Introduction
Part 6 of the Localism Bill aims to deliver far-reaching changes to the way social housing is provided, allocated and regulated. The changes are part of an overall package of reforms that also includes the new funding framework and changes to the regulatory standards laid down by the Tenant Services Authority (TSA), the social housing regulator.
The Federation supports the Bill’s emphasis on localism and greater flexibility. However, we are concerned that a number of measures in the Bill put too much power in the hands of the Secretary of State. In accordance with principles of localism, we believe that registered providers and tenants should be empowered to make decisions at the local level. The Federation is therefore seeking to amend the Bill on a number of issues including the role of the regulator, the content of regulations and the ability of housing providers to identify the most appropriate response to local tenancy issues. We are also proposing amendments that will retain tenants’ freedom to deal directly with the Housing Ombudsman when a complaint against a housing association has not been resolved to their satisfaction.
Taken together these amendments will help ensure that housing associations are able to offer an effective, responsive and personalised service for their tenants.
Tenancy strategies
Explanation
The Bill as it currently stands imposes a duty on each local authority to draw up a tenancy strategy for its area. This sets out, amongst other things, the types of tenancies and the circumstances in which they will be granted. The Local Government Group and the Federation both agree that imposing such a blanket requirement is contrary to the principles of localism. We are therefore proposing an amendment to remove this duty. Our amendment seeks to empower local authorities to work with registered providers and other stakeholders to identify the most appropriate response to local tenancy issues. We believe that the most effective way to approach these issues is through strong local relationships.
173C
Lord Best, Lord Patel of Bradford
Leave out Clause 131 and insert the following new Clause—
“Tenancy strategies
(1) A local housing authority in England working with registered providers of social housing in its area, residents, and other stakeholders shall consider appropriate responses to relevant tenancy issues locally.
(2) A local housing authority must publish information detailing the approach taken locally to tenancy issues in any manner it considers appropriate.
(3) This information may include how the local housing authority, registered providers and partners will work together in relation to—
(a) the kinds of tenancies they grant,
(b) the circumstances in which they will grant a tenancy of a particular kind,
(c) where they grant tenancies for a certain term, the lengths of the terms,
(d) the circumstances in which they will grant a further tenancy on the coming to an end of an existing tenancy, and
(e) any other issues as determined appropriate by the local housing authority.
(4) The powers in this section may be exercised by a single local housing authority or by two or more local housing authorities acting jointly.”
Standards about tenancies
Explanation
Currently, the Secretary of State is able to direct the regulator to set standards for social housing in key areas. In a strictly limited number of cases he is able to direct the content of these standards. However, Clauses 133 and 154 of the Localism Bill seek to strengthen his powers in this area, allowing him to shape the content of standards regarding tenancy exchanges, in which tenants can swap properties, and tenure.
The Federation has strong concerns about this. We believe that any further extension of the Secretary of State’s powers will allow the Government of the day to use of the regulatory system to impose its policy initiatives. It is vital that regulation retains its purpose of supporting the sector to help those in housing need.
The Federation is proposing two amendments that will remove these clauses from the Bill, ensuring that the content of standards regarding tenancy exchanges and tenure remain the preserve of the regulator. Tenancy exchanges are already operated by social housing providers in a variety of ways. We believe that this is exactly the kind of issue that they should discuss with their residents to agree the best approach locally. There is no reason to think that direction by ministers will make a helpful contribution to this process.
With regards to tenure, the regulator already has adequate powers to issue standards in this area: its original standards framework, which took effect in April 2010, has a section on tenure which was updated as recently as this year.
Standards about tenancies amendments
Lord Patel of Bradford, Lord McKenzie of Luton, Lord Beecham, Lord Best
The above-named Lords give notice of their intention to oppose the Question that Clause 133 stand part of the Bill.
Lord Patel of Bradford, Lord McKenzie of Luton, Lord Beecham, Lord Best
The above-named Lords give notice of their intention to oppose the Question that Clause 154 stand part of the Bill.
Housing complaints
Explanation
Tenants currently have the right to deal directly with the Housing Ombudsman when a complaint against a housing association has not been resolved to their satisfaction. However, Clause 158 of the Localism Bill means that they will now be subject to a 'democratic filter' and complaints will only be accepted if they come via a local MP, councillor or tenant panel. This Federation is supporting an amendment that will remove this requirement and give tenants the flexibility to decide how they want to approach their complaint.
Housing associations want to provide the best possible service to their tenants and an effective complaints regime is an important part of that. As a result of this, the Federation believes that MPs and councillors should only be formally involved in the process at the discretion of the complainant, not at the insistence of the Government. It is vital that tenants do not lose control of their own complaints and this proposal will force them to go through a representative with no real redress if things go wrong. There are practical challenges to this approach too. In 2008/09, the Housing Ombudsman and Local Government Ombudsman, which deals with local authority tenants, worked on 8,215 housing complaints between them. These tended to focus on complex and contentious issues. To manage such a large number of complicated complaints effectively, individual MPs and councillors will require a significant amount of costly training, staff time and administration.
The Federation is also concerned about new powers that would allow the ombudsman to apply to a court to make its rulings legally enforceable. We believe that if this power were ever exercised, it would do considerable damage to the ombudsman scheme. The strength of the current scheme is that, compared with court proceedings, it is informal, inexpensive and accessible to complainants. Moreover, registered providers already routinely comply with the ombudsman’s rulings, despite the lack of any technical legal compulsion. This power therefore is not only onerous, it is unnecessary: it seeks to remedy a problem that does not exist.
