UK
MPs slam ‘cruel’ benefit cap
The overall benefit cap has failed to deliver on the government’s stated objectives for it, according to a withering report by an all-party group of MPs.
The government said the policy was about fairness to working families, improving incentives to work for benefit claimants and saving money from the welfare budget but the Work and Pensions Committee gave short shrift to all three claims.
The committee found that just 18 per cent of those subject to the cap are on a benefit that requires them to be actively seeking work and that the other 82 per cent are not expected to work because they are too ill or have a young child.
The Department for Work and Pensions had ‘repeatedly over-claimed’ the employment benefits of the cap and claimed savings of £190 million a year do not include money spent on discretionary housing payments or increased costs for local authorities and public services.
The cap of £20,000 a year on benefits (£23,000 in London) is already causing severe hardship and the MPs warn things will get worse under universal credit.
‘It would be difficult to think of a more cruel cut,’ said committee chair Frank Field. ‘Benefits are being cut with the aim of driving people into work, but four in five people bearing this cut aren’t expected to work.’
SCOTLAND
Extra £70m for homes
The Scottish Government boosted spending on affordable housing as it stepped up its drive to deliver on its pledge of 50,000 affordable homes by 2001.
The £70 million increase announced by communities secretary Aileen Campbell took the budget for 2019/20 to £826 million.
Ms Campbell said: ‘This increased budget forms part of the single biggest investment in, and delivery of, affordable housing since devolution with over £3 billion committed, which will deliver good quality, secure and affordable homes, which will in turn help create strong, sustainable communities.’
The Scottish Federation of Housing Associations urged the Scottish Government to commit to funding beyond the lifetime of a parliament that ends in 2021 and also criticised a freeze in funding for home adaptations.
ENGLAND
Spring boost for guarantee scheme
Chancellor Philip Hammond announced a £3 billion Affordable Housing Guarantee Scheme to support up to 30,000 new homes.
The scheme aims to reduce borrowing costs for housing associations, but it replaces one that was abolished in 2015 and it was the housing highlight of a deliberately low-key statement.
In the wake of the statement, housing secretary James Brokenshire made a written statement outlining a series of measures on energy efficiency, housing standards and planning.
A new Future Homes Standard that will include a ban on fossil fuel heating in all new homes from 2025.
There was a mixed response to the Letwin Review of build-out rates on large sites, with warm words accompanied by an emphasis on existing mechanisms to deliver the same objectives.
And it was a similar story on permitted development, with a go-ahead for plans to relax planning rules on upwards extensions matched by a review of the quality of homes delivered under the controversial system so far.
NORTHERN IRELAND
New licensing scheme for HMOs
A licensing scheme aimed at improving conditions in Houses in Multiple Occupation (HMOs) was introduced from April 1.
The scheme will be run by local authorities and require landlords to meet quality and safety standards before an HMO can be let.
The regulatory regime will also be linked to planning so that the concentration of HMOs can be managed.
Belfast City Council will manage the licensing scheme on behalf of all local authorities in Northern Ireland.
David Polley from the Department for Communities said: ‘This is about improving the quality of this type of private rented accommodation and is something which should be welcomed by landlords, those living in HMOs and those living around them.’
WELSH GOVERNMENT
Minister acts on high-rise sprinklers
Welsh Government will promote the retrofitting of sprinklers in existing high-rise buildings, says housing and local government minister Julie James.
The minister confirmed she will accept the recommendation of the expert group on building safety following publication of its roadmap for improving fire safety in high rises. A full response and project plan with priorities and timelines will be published in May.
Julie James said: ‘I would like to thank the group for their time and their lively and careful consideration of a wide range of difficult issues. I will reflect on the group’s recommendations but one recommendation I will accept here and now is that we promote the retro-fitting of sprinklers. Hard evidence supports sprinklers’ effectiveness in preventing fatalities so I am committed to looking at how we can further promote retro-fitting in high-rise buildings across sectors.’
