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Instead of supplying the latest dramas, channel 4 is undergoing some problems of their own. Amidst the biggest round of layoffs seen in the company, the national broadcaster is now looking for a smaller premises. 

Channel 4, a national UK broadcaster, has been based at a HQ in Horseferry Road, Victoria, London, for the last three decades. However, the multi-million-pound company have recently announced that they intend to find a smaller office in central London as they are looking to employ more staff outside the capital city.

At the beginning of this year, Channel 4 revealed they were drawing up plans to axe as many as 200 jobs in its biggest round of layoffs in more than 15 years. The organisation have since confirmed they will be reducing staff numbers by 240.

One of the reasons so many staff members are being let go is because streaming services are currently facing the worst downturn in TV advertising since 2008.

Against this backdrop, the job cuts are set to form part of a five-year strategy, known as ‘Fast Forward’, which aims to shift Channel 4 away from a dependency on traditional TV advertising to digital income streams.

The streaming service have set a target to have 600 roles based outside of London by the end of 2025.

In addition to dismissing hundreds of London-based employees, Channel 4 have also said it would close 40 unfilled roles, making an overall 18% reduction in headcount.

The broadcaster said about 70% of the unfilled roles it was closing came from its legacy operations, and that the overall cuts programme would return the number of employees close to 2021 levels.

Commenting on the news, Alex Mahon, chief executive of Channel 4 said: ‘As we shift our centre of gravity from linear to digital, our proposals will focus cost reductions on legacy activity. It does involve making difficult decisions. I am very sad that some of our excellent colleagues will lose their jobs because of the changes ahead.’

Image: Robert Bye

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Councils have urged the government to extend the Household Support Fund (HSF) beyond April to help protect vulnerable households amid the cost-of-living crisis.

The HSF, which has provided £820 million in government funding for local welfare support over the past year, is set to end on 31st March. The fund has been used to help millions of households facing hardship who would otherwise have struggled to buy food, heat their home or go without other essentials.

More than eight out of ten of the councils that responded to a Local Government Association (LGA) survey said that financial hardship has increased in their areas just as vital local funding used to support vulnerable households is due to end.

Nearly three quarters of responding councils (73%) also said they expect hardship to increase even further over the next 12 months, while just under a fifth expect it to stay the same.

The government has not confirmed if the HSF will be extended, leaving councils, their delivery partners and residents in limbo.

The LGA said this uncertainty was impacting councils’ ability to set their budgets for next year. Any last-minute extension of the fund could come too late for councils, who would have lost experienced staff in anticipation of it ending.

Given record demand for this support, the LGA and councils across the country are calling for the fund to urgently be extended for at least a year, to prevent a cliff-edge in support for vulnerable people which cannot be filled from already overstretched council budgets.

Ending the HSF on 31st March would also coincide with an end to the government’s cost-of-living payments, which means low-income households would be doubly hit by a reduction in support.

The LGA’s survey of its members found that:

• 84% of responding councils said that financial hardship had increased in their area in the last 12 months
• Almost two thirds of respondents said they could provide no additional discretionary funding to replace what is lost from the end of the HSF, whilst just under a fifth said that alongside the fund ending, they would also be reducing their own local welfare discretionary funding due to financial pressures
• Around a fifth of responding councils said they would have to make redundancies if the HSF were to end

The HSF was first introduced in October 2021 and allowed councils to expand the help they could give to vulnerable residents during the pandemic and the cost-of-living crisis. It has been subsequently extended several times.

Since 2021, the HSF has boosted investment in local welfare support by more than £2bn and now funds 62% of local welfare provision, allowing councils to target support to the needs of their communities.

Pete Marland, chair of the LGA’s economy and resources board, said: ‘The Household Support Fund has provided an essential lifeline for our most vulnerable residents, but our survey shows this help is needed now more than ever.

‘Now is not the time to scale back support. Many at-risk households continue to face considerable challenges in meeting essential living costs, with demand for support greater than when the fund was first introduced.

‘Ultimately, councils want to shift from providing crisis support to investing in preventative services which improve people’s financial resilience and life chances, alongside a sufficiently-resourced national safety net.

‘However, without an urgent extension of Household Support Fund for at least a year, there is a risk of more households falling into financial crisis, homelessness and poverty.’

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The government must fix the £4bn hole in council funding for 2024/25 or risk severe impact to council services and the prospect of further councils in England facing effective bankruptcy, the cross-party Levelling Up, Housing and Communities (LUHC) Committee has said in a new report.

The Financial Distress in Local Authorities report points to a systemic underfunding of local councils in England, and calls on the next government to reform council tax and the wider funding system for local authorities to ensure council finances are put on a sustainable footing.

The report identifies the range of financial pressures currently faced by councils in England, not least the rising demand for children’s and adults’ social care which are contributing to unmanageable bills for some local authorities.

The report highlights the costs involved in the delivery of services for children and young people with special educational needs and disabilities (SEND) and home-to-school transport. The report calls for the government to commit to a full review of the Education, Health and Care Plan (EHCP) system and to consider reforms to make SEND provision financially sustainable and ensure all children and young people with SEND have access to the services they need.

