Rent Arrears Highest In Five Years, Regulator Reveals

Rent arrears at England’s registered providers have reached their highest level in more than five years as unemployment has risen amid the coronavirus crisis, official figures reveal. Following its latest quarterly survey, the Regulator of Social Housing (RSH) reported that tenant arrears in the three months to the end of June were four per cent on a mean basis. This compared to 3.5 per cent in the same period last year. London was the worst affected. The mean average among registered providers in the capital was 5.7 per cent. Read more on the Social Housing website.

https://www.socialhousing.co.uk/home/home/rent-arrears-highest-in-five-years-with-london-worst-hit-regulator-reveals-67758?utm_source=Housing60&utm_medium=email&utm_content=article_link&utm_campaign=H60

RSLs Among Biggest Beneficiaries Of Temporary Accommodation Contracts

Three current RSLs are named among the biggest beneficiaries of a “billion-pound-a-year temporary accommodation industry” exposed by a joint investigation between Shelter and BBC Panorama. Shelter says the stats as a whole show a need for the government to prioritise “a new generation of social homes” in the upcoming budget. A2 Dominion, Notting Hill Genesis, and Network Homes were together recipients of more than £16m from councils in 2018/19 over temporary accommodation in 2018/19. The panorama programme can be found on the iplayer website.

https://www.bbc.co.uk/iplayer/episode/m000f1wr/panorama-cashing-in-on-the-housing-crisis

Social Rented Housing – Parliamentary Written Answer

Justin Madders: To ask the Secretary of State for Housing, Communities and Local Government, what plans he has for rent convergence in the social housing sector.

Kit Malthouse: For more than a decade, registered providers of social housing were able to increase the rent on Social Rent properties by an additional £2 per week if the rent was below the 'formula' level. This mechanism was phased out in 2015 and the Government has no plans to reinstate it, as this would be likely to result in additional costs to tenants and taxpayers.

http://www.parliament.uk/business/publications/written-questions-answers-statements/written-question/Commons/2019-07-08/274562

Social Housing Lettings Down Again

Latest figures from the MHCLG show that social housing lettings by local authorities decreased by 9% in 2016/17, a continuation of the long-term trend in the decline in the number of lettings. Lettings by private registered providers also decreased in the same period by 11%. Total new lettings by private registered providers and local authorities in 2016/17 was 334,602 - the lowest total in the last 10 years and down from a high of 394,484 in 2011/12. In the 2007/08 the number of lettings by local authorities was 145,403 compared to 103,122 in 2016/17. Download the figures from the MHCLG website.

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/677489/Social_housing_lettings_in_England_2016-17.pdf

Rent Cut Pushes Associations To Slash Repairs

The largest reduction in costs for housing associations over the year was in major repairs, on which providers spent £2.1bn in the financial year – 14% less than in 2016, when they spent £2.4bn. Management costs, meanwhile, fell from £2.8bn to £2.6bn. This is twice as big as the decrease in major repairs spending that Inside Housing found at the start of the year in an exclusive survey. The HCA’s Global Accounts report said this was “to compensate for the rent reduction”, though it also forecasted that major repairs spend would increase again over the next few years. Download the report from the HCA website.

Social Housing Is Becoming ‘Increasingly Commercialised’, Says Study

The social housing sector has become ‘increasingly commercialised’ as housing associations look for new ways to make money, report finds. A new report from Zurich Municipal has found difficult times and dwindling revenue streams has forced Registered Providers (RPs) of housing to turn to ‘non-core’ activities, such as social care or operating leisure centres, to make money. A previous report by the public sector insurer had found that 76% of RPs had introduced new services beyond their core role as a housing provider. Read more on the LocalGov website.

Why Affordable Housing Is Finally Set For Investment

New-build affordable housing has long been a challenging area for construction, with build volumes from registered providers – housing associations and local authorities – squeezed by political indifference, changeable funding frameworks and planning red tape. Research shows this is changing and that affordable housing now represents a significant area of opportunity for the industry. Three crucial factors now underpin expected growth;

·         First, there are new routes to funding for registered providers that give greater freedom in how they manage their finances.

·         Second, evidence of a more favourable planning regime is starting to show.

·         Finally, political will to get homes built is now behind the housing sector as a whole.

