Housing and Planning Bill

Sam Madge-Wyld considers the Housing and Planning Bill as at second reading stage.

The Housing and Planning Bill, according to Brandon Lewis MP – the current housing minister – ”marks the start of a national crusade to transform generation rent into generation buy”. Whether the Bill will achieve its principal objective is open to debate, especially as the Bill defines a starter home as being one that costs up to £450,000 in London and up to £250,000 in the rest of the country, being around 10 times the size of the UK average salary. The underlying question therefore is whether this Bill will make a difference to those who can’t afford to buy a starter home or who are not tenants of housing associations and are therefore not eligible for the extended right to buy and who therefore have no choice but to continue renting in the private sector.

Unsurprisingly, the Bill is not particularly radical in this regard; there is no rent control or extended security of tenure, the two changes which would make renting in the private sector far more attractive and affordable to most. That is not, however, to say that the Bill, when considered alongside the new measures contained within the Deregulation Act 2015, such as retaliatory eviction, does nothing. If the new proposals are enacted and then, as importantly, enforced, there is a chance that they will at least drive some of the criminal and downright incompetent landlords away from the sector. That can only be a good thing for all concerned, be they landlords or tenants.

Banning orders

Perhaps the most eye catching proposal is set out within Chapter 2 of Part 2 of the Bill. Chapter 2 gives the First-tier Tribunal, on an application made by a local housing authority, the power to make an order banning a person from letting housing in England and / or engaging in letting agency or property management work in England for a period of not less than six months where that person has been convicted of a banning order offence.

The Bill, so far, is silent on the all important details, i.e. what constitutes a banning order offence. That will be specified by regulations made by the Secretary of State. Some idea of what they might include can be found in the discussion paper that preceded the Bill, where it was proposed that a banning order offence would be likely to include convictions for fraud, violence, drugs or sexual assault which were committed at any residential premises which the offender (or a person associated with him) owned or was involved in managing and otherwise where the offender had been convicted of two or more relevant housing offences. A relevant housing offence is also not defined, but is almost certain to involve the letting of premises to persons without a right to rent under Part 3, Immigration Act 2014 (as every piece of legislation passed by this Government seemingly needs to include a new measure to combat the problem of unlawful migration). Presumably, a relevant housing offence will also include landlords who have been convicted of unlawfully evict their tenants, but it will be interesting to see if it also extends to housing offences under the Housing Act 2004, e.g. letting accommodation without a licence or failing to comply with an improvement notice, or even if it extends to landlords who have been found to have breached housing legislation that does not attract a criminal sanction.

Of course, banning orders will be completely ineffective unless they are enforced. Responsibility for enforcement will rest with local housing authorities. Importantly, however, the Bill provides that a person who breaches such an order will not be to a prosecution, but rather to pay a financial penalty of up to £5,000. The imposition of a penalty, which the authority may be able to keep, as opposed to a conviction is aimed at encouraging authorities to use their enforcement powers. This is certainly o be welcomed, because at a time where authorities’ budgets continue to be slashed, the will to bring prosecutions for no financial reward, which was already close to non-existent in the case of certain authorities, is only likely to wane further.

The ineffectiveness of prosecutions is also recognised by clause 86 of the Bill, which provides that authorities will also be entitled to impose to financial penalties, as opposed to bringing prosecutions, against landlords who commit offences under the Housing Act 2004. Presumably, this could also apply to offences under Protection From Eviction Act 1977 and it might be something that tenant’s representative groups, such as the Housing Law Practitioner’s Association, may wish to make representations on.

While the Bill provides that the Secretary of State will decide how much of the penalty authorities will be able to keep, the discussion paper, mentioned above, envisaged authorities being able to keep the penalty. It will be interesting to see if this intention is reflected in the subsequent regulations as if it isn’t the good intentions behind move to levying penalties will be worthless.

Register of rogue landlords

Authorities will also be required to enter persons made subject to a banning order onto the Secretary of State’s database of rogue landlords and letting agents. They will also have the power to enter the names of landlords who are convicted of banning order offences, but not made subject to a banning order. The idea behind this is to ensure that a landlord or letting agent, who is made subject to a banning order, cannot simply up sticks and move their business to another part of the country where they will be unknown and able to operate under the radar. Whether this will be effective remains to be seen as such landlords will undoubtedly set-up completely new companies in attempts to avoid detection.

One of the Bill’s proposals to combat this problem is to, controversially, require tenancy deposit schemes to provide local housing authorities with any information that they request, presumably so that authorities can maintain a record of every landlord that is active in their area. This will not only interest authorities seeking banned landlords flaunting their banning order, but also those operating selective or additional licensing schemes. Whether banned landlords will be conscientious enough to have protected their tenant’s deposits is perhaps another matter.

