Sharma To Face Commons Committee Over Housing Need

The CLG Committee will examine proposed changes to the way the need for new homes is calculated for each council in a one-off evidence session with housing minister, Alok Sharma. Government’s ‘Planning for the right homes in the right places’ consultation is aimed at finding a new standardised methodology for assessing housing need on a council-by-council basis, replacing inconsistent methods used across different authorities at present. The committee will question Sharma on Nov 1 ahead of the consultation closure on Nov 9. Read more on the Parliament website.

Committee Announces Inquiry Into Combatting ‘Rogue Landlords'

The Communities & Local Government Select Committee has announced a new inquiry into combatting ‘rogue landlords’. The inquiry will focus on the role of local authorities in the private rented sector (PRS) and whether they have sufficient powers to deal with ‘rogue landlords’. The inquiry will also examine barriers to intervention in the PRS, whether landlord licensing schemes are actually achieving their goals and the effectiveness of complaint mechanisms for tenants. Read more on the NLA website.

Government 'Will Allow Borrowing Flexibility But Not Grant' For Fire Safety Work

Councils may be allowed increased borrowing freedoms and the power to switch funding from general funds to pay for fire safety work to high rises, but the government will not provide direct funding. This was the position revealed by Sajid Javid during a grilling by members of the CLG Committee. Mr Javid confirmed that 31 local authorities have asked for assistance paying for safety measures and that the government is in “detailed discussions” with six of those. He said the government was considering giving extra HRA borrowing flexibilities to the councils, and requests from “one or two” for a one-off transfer to be made from their general funds into their HRA, which is normally ringfenced. However, he said the government was not planning to provide grants for works. Read more on Inside Housing.

Supported Housing Decision ‘Very Close’

Speaking to the CLG Select Committee, ministers from CLG have said there is now not long to wait for a decision on supported housing. Helen Hayes, Labour MP, quizzed the ministers on when they will release the detail. She said in the 18 months since the review has been started, uncertainty has almost halted all development in the sector. Sajid Javid, communities secretary, responded: “We are very close to making a final decision on this. The work this committee has done and hopefully you will see that when we respond. “There needed to be a relook at the current system and we want to bring clarity to this very quickly.” Read more on 24housing.

MPs Urge Government To Drop LHA Cap Plan For Supported Housing

MPs are calling on the government to abandon plans to base supported housing funding on Local Housing Allowance (LHA) rates. A joint report by the CLG and DWP Committees on the future of supported housing finds LHA rates are an “inappropriate starting point” for a new funding model. It argues instead for a new supported housing allowance, banded to reflect the actual cost of different types of provision.  The government plans to cap housing benefit for supported housing at the LHA rate from April 2019, with local authorities providing top-ups for costs above this rate. But the committees found that, unlike the LHA rate, the cost of provision is largely consistent across the country so some areas will rely on top-ups more than others. Read more on the ARCH website.

MPs: Scrap Housing Revenue Account Cap Where Housing Unaffordable

Borrowing caps on councils’ Housing Revenue Accounts (HRA) should be raised – and, in some cases, scrapped – to help boost housebuilding, MPs have recommended. A report by the Communities and Local Government Committee, Capacity in the Homebuilding Industry, suggests that HRA borrowing caps are limiting local authorities’ ability to build. The report notes that research found that 57% of 141 councils had not made use of the additional borrowing capacity since the introduction of self-financing in 2012. Download the report from the Parliament website.

Inquiry Into Supported Housing Funding Reform Launched

The Work and Pensions Committee and the Communities and Local Government Committee launch a joint inquiry into the Government's funding reform for supported housing. The inquiry examines the planned changes for 2019–20, when core rent and service charges for supported housing will be funded through Housing Benefit or Universal Credit up to the Local Housing Allowance (LHA) rate. For costs above this, funding will go to local authorities for disbursement locally. The Committee considers whether the new system will ensure that the varied rate of the LHA cap will not adversely affect tenants and providers in low-value parts of the country. It examines how existing tenants will be protected following the switch and ask whether the changes should be piloted. Read more on the Parliament website.

Minister Casts Doubt Over Higher Value Levy Date

Housing minister Gavin Barwell has admitted councils need “plenty of time” to prepare for the higher value asset levy, raisings doubt over whether it will be introduced from April next year as expected. The government was widely expected to implement the policy from April next year but detailed regulations required to implement the measure have not been published. A CLG civil servant also admitted that the Right to Buy extension has been delayed by the Brexit referendum vote. Speaking at a CLG committee session, Mr Barwell said the government has not made any decisions about when councils will be expected to make the payment but details of the “controversial policy” would require “quite a notice period” before being introduced. Read more on Inside Housing.

Builders Claim Councils ‘Abuse’ Planning Rules

Industry leaders claimed local authorities were imposing excessive demands when giving housing developments planning consent. The claims were made to MPs on the Commons CLG committee which is investigating the housebuilding industry and if government targets to build thousands of new homes can be met. MPs heard claims that councils planning committees are adding demands to decisions that cannot be signed off or enforced later due to resourcing issues. As a result, developments are being delayed. Read more on 24Housing.

Select Committee To Scrutinise New Homelessness Law

A parliamentary committee has launched an inquiry into a private members’ bill that aims to reduce homelessness. The CLG Committee has announced a pre-legislative inquiry into the Homelessness Reduction Bill, tabled by Conservative MP Bob Blackman. Mr Blackman’s bill includes measures to help councils intervene earlier to prevent people becoming homeless, as well as providing help for single homeless people. The committee will examine whether the bill will “achieve its aim of reducing levels of homelessness”. Mr Blackman is a member of the select committee. Read more on Inside Housing.

