Jules Birch introduces a WHQ special feature on the Housing (Wales) Bill with a summary of the key elements of the legislation and the thinking behind them
It almost goes without saying by now that the introduction of the Housing Bill represents a historic moment for housing in Wales. But as everyone gets down to the hard work of scrutinising the details of the legislation it’s a point that is worth repeating.
This article is followed by individual pieces from housing minister Carl Sargeant and from the Conservatives, Liberal Democrats and Plaid Cymru setting out their positions. We also have contrasting perspectives on the Bill from Tai Pawb, Welsh Tenants and the Residential Landlords Association. However, throughout this issue you will also find the views of our other regular contributors.
The Bill has seven key elements:
- Introduce a compulsory registration and licensing scheme for private rented sector landlords and letting and management agents
Private landlords and agents will have to register and become licensed with the local authority in the area where their property is located. The process of becoming licensed will begin after registration. However, one change from the white paper is that the license will be valid for five years rather than three. This section of the legislation seems set for particular scrutiny, with all three opposition parties expressing some concerns and landlords arguing for agents to be licensed first.
The Welsh Government says that ‘the intention is to improve standards of management and the standards of property in this growing sector of the housing market, and to support an increased awareness of the respective rights and responsibilities of tenants, landlords and letting and management agents’.
- Reform of homelessness law, including placing a stronger duty on local authorities to prevent homelessness and allowing them to use suitable accommodation in the private sector
The strengthened duty on local authorities to prevent and relieve homelessness is matched by a new ability to discharge their main homelessness duty into the private rented sector (with a six-month tenancy). The registration and licensing plans above also have to be seen in this context.
However, the Welsh Government has rowed back on some of the white paper proposals on prevention and intentionality amid concern from local government about the cost of implementation. For example, the white paper had proposed that all households with children found to be intentionally homeless should still have the right to the full homelessness duty. The Bill retains this provided it is the first time they have been found to be intentionally homeless within the last five years.
One aspect of the legislation that is sure to face scrutiny in the Assembly is a proposal to ‘redress the balance of priority need status for vulnerable applicants by amending the priority need status of former prisoners’.
- Place a duty on local authorities to provide sites for Gypsies and Travellers where a need has been identified.
The Bill proposes that where the need for sites has been identified, but not met by the relevant local authorities, the duty would enable ministers to compel the authorities to provide suitable and sufficient sites. However, sites would still be required to obtain planning permission in the normal way.
- Introduce standards for local authorities on rents, service charges and quality of accommodation
The Bill will enable standards to be set for both existing and new homes and local authorities will be required to comply with them. The Welsh Government says this ‘will ensure that all tenants will be able to live in an acceptable standard of accommodation regardless of whether they rent their homes from a local authority or a housing association.’ Local authorities will have to ensure that all their existing properties meet the Welsh Housing Quality Standard by 2020.
The Bill will set standards for stock holding local authorities for both rents and service charges and also proposes minor amendments relating to reasonable rents for local authorities and to standards for housing associations.
- Reform the Housing Revenue Account Subsidy system
Following an agreement with the UK Treasury in June 2013, this will give local authorities in Wales the same ability to retain their rental income as councils in England have enjoyed since 2012. All 11 stock retaining local authorities in Wales currently pay negative subsidy back to the Treasury. Under the new system they will need to buy themselves out of the subsidy system at a value considered fiscally neutral to the Exchequer. Councils will be able to use savings from the exit to invest in their housing stock. The UK Treasury will require a housing-related borrowing limit to be set for each of the affected authorities.
- Give local authorities the power to charge 50 per cent more than the standard rate of council tax on homes that have been empty for a year or more
The Welsh Government says that although it is not possible to ring-fence the use to which the receipts would be put ‘it is expected that the additional revenue would be channelled into addressing problems caused by a lack of affordable housing in the relevant local authority’s area’.
- Assist the provision of housing by co-operative housing associations
Dave Palmer, co-operative housing project manager for the Wales Co-operative Centre, sums up: ‘The Bill will assist the expansion of co-operative housing by improving arrangements for people who wish to join or leave a co-operative. These proposed measures will boost co-operative housing, by allowing fully mutual housing co-operatives to grant assured and assured short-hold tenancies, creating more security for tenants and helping co-operatives to obtain finance from lenders.’
All of these proposals of course follow extensive consultation with the housing sector in Wales. As the different nations of the UK continue to develop their own distinctive policies on housing and homelessness, the Bill carries the hopes and aspirations of many and, as CIH Cymru puts it, ‘cuts the umbilical cord’ with Westminster. With the Renting Homes Bill to come in 2015, we are moving towards a housing system made in Wales for Wales.
What happens next?
The Bill was introduced in the National Assembly on 18 November and must through five stages before it becomes law.
For Stage 1, the Business Committee referred the Bill to the Communities, Equality and Local Government Committee. This is for considerations of the general principles and of the need for legislation: broadly speaking, does it do what it says and is legislation necessary?
The first session was on 12 December and there are five more arranged in January and February before the committee holds three private sessions in March. Anyone with an interest who wants to submit evidence has until 17 January to do so via email to CELGCommittee@wales.gov.uk or by post to the committee clerk.
Following that there will be a Debate in Plenary on the general principles and a Financial Resolution. Other committees may also consider and report on the financial implications and any subordinate legislation provisions.
According to the agreed timetable for the Bill, the Communities, Equality and Local Government Committee should report to the Assembly by 21 March, 2014.
Stage 2 comprises detailed consideration by a committee of the Bill and any amendments tabled and proceedings should be completed by 23 May, 2014.
Stage 3 is detailed consideration by the Assembly of the Bill and any amendments. Stage 4 is a vote by the Assembly on the final text of the Bill. There is an optional amending stage, called the Report Stage, which can take place between Stage 3 and 4 if proposed by the Member in Charge and agreed by the Assembly.
Stage 5 is Royal Assent, which is expected in Summer 2014.
Follow the progress of the Bill at http://www.senedd.assemblywales.org/mgIssueHistoryHome.aspx?IId=8220