There is also a significant risk that housing associations’ non-public status would be undermined if they were subjected to legally enforceable decisions based on the opinion of a public authority, the ombudsman. It is important that legislation and regulations treat associations in a way that reflects their status as non-public bodies that serve the public good. It is vitally important that this status is protected as, without it, tens of billions of pounds raised on the private market would become public sector debt.
179
Clause 158
Baroness Hayter of Kentish Town, Lord Best, Lord Patel of Bradford
Page 144, line 7, leave out “must” and insert “may”
180
Clause 158
Baroness Hayter of Kentish Town, Lord Best, Lord Patel of Bradford
Page 144, line 8, leave out ‘is not duly made’
181
Clause 158
Baroness Hayter of Kentish Town, Lord Best, Lord Patel of Bradford
Page 144, line 9, leave out ‘unless it is’.
181
Clause 158
Lord Best
Page 145, leave out lines 16 to 37
HCA annual report
Explanation
The Homes and Community Agency (HCA), the public body that funds new affordable housing in England, is currently required by law to submit an annual report. However, far too much of this is devoted to the finances and corporate governance of the HCA rather than the practical results of its work. Last year 92 out of 112 pages focused on these subjects. While these remain important, we believe a better balance is needed between these processes and key HCA outcomes. Our amendment therefore requires the HCA to include in its annual report details regarding the number, type and location of new properties delivered under its auspices. This will support public and parliamentary scrutiny of the agency and promote transparency about its activities.
182
After Clause 161
Lord Best
Insert the following new Clause—
“The Homes and Communities Agency: annual report
In Schedule 1 to the Housing and Regeneration Act 2008 (the Homes and Communities Agency), after sub-paragraph (1)(a) of paragraph 11 insert—
“(aa) state within the report, in particular, the total number of new properties delivered during each year, also specifying, in respect of new properties in the area of each local housing authority—
(i) how many are located within a settlement of fewer than 10,000, and fewer than 3,000, inhabitants;
(ii) the number let on long leases, fixed-term shorthold tenancies, and periodic tenancies;
(iii) levels of rent;
(iv) the number designed for use as housing for older people;
(v) the number designed for use as housing for other vulnerable groups;
(vi) the size as defined by the number of bedrooms;
(vii) such other categories as may appear to the HCA to be appropriate or may be specified by the Secretary of State.””
Exclusion of certain rural dwellings from the preserved right to buy
Explanation
This amendment will ensure that tenants are not denied the opportunity to move into new homes in certain rural areas because of an unintended consequence of the planning system.
Currently, a large number of new social homes in rural areas are built through Section 106 agreements. These require developers to provide in kind contributions to offset the negative impacts caused by construction or development. An issue can arise when housing is transferred from local authorities to housing associations. In these cases existing tenants are given a ‘preserved right to buy’ which allows them to retain their right to purchase their property. This contrasts with housing association tenants’ ‘right to acquire’ which, unlike the ‘preserved right to buy’, does not apply in small rural areas.
When Section 106 agreements are used to build new homes in small rural areas they often include a planning obligation that the property must remain permanently available for social let. In these cases tenants of stock housing associations with a ‘preserved right to buy’ are unable to move into these properties as this right, if it were used, would breach the terms of the Section 106 agreement. Our amendment would tackle this unintended consequence of current legislation and bring the ‘preserved right to buy’ in line with the ‘right to acquire’, ensuring tenants in small rural areas can move into newly built homes.
182A
Lord Best, Lord Cameron of Dillington
Insert the following new Clause—
“Exclusion of certain rural dwellings from the preserved right to buy
The preserved right to buy under section 171A of the Housing Act 1985 (cases in which right to buy is preserved) shall not be available in respect of a dwelling-house let by a registered provider of social housing in a rural area designated for the purposes of section 17(1)(b) of the Housing Act 1996 (right of tenant to acquire dwelling: supplementary provisions).”
The Regulation Officer of the HCA
Explanation
Currently, no designated individual within the Homes and Communities Agency is responsible for regulation. Rather, this responsibility is vested in the HCA as a whole. We believe this must be changed to avoid a conflict of interest between the HCA’s regulatory and investment functions. Our package of amendments will place the responsibility for regulation on a designated Regulation Officer within the HCA. This will help ensure regulatory issues can be addressed, whether by the HCA or by a regulated body, even to the extent of formal legal proceedings, without compromising the investment function of the HCA. The Homes and Communities Agency is still required to appoint a Regulation Committee to oversee the Regulation Officer.
This change will require a number of consequential amendments elsewhere in the Bill but they have not been noted separately.
178DC*
Schedule 16
Lord Patel of Bradford, Lord McKenzie of Luton, Lord Beecham
Page 359, line 35, after “means” insert “the Regulation officer of”
178DD*
Schedule 16
Lord Patel of Bradford, Lord McKenzie of Luton, Lord Beecham
Page 360, line 2, after “means” insert “the Regulation officer of”
178DE*
Schedule 16
Lord Patel of Bradford, Lord McKenzie of Luton, Lord Beecham
Page 360, line 2, at end insert—
“( ) The HCA must appoint, on the recommendation of the Regulation Committee, a member of staff to be designated the Regulation Officer for the discharge of the functions of the regulator.
( ) The Regulation Committee may direct subordinate HCA staff to assist the Regulation Officer in the discharge of its functions, as appropriate.”
178DF*
Schedule 16