The report (gov.wales/sites/default/files/publications/2019-04/building-safety-expert-group-road-map_0.pdf) identifies 143 residential high-rise buildings (taller than 18m) in Wales, of which 38 are in the social and 105 in the private sector.
It rejects the Hackitt review’s focus on buildings above 30m or 10 storeys and says Welsh Government should consider options including 18m (seven storeys), 11m (four storeys) or buildings that fall within a risk matrix as well as those above a fixed height.
It recommends that Welsh Government should look again at promoting sprinklers in existing ‘in scope’ high-rises, building on the ‘ground breaking’ legislation requiring them in all new-builds and converted properties.
Assembly passes tenant fees ban
New Welsh Government legislation that will ban most fees and limit deposits for private renters has been passed by the National Assembly and is set to apply from the Autumn.
The Renting Homes (Fees etc) (Wales) Bill will make it an offence to charge a tenant, any payment that is not specified as a ‘permitted payment’ by the legislation. This means tenants cannot be charged for things like an accompanied viewing, receiving an inventory, signing a contract, or renewing a tenancy. It is estimated the Bill will save tenants almost £200 per tenancy.
Letting agents and landlords will only be permitted to require a payment for rent, security deposits, holding deposits, a payment in default (when a tenant breaches a contract), and payments for council tax, utilities, a television licence, or communication services.
The Bill will cap holding deposits paid to reserve a property before the signing of a rental contract to the equivalent of a week’s rent and create provisions to ensure their prompt repayment. It will also give the Welsh Government the power to limit the level of security deposits.
A clear, simple and robust enforcement regime to deal with breaches of the legislation will be created, according to Welsh Government. Fixed penalty notices may be issued against anyone seeking a prohibited payment. If penalties are not paid, alleged offences can be prosecuted through the Magistrates Court and could result in an unlimited fine. Rent Smart Wales will be notified of any offence, which they can take into account when considering whether to grant or renew a licence – without which an agent or landlord cannot let or rent properties in Wales.
Housing and local government minister Julie James said: ‘The fees being charged by some lettings agents and landlords have been highlighted by many as the main barrier to people accessing good quality rented housing with some tenants facing fees in excess of £200 on top of their security deposit and rent. This Bill will ensure these rental costs become more reasonable, affordable and transparent and tenants will no longer face sometimes significant and unreasonable upfront fees when they start renting.’
Once the Bill receives Royal Assent, changes to what can and cannot be charged for will be made ahead of the new academic year. Welsh Government says this will mean that tenants moving properties, or people renting for the first time, will see a substantial saving within a matter of months.’
Innovative Housing Programme goes to third round
The third round of funding for the Innovative Housing Programme will amount to £35 million as new approaches and technologies continue to be tested to help develop social and affordable housing.
Housing and local government minister Julie James made the announcement on a visit to Swansea Council’s Colliers Way development in Penlan. As featured in the last issue of WHQ, the development consists of 18 council homes which have been built to Passivhaus standards. Swansea Council is building more homes on the site, incorporating battery technology, solar panels and air source heat pumps thanks to funding from the Innovative Housing Programme.
The minister also visited the Active Buildings Centre in Swansea University and see how the research and development centre uses renewable technology and modern insulation techniques to help lower fuel bills and carbon emissions in house design.
Julie James said: ‘We are looking to push the boundary on both the type and scale of innovation supported in this third year of the programme. This programme provides an important opportunity to deliver affordable, high-quality homes that help to reduce fuel poverty and reduce the impact of housebuilding on the environment.
‘The significant investment in the programme means Wales is well positioned, to determine how the social and affordable homes of the future can and will be built. I’m looking forward to seeing some exciting projects coming forward for funding, so we can create some beautiful innovative housing in Wales.’
Another £15m for Land for Housing scheme
Welsh Government has allocated a further £14.67 million in loans to social landlords to help them buy land to build more homes across Wales.
