Policy update

UK

Budget confirms freeze in LHA

Chancellor Jeremy Hunt rejected pleas from housing organisations across the UK to end the freeze on Local Housing Allowance (LHA) rates in his Spring Budget.

Support for ending the freeze had from Homes for All Cymru as research from the Bevan Foundation showed that just 1.2 per cent of private rented homes advertised in Wales are available at or below LHA rates.

The Budget also introduced a discounted rate for local authority borrowing for investment in housing for this year.

The new Housing Revenue Account discounted rate of 40 basis points will be available to councils in England, Scotland and Wales for loans from the Public Works Loans Board discount for one year.

ENGLAND

Shake-up of social housing regulation approved

Significant changes will apply to the regulation of social housing in England under legislation that is set to gain Royal Assent.

The Social Housing (Regulation) Bill received its third reading in March including last-ditch government amendments to mandate time limits for investigating and rectifying damp and mould problems and professional standards for social housing staff.

The Department for Levelling Up, Housing and Communities also launched a ‘Make Things Right’ campaign to make sure that tenants know their rights and have the confidence to go to the Housing Ombudsman.

SCOTLAND

Private rents capped and evictions restricted

Rent increases in the private rented sector in Scotland were capped at 3 per cent under emergency legislation agreed by the Scottish Parliament.

The changes to the Cost of Living (Tenant Protection) Act mean that from April 1:

If a private landlord chooses to increase a tenant’s rent mid-tenancy, the increase will be capped at 3 per cent
Landlords will be able to apply for a rent increase of up to 6 per cent to help cover certain increases in costs in defined and limited circumstances (including increases in mortgage interest payments, landlords’ insurance and service charges)
Enforcement of evictions will continue to be paused for up to six months except in a number of specified circumstances
Increased damages for unlawful evictions of up to 36 months’ worth of rent will continue to apply.

The measures extend to 30 September, provided they remain necessary, with the option to extend for another six-month period if required.

McLennan becomes housing minister in reshuffle

Scotland has its first dedicated housing minister since 2021 after the reshuffle that followed Humza Yousuf’s election as first minister.

Paul McLennan, SNP MSP for East Lothian, supports the cabinet secretary for social justice, Shirley-Anne Somerville in the new administration. Her predecessor Shona Robison is the new deputy first minister and finance secretary.

Scottish Greens co-leader Patrick Harvie was re-appointed as minister for zero carbon buildings, active travel and tenants’ rights.

NORTHERN IRELAND

New affordable housing option launched

The Department for Communities published a new affordable housing policy that aims to create an additional supply of Intermediate Rent homes.

The new option seeks to offer a more secure, affordable and homes for eligible households who are struggling with the costs of market rentals.

Intermediate Rent tenancies are private rented tenancies. However, they differ from open market private rented tenancies by offering additional benefits, including rents set at a level below what is available in the open private rented market. It is therefore referred to as a below market rent affordable housing option. All the rights and obligations in place in respect of any private tenancy apply to Intermediate Rent tenancies.

A policy document outlines the rules for Intermediate Rent with a departmental funding model expected to follow in due course.

WELSH GOVERNMENT

New powers to tackle second and empty homes

Local authorities got new powers to address the impact of second home ownership and empty properties into force on April 1.

The powers were introduced as part of Welsh Government’s Co-operation Agreement with Plaid Cymru.

Councils are now able to set and collect council tax premiums on second homes and long-term empty properties at up to 300 per cent – up from 100 per cent – with levels based on their local needs.

Five councils have increased the premium charged for second homes in 2023-24, with another seven set to introduce one from April 2024.

Three councils have increased the long-term empty property premium in 2023-24, with another four introducing one for the first time, and another two planning to introduce one in April 2024.

The criteria for holiday lets being liable for non-domestic rates instead of council tax have also been strengthened, with the intention of providing a clearer demonstration that properties are being let regularly as part of genuine holiday accommodation businesses making a substantial contribution to the local economy

Six developers sign building safety pact

Climate change minister Julie James confirmed that six major developers have agreed to sign a legally binding Pact that commits them to carry out fire safety works on medium and high-rise buildings across Wales.

