Private Rented Housing: Coronavirus – Parliamentary Written Answer

Florence Eshalomi: To ask the Secretary of State for Housing, Communities and Local Government, whether he plans to place temporary restrictions on the use of Section 21 and Section 8 evictions for tenants affected by covid-19.

Christopher Pincher: On 18 March, we announced a radical package of measures to protect renters and landlords affected by coronavirus. Emergency legislation will be taken forward as an urgent priority so that landlords will not be able to start proceedings to evict tenants for at least a three-month period. As a result of these measures, no renters in private or social accommodation needs to be concerned about the threat of eviction. More information on these plans can be found at: https://www.gov.uk/government/news/complete-ban-on-evictions-and-additionalprotection-for-renters.

http://www.parliament.uk/business/publications/written-questions-answers-statements/written-question/Commons/2020-03-17/30911

Right To Buy Replacement Will Be All But Eliminated In Just Five Years

The current Right-to-Buy system only allows councils to keep a third of each RTB receipt to build a replacement home and prevents local authorities from borrowing to make up the shortfall. A new analysis by Savills, commissioned by the LGA, examined the impact of continued restrictions on councils’ ability to borrow to build new homes. It reveals that:

·         Two thirds of councils will have no chance of replacing homes sold off under Right to Buy on a one-for-one basis in five years’ time unless a significant restructuring of the scheme takes place.

·         Around 12,224 homes were sold under RTB last year. Faced with ongoing borrowing restrictions and based on the levels of sales remaining consistent, the analysis estimates that in 2023 councils would only be able to replace approximately 2,000 of these homes.

·         Less than a third of councils would be able to sustain any kind of one-for-one replacement of homes sold under the scheme in five years’ time.

Read more on the LGA website.

https://www.local.gov.uk/about/news/right-buy-replacement-will-be-all-eliminated-just-five-years-warns-lga

Leaseholds On New-Build Houses In England To Be Banned

Builders are to be banned by the government from selling houses as leasehold in England and ground rents on flats could be cut to zero following widespread outrage over exploitative contracts. In a blow for major housebuilders the communities secretary, Sajid Javid, will set out plans to “ban new-build houses being sold as leasehold as well as restricting ground rents to as low as zero”. Flats can be continued to be sold as leasehold, but ground rents will be restricted to a “peppercorn” level and therefore be of little financial value to speculative buyers. The ban is expected to come into force after an eight-week consultation period. Read more on the Guardian website.

UK Urged To Relax Green Belt Restrictions To Tackle Housing Crisis

Britain should relax planning restrictions in green belt areas to help deal with its housing crisis, an international economic think tank has recommended. Shortage of housing was one of a number of factors identified by the Organisation for Economic Co-operation and Development (OECD) as holding back UK growth, alongside poor skills and a lack of investment in infrastructure and research. Among its other recommendations were more toll roads, an expansion in vocational education and lifelong learning and better provision of social housing. Read more on the Belfast Telegraph website.

NHF Campaigns Against Housing Benefit Cap Threat

Thousands of vulnerable people living in supported housing in the North of England are at risk of losing their homes because of a proposed cap on Housing Benefit that will leave them short on their rent. Rents are typically higher for such homes compared to general needs properties because of the specialist support that is provided for residents, but the Government proposes to limit the amount of Housing Benefit social tenants can claim to bring it in line with the Local Housing Allowance (LHA) paid to tenants in the private sector. In Yorkshire and Humber, there are more than 34,000 living in this type of housing, more than half of whom are older people. The estimated £68 a week shortfall in Housing Benefit would mean that vulnerable residents need to find an extra £3,500 a year to cover their rent. Read more on the Housing Excellence website.

Supported Housing Announcement In Autumn

Vulnerable people living in social housing will know if they are to be included in benefit cuts later this year. The new DWP minister, Damian Green, has told MPs there will be an announcement on supported housing in the Autumn. Lord Freud was brought in by the previous government team to review the issue after heavy lobbying by the housing sector and charities.  The issue was brought up in an opposition debate on 'reductions in housing benefit for people in supported housing'. Read more on 24dash.

New HMO Restrictions Introduced In Barnet

New planning controls restricting the number of Houses in Multiple Occupation (HMOs) have been introduced in the London Borough of Barnet. Last month Barnet Council implemented a borough wide HMO Article 4 Direction to restrict new house and flat shares and bedsits. This means planning permission will be required to convert a single family house (use class C3) to an HMO occupied by three or more people who are not all related and share facilities.Prior to this, landlords only needed planning permission to change a family property into a HMO if it was occupied by more than six people. Read more on the RLA website.

‘Pay To Stay’ Trap Will Force Working Families Out Of Council Homes

Tens of thousands of hard-working families will be forced to leave their council homes and find themselves unable to afford a local alternative as a result of government plans to restrict social housing to the poorest. The devastating figures – in a report commissioned by the Local Government Association – show that almost 60,000 households in England will be unable to afford to remain in their council properties from April next year, as a result of “pay to stay”. The move is part of Tory plans to end what ministers say are effectively subsidies for better-off council tenants. However, the report for the LGA by Savills finds that far higher rents in the private sector, and soaring house prices in many parts of the south, mean that many council tenants who just exceed the income cut-offs will be left in a desperate position. Read more on the Observer website.