Rent repayment orders

Presently either tenants or local housing authorities can apply to the First-tier Tribunal for a rent repayment order, i.e. an order that the landlord pay back rent he has received in housing benefit, where a landlord has let accommodation in circumstances where he required a licence to do so, e.g. where the accommodation is within a licensable HMO. Chapter 4 of the Bill proposes to extend the availability of rent-repayment orders to circumstances where the landlord has breached a banning order or committed an offence by failing to comply with an improvement notice, unlawfully evicted a tenant or used violence to enter property occupied by the tenant. As with existing rent-repayment orders the Bill does not require that the landlord has in fact been convicted of the specified offence, although the amounts that are recoverable are likely to be higher where a conviction has been obtained.

These proposals will certainly be welcomed by authorities and tenants and should, if authorities use the powers, act as a further deterrent against those landlords who refuse to take action to remedy hazards present in let accommodation and those who choose to illegally evict their tenants. It may also result in authorities bringing more prosecutions against landlords where they stand to gain a financial reward for doing so.

Retaliatory eviction

The Deregulation Act 2015 has already made provision in England for the banning of the “retaliatory eviction”, albeit it is not as straightforward as originally intended and, so far, it only applies to tenancies in England granted after 1 October 2015. In respect of those tenancies, a s.21 notice that is served on a tenant becomes invalid if it is served after a tenant has complained in writing about the condition of the property and the local housing authority, in response to a complaint to it by the tenant about substantially the same issues arising from the condition of the property, serves the landlord with an improvement notice under Housing Act 2004: s.33(2),(3), 2015 Act. This even applies where the tenant doesn’t even complain to the landlord, because he was unable to make contact with the landlord, and so complains to the authority first: s.33(5), 2015 Act.

Likewise, the 2015 Act also prohibits landlords from serving s.21 notices for a period of six months from when the local housing authority served the landlord with an improvement notice, irrespective of whether a tenant has complained: s.33(1).


These proposals are undoubtedly welcome, because, frankly, any additional regulation of what has been until very recently an area free from almost any regulation is bound to be of benefit to some tenants. The real test will be whether the proposals are enforced by authorities and undoubtedly this vary across England. However, in practice, it is does no more than to scratch round the edges of the real elephant in the room: the lack of good quality affordable housing for those who cannot afford to buy their own home. The 2015 Act and the Bill, which if enacted will also introduce the extended right to buy which was discussed in last month’s post, will not solve, but exacerbate, that problem.

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Wrong to Buy?

Sam Madge-Wyld considers the recent RTB “offer” from the NHF.

Those who have even a passing interest in housing law will be familiar with the current Government’s proposal to give tenants of housing associations the right to buy their homes (or more accurately the right to the same discounts presently available to secure tenants). The proposal, as originally drafted, was to introduce new legislation that would compel associations to sell a tenant his home at a discount. In return, the Government would provide the association with a sum equivalent to the amount of the discount. This was to be funded by the introduction of additional legislation that would compel local housing authorities to sell their most valuable homes as and when they became vacant.

These proposals have been controversial and resulted in opposition from associations, local housing authorities and even, allegedly, the Treasury. At first associations were concerned that the introduction of the extended right to buy would remove their independence and charitable status. It had also been said that the proposed change in the law would lead to associations being defined as public bodies, which was the cause of the alleged concern within the Treasury as if that were to happen it would potentially add billions of pounds to the national debt. Obviously, local housing authorities were also concerned about the loss of their own stock. Even some commentators on the right questioned why sections of society who were already adequately housed should get a subsidy from the state to purchase a home they already lived in.

Notwithstanding these concerns, both the Government and the National Housing Federation (NHF), the body that represents housing associations, have been working towards agreeing a deal which would see associations retain their independence, but would also result in tenants acquiring the right to buy their homes.

The proposal suggests that it is an offer from the National Housing Federation to the Government. It is, however, plainly the result of proposals from both sides. Indeed, the deal was put to associations, at the NHF’s conference, by both David Orr, the Chief Executive of NHF and Greg Clark MP, Secretary of State for Communities and Local Government, with Greg Clark threatening associations that while he wanted to work with them to “find a way for every tenant to buy a stake in their home … there are some who say that to achieve the transformation we need requires a fresh start – that the housing association sector has taken us so far but might not be the right partner for the future.”

It is therefore not altogether surprising that 86% of all member associations, representing 93% of the sector’s rented homes, responded by indicating that they agreed to the deal. When one considers the deal in detail and the way that it will be funded it would also appear to be a no-brainer for the sector as a whole. The deal, if it is to be funded by the ongoing sale of council homes, will lead to housing associations becoming larger and stronger at the expense of local housing authorities. Effectively, the deal will result in local housing authorities funding the building of social housing owned by housing associations at the expense of existing council owned stock.

