerning and is a departure from the original commitment.”  Read more on the CIH website.

Localism Bill Receives Royal Assent

The Localism Bill received Royal Assent on 15 November, becoming the Localism Act 2011. The Act has wide implications for social landlords and includes measures on:
· local authority tenancy strategies - which will affect allocation of all social housing
· tenure reform - the introduction of flexible tenancies
· abolition of the HRA subsidy system
· abolition of the Tenant Services Authority
· a cross-sector housing ombudsman scheme
· complaints and tenant panels
There is a whole section on how housing is to be managed in London, setting out specific powers for the Greater London Authority. The Act also covers many local authority functions such as community rights, neighbourhood planning and empowering cities, as well as a 'general power of competence' giving them the legal capacity to do anything an individual can do that isn't specifically prohibited. Download a copy of the Plain English Guide to the Act from the CLG website.

Major Landlords to Offer Short-Term Tenancies

At least three major housing associations have said they will seek to introduce minimum tenancies of less than the default five years proposed in the government’s Localism Bill. A sample survey by Inside Housing of 25 of the largest associations in England - which own 767,000 homes between them, according to Tenant Services Authority figures - revealed 18 plan to implement fixed-term, rather than lifetime, tenancies in some form for new tenants, pending approval from their boards and councils. Three plan to keep lifetime tenancies and four have yet to decide. Home Group, Bromford Group and Trafford Housing Trust, which own and manage 80,000 homes between them, said they would offer two or three-year tenancies in some circumstances. Read more on Inside Housing.

Housing: Construction – Parliamentary Written Answer

Guy Opperman: To ask the Secretary of State for Communities and Local Government what steps his Department is taking to encourage parish councils to seek support from outside agencies to help deliver local housing projects.
Andrew Stunell: Parish councils are not responsible for the delivery of housing projects. However, our neighbourhood planning proposals will give parish councils a greater say in the future of their area, including where they think new houses and other development should go. The provisions in the Localism Bill include a duty for local planning authorities to provide advice and support to parishes or neighbourhood forums preparing neighbourhood planning proposals. We have also committed £3.2 million for funding four support organisations (Royal Town and Planning Institute,Locality, Prince's Foundation for the Built Environment and National Association of Local Councils/Campaign to Protect Rural England) to provide independent advice for communities on planning.

Localism Bill Passes through Parliament

The government’s flagship Localism Bill has completed its passage through Parliament, 18 months after it was unveiled by the coalition. The bill, which includes plans to introduce flexible tenancies and reform the Housing Revenue Account system, is expected to gain royal assent by the end of the year. MPs have now voted to accept the amendments put forward by the Lords to complete the bill’s readings in both houses. The bill has caused controversy on a number of grounds: the scrapping of regional planning targets and the abolition of the Tenant Services Authority have proved controversial moves by the government. The Localism Bill intends to hand power to local people for planning and development decisions in their area through initiatives such as neighbourhood plans and the community right to build. Read more on Inside Housing.

Concern over 'Tenancy Rights' In Council House Swap Scheme

The chief executive of homelessness charity Shelter is concerned that the Government's new home swap scheme for social housing could lead to tenants losing their existing security. Last month, housing minister Grant Shapps launched the HomeSwap Direct scheme to provide a national database of homes eligible for tenants to swap their existing houses for. Mr Shapps said the scheme will "give tenants access to a wider range of properties than ever before, and the chance to move anywhere in the country". However, Shelter boss Campbell Robb has called for more detail and guarantees that those tenants who swap their existing homes won't lose the rights and security they currently enjoy. Under plans in the Localism Bill - which eventually passed through Parliament this month - councils will be able to offer new tenants, albeit in "exceptional circumstances", tenancies for as little as two years from next year. Read more on 24dash.

Tenants – Parliamentary Written Answer

Jonathan Reynolds: To ask the Secretary of State for Communities and Local Government what consideration he has given to housing tenure reform as part of the big society initiative.
Andrew Stunell: The Government have embarked on a radical programme to shift power from Whitehall to the local level—to councils, housing associations and communities. Through the Localism Bill we are reforming the social housing system to make it fairer, striking a proper balance between the needs of new and existing tenants. There will be no change to the security and rights of existing social tenants.

