Housing minister vows to ‘support better use of existing stock’ as Housing Today and G15 call for a renewal of the system

Matthew Pennycook has announced the government is reviewing the allocation of social homes.

The housing minister, in a letter to housing association and council leaders, said: “We have launched a review into the allocation and use of social housing to reduce empty homes, support better use of existing stock and ensure homes go to those most in need.”

pennycook

Matthew Pennycook, housing minister

He said this would include “strengthening council nomination arrangements and reviewing statutory guidance to better reflect local needs and support vulnerable households.”

The letter comes as Housing Today and the G15, in the latest State of the Capital report, this week called for national, regional and local government to join with the sector to reform the allocations system. The report said: “Historic nomination agreements are under pressure, with both boroughs and housing associations looking for ways to improve how the system works for people in urgent housing need.”

The report said the G15 and the London Housing Directors Group is focusing on “practical, deliverable changes”, including improving data sharing, supporting more co-ordinated mobility and right-sizing across London, and exploring place-based approaches that bring together local authorities and housing associations around shared priorities.

It said the MHCLG and the GLA could provide critical support for this approach to improve outcomes and renew a “system that is fairer, more responsive and better able to meet the needs of Londoners facing housing issues”.

Responding to the Pennycook announcement, a G15 spokesperson said: “We welcome this review which we’re contributing to alongside our work with London boroughs to improve how the allocations system operates in practice.

“This is a shared partnership effort to make better use of existing homes, respond more effectively to urgent housing needs, and prevent homelessness wherever possible.”

Meanwhile the Social Housing Bill announced in the King’s Speech has had its first reading in the House of Lords.

The bill contains reforms to the Right to Buy to better protect social housing stock from being sold off, including increasing the minimum tenancy required to be eligible for the Right to Buy from three to 10 years and exempting newly homes for 35 years. Discounts will be reformed so they start at 5% of the property value and go up to a maximum of 15% or the cash discount cap.

The bill also introduces a requirement for private registered providers to notify the relevant local authority and other private providers in their area before disposing of stock. It also contains provisions to enable landlords to take possession action against perpetrators of domestic abuse.

The Chartered Institute of Housing welcomed the bill and said it shows the “government’s continued commitment to support social housing”.

Chloe Fletcher, head of policy and external affairs at CIH, said: “Legislative change to safeguard much-needed social homes and security of tenure are positive, and we congratulate the government on making them a priority in this parliamentary session”.

At-a-glance: Social Housing Bill key measures

Right to Buy

The bill would:

  • Increase the minimum tenancy required to be eligible for the Right to Buy from 3 to 10 years.
  • Reform discounts so they start at 5% of the property value and go up to a maximum of 15% or the cash discount cap (whichever is lower).
  • Exempt newly built social and affordable homes for 35 years.
  • Exempt rural properties from the scheme, which will include homes in National Parks, Areas of Outstanding Natural Beauty and areas designated as rural
  • Exempt council homes for market rent from the Right to Buy, which will allow more cross-subsidy for the building of social and affordable housing.
  • Prevent tenants who have previously benefitted from the scheme from exercising the Right to Buy. There will exceptions for victims of domestic abuse and in cases of irretrievable relationship breakdown.
  • Increase the period of time for which the council has the right to ask for repayment of all or part of the discount on the sale of property from 5 years to 10 years.
  • Extend the period in which a local authority has the right of first refusal when a property previously bought under the Right to Buy is sold so that it applies in perpetuity. This will give councils more opportunities to buy back homes previously sold under the scheme..
  • Support councils with the administration of Right to Buy applications by increasing statutory timescales for issuing notices confirming the Right to Buy
  • Allow for the suspension of standard timescales for up to 6 months to allow councils to investigate fraud.
  • Allow the Secretary of State to determine the rules governing the spending of Right to Buy capital receipts through issuing a determination.
  • Align the Right to Acquire scheme with the reforms to Right to Buy to ensure consistency

Requiring notifications of disposals

  • Requirement for private registered providers to notify the relevant local authority and other private providers in their area before a disposal takes place. This is designed to maximise opportunities to retain homes within the social housing sector.

Tenancy reform for domestic abuse victims

The bill introduces:

  • Stronger powers for landlords to enable them to take possession of a property where domestic abuse has taken place without the requirement for the victim to leave
  • Aa new mechanism to facilitate the transfer of the joint tenancy into the sole name of the victim, where a victim wants to remain in the home as a sole tenant
  • Powers to enable the courts to make an order to provide the victim with suitable alternative accommodation, where it is not appropriate for the victim to remain in a home and the landlord has this accommodation available
  • A safeguard to ensure that perpetrators are unable to unilaterally end a joint tenancy in retaliation against possession action until proceedings have been concluded

Streamlining housing consents

  • The bill will remove the requirement for the Secretary of State to consent to the disposal of dwellings that have previously been owned as local authority housing. This consent has never been refused in practice, and only slows down the housing market in these cases. The bill will also use ministers’ powers to broaden the existing exemptions to requirements to secure Secretary of State consent for the redevelopment of councils’ housing assets.··

Repealing unimplemented provisions from previous housing legislation

The bill will repeal:

  • Requirement of councils to sell high-value social homes
  • Requirement to issue fixed-term tenancies
  • Mandatory ‘pay to stay’ rules,

Source: MLCG guidance

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