Government Must Renew Strategy For Tackling Homelessness

A demonstrable increase in homelessness, driven by the cost and availability of housing, has pushed the problem to such a level that a renewed Government-wide strategy is needed, the Communities and Local Government (CLG) Select Committee concludes in its report. The Committee found that despite some examples of great work, it is not acceptable that the level of support offered to vulnerable people varies significantly across the country. Many people are badly treated by council staff and those who are judged not to be in priority need are often poorly served and sent away without any meaningful support or guidance. Download a copy of the report from the Parliament website.

Attacking Buy-To-Let Sector Will Worsen Housing Crisis

The UK needs one million new rental properties by 2021 to meet demand while by 2025 a quarter of households will be in the private rented sector. Faced with rising demand, the Government should be supporting investment in the sector and not, through the recent tax changes relating to buy-to-let, actively discouraging it. As the Commons’ CLG Committee rightly concluded in 2012: “The sector is, and will continue to be, dominated by small companies and individual landlords.” Yet over the last year the Treasury has embarked on a fiscal attack on those small companies and individual landlords. The reasoning is that landlords are occupying or buying up too many homes and so restricting access to affordable stock for would-be home owners and that buy-to-let investors, unlike owner-occupiers, enjoy the full tax-deductibility of interest on mortgage finance costs. Read more on the Daily Telegraph website.

Kerslake To Table Right To Buy Loans Amendment

The government will be pressed to offer loans for the extended Right to Buy instead of discounts, in a proposed change to legislation. Lord Bob Kerslake said he would table an amendment to the Housing and Planning Bill so that association tenants are offered equity loans, as opposed to discounts.  A report published by the Communities and Local Government committee earlier this month said the discounts should not be paid through local authority property sales, calling the funding model “extremely questionable”. Read more on Inside Housing.

Committee Expresses Concerns Over Funding Of Right To Buy

The Communities & Local Government Committee comes to the following view:

"The Government proposes to fund the Right to Buy discounts for housing association tenants with the proceeds from the sale of high value council homes. However we believe that public policy should usually be funded by central Government, rather than through a levy on local authorities."

The Committee also finds the robustness of the funding model for the RTB discounts is extremely questionable, calling on the Government to set out the fully costed evidence for the proposals. Read more on the Parliament website.

CLG Select Committee Inquiry Into Homelessness

The CLG Select Committee of MPs has announced an inquiry into the causes of homelessness and the measures taken by national and local governments to prevent and respond to it. The Committee has called for written evidence to be submitted by 8 February. Read more on the ARCH website.

Planning Consultation Extended

A consultation into proposed changes to the National Planning Policy Framework will be extended by a month following concerns raised by the chair of an influential select committee. The consultation will now run until 22 February. Clive Betts, chair of the Communities and Local Government Committee, earlier this month wrote to communities secretary Greg Clark asking for an extended consultation period. Find the consultation document on the GovUK website.

Homelessness Inquiry Launched

The CLG Committee has announced an inquiry into the causes of homelessness, as well as the approach taken by national and local government to preventing and tackling homelessness. Clive Betts MP, chair of the Committee, said: “Reports suggest homelessness is on the increase. As a Committee, we will want to examine the causes of homelessness, the steps to tackle homelessness, and how issues of social housing are having an impact on homelessness numbers. We’ll also want to look at how effectively homelessness levels are being monitored – is government recording and presenting a true picture of those in unsuitable housing or sleeping rough?” Written evidence should be submitted by 8 February 2016. Read more on the Parliament website.

Councils Reveal Deep HA Rift Over RTB

The Right to Buy deal between the government and housing associations has damaged the relationship with councils, MPs have been told. The latest hearing by the Commons CLG committee was told that the voluntary agreement had caused a rift between local authorities and the housing associations they work with. The committee’s the third evidence session into the voluntary deal with ministers on a Right to Buy extension was also told by councils there was still a lack of detail that had made their responses to the policy difficult. The witnesses all condemned the lack of detail on how the Right to Buy process would work in reality. Read more on 24dash.

Lewis Rows Back From Million Homes Target

The housing minister has distanced himself from the prime minister’s pledge to build a million new homes by the next general election. Brandon Lewis told members of the Commons CLG committee that the prime minister’s target remained important but would not necessarily result in more social housing. Committee chairman Clive Betts (Lab) asked Lewis to explain what the target actually was: “The prime minister has promised a million homes extra in this parliament. Just to be clear is that starts or completions?”  “What the prime minister said was we want to see a million homes across the different tenures and types. Making sure we facilitate that is quite important.” He also refused to be drawn on whether there would be more social rented houses built by the end of this Parliament. Read more on 24dash.

£45 Billion Raised From RTB Sales

Pressure is mounting on the government to explain official figures on social housing replacement. It follows publication of research commissioned by the Commons communities and local government committee into the impact of Right to Buy on social housing stock. More than £45bn has been raised in total capital receipts RTB sales up to 2010/11, according to the report. It goes on to say that the number of dwellings owned by local authorities in England declined by 3.4 million in 34 years between 1980 and 2014. This was due “both to the RTB and the transfer of stock from the local authority to the housing association sector.” Download the report from the Parliament website.