HCA Sets Out Delivery Priorities for Next Four Years

The Homes and Communities Agency (HCA) has set out the ways in which it will use its land, investment and regulation to deliver new homes over the next four years.The agency's 2014 to 2018 plan details its core targets in 2014/15, including:

• Completion of 30,000 new affordable homes, with a further 22,500 affordable homes brought up to a decent standard.

• Development of the regulatory framework to "better protect social housing assets in a sector where risks are becoming more complex".

• Completion of over 9,500 new market sale homes, including over 5,500 through Get Britain Building, to increase private housing supply.

• Release of HCA land with housing capacity for over 6,000 new homes.

• Creation of over 315,000 sqm of new employment floor space to support local economies; and bringing nearly 230 hectares of previously developed land back into productive use.

Download the plan from the HCA website.

Private Rented Sector – Parliamentary Oral Answer

Mr Adrian Sanders (Torbay) (LD): What steps the Government are taking to

reform the private rented sector. 

Kris Hopkins: We are making significant reforms to the private rented

sector. These include increasing supply through the £1 billion Build to Rent fund and £10 billion guarantee scheme, and providing £6.7 million to address rogue landlords.

Mr Sanders: The regulatory regime for private sector housing will go some way to protecting tenants, but also give investors in rented housing the confidence and security to invest. Will he provide an update on the consultation process and confirm that additional protections for landlords and tenants could be included if a well streamlined form of regulation could be found?

Kris Hopkins: First, may I reassure my hon. Friend that the £1 billion Build to Rent fund is over-subscribed by £2.8 billion? There is a confidence to participate in that, but it is right that the Government ensure that we protect both landlords and tenants. There is a redress scheme that will become law soon and a tenants charter, and we are really encouraging councils to go out there and pursue those rogue landlords, a small number of individuals, who are undermining this part of the sector.

Private Rented Sector Should Meet Tenants’ Needs Better

The foundation stone of a mature market is all parties being aware of their rights and also their responsibilities. This is currently far from the case in the private rented sector. The legislation governing the sector has evolved over many years and the result is a bewildering regulatory framework under which tenants, landlords and agents do not know where they stand.  A new report recommends that the government review the legislation covering the sector, to produce a much simpler set of regulations that all parties understand. As part of this review, the government should work with groups representing tenants, landlords and agents to produce a standard, plain language tenancy agreement, which all agreements should be based on and which includes an easy-to-read key factsheet, setting out the rights and responsibilities of tenants and landlords.  Download a copy of the report (in three volumes) from the Parliament website.

Protecting Social Housing Assets in a More Diverse Sector – The Issues Examined

Where?  London

When?  19 June 2013

What?  The HCA’s regulatory committee recently published its consultation paper on how it is seeking to amend the regulatory framework and protect social housing assets as the sector becomes more diverse.  It is clear that the sector needs to be better prepared, particularly in terms of its business assurance. This timely event is designed to provide delegates with an understanding of the key issues, direction of regulatory thinking and potential business impact across finance, governance and risk.  Find more details on the HouseMark website.

HCA Reviews Regulatory Framework

The Homes and Communities Agency (HCA) has opened the debate on how the social housing sector should be regulated as it becomes increasingly diverse.  The HCA has published a discussion document which invites feedback on proposed changes to the core Regulatory Framework that are designed to ensure effective regulation of registered providers and the protection of social housing assets in a more complex and risky operating environment.  These changes will enable the regulator to deliver its statutory objectives more effectively whilst maintaining the confidence of investors, tenants and other key stakeholders in the sector at a time when providers are diversifying into a broader range of activities and the number of new companies registering to provide social housing is increasing.  Read more on the HCA website.

HCA May Not Publish Full Judgements

The HCA is considering publishing slimmed down versions of regulatory judgements in a bid to save resources.  Since it took over the economic regulation of social landlords in April, the HCA has not published a single assessment of individual landlords’ governance and viability.  Regulatory judgements were previously published each month by the now-defunct TSA so the sector could understand the regulator’s position on issues. However, the new regulator has not published judgements because it is still training its staff on the new regulatory framework which was published in May. A source familiar with the situation said training people to draw up the new judgements has been more ‘resource-intensive’ than expected. As a result, the HCA is considering not publishing full judgements where associations are performing well.  Read more on Inside Housing.

Social Housing Regulator Recognises Challenge of More Diverse Sector

Speaking at the NHF Conference, Regulation Committee Chair, Julian Ashby, highlighted the importance of regulation.  He called for a more tailored approach as the regulator’s remit expands to cover both for profit and not for profit Registered Providers, in what is an increasingly risky operating environment.  As a result, the HCA’s Regulatory Framework will need amendment to take account of different approaches – regulation needs to be tailored in order to achieve a comparable outcome.  The areas that will need amendment or elaboration include ringfencing and the consents regime.  Building on the regulator’s existing risk based approach he said: “This is a new and riskier world.  Social housing assets, and public value, are more at risk.  And failure of one provider will affect the sector as a whole.  So where providers fail to meet our standards or are at risk of doing so, we can and must act.  The sector needs the regulator to be on the case more than ever.”  Read more on the HCA website.

Homes in Deprived Areas Costing Landlords £750 More Per Property

Housing associations operating in deprived neighbourhoods face increased costs of around £750 (19%) per property, analysis from the Homes and Communities Agency (HCA) shows.  The figure was published by the HCA in an analysis of factors driving unit costs in registered providers with stock of 1,000 homes or more.  The analysis is designed to help boards and executives demonstrate how they are meeting the new Value for Money standard, part of the new regulatory framework. The HCA believes driving out unnecessary unit costs should be part of a provider’s strategy to achieve this. Last year providers put operating costs per social housing unit at £3,440. However, the HCA says there is “considerable variance” around this figure with two-thirds of landlords reporting operating costs per unit ranging between £1,200 and £6,800.  Download a copy of the research report from the HCA website.

Social Rented Housing – Parliamentary Written Answer

Rushanara Ali: To ask the Secretary of State for Communities and Local Government what assistance his Department is providing to those unable to meet their financial commitments as a result of rising rent and service charges; and what steps he is taking to prevent housing associations raising such costs.

Grant Shapps: Any tenants facing difficulties in meeting the cost of their rent or service charges should discuss this with their landlord. The regulatory framework requires registered providers to develop and provide services that will support tenants to maintain their tenancy and prevent unnecessary evictions.  Tenants on low incomes are also supported by the housing benefit system, depending on individual circumstance. As well as talking to their landlords, tenants should also discuss what support is available with their local authority.

Under-Occupation Clause in Council's New Fixed-Term Tenancies

The London borough of Barnet believes it is the first local authority to sign tenants up to new fixed-term tenancies - of between two and five years - but warns they will not normally be renewed where a tenant is under-occupying by one room or more.  The Conservative-run authority - through its 15,000-home ALMO, Barnet Homes - plans to offer single people under the age of 25 (excluding care leavers), introductory tenancies of one year followed by tenancies which will be reviewed every two years.  This, despite the new regulatory framework for social housing in England stipulating that tenancies below five years should be offered in "exceptional circumstances". The majority of new tenants in Barnet, however, will be offered 12 month introductory tenancies followed by a flexible tenancy of five years.  Read more on the borough of Barnet website.