Policy developments in other parts of the UK
UK
Lenders agree mortgage charter
Chancellor Jeremy Hunt agreed measures to support people struggling with mortgage payments following a meeting with mortgage lenders and the Financial Conduct Authority.
Amid mounting concern about the housing market, lenders covering 75 per cent of the market agreed a new mortgage charter providing support to customers. Key measures, some of which were about to be introduced anyway, include:
- Borrowers worried about their mortgage repayments can call their lender for information and support, without any impact on their credit score
- Customers won’t be forced to have their homes repossessed within 12 months from their first missed payment.
- Customers approaching the end of a fixed rate deal will be offered the chance to lock in a deal up to six months ahead. They will also be able to apply for a better deal right up until their new term starts, if one is available.
- A new agreement between lenders, the FCA and the government permitting customers to switch to an interest-only mortgage for six months, or extend their mortgage term to reduce their monthly payments and switch back to their original term within the first six months, if they choose to. Both options can be taken without a new affordability check or affecting their credit score.
- Support for customers who are up-to-date with payments to switch to a new mortgage deal at the end of their existing fixed rate deal without another affordability check.
The chancellor said: ‘These measures should offer comfort to those who are anxious about high interest rates and support for those who do get into difficulty.’
ENGLAND
Private renters promised reform
The Westminster Government published plans that it claimed would benefit 11 million tenants across England in ‘a once-in-a-generation’ reform of housing laws.
The Renters (Reform) Bill introduced to parliament in May implements the Conservatives’ 2019 manifesto commitment to abolish Section 21 no-fault evictions but balances that with measures to make it easier for landlords to regain possession in other circumstances. These include selling the property, moving in a family member if they wish to and tenants wilfully not paying rent. Notice periods will also be reduced where tenants have been ‘irresponsible’, for example by breaching the tenancy agreement or causing damage to the property.
A new ombudsman will provide quicker and cheaper resolutions to disputes, while a new digital Property Portal will enable landlords to understand their obligations and help tenants make better decisions when signing a new tenancy agreement.
The government will also bring forward legislation as part of the Bill to apply the Decent Homes Standard to the private rented sector for the first time and to make it illegal for landlords and agents to have blanket bans on tenants in receipt of benefits or who have children.
SCOTLAND
Rent cap and evictions pause to last a final six months
Protections for private landlords will be extended until the end of March 2024 under plans proposed by the Scottish Government.
The proposal put forward by tenants’ rights minister Patrick Harvie would mean the rent cap and protections from eviction would remain in place for a final six months if approved by the Scottish Parliament.
The Cost of Living (Tenant Protection) Act measures would include:
- Most in-tenancy private rent increases would continue to be capped at 3 per cent
- Alternatively, private landlords could apply for increases of up to 6 per cent to help cover certain increases in costs in a specified period where these costs can be evidenced
- Enforcement of evictions would continue to be paused for six months for most tenants, except in specified circumstances
- Increased damages for unlawful evictions of up to 36 months’ worth of rent would continue to be applicable
Social tenants are protected by the voluntary agreement reached with social landlords on below-inflation rent increases for this financial year.
The minister said: ‘The final date of 31 March 2024 would be as long as the rent cap and eviction protections could run if approved by Parliament. The necessity of these measures is being kept under review and we will continue to assess whether they remain justified, balanced and proportionate based on the financial pressures rented households and landlords are facing.
‘We are also looking at how to transition out of the emergency measures, and we continue to listen to and work hard with stakeholders to develop and deliver rental sector reform.’
NORTHERN IRELAND
NIFHA calls for spending boost
Housing associations have challenged the Northern Ireland secretary to recognise the importance of social housing provision by providing an increase to the Department for Communities budget to support social housing new build and Supporting People programmes.
Northern Ireland Federation of Housing Associations (NIFHA), which represents the 20 associations which manage more than 57,000 homes across Northern Ireland, made the call ahead of its annual conference in June. In 2022/23 housing associations exceeded the targets set for both new build completions and new-starts, but there is now concern that budget cuts could impact upon the targets for this year.