Five-Year Tenancies Would Only Work For 'One In 10'

Only 10 per cent of social housing tenants who have been living in their homes for five years would be able to move out of the sector, a new report has found. Family Mosaic carried out a survey of residents who began their tenancies in 2006 in a response to government proposals to introduce minimum five-year tenancies as part of the Localism Bill. The report – ‘Changing direction’ – said that the government, along with housing associations, should develop new models to enable home ownership. Brendan Sarsfield, chief executive of Family Mosaic said that the 20,000-home association was examining the introduction of a shared ownership scheme which included a five-year rent holiday to encourage more social tenants out of the sector. Download a copy of the report from the Family Mosaic website.

Government Set For Ombudsman Complaints U-Turn

The government is set to backtrack on plans to bar tenants from taking their complaints to the Housing Ombudsman Service. As it stands the Localism Bill, which is currently going through the House of Lords, would prevent tenants from taking their complaint to the ombudsman. Instead, tenants would have to approach a councillor, MP or tenant panel, known as the ‘democratic filter’ with their complaint, who could then refer it to the ombudsman. Communities and local government minister Baroness Joan Hanham will move an amendment to the bill which will allow tenants to take their complaint to the ombudsman without using the democratic filter if eight weeks have elapsed since the landlord’s internal procedure has been exhausted. Read more on 24dash.

Protest Planned Against Social Housing 'Attacks'

A pressure group is planning to protest outside parliament against government attacks on social housing tenants and call for more homes to be built. Defend Council Housing is holding the Housing Emergency protest on 15 November to oppose the proposed changes to tenancies, rents and benefits set out in the Localism Bill. The national protest follows action across Britain which rejects attacks on secure tenancies, affordable rent levels and evictions. Find full details on the Defend Council Housing website.

Group Formed To Guide Councils on Planning

Housing and planning bodies have joined forces to create a new group designed to give local authorities clearer guidance on planning issues. The housing charity Shelter has linked with the Town and Country Planning Association, Home Builders Federation and many others to deliver the Local Housing Requirements Assessment Working Group after research showed councils need more guidance. Shelter found that 80 per cent of local authorities questioned in a survey agree that more guidance is needed to help them accurately estimate local housing requirements. The research, carried out by the Cambridge Centre for Housing and Planning Research, indicated that without updating existing guidance there will not be the consistent approach needed across local authority areas to meet the new ‘bottom up’ approach, as set out in as the Localism Bill. Download a copy of the report from the Shelter website.

TSA Chief’s Letters to Providers

Claer Lloyd-Jones writes to the chief executives of housing providers to explain how the changes to social housing regulation will affect them. This latest letter covers three areas:
*the appointment of the Chair of the new Regulation Committee,
*progress on implementing the Localism Bill and a new regulatory framework, and
*what the TSA is doing to deliver its day-to-day regulatory business.
Download a copy of the letter from the TSA website.

Bid To Address 'Housing Crisis' Defeated In Lords

A Labour backbench bid aimed at forcing local authorities to do more to tackle the housing crisis has been defeated in the Lords. Labour former environment minister Lord Whitty called for housing authorities to draw up an analysis of housing supply and demand in their areas. In report stage debate on the Localism Bill, he said: "Housing is in crisis in terms of provision, availability and affordability." An "overarching commitment to the role of local authorities in housing," would help deal with the crisis, as pressures continued to increase. But junior communities and local government minister Baroness Hanham said that although housing demand and supply was currently a "big problem" the amendment to the Bill was not needed. Statutory provisions requiring local authorities to collect evidence of housing need and demand in their areas were already in place. Read more on 24dash.

Crisis Wins Emergency Accommodation Pledge

The Government has promised that a working group of ministers with responsibilities around homelessness will consider Crisis' proposal that single homeless people should have a right to emergency accommodation. Over the years Crisis has gathered evidence single homeless people are being failed by homelessness legislation and are often turned away from council offices without the help they need. In lobbying on the Localism Bill-which will make radical changes to homelessness legislation and social housing-we have consistently called for an emergency accommodation duty, so that no one is left with no choice but to sleep rough. Read more on the Crisis website.

Ombudsman Sets Out ‘Offer’ To Tenants

The housing ombudsman has set out how his organisation will handle complaints from tenants once it takes full responsibility for the sector in 2013. In an article for Inside Housing, Mike Biles says the changes should increase the trust tenants and landlords have in dispute resolution, and improve relations between the two parties. From 1 April 2013 the housing ombudsman will take responsibility for all ‘escalated complaints’ against social landlords. At present some disputes are handled by the local government ombudsman. Under changes in the Localism Bill the ombudsman will no longer be able to deal with complaints made direct by tenants. Instead concerns will have to first go to a local representative – such as a councillor or MP – or through a tenant panel before being passed to the ombudsman. Read more on Inside Housing.