Delivering her latest update on the building safety programme in the Senedd in March, she said Redrow, McCarthy Stone, Lovell, Vistry, Persimmon and Countryside had all signed the new pact, while Taylor Wimpey, Crest Nicholson and Barrett have confirmed they intend to sign.

The Welsh Government also committed to step in and carry out remediation work in an initial cohort of 28 privately owned buildings where a developer is unknown or has ceased trading – sometimes referred to as ‘orphan buildings’.

More than £40m has been made available to remediate a further 38 social sector buildings. This is in addition to the 26 social sector buildings that have been remediated to date and 41 social sector buildings where work has started.

Details of a new £20m Welsh Building Safety Developer Loan Scheme were also confirmed. The scheme will provide interest-free loans over a period of up to five years to assist developers with remediation works to address fire safety issues in buildings of 11 metres or more in Wales.

Julie James said: ‘Our ambitious programme will ensure residents can feel safe and secure in their homes. I have always maintained the position that the industry should step-up to their responsibilities in matters of fire safety.

‘Developers should put right fire safety faults at their own cost or risk their professional reputation and their ability to operate in Wales in future.’

Basic Income pilot ‘empowering’ care leavers

More than 90 per cent of eligible care leavers have joined the Basic Income pilot scheme in the six months since it was launched.

The pilot provides care leavers turning 18 with the opportunity to receive £1,600 (before tax) per month for a period of 2 years. Those turning 18 between July 2022 to June 2023 will be eligible.

The early indications are that the payments are making a real difference. Emma Phipps-Magill, operational director at Voices from Care Cymru, said: ‘The difference it has made to their lives has been giving them the opportunity to look at private housing accommodation instead of waiting on social housing lists, being able to travel and learn to drive so they can pass their driving test, and another could go to university, which they weren’t able to before.’

Consultations

Open consultations of interest to WHQ readers include:

Building safety for higher-risk buildings – responses by 12 May

WALES

Tenant engagement first for Newydd

Newydd has become the first housing association in Wales to successfully complete TPAS Cymru’s new Tenant Engagement Standards Assessment (TESA) challenge.

The challenge, which took nine months to complete, involved reviewing Newydd’s current position in delivering tenant engagement, identifying opportunities for improvement, ensuring Welsh Government expectations and regulatory standards were met and demonstrating commitment to tenant involvement.

Newydd was awarded ‘green’ status for each of the 3 priority TESA standards. The criteria for leadership and governance, involvement practice, and openness and accountability were all met.

David Lloyd, programme director at TPAS Cymru, said, ‘Newydd has a solid track record in providing effective and meaningful ways for tenants to be involved; this ensures they are in strong position to move forward with the implementation of the new Tenant Influencer Strategy. The culture at Newydd, based on the commitment of the board, executive team, and staff to tenant involvement, will be a key part of Newydd’s new approach.’

Newydd tenant influencers, Amanda and Cath, with Jason Wroe, chief executive

Cii launches new retrofit project

The Community Impact Initiative (Cii) has announced plans for a new National Lottery funded project which will get people involved in the retrofitting of three, disused residential properties across South Wales. T

The three properties will eventually be made available as energy-efficient housing for the local community. The project will help those involved in the renovations to engage in climate action, reduce their carbon footprint and ultimately save on their energy bills. The not-for-profit will launch the project in June.

The renovations will be used as a vehicle to teach people sustainable retrofitting skills, helping them to engage with climate action in a practical way. Volunteers will also have the opportunity to achieve qualifications, improve their wellbeing and get to know others in their community. The Cii will begin advertising spaces on the project in the next few months.

Cii project tutor Liam teaches how to lay wood flooring

Five homes have been built in Newport that meet the highest standard of energy efficiency.

Newport City Homes worked with YourSpace Projects to build the terrace of two-bed homes at Vale Mews in Gaer that have been given an Energy Performance Certificate (EPC) A rating.

Lynda Sagona, chair of the Newport City Homes Board (pictured, centre), was joined by guests and pupils from Maesglas and Gaer Primary Schools to celebrate the new homes at Vale Mews.

Each home has state-of-the-art technology to keep customers’ energy bills to a minimum. The walls and frame of the homes are made from panels which are filled with concrete to keep homes warm in the winter and cool in the summer.

Customers use a mobile phone app to control their light and heating and this will record data on how and when energy is used in their home. This information will help the heating system adapt so they can save more money.