In a letter to Chris Heaton-Harris MP, NIFHA chief executive Seamus Leheny set out the need for further investment in housing to address the rising housing waiting lists. It said that to meet the 2,200 new homes required each year, there will be need for significant additional financial investment from the Department for Communities, which would be matched by the housing associations through private finance.
The housing sector is also calling for additional support for the Supporting People budget, a programme which supports more than 19,000 people to live independently.
WELSH GOVERNMENT
Green paper published on adequate and affordable housing
Welsh Government published its long-awaited green paper on the right to adequate housing and fair rents.
The consultation supports the commitment in the Co-operation Agreement with Plaid Cymru to ‘publish a white paper to include proposals for a right to adequate housing with a view to establishing (a) system of fair rents (rent control) in the private rental market so that they are affordable for local people on local incomes and (b) new approaches to making homes affordable for those on local incomes’.
A call for evidence on securing a path towards adequate housing – including fair rents and affordability asks consultees for evidence about how to better understand the rental market in Wales and in particular what factors influence landlord behaviour in setting rents and taking on tenants and what tenants consider is an affordable and adequate property.
For more on the green paper, with reaction from the Back the Bill Campaign, ACORN Cardiff National Residential Landlords Association and Chartered Institute of Housing Cymru, see our feature in this issue.
‘Significant’ areas for Welsh language proposed
Welsh Government has welcomed initial findings from a group of experts on protecting the future of Welsh-speaking communities.
The Commission for Welsh-speaking Communities, which was set up by the Welsh Government to look at ways of supporting Welsh as a community language, published its preliminary findings in June.
The minister for education and Welsh language, Jeremy Miles, discussed the findings with the commission’s chair, Dr Simon Brooks, and heard the views of young people in a Q&A session at the Urdd Eisteddfod. This was part of a series of events engaging with Welsh-speaking communities about what is important to them.
The report proposes designating parts of Wales where intervention might be needed to sustain Welsh as a community language as ‘areas of higher density linguistic significance’. This would enable public policy to be varied to acknowledge the needs of different parts of Wales.
Jeremy Miles said: ‘It’s crucial that our communities are strong and protected so Cymraeg can thrive. The challenges facing Welsh-speaking communities have intensified in recent years, which we saw in the census results last year and is reflected in the Commission’s paper.
Dr Simon Brooks said: ‘Our preliminary finding is that further support is required to support Welsh as a community language, especially in socio-economic areas such as housing, planning, community development, as well as education. This could be achieved by allowing policies which impact on the social use of Welsh to be varied in different parts of Wales. To do this, the Commission believes that “areas of higher density linguistic significance” should be designated, and our position paper discusses how this might be achieved.’
Nine developers sign up to fire safety pact
All nine companies that were expected to sign up to the developers’ pact with Welsh Government have now done so, climate change minister Julie James told the Senedd in early July.
Three firms have now joined six that had already signed the legally binding pact to address fire safety issues in buildings they have developed over the last 30 years.
The minister added that Persimmon is now on site at Century Wharf and Aurora; Bellway is on site at Prospect Place and ACM cladding has been removed from Quayside apartments; McCarthy Stone has now remediated all fire safety works in buildings in Wales that they have developed; and Redrow has now provided funding for internal fire safety works.
Her update on building safety also revealed that one property has now been purchased through the leaseholder support scheme and that five more are proceeding through the property purchase process. The scheme enables leaseholders to move on or rent the property back.
She confirmed that officials are also working at pace on a Building Safety Bill for Wales, which will be introduced later this Senedd term.
However, Mark Thomas of the Welsh Cladiators campaign, said the response by Welsh Government was ‘weak’ and that the minister’s statement was ‘full of misleading optimism’.
He went on: ‘Given the experience of the last 30 years, to rely on developers’ goodwill is a fantasy. We can confidently expect delay, procrastination and evasion as widely reported in England. Welsh Cladiators will continue to lobby for strong and effective laws coupled with an effective enforcement regime. After six long years of fighting for justice we still have a long road ahead.’