The offer

The detailed offer promises that all associations will extend “to all 2.3 million housing association tenants the right to purchase a home, at the level of discount to which they would be entitled if they had the Right to Buy … “ and that there would be a presumption that that housing associations would sell the tenant the property in which they live other than prescribed circumstances, i.e.

  • Supported housing within the meaning of Part 5, Housing Act 1985.
  • Properties in rural locations as defined by Section 17 of the Housing Act 1996.
  • Properties provided through charitable or public-benefit resources or bequeathed   for   charitable or public-benefit   purposes, and in the possession of the housing association before it became registered under the Housing Act 1974
  • Certain   specialist   properties   of   historic   interest   that   have   special significance to the community, such as almshouses.
  • Where there are clear restrictive covenants in existing resident contracts around the protection of rural homes.
  • Properties held in a Community Land Trust
  • Other categories that apply to the existing Right to Buy:
    • Properties   where   the   landlord   is   a   co-operative   housing association
    • Properties where the landlord does not have sufficient legal interest to be able to grant a lease exceeding 21 years for a house or 50 years for a flat
    • Tied accommodation occupied because the tenant is employed by a social landlord

Even then, associations would still be required, as part of the agreement, to offer alternative accommodation to tenants to purchase at the discount they would otherwise have been entitled to if purchasing their own home. Tenants would have rights of appeal to the Regulator of Social Housing in circumstances where they were denied the right to buy their own home and were unhappy with the alternative being offered or if they believed that the sales process was taking too long to complete. In either case, the Regulator would have the power to compel the association to provide an alternative property and to compel the association to complete the sale within a specified period. To ensure the speedy sale of homes, associations would no longer require the consent of the Regulator in circumstances where the right to buy applied.

Associations have also agreed that all properties that are sold will generally be replaced within two, but at the very latest within three years. To that end, the Government will provide associations with 70% of the discount on completion of the sale and the remaining 30% once there is evidence of a start on site or the acquisition of land to build on.

There would also be a presumption that each association would, so far as they are able to, replace each property on a one for one basis through building a new home, Associations would, however, have a wide discretion as to the types of homes they build, e.g. an assured tenancy could be replaced with a property to be let at an affordable rent, sold under shared ownership or even to be sold on the open market. Those associations that are not set-up to develop new homes would be able to enter into agreements with larger associations that could.

The Government has, for its part, promised, in addition to amending the circumstances in which a Regulator’s consent would be required before the disposal of any of an association’s assets, to allow associations to let and sell more properties at the market rate and to amend legislation so as to remove local housing authorities’ control over the allocation of an associations stock.

What will this mean?

One doesn’t need to be an expert in housing to see where this is going. If the Housing Bill is passed, the days of local housing authorities building new council homes will be over. No sane authority will choose to build homes, at its own expense, when they can be sold effectively for nothing. Likewise, local housing authorities who inherited a debt when the subsidy for the housing revenue account was abolished will also be concerned about how they will be able to finance that debt in the absence of capital receipts from sale of their own stock.

Secondly, in the long term, local housing authorities will cease to own any, or a very small proportion, of their own stock. While the current proposal is only for the sale of an authority’s most valuable homes, once those are sold those that remain will also need to be sold to fund the discounts available to future association tenants. It has been predicted that the cost to local housing authorities will be £6 billion of the next four years if all assured tenants who are able to purchase their own homes choose to do so.

Finally, there will be less available social housing in the classic sense, i.e. housing available at below the market rent with security of tenure, as associations are given greater flexibility in how they use or dispose of their existing and future stock.

The driver behind this proposal is to allow more people to own their own homes and for more homes to be built. A consequence of this approach, however, will inevitably mean less affordable housing for those who are unable to purchase their own homes. This will not solve the so called “housing crisis”.

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A Mixed Bag

Sam Madge-Wyld and Justin Bates consider the recent announcements on housing law reform, immigration and “rogue landlords”.

On 3 August 2015, the Department for Communities and Local Government released a technical discussion paper named “Tackling rogue landlords and improving the private rental sector”. This paper covered three areas for discussion: the extension of rent repayment orders and civil penalties, the banning and blacklisting of “rogue landlords” and new rules allowing landlords to recover properties that have been abandoned.

The paper, as is invariably the case, was accompanied by a press release. This press release also contained additional proposals designed at making it harder for anyone who is present in England unlawfully to rent residential accommodation by allowing private landlords to summarily evict tenants, without a court order, who have been served with a notice by the Home Office notifying them that they have no right to remain in the UK. Those who only read the press release would have probably presumed that further detail on these new immigration reforms would also be contained in the discussion paper. Indeed, anyone who read the press release would be forgiven for thinking that the discussion paper was principally concerned with immigration.