The money comes from the Land for Housing scheme, which allows housing associations to borrow money to buy land to build on. The money is recycled as loans are repaid.
Some 17 schemes will be supported in this second round of funding for 2018-19, bringing the total invested this financial year to more than £32 million, including £4.2 million which has been repaid and reinvested. Since the start of the scheme in 2015, £52 million has been invested, resulting in delivery of more than 4,100 homes across Wales, 84 per cent of them affordable homes.
Housing and local government minister Julie James made the announcement while visiting a Taff Housing Association development at the former FA Jones DIY store on Penarth Road in Cardiff which is due to be completed in July.
This will provide 19 one- and two-bedroom flats, including two that are wheelchair accessible and a retail unit. Construction commenced in May 2017 and is due to hand over in July 2019.
The project received a Land for Housing loan of £504,000 to enable Taff to purchase the site in May 2017. That loan has now been repaid and recycled into the funding for this financial year.
Julie James said:‘We have committed to creating 20,000 affordable homes during the course of this government, and the Land for Housing Scheme is just one of ways we are investing in achieving this.
‘As this is a loan scheme, when the money is repaid, it’s reinvested in new projects and therefore delivers far more value than the £52 million we have invested to date. It is an excellent example of how we are working with registered social landlords to build homes and improve the lives of people in Wales.’
The 17 approved schemes are in Cardiff, Ceredigion, Denbighshire, Flintshire, Gwynedd, Pembrokeshire, Powys, Rhondda Cynon Taf, Swansea and Wrexham.
Julie James went to the Salvation Army Housing First project in Cardiff in January in her first visit as housing minister. She saw how the team are supporting people to move off the streets into housing. Housing First is designed to support people who need significant levels of help to move away from homelessness. People receiving support are offered a place to live and then offered tailored, long term support to help enable them to manage a tenancy independently. She met Chris, a tenant (left), and Salvation Army regional manager Yvonne Connolly (centre).
Loans open the door for more self-builders
A new scheme to make building your own home easier in Wales will launch in late Spring.
Self-Build Wales will start with £40 million of Welsh Government funding for loans that will be recycled through the life of the scheme to take projected investment to £210 million.
Under the scheme, the Development Bank of Wales will guarantee loans on pre-agreed plots. The loans will be repayment free until the new home is mortgaged allowing people to build their new home and cover living costs.
Successful applicants can choose to use an approved builder or do the work themselves.
Local authorities and housing associations will make plots available with planning and site requirements complete.
Every plot will have a ‘plot passport’ including approved designs, an estimated build cost and options for personalising the home;
Approved applicants can reserve a plot by providing a 25 per cent deposit on the plot cost. The Welsh Government through the Development Bank of Wales will provide the rest of the funding and repayments can be deferred for up to two years or when the home is finished.
Once complete, they would be able to access a traditional mortgage, repay the development loan and allow the money to be recycled.
No fee or loan repayments will be required during the two-year period, to allow the self-builder to cover their living costs through the build period;
Development Bank of Wales loans would be limited by some of the same criteria as Help to Buy – Wales; once completed it must be the self-builder’s only or main residence and cannot be sold or rented for a minimum of five years post completion. Successful applicants will only be able to use the scheme once.
Finance minister Rebecca Evans said: ‘I am pleased that we are using the capital funding in our Budget to support schemes such as Self-Build Wales, helping people to build their own homes whilst stimulating our housing and property market.’
Regulatory Judgements published
Welsh Government has published a clutch of Regulatory Judgements on housing associations since the last issue of WHQ.
Taff, Aelwyd, Cadarn, Bron Afon, Tai Ceredigion, Tai Tarian and Abbeyfield Wales were all given standard co-regulation status for governance and services and financial viability.
However, increased regulatory oversight is required for Mid-Wales and Cardiff YMCA to meet five performance standards specified in the judgements.