CONSULTATIONS
Open consultations of interest to WHQ readers include:
- Securing a path towards adequate housing including fair rents including fair rents and affordability – responses by 15 September
- Ending homelessness outcomes framework – responses by 18 September
WALES
Adra secures loan deal for ambitious housing projects
Adra has secured a £25 million sustainability linked loan from its existing banking partner NatWest that will be invested in building new homes and improving the energy efficiency of its existing stock.
This funding is part of the North Wales housing association’s £63 million investment in property over the next 12 months and will assist with the commitment of creating 750 new homes by 2025.
Rhys Parry, Adra’s director of resources, said: ‘We want to play our part in helping to solve the housing crisis by meeting the demand for more housing – creating and providing high quality, green, safe and affordable homes that people can be proud of.
‘We ensure that the investment benefits communities across North Wales by using local contractors for projects and using the local supply chain to provide materials where possible.’
Martin Skinner, director housing finance at NatWest, said: ‘We are working closely with housing associations to help them define their sustainability strategies and our specialist team in this sector has supported many of them with the structuring of their environmental social governance (ESG) frameworks. We have also been a driver of the Sustainability Reporting Standard for Social Housing, which provides a voluntary reporting framework for housing providers to report on their ESG performance consistently and with transparency.’
Barry scheme celebrates platinum award
Tenants at a Barry housing scheme for people aged 55 and over are celebrating major design changes to their home that support people with sight loss.
Arthur Davis Court is the fourth Newydd Housing Association independent living scheme to receive RNIB Cymru’s Visibly Better Platinum Award for the redesign, which enables older people with sight loss to live independently for longer.
The simple but effective changes to Arthur Davis Court include colour contrasted walls, fixtures and fittings, tactile surfaces on walls and floors, eye-level signage, and sensory clues to help blind and partially sighted people to navigate communal areas. Communal areas now have lighting controlled by movement sensors and window tints to prevent glare, which can impact people with low vision.
Colour contrasted handrails, well-lit walkways, and distinct path and road surfaces ensure that tenants with sight loss can enjoy spending time in the garden without worrying about access and safety.
Trained Newydd tenants undertook the initial audits of the scheme as well as critically assessing the work carried out by contractors M Delacey & Sons, with support from RNIB Cymru. Throughout the process they ensured the work was up to standard and suitable for fellow tenants.
Cath Kinson, a Newydd tenant who has been part of the Visibly Better project for over 10 years, developed glaucoma and cataracts during lockdown. Since then, she said, she has a deeper understanding of how changes to living spaces can help people with sight loss.
Cath said: ‘It can be really frightening to go somewhere new when you have sight loss, because you don’t know if stairs are going to be dangerous, or what obstacles will be in your way. But because I was part of Visibly Better, I didn’t panic when I lost my sight. I knew that the skills I had learnt and the changes I had helped to put in place would help me. And now I can’t stop myself from pointing out inaccessible design wherever I go.’
Visibly Better is an RNIB Cymru accreditation scheme for older people’s independent living communities and care homes. Staff are supported to improve residents’ independence, mobility and quality of life through simple changes to their living space.
David Watkins, RNIB Cymru Visibly Better co-ordinator, said: ‘We were thrilled to work with Newydd again. It is fantastic to see their ongoing commitment to supporting blind and partially sighted residents. Sight loss should not lead to a loss of independence, and the changes to Arthur Davis Court will be so helpful to current and future tenants.’
Association and charity unite to tackle cost-of-living crisis
Trivallis and RCT-based charity Valleys Kids have joined forces in a two-year partnership that will focus on supporting communities that have been hardest hit by the cost-of-living crisis.
The partnership formed following a competitive search in which Trivallis tenants and staff collectively selected Valleys Kids as their chosen charity partner.
For the next two years, Trivallis will work in partnership with Valleys Kids, to raise awareness and funds to support the work the charity does to improve the quality of life for people across the valleys.
The partnership will also see the two organisations working together on community projects that will benefit individuals and families in need.