Yet the discussion paper did not contain any detail, or indeed a mention, of the immigration reforms. Some may think that odd or maybe that the Government had chosen to use the DCLG’s pre-planned launch of its discussion paper it had been writing since its new minister took office, as a means to show that the Government had, contrary to what anyone else might have thought, been working hard and since May on as yet unannounced new tough immigration reforms to show that, again contrary to what people might think, it had a “grip” on the immigration “crisis” best evidenced by what had been playing out in Calais and had been beamed into the electorates homes for the previous two weeks.

Thus, while this blog post, will consider all four proposals, our analysis into the new immigration proposals is somewhat more constrained by way of the fact that even the Government doesn’t yet know how it will implement the proposals.

Ending the tenancies of people present in the UK unlawfully

The press release reports that:

“Measures in the forthcoming Immigration Bill will go further, and will enable landlords to evict illegal immigrant tenants more easily, by giving them the means to end a tenancy when a person’s leave to remain in the UK ends – in some circumstances without a court order.

This will be triggered by a notice issued by the Home Office confirming that the tenant no longer has the right to rent in the UK. The landlord would then be expected to take action to ensure that the illegal immigrant tenant or occupant leaves the property.”

Even with such little detail, it is easy to foresee some obvious difficulties. First, most reputable landlords don’t want to evict people without a court order. This is not a controversial statement, nor one made by lawyers keen to protect their own work. Richard Lambert of the National Landlord’s Association told the Today programme on 3 August 2015 that it is for a court to decide whether an occupier of residential accommodation should be evicted or not.

Secondly, it is very difficult to see how a scheme which requires the arbitrary removal of residential occupiers from their homes without giving a court the opportunity to consider the proportionality of their eviction, would be compatible with Article 8 and/or Article 1 of Protocol No.1 of the ECHR.

Thirdly, while it is clear that the proposal is designed to deter people coming to the UK, it is unclear how forcing overstayers to leave their residential accommodation will actually result in them leaving the country. The press-release suggests that the process would start with notification from the Home Office. That assumes, therefore, that the Home Office is aware of where the overstaying tenant is living. Accordingly, it will know where to find him when they want to remove him back to his country of origin. By forcing him to leave his accommodation, the Government will no longer have any idea where the overstayer has gone and will therefore be unable to remove them. This was a point that that the Communities Secretary Greg Clark found difficult to answer on the same Today programme.

Fourthly, what happens when the UKBA get the notice wrong? While it would be nice to devise a system on the basis that it will always work and be operated properly, everyone knows that this cannot be the case. That is why almost all administrative decisions have some sort of right of appeal even if not to a court. Will there be a right of appeal against a notice? If so, to whom? A more senior immigration officer? A tribunal? The Government will be wise to recall the recent quashing by the High Court and Court of Appeal of the fast-track asylum appeals process on the grounds that the process was unfair, in part because of its speed (Detention Action v First-tier Tribunal (Immigration and Asylum Chamber) [2015] EWHC 1689 (Admin)). If there is going to be a proper and fair appeal’s process, by the time it has been concluded a landlord could, in all likelihood, have simply served a s.21 notice and used the accelerated procedure under Part 55.

Finally, the Government often conveniently neglects to mention that there are a number of foreign people in the UK who work, many for large multi-national companies. Lots of these people have no intention of settling in the UK and rent their homes. Sometimes, through an oversight or error, their leave to remain comes to an end while they are still working for their employer. Are these people really going to be made homeless as a result? Is this really necessary? Does anyone really imagine that this will be applied even-handedly to, e.g. seconded employees of big banks and failed asylum seekers (both of whom have, in our hypothetical scenario, no right to remain in the UK).

Banning of rogue landlords / extension of civil penalties and rent repayment orders

The main thrust of the paper is to increase the fines levied by the courts for repeat offenders of housing related offences (i.e. any contravention of Housing Act 2004, illegally evicting a tenant, letting to an illegal immigrant, permitting overcrowding or misleading local authorities) and to ban landlords, in particularly serious cases, from being allowed to manage or let property in England. Any banned landlord who continued to rent property could face imprisonment and a rent repayment order.

It has always been the view of this blog that the private rented sector is in need of greater regulation and so these are welcomed proposals. To that end, we also welcome the proposals to strengthen the fit and proper person test for landlords that are required to hold a licence (i.e. of HMOs or where an area is subjected to selective licensing under Housing Act 2004). In particular, the requirement that landlords are required to disclose their criminal convictions is very much welcomed. Ultimately, however, the enforcement of “rogue” landlords falls on local authorities and, at times of tightened budgets, fewer and fewer prosecutions are brought.