Read more on the Construction News website.

The Housing And Planning Act 2016 – What It Means For ALMOs

Now it’s been passed, what does the Housing and Planning Act 2016 mean for ALMOs and their councils? Well in many ways we still don’t really know.  This is because much of the detail is still to be set out in regulations, which are expected over the summer.  But from what we do know already there are a number of worrying impacts on ALMOs, their councils and the communities they serve.

·         The forced sale of higher value voids

·         Pay to stay compulsory for council tenants

·         Phasing out of lifetime tenancies

·         ALMOs as Registered Providers

Read more details on 24dash.

Revealed: How Many Council Homes Are Left In England After 20 Year Sell-Off

The number of council owned social homes has fallen to less than half what it was two decades ago. Figures from the CLG have revealed the number of local authority owned social houses in England as of April 2015. Across the whole of England 1,643,000 dwellings were local authority owned which is a drop of 1.5% compared to the same month in 2014. Compared to 1994, however, the number has fallen by 55% from 3.67 million. Private Registered Providers now own 2.45 million dwellings across the country, up from 985,000 in 1997. Around 17.6% of all houses in England are owned by either public bodies or Private Registered Providers which is a slight decrease compared to the 17.9% recorded in 2012. Read more on the Daily Mirror website.

ALMOs Call For Exemption From Deregulatory Plan

Arm’s-length management organisations (ALMOs) are calling on the government to exclude them from proposals to limit the influence of councils over registered providers. There are nine ALMOs that also hold registered provider status with the Homes and Communities Agency and therefore could be affected by a government amendment to the Housing and Planning Bill. The amendment seeks to limit the influence of councils over registered providers by allowing the secretary of state to remove council voting rights from registered provider boards.  ALMOs are concerned that the removal of council members from their boards would significantly alter their board structures. Read more on Inside Housing.

Financial Stability In The Social Housing Sector Continues

The social housing sector remains in a strong financial position with access to sufficient finance, according to the latest quarterly survey published by the Homes and Communities Agency. The survey shows registered providers’ financial position on the 31 December 2015 and includes forecasts up to 31 December 2016. The quarterly survey is one of the ways in which the regulator monitors and reports on the financial health of the sector. The 2015/16 Q3 survey (October to December) reports that the sector has access to sufficient finance, with £14.0 billion in undrawn facilities and £5.6 billion held in cash, and with 97% of providers having sufficient debt facilities to last for more than 12 months. Read more on the GovUK website.

Council To Provide 800 Additional Homes For Homeless Families

A housing association established in partnership with Newham Council has been given the green light to provide a further 800 homes for homeless families. The Mayor of Newham and cabinet approved the expansion of registered social landlord Local Space. This means Local Space will now be able to purchase and develop an additional 800 properties which will be used by the council for homeless families. These homes will be delivered over four years and provide the council with a sizable supply of new local accommodation. Read more on the Newham Council website.

Social Housing Sector In Rude Financial Health

The social housing sector is in rude health, according to the HCA, with access to enough finance to ensure it remains in a strong financial position. That’s the verdict of the latest quarterly regulatory survey, based on the first data return that providers have submitted since the July Budget. Although it remains important that providers continue to manage risks to their businesses, the HCA said the survey shows the sector remaining attractive to lenders, with funding available to registered providers to cover their development and operating costs. Read more on the HCA website.

Freedom of Information: Housing Associations – Parliamentary Written Answer

Mr Stewart Jackson:  To ask the Minister for the Cabinet Office, whether reclassification by the Office of National Statistics of housing associations as public entities will entail their carrying the legislative obligations contained in the Freedom of Information Act 2000; and if he will make a statement.

Matthew Hancock: Registered providers of social housing will not automatically become subject to the Freedom of Information Act as a result of their reclassification.

Pay to Stay Discussion: Key Issues

Forbes Solicitors held a discussion on “Pay to Stay” with Registered Providers (RPs) of social housing in response to the Government’s consultation. The discussion was an opportunity to discuss the current state of play, as well as how this policy may be structured and its impact. It focused on the following issues:

·         do RPs currently operate the voluntary “Pay to Stay” model and how is it operated?

in response to the consultation and the income threshold:

·         should the starting threshold be set out in relation to eligibility for Housing Benefit? and

·         how should income thresholds operate beyond the minimum threshold?