Tracey Cooke, senior partnerships manager at Trivallis, said: ‘One in ten residents in RCT live in a Trivallis home and we know that many of our communities were already facing hardship before the cost-of-living crisis. This is why it’s so important that we work together to build the right support for our communities, and why Valleys Kids’ view that we are all “valleys kids” resonated so well with our staff and tenants.
‘We are both already doing a lot of work individually to support with community spaces and activities, money saving advice and wellbeing; but by working together we can go even further. This will make a huge difference to our tenants, in the valleys and in Cardiff Bay.’
Elise Stewart, chief executive at Valleys Kids, said: ‘We are delighted to have been chosen as Trivallis’ charity partner for the next two years. This builds on a long-standing relationship and comes at a crucial time as the impacts of the cost-of-living crisis deepen and the need for our support continues to grow.’
Throughout the COVID-19 pandemic and beyond, Valleys Kids role as a lifeline to the community came to the fore. This saw it deliver 2,456 family food hampers and 1,176 adult care packages to people in need. It also provided an additional 8,711 wellbeing packs and took over 14,700 wellbeing telephone calls.
A sheltered housing scheme in Springfield, Pontllanfraith has been transformed thanks to a £3.2 million investment by Caerphilly County Borough Council.
Former bedsit accommodation at Ynyswen (pictured) has been remodelled to provide residents with bright, spacious one- and two- bedroomed apartments. Each home has received extensive refurbishments including new kitchens, wet rooms and heating systems and most are fully wheelchair accessible. A sprinkler system has also been installed in the building for residents’ safety.
New windows and rendering have improved the appearance of the building as well as making it more energy efficient. Solar panels have also been fitted on the roof of Ynyswen.
Indoor and outdoor communal spaces have been transformed, with residents now able to benefit from an airy lounge and sunny seating areas to socialise or take part in activities. Improved access has ensured the building is now Disability Discrimination Act (DDA) compliant.
All aspects of work at Ynyswen were carried out by the council’s in-house team, even down to the manufacturing of the new UPVC window frames.
Cllr Shayne Cook, the council’s cabinet member for housing, said ‘We recognised that the original design of the scheme was no longer fit for purpose. The scale of the work at Ynyswen was significant, but our in-house team rose to the challenge and delivered to an exceptionally high standard.’
10 PUBLICATIONS TO LOOK OUT FOR
1) State of the private rented sector in Wales
National and Residential Landlords Association, June 2023
www.nrla.org.uk/campaigns/wales – state-of-the-prs
2) The Cost of Ignoring Poor Housing
BRE, July 2023
files.bregroup.com/corporate/BRE_the_Cost_of_ignoring_Poor_Housing_Report_Web.pdf
3) Housing Quality and Affordability for Lower Income Households
Institute for Fiscal Studies, June 2023
ifs.org.uk/publications/housing-quality-and-affordability-lower-income-households
4) Shaping Housing Futures – Changing the Housing Story
CaCHE, June 2023
cityfutures.ada.unsw.edu.au/documents/539/shaping_futures_final_report_WEB.pdf
5) Delivering for Tenants – the foundations of an effective local authority housing service
London Housing Directors Group, June 2023
6) Home is the Foundation: perspectives on prevention from people with experience of homelessness
Crisis, June 2023
www.crisis.org.uk/media/249096/crisis_home-is-the-foundation-report.pdf
7) The Economic and Social Benefits of Housing Support
CaCHE, May 2023
housingevidence.ac.uk/wp-content/uploads/2023/05/Economic-benefits-of-housing-v6.pdf
8) Investing in the Future – reforming the UK’s welfare system
Grand Union Housing Group, April 2023
www.guhg.co.uk/investing-in-the-future-reforming-the-uks-welfare-system/
9) Real Homes, Real Change – meeting the net zero challenge in the north
Northern Housing Consortium, June 2023
www.northern-consortium.org.uk/real-homes-real-change/
10) Supported housing for people with learning difficulties and autistic people in England
Housing LIN, July 2023