Increase In Disabled People On Waiting Lists

The number of disabled people on council housing waiting lists has increased by 17.3% in the last five years, research by charity Leonard Cheshire Disability has revealed. The charity found that one in seven people – 13.7% – on housing waiting lists in England are disabled, up from one in 11 people – 9.2% – five years ago. In contrast, the charity found that the number of people on waiting lists overall has decreased by 21% in the same period. Many councils in recent years have taken advantage of flexibilities in the Localism Act to restrict waiting list eligibility. Read more on the Leonard Cheshire website.

Houses Of Multiple Occupation 'Ruining Streets'

Measures to curb numbers of houses of multiple occupation (HMOs) in Reading's conservation areas are being considered by the council. Residents complained of the "blighting effect" of family houses being converted into single-room lets. Currently, only exterior features of a house are protected but residents also want the same for interiors. Reading Borough Council is to consider restricting landlords' house development rights. If voted through, the change will mean planning permission is required before any conversion takes place. Read more on the Get Reading website.

New Rules for Buy to Let Lending On the Way

Chancellor George Osborne is warning the government may restrict buy to let borrowing with loan caps and rent cover limits. As the Treasury announced tougher lending rules for residential borrowers in a new consultation, Osborne cautioned the same is on the way next year for buy to let investors. The consultations will give the Bank of England’s financial policy committee new powers to put the brakes on mortgage lending. The committee wants a toolkit to manage mortgage lending to stop property prices overheating and undermining bank and building society balance sheets with bad debt. Osborne was told the committee sees buy to let as a threat to the country’s financial stability. Read more on the Landlordzone website.

MP Slams 'Threat' To Affordable Housing

A rural MP has called on the government to drop a plan to limit new affordable homes being built in small communities. Lib Dem MP Nick Harvey (North Devon) asked for a serious re-think on a proposal to remove Section 106 planning obligations from developments of 10 dwellings or fewer. He made the plea in a letter to communities minister Penny Mordaunt. Section 106 planning obligations aim to encourage house building by removing obstacles for small developers. A decision by ministers on the proposal is said to be imminent. Mr Harvey said government figures had shown that two-thirds of homes in rural villages with fewer than 3000 people were delivered through the Section 106 agreement in 2012/13. Read more on the Rural Services Network website.

London Borough to Limit Average Rent to Below £100 per Week

As rent and house prices continue to rise, Southwark Council is keeping to its pledge to keep council rents below £100 per week on average. With almost half of Southwark's households earning less than £15,000 and over 36,000 households living in council homes, every effort must be made to help those who struggle just to afford a roof over their head, particularly in London where rents are extremely high. A fine balance must be sought in ensuring that rent is kept low but that enough income is generated into the housing revenue account (HRA) to safeguard the cost of frontline council services. Read more on the Southwark Council website.

Sheltered Housing Group Ups Age Criteria

A housing association is planning to restrict its sheltered housing schemes to people over the retirement age in a bid to make the stock more attractive to prospective tenants. Housing & Care 21, which owns and manages around 18,000 homes for older people across England, has taken the unusual step of raising the age eligibility of its sheltered schemes from 55 to retirement age (currently 65 for men and 62 for women) from September. Bruce Moore, chief executive of the association, said the organisation was finding it hard to let its sheltered housing because the 55-plus age range was too broad, so prospective tenants would not expect to ‘share the same outlook on life’ with their neighbours. Read more on Inside Housing.

Up To 50,000 London Homes to Be Built In Brownfield Scheme

Up to 50,000 new London homes are to be built on 20 brownfield sites, in a £400m scheme announced by the Treasury.  The homes will be built on "housing zones", where planning restrictions are removed to get homes built quickly. The new zones are in line with a shake-up of planning rules to support house building announced by the chancellor at London's Mansion House recently. Labour said it is "too little too late" as Mayor Boris Johnson has built only a third of 63,000 homes needed annually. Read more on the BBC.

Towns Are Targeted For New Housing

Ministers are to sweep away planning restrictions on disused urban sites in a bid to reduce the impact of new house building on the countryside. Local Government Secretary Eric Pickles said that the Government planned to ‘augment’ its controversial planning reforms with the introduction of ‘practical ways of removing red tape’. These will include a ‘relaxation’ of the rules that make it difficult to convert warehouses and industrial premises into flats and housing estates. This could lead to the construction of a string of new housing developments on edge-of-town sites, reducing the need for house building in open countryside. Plans also include a package of measures to ‘regenerate’ so-called brownfield sites, which have been developed before. Read more on the Daily Mail website.

'Beds In Sheds' Warning from Private Landlords Over Benefit Changes

Private landlords have claimed that more people could be forced into poor quality 'beds in sheds’ unless benefit restrictions on new shared housing for young people are eased. The Residential Landlords Association, which represents over 20,000 private sector residential landlords in England and Wales, warned that planning rules are making it difficult to provide the new shared homes needed to keep up with demand. A survey of RLA members found that 55% thought there were insufficient shared homes to cope with the benefit changes. Read more on the RLA website.