Tenants to Be Trained To Take Control of Their Neighbourhoods Post-Riots

In a move designed to strengthen tenants’ say in the running of their local communities after the rioting earlier this summer, Housing Minister Grant Shapps has announced new training to give them the skills for running local 'tenant panels'. Mr Shapps said that the recent riots showed that when communities come together to take a stand against those inflicting damage and disorder, they can have a real impact; the new training and creation of tenant panels would put powers back into the hands of tenants and give them a greater say on the running of their local community. And he highlighted how more people came out to clean up after the riots than participated in the riots themselves. He said that nobody knows their neighbourhoods better than tenants themselves and giving them real power to take control of local housing, could lead to services being better shaped around individual and local needs, benefiting everyone. New powers in the Localism Bill propose to give tenants the opportunity to lead their local communities and be given a direct say on how the issues that matter most to local people - such as repairs, anti social behaviour and estate management - can be better tackled, by enabling tenant panels to consider complaints before referring them to the ombudsman. He announced that a registered charity The National Communities Resource Centre has been awarded £535,000 to deliver training and support to empower tenants to set up groups to lead on the management of their social housing. Read more on the CLG website.

More Communities Chosen To Try Out New Planning Powers

New powers to give local people unprecedented influence to determine the future of their areas are to be tried out in 36 more front-runner areas, Planning Minister Greg Clark has announced. These areas are among the first to test out neighbourhood planning, a radical new power being introduced in the Localism Bill, which will give local people a real voice in deciding how development will look in their area. For the first time, neighbourhood planning will allow communities to shape their own vision for their community, from deciding the locations of shops, offices and schools to setting standards of design for new housing and protecting green spaces of value to the community. In areas where local people want to see homes and businesses built, neighbourhood planning will allow communities to grant a blanket planning permission for development to go ahead without developers having to make separate applications. The community has the final say on whether a neighbourhood plan comes into force. If more than 50 per cent of people voting in a local referendum support the plan, then the local planning authority must bring it into force. Neighbourhood planning is designed to return power to local people and local businesses on planning decisions in contrast to the top-down regional strategies being scrapped by the Government. Find more details on the CLG website.

Shapps Rules Out Flexible Tenancy Changes

The housing minister has rejected calls to amend the Localism Bill to specify that social tenancies should normally be for a minimum of five years. In a letter to shadow housing minister Alison Seabeck, Grant Shapps argues that directions to the social housing regulator are the correct place for the rules to be set out. The government has amended proposed directions to the regulator to add that five years should be the usual minimum length of a tenancy, and the lower limit of two years should only be used in ‘exceptional circumstances’. The original version of the directions stated that two-year tenancies would be exceptional, but did not mention five-year tenancies, despite previous assurances from Mr Shapps that this would be the usual minimum. Read more on Inside Housing.

Self-Financing: Planning the Transition

The CLG have issued a document updating the policy and implementation arrangements set out in the document Implementing Self-financing for Council Housing published on 1 February 2011. The purpose of the document is to:
*provide local authorities with the detailed information they need to prepare for and achieve a successful transition to self-financing
*provide an update on the wider policy and accounting context within which self-financing will operate.
The publication also contains:
*a summary which could be used to explain the reforms to tenants or other interested groups at Annex A
*Refreshed Demolitions Guidance at Annex B
Also accompanying the policy document are working drafts of the legal 'determinations' necessary to bring self-financing into effect, the powers for which are in the Localism Bill. The CLG intend to formally consult on the determinations in November 2011 but would welcome views from the sector on the current versions. Download the document from the CLG website.

Government Backtracks On Five-Year Tenancies

The government has revised instructions to the social housing regulator to explicitly state that flexible tenancies should normally last a minimum of five years. Under an updated draft direction on tenure social landlords will be required to set out any circumstances in which they will offer tenancies of less than five years in their tenancy policies. The previous version of the draft direction stated that two-year tenancies, which are the shortest that will be permitted under the Localism Bill, should only be used in exceptional circumstances. It did not state what these circumstances would be, or that five-years would otherwise be the minimum. Read more on Inside Housing.