Presently, save for a limited number exceptions, a landlord who wishes to recover possession of residential premises must obtain a court order. This involves serving a notice, issuing proceedings and then applying for a bailiff to evict the tenant. If everything runs to plan, and the tenant does not defend the claim, this will often take around four months. A landlord can short circuit this process, however, if he is satisfied that a tenant has surrendered their tenancy, i.e. committed an unequivocal act which is inconsistent with the tenancy continuing (often clearing the property of all his belongings and returning the keys or notifying him that he has left and will not be coming back). Merely leaving a property is, however, without something more, not enough.

Perhaps as a sweetener to the proposals for increased regulation and harsher penalties, the DCLG is now proposing to legislate to allow landlords to recover possession of properties when tenants appear to have left, but have not committed an unequivocal act so that there has been a surrender. This is something that landlords understandably bemoan, as it can seem a huge waste of time and resources recovering possession of an empty property. However, there is a good reason for the law as it currently stands.

The proposal from DCLG is that once a landlord believes that a property has become empty he can serve the tenant with a notice. If the tenant does not respond within four weeks to say that the property has not been abandoned then the landlord can recover the property. This is a ludicrously short period of time. There are a whole number of reasons why tenants suddenly disappear and most of them are entirely legitimate and understandable. Moreover, they are often for far longer than four weeks. While some tenants may well have taken a long holiday, it is more likely that they will have left home because of illness, death of a relative abroad, job away from home, caring for a relative etc etc. At such a stressful time, returning home to find all of your possessions have been disposed of and you have nowhere to live is not going to make things any better.

There is no evidence to support the need for this proposal. Indeed, the discussion paper mainly refers to circumstances where a landlord has taken back possession and then been hit with a claim for unlawful eviction. The answer to that is to issue a claim for possession. This cure is completely disproportionate to the problem this proposal is designed to meet. Most responsible landlords (who let us not forget this paper says it is aimed at supporting) make provision for fallow periods and accept it as part of being a landlord. Does a few months of not receiving any rent outweigh the prejudice suffered by an absentee tenant losing his home and possessions? The only protection for the tenant is that if they return within six months they may be entitled to damages if they can prove that the landlord’s acted unfairly. That is going to be hard to prove and hardly any real recompense.

We would both strongly urge the Government to reconsider this proposal.

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On the agenda: Part 2

In the last post, Sam and Justin considered the new Government’s proposals concerning the right to buy, the benefit cap and the roll out of the Immigration Act 2014 in England and Wales. This post considers the effect of the budget and the announcements it made in respect of housing law in England and Wales.

Housing benefit and the benefit cap

As we noted previously, the Government had already announced that it would reduce the benefit cap to £23,000. In the budget, however, the Chancellor announced that the benefit cap would be even lower for people outside of Greater London. While it would be lowered to £23,000 for persons living in Greater London, it would be set at £20,000 for everyone else. The Government proposes to legislate for this change by clause 7 of the Welfare Reform and Work Bill 2015. In the last Parliament, the cap was largely seen as a problem for families living in London (although in practice it actually affected just as many families living outside London as in). The reduction of the cap by £6,000 for those out of London will, however, now ensure that a far greater number of families will be impacted by the cap than had previously been the case.

The same Bill also proposes to amend the Welfare Reform Act 2012 so as to require the Secretary of State to review the operation of the benefit cap and to consider whether the cap should be increased or decreased having regard to the general economic situation and any other factor that the Secretary of State considers relevant: clause 8, 2015 Bill. While this is an eminently sensible amendment, the cynics in us see this a useful defence to any potential future legal challenge than as a real intention to increase the cap should the impact on families prove to be worse than anticipated.

The Chancellor also announced that from April 2016 those aged between 18 to 21 will no longer be automatically entitled to the housing element of universal credit. It is unclear if this will also apply to housing benefit, but one would have thought that it would and it may be that the Chancellor simply presumed that universal credit will have finally been rolled out nationally by April 2016. It is not proposed that the exemption will apply to those aged between 18 to 21 who are vulnerable, have children living with them or who are “living independently and working continuously for the preceding 6 months.” While the last exception is plainly designed to ensure that young people are not deterred from leaving the family home to get a job, the fact that housing benefit only applies after a young person has been working for six months is likely to make some people from thinking twice about moving away to obtain employment.