·         what is the estimate of the administrative costs of implementing the scheme and what are the factors driving such costs? and

·         what wider issues arise for RPs in light of this policy including regulatory or governance issues, statutory rights, feedback from tenants, unintended consequences and restrictions on use of “Pay to Stay” income.

Read more on the Forbes website.

Merger Proviso For Rent Cut Exemptions

The government will only consider a rent cut exemption for struggling landlords if they have first looked at merging with another provider, the social housing regulator has warned. The Homes and Communities Agency, in its Sector Risk Profile document, said it will develop guidance with the CLG on the criteria for exemptions from the four-year, 1% annual social housing rent cut.  The HCA said: “Waivers will only be considered for registered providers who face viability or solvency issues and have considered all mitigating actions, including taking all possible costs out of their business and looking at the possibility of a merger partner.” The HCA initially estimated a third of the largest 250 landlords may run into difficulties from the rent cut but later revised this down to a much smaller group of associations. Download the Profile from the HCA website.

Social Rented Housing: Rents – Parliamentary Written Answer

Emily Thornberry: To ask the Secretary of State for Communities and Local Government, with reference to Clauses 19 to 22 of the draft Welfare Reform and Work Bill, whether the compulsory one per cent annual reduction of rents in social housing will apply to housing association tenants on affordable rents.

Brandon Lewis: Clause 19 of the draft Welfare Reform and Work Bill requires registered providers of social housing in England to reduce the rents payable by their individual tenants by 1% per annum for four years from 1 April 2016. The reductions will apply to rented social housing, including Affordable Rent properties. Exceptions are set out in clause 20 and in subsequent regulations. We intend to clarify how rents for new tenancies starting after 1 April 2016 will be set, and how the reductions will apply to these tenancies.  

 

Social Housing Became Less Affordable Over Past Decade

For people on the lowest incomes, social housing rent has taken up and increasing amount of earnings over the last decade. The cost of social housing (by private registered providers ) varied greatly across the country, with the highest prices- typically in London- at nearly double that of the lowest prices. The affordability of social housing in England has decreased between 2002 and 2014. On average, rent was equivalent to a larger percentage of weekly wages in 2014 than in 2002. Without taking into account benefits received, those on the lowest 10% of earnings spent the equivalent of nearly 56% of their weekly pay on social rent in 2002. By 2014, this had risen to 73% of weekly pay. In 158 out of the 348 local authorities across England and Wales in 2014, the lowest 10% of earners could expect to spend at least 75% of their wages on social housing rent. Read more on the ONS website.

New Right-To-Buy Could Add To Housing Provider Challenges

The Conservative Party's announcement that it would offer 1.3 million tenants of registered housing providers (RPs) the right to buy their home could add to pressure on RPs' financial flexibility. If the proposed extension materialises following the election and the pace of sales accelerated, RPs' borrowing capacity could be constrained as their balance sheets would weaken and the value of their available housing assets pledged for borrowings would decrease. This would constrain the RPs' overall capacity to borrow even though the need for social housing is high due to strong demand across the country. The reduction in the available security could also lead to higher borrowing costs. The envisaged extension could lower the RPs' cash flow predictability. Decreasing numbers of social housing units would lead to a fall in RPs' share of social housing revenue. This could put pressure on some ratings. Read more on the Fitch Ratings website.

Social Rented Housing: Landlords – Parliamentary Written Answer

Stephen Timms: To ask the Secretary of State for Work and Pensions, what recent progress his Department has made in sharing data with registered social landlords.

Steve Webb: The Social Security (Information-sharing in relation to Welfare Services etc.) (Amendment) Regulations 2015 (S.I.2015/46) were laid on 23 January 2015 and come into force on 13 February 2015. Commencing on 16 February 2015, registered social landlords, local authorities and arms length management organisations will be notified when one of their tenants

makes an application for Universal Credit, or when a person already receiving Universal Credit becomes a tenant of theirs. The data shared will be limited to that required by the landlord to identify the tenant and enable them to confirm that Universal Credit has been claimed. This will enable the landlord, at the earliest possible opportunity, to decide whether they wish to offer, or refer the claimant to, additional welfare support.