A Regulatory Judgement – In-Year Review was also published for Cardiff Community stipulating that it requires increased regulatory oversight for governance and service delivery and has standard co-regulation status for financial viability.
The review found that it had satisfactorily demonstrated priority governance improvements that were required and addressed health and safety matters.
However, increased regulatory oversight is required to meet three performance standards.
Regulatory Judgements are available at gov.wales/regulatory-judgements.
WALES
New homes in Caerphilly
A joint development creating 34 new homes in Caerphilly has officially opened thanks to an innovative funding deal.
The site on Watford Road close to the town centre is the result of a funding agreement between Caerphilly County Borough Council and United Welsh Group. It includes 16 homes for sale and 18 for affordable rent.
The council sold part of the site at market value through United Welsh which developed the site. Profits from the properties sold at market price under the harmoni homes brand were used to help fund the construction of the affordable rented homes. The council also benefits from an above market rate return on the lease of retained land.
Caerphilly Council leader David Poole and cabinet member for homes and places Lisa Phipps paid a visit to the site to meet some of the new tenants.
Extra care scheme boosts local jobs in Porthmadog
Representatives from Grŵp Cynefin, Cyngor Gwynedd and Anwyl Construction outside the new extra care development, Hafod y Gest, PorthmadogA major new building project for older people in Gwynedd has given 12 north Wales apprentices valuable experience of the building industry, with 92 per cent of the workforce also living in the region.
Grŵp Cynefin’s £7.8 million Hafod y Gest development in Porthmadog opened recently, allowing older people from the area to benefit from a new independent lifestyle facility in a safe community environment with flexible care services available.
Hafod y Gest is a partnership development between Gwynedd Council and Grŵp Cynefin developed by Anwyl Construction. It is located in the heart of the town and community of Porthmadog, and close to the shops and facilities. The development consists of 26 two-bedroom apartments and 14 one-bedroom apartments and boasts communal areas, including a dining room, lounges, gardens and activity rooms.
Some 85 per cent of the workforce who worked on the development project lived within a 30-mile radius, in north west Wales with seven of the apprentices also travelling within the same locality. In addition, 93 per cent of the goods, services and overheads of the Hafod y Gest contract was spent with small and medium sized businesses in Wales.
PUBLICATIONS 10 TO LOOK OUT FOR
- Life after free movement: Making future immigration policy work for Wales
Bevan Foundation, January 2019
www.bevanfoundation.org/publications/life-after-free-movement/
2. Outsourcing oversight? The case for reforming access to information law
Information Commissioner’s Office, January 2019
ico.org.uk/about-the-ico/what-we-do/outsourcing-oversight/
3. UK Housing Review
Chartered Institute of Housing/Heriot Watt University, April 2019
www.cih.org/publication/display/vpathDCR/templatedata/cih/publication/data/UK_Housing_Review_2019
4. Human rights briefings
Bevan Foundation, February 2019
www.bevanfoundation.org/publications/incorporation-of-human-rights/
5. Planning for new homes
National Audit Office, February 2019
www.nao.org.uk/report/planning-for-new-homes/
6. Home for good – the role of floating support services in ending rough sleeping
St Mungos,
www.mungos.org/wp-content/uploads/2018/12/Home-for-Good-floating-support-report.pdf
7. Homelessness in 2030
FEANTSA and Y-Foundation, February 2019
www.feantsa.org/en/news/2019/02/06/news-homelessness-in-2030
8. Exploring shared ownership markets outside London and the South East
Centre for Housing Policy, University of York, February 2019
www.york.ac.uk/chp/news/2019/alison-wallace-report/
9. Co-living: A solution to the housing crisis?
Social Market Foundation, February 2019
www.smf.co.uk/wp-content/uploads/2019/02/Co-Living.pdf
10. The last-time buyer: housing and finance for an ageing society
Centre for the Study of Financial Innovation, February 2019