Finally, the Chancellor also intends to make further savings by limiting the backdating in housing benefit claims to a maximum of four weeks as opposed to the current six months. On the one hand this change merely reflects what will happen with the housing costs element of universal credit once it is finally rolled out nationally. However, this is a big change that effectively shifts a further cost from the Treasury onto housing associations and local authorities. This will therefore be a yet further factor, in addition to the bedroom tax and benefit cap, to drive up the level of rent arrears.

Social rents

Another piece of good news for tenants of housing associations, in addition to the extended right to buy, comes in the form of clause 19(1) of the 2015 Bill. Save for a limited number of exceptions, all registered providers of social housing must secure that the amount of rent payable by a tenant of their social housing in England is 1% less than the amount that was payable by the tenant in the preceding 12 months. The amount that was payable in the preceding 12 months is whatever the rent was on 8 July 2015. This will also apply to tenants of local authorities.

For some secure tenants, however, the reverse will be true. From April 2017, it is proposed that tenants of local housing authorities earning more than £30,000, or £40,000 in London, referred to as “high income social tenants”, will be forced to “pay to stay”, i.e. pay the market rent for their secure tenancy. The Treasury estimates that this accounts for around 9% of all secure or introductory tenants. This latest proposal is not altogether surprising; the previous Government openly considered bringing in such a change in the last Parliament and conducted a consultation on the subject. Unsurprisingly, the responses to that consultation from local housing authorities were almost universally positive. At that time, however, it was proposed that a high income social tenant would be someone who earned more than £60,000 per annum.

Those local housing authorities, who had presumably assumed that the additional rent would simply be credited to the housing revenue account, will, however, be disappointed to learn that the additional rent will be recovered by the Treasury and will not be made available to local housing authorities.

The end of lifetime tenancies?

That is not the end of the bad news for local housing authorities. The Localism Act 2011 gave local housing authorities the choice of whether or not to use fixed-term (often referred to as flexible) tenancies as opposed to the default “life-time” secure tenancy. The Government statistics for 2013/14 do not record the number of fixed-term tenancies that were granted by local housing authorities (although such data is now apparently being collected). It appears to be the case, however, that the majority of authorities have generally opted to continue granting secure tenancies to their new tenants. The Government now appears to want to remove the choice for authorities and intends to carry out a further review with the aim of limiting the use of life-time tenancies to ensure “households are offered tenancies that match their needs and make best use of the social housing stock.”

As we highlighted last time, under the new right to buy proposals local housing authorities will be obliged to sell high value properties that become vacant. One way of delaying properties becoming vacant is to ensure that they are all let on secure tenancies. One ulterior motive for this review might therefore be to ensure that there is a regular and constant supply of vacant properties that are available to sell to ensure that the extended right to buy for housing associations remains affordable to the Treasury.


This Government is still young and there will undoubtedly be further changes to housing law as the Parliament progresses. One feature that is quickly emerging, and not just in housing, is a retrenchment from the rhetoric of “localism” and a return to more centralised control over housing.

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On the agenda

Sam Madge-Wyld and Justin Bates consider the forthcoming legislative programme


On 27 May 2015, the new Conservative Government, through the Queen’s speech, set out its legislative programme for the coming Parliament. Earlier on 21 May 2015, the Prime Minister gave a speech on immigration. We consider both speeches and what they mean for housing law.

The right to buy for tenants of housing associations

This proposal was not originally on the Conservatives radar when they went into the election. Indeed, Kris Hopkins, a former housing minister, had in 2013 discounted the idea as being fraught with risk and likely to prove too costly to the public purse.

However, as the polls refused to budge the Conservatives appeared to have decided that a sequel to a previous big policy hit from the 1980s, tapping back into the voters’ aspirations for home ownership, was what was needed to get them back into government with a majority. Whether it was the right to buy “wot won it” we will never know, but it is certainly a manifesto pledge that the Conservatives intend to honour.

Those unfamiliar with housing law may be forgiven for believing that housing association tenants were presently excluded from exercising the right to buy their own homes. That, of course, is not entirely correct. For a start, where a secure tenant had become the assured tenant of a registered provider or a registered social landlord, following the local authority transferring the land to the registered provider under a large scale voluntary transfer, the tenant’s right to buy is preserved: s.171A, Housing Act 1985.

Secondly, tenants of registered providers, or registered social landlords in Wales, who would, but for the fact they are not tenants of a local authority, meet the requirements of Part 5 of the Housing Act 1985, have the “right to acquire” their home if the provision of the dwelling was publicly funded and the property has remained in the social rented sector ever since: s.180(1), Housing and Regeneration Act 2008 and s.16(1), Housing Act 1996.

The substantive difference between the right to buy and right to acquire was the amount of the discount available. By way of example, under the right to acquire the discount in London was £16,000 (The Housing (Right to Acquire) (Discount) Order 2002/1091), whereas under the right to buy the discount is now just over £100,000 (Housing (Right to Buy) (Limit on Discount) (England) Order 2014/1378), and rises by inflation each year.

It is this difference that the forthcoming Housing Bill intends to change. The Housing Bill will entitle housing association tenants to the same amount of discount as those exercising the right to buy. This will not be funded by the housing associations, but by local authorities disposing of high-value vacant council houses. While the detail is not yet clear, one imagines that whenever a housing association sells a property it will be entitled to be paid the discount from central government, who will in turn off-set it against the revenue from the sale of high value council homes that it will recover from local authorities.

Presently, there is very little detail on what is meant either by “high-value” or “vacant”. One imagines, however, every council house in the country will be valued and that those of above a particular value, depending on the region they are located, will be required to be sold when it becomes vacant, presumably meaning whenever an authority recovers possession from a tenant. A fresh valuation of each individual council house would be very costly, so it may be that the current council tax bands are used. However, if this policy is not to be time limited, and proves very popular, then this will presumably require the sale of a very large number of council properties. In areas – such as London – where there are likely to be a number of high value properties this could reduce the amount of social housing considerably.

It is fair to say that the policy has been criticised from both sides of the political divide. Some question why the sale of state held assets should be used to subsidise the purchase of a house by a small class of people who are already adequately housed, while offering no help to others accommodated in poorer quality accommodation in the private rented sector. While others question why any local housing authority will now choose to build new council homes if they might be required to sell them, effectively, for nothing. Councils themselves, operating with historic debt from the housing revenue subsidy payment a couple of years ago, may now also be concerned at the loss of right to buy receipts from their most valuable properties. Many, especially in areas where demand for social housing is already very high, will also understandably bemoan the loss of their stock and the resulting rise in waiting lists. While the Government has promised to replace every social home sold with a newly built property, this same promise was made in 2011 when the right to buy discounts were extended and, to date, the Government has failed to honour its promise with the number of new homes failing to match the number that have been sold.

Some housing associations have also, not unsurprisingly, expressed disquiet at the proposals, some even threatening litigation under the Human Rights Act 1998. It is hard to see, however, what form any legal challenge to the increase of the discounts available would take. First, public authorities are not able to sue under the 1998 Act (Aston Cantlow v Wallbank [2003] UKHL 37; [2004] 1 AC 546) and in R (Weaver) v London & Quadrant Housing Trust [2009] EWCA Civ 587; [2010] 1 WLR 363, the Court of Appeal held that housing associations are likely to be public authorities themselves.

Even if the 1998 Act were to apply, any challenge would almost certainly fail. In James v UK (1984) 6 EHRR CD475, the ECtHR held that the Leasehold Reform Act 1967, which enabled leaseholders to obtain the freehold ownership of their homes at less than the market value, was a legitimate aim of housing policy and was within the UK’s margin of appreciation to pursue. Here, where the aim is to allow people to own their own homes and where the compensation to the existing freeholder will equate to the market value, it is difficult to see how such a change in the law would be found to be a disproportionate interference with an association’s A1/P1 rights. Nor is a sale, if a housing association is receiving the full market value, likely to impact on a housing associations charitable status.

What about Wales?

This policy is likely to further fragment housing law throughout the UK. The Scottish Parliament has abolished the right to buy and the Welsh Government has announced plans to reduce the discount to £8,000 (see here).


Benefit cap

The Government, perhaps emboldened by the Supreme Court’s decision in R (SG) v SSWP [2015] UKSC 16; [2015] 1 WLR 1449 that the benefit cap was lawful, also intends to reduce the benefit cap to £23,000 from the current cap of £26,000. It remains to be seen if the appellants in SG will appeal to Strasbourg – adopting the argument of the minority in the Supreme Court that the benefit cap failed to treat the best interests of children as a primary consideration thereby infringing both Article 8 and Article 3.1 of the UN Convention on the rights of the child – but even if successful it is hard to see this Government, supported by the opposition, deciding to discontinue the benefit cap.


Immigration and housing

The Government did not announce in the Queen’s speech an intention to introduce any new legislation concerning the rights of people without leave to remain to access housing. However, in a separate speech, the Prime Minister confirmed that Chapter 1 of Part 3 of the Immigration Act 2014, which prohibits landlords from letting residential premises to persons without leave to remain in the United Kingdom, would be rolled out nationally after having so far only been introduced as a pilot in the West Midlands.

While unsurprising, one would have thought that it would have made sense to await the findings of the pilot before introducing the measures nationally. It is unclear, in the absence of any evidence, whether landlords have been able to get to grips with the new law or whether the support given to landlords has been sufficient to enable them to determine whether a person is in the UK lawfully or whether, as many predicted, landlords have simply refused to let to any tenants from ethnic minorities.

In the same speech, the Prime Minister also indicated that the Government would consult on further legislation that would provide for the automatic termination of a person’s tenancy agreement at the time that his leave to remain expired and to introduce a mandatory licensing regime to prevent “unscrupulous landlords” from “cramming houses full of illegal migrants”.

How the Government intends to amend the Housing Act 1985, Housing Act 1988 and the common law on landlord and tenant so as to bring to an end a tenancy at the same time that a person’s visa expires will be interesting. Will a landlord be required to take steps to evict someone within a period of time? Or will the (not so) tolerated trespasser return?



What does all this mean for housing? By 2020, a number of people who did not already own their home will do so. An even greater number of people won’t and will remain in accommodated in the private rented sector paying ever increasing rents. The demand for social housing will remain, but the amount available in England will be less than there is today. People living and working in the UK illegally will also, in all likelihood, be living in even worse accommodation than they presently are already and fewer people with large families unable to work will be living in London and other areas with high rents

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Pat Reddin – Arrangements

Pat Reddin – Arrangements

 Pat’s funeral will take place at 3 p.m. on April 29, 2015, at

 St Marylebone Crematorium

East End Road, East Finchley, London N2 0RZ

All those wishing to do so are invited to attend. Donations instead of flowers to Pat’s chosen charity


Crisis UK, 66 Commercial Street, London E1 6LT

Please wear casual and colourful clothing!

The family also invite all his friends – whether or not they attend the funeral – to a reception to celebrate his life at

Victoria Stakes, 1 Muswell Hill Road, London N10 3TH

from 4.30 onwards. As well as speeches by members of Pat’s family, friends will be welcome to contribute thoughts and memories of, and tributes to, Pat. There will be food, drink and music – no tears, for his was a joyful life and that is how he and the family would like it to be remembered.

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Today, housing lost a good friend

Pat Reddin: 1947-2015

Andrew Arden QC records and reflects on the loss of the leading housing surveyor of our times.

This morning, April 13, a day before his 68th birthday, housing surveyor Pat Reddin died following a fall.

For those – few – housing practitioners not familiar with his work, Pat has been the ‘go to’ surveyor for both tenants and social landlords since the early 1970s. Indeed, the founders of housing law at that time were not only Law Centre and legal aid lawyers but others, without whom our work would have been impossible to deliver, who put flesh on the bones of cases involving housing conditions, by whom I mean pre-eminently Pat Reddin and the independent environmental health adviser, David Ormandy. It felt like there wasn’t a disrepair claim which didn’t feature one or other of them.

As those who follow this blog – and many others – will know, in 2011 Pat was diagnosed with a brain tumour which he courageously, vigorously and (for the most part!) with the best of humour fought throughout 2012, allowing him to return to work less than a year after surgery (and long before the doctors had predicted he would be able to): he had continued to recover, and to work, and was, as he always has been, much in demand as an expert witness, readily acceptable to social landlords and tenants alike as a joint expert and indeed in the courts.

It is too early to say what caused the fall or how far it was linked to the tumour, although his annual scans showed that the residue had not grown and that the operation was a considerable success. His sudden death has accordingly come as a complete shock to his family and friends.

Pat leaves behind his wife, Vincina Mellor, four daughters – Tania, Sarah, Jada and Francesca – and five grandchildren – Cassius, Ava, Tulah, Sheyo and Kosi – as well as a host of friends many of whom are active in housing and housing law and all of whom know how lucky we were to have had him in our lives and who will miss him dreadfully. Pat and the family were deeply grateful for the outpourings of concern and support during 2012, the most enormous morale boost through what Pat remarked in his client letter as he returned to work was a truly horrible year.

In my first post on his condition (July 6, 2012), I recorded that the tumour had been

‘a dreadful shock to him and to his family – and to those close to him who hadn’t realised he had a brain at all (a joke he does not tire of making!)’.

This was also a line I had used to his youngest daughter – Frankie, my god-daughter (as Pat was my daughter’s god-father) – across his bed in the ICU the morning after an 11½ hour operation in early January 2012, when there were very real doubts both about his chances of recovery and about how far he was (or would be) capable of comprehension. I was quite clear in my own mind, though, that I saw in his eyes a flicker of recognition – of humour – at the line and it is one of the enduring joys of my life that as soon as he could communicate again, he confirmed that I had read him right: he had not left us but briefly.

That last thought struck me again today, when I found a draft will written way back when – from its contents, probably 20 years or so ago – and which contained this line.

‘This is a time of celebration and adventure. I am going on another journey. I will return and I will always be available for you. Hold me in your thoughts for that is where I reside’.

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