LUHC Committee chair Clive Betts said: ‘There is an out-of-control financial crisis in local councils across England. Councils are hit by a double harm of increased demands for services while experiencing a significant hit to their real-terms spending power in recent years. Increasing demands on council services such as social care and special educational needs and disabilities provision has resulted in rocketing costs but the levels of funding available to councils has failed to keep track.

‘The government must use the local government financial settlement to help bridge the £4bn funding gap for 2024/25 or risk already strained council services becoming stretched to breaking point. If the government fails to plug this gap, well-run councils could face the very real prospect of effectively going bust.

‘Long-term reform is vitally needed. The funding model for local councils is broken. The business rates system is overly complex and in need of reform. Council tax is outdated and increasingly regressive. Councils being forced to hike up council tax in a forlorn attempt to plug increasingly large holes in their budgets is unsustainable and unfair to local people who are, year on year, seeing less services while paying more.’

The report calls for the next government to embark on a fundamental review of the system of local authority funding and local taxation, exploring all options for removing its current regressive elements and considering options including land value taxes and wider fiscal devolution measures.

On adult social care, the Committee reiterated the call from its July 2022 report on the Long-term Funding of Social Care to urgently allocate more funding to local authorities in the order of several billions each year.

The report draws attention to increasing levels of homelessness which have required local authorities to spend more in fulfilling their responsibilities to those requiring support. The Committee’s report say that a key driver of increased homelessness is the Government’s decision to freeze local housing allowance (LHA) rates at April 2020 levels. The Committee welcomed the government’s recent announcement that it will increase LHA rates from April 2024, but urged it not to subsequently refreeze LHA rates.

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Almost two-thirds of people buying their first homes have joined forces in an attempt to get on the property ladder, new research has found.

The research, which was gathered by Halifax, unveiled that 63% of first-time buyer mortgages taken our between January and December 2023 were in joint names between two or more individuals.

To collect the data, the leading UK bank analysed their own statistics as well as information from Lloyd’s Bank and the Bank of Scotland – part of the same group.

From the research, Halifax claimed one of the reasons people are grouping together for mortgages is because buyers are facing serious pressures trying to save for a deposit whilst the cost-of-living continues to climb.

Against this backdrop, new figures, that were published on Wednesday 31st January, by Nationwide displayed that the average UK house price has increased by 0.7% month-on-month in January as the outlook for the property market looked ‘a little more positive’.

However, prices of homes are still 02% lower than this time last year.

Nationwide’s chief economist, Robert Gardner, said: ‘There have been some encouraging signs for potential buyers recently with mortgage rates continuing to trend down.’

In addition, the latest figures from Moneyfacts, the financial information service, show that the average rate on a two-year fixed deal has dropped to 5.56%, compared with 5.9% at the start of the year.

Although this news has surfaced as the Bank of England have recently made the decision to retain interest rates at 5.25%, meaning mortgage rates will remain high, if officials eventually decide to bring down interest rates too, this should give sellers even more confidence and ease the pressure on affordability.  

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The INGENIOUS project, composed of various university scientists, is organising a webinar to discuss the importance of indoor air quality (IAQ) in UK social housing following the Awaab Ishak case. 

Titled: Beyond Awaabs Law: Priorities for Indoor Air Quality Actions in the UK, the webinar, which is being delivered in partnership with Born in Bradford and Stockholm Environment Institute, aims to highlight the multiple dimensions of air quality by going beyond moulds and spores to address the broader issues of indoor air quality. By looking beyond social housing, the webinar discusses indoor air quality in private rented homes and owner-occupied homes with the intention that a wider perspective ensures IAQ improvements cut across all types of houses or housing processes.

Scientists from the University of York, University of Manchester, the University of Sheffield, and the University of Cambridge, will be delivering the webinar, which is timely and aligns with the ongoing consultation process of the 2023 Social Housing law. The UK Housing Secretary launched a consultation on 9th January, 2024, on implementing the Social Housing law, also known as Awaab’s law.

The law was proposed into Parliament after two-year-old Awaab Ishak tragically lost his life in December 2020 due to a respiratory condition caused by mould. The young boy lived with his parents in a damp and mould invested flat in Rochdale and despite applying for help countless times, the landlord refused to address the issue. 

Supported by DEFRA, the INGENIOUS project, is dedicated to unravelling the impact of various household activities on airborne pollutants. Through investigation, the INGENIOUS project strives to uncover these unknowns and develop practical interventions to minimise exposure. This webinar offers a valuable platform to present INGENIOUS observations on indoor pollutants and how these cut across all sorts of housing in the UK.

Considering that there are no existing singular legislative frameworks for indoor air quality, they are subsumed and captured in subtly interpreted ways in other laws. It is hoped that such a webinar will sensitise participants on IAQ and how this is important for the UK housing sector.

Speakers include:

• Prof. Nicholas Pleace – Director, Centre for Housing Policy, University of York
• Prof. Nic Carslaw – Principal investigator, INGENIOUS, Indoor Air Chemistry, University of York
• Dr. Chantelle Wood – Social psychologist, University of Sheffield
• Prof. Sani Dimitroulopoulou – Principal Environmental Public Health Scientist on Indoor Environments within the Air Quality and Public Health Group, Environmental Hazards and Emergencies Department (EHE), UKHSA
• Prof. Sarah West – Centre Director, SEI York

Click here to register for the webinar

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A controversial decision from the Bank of England’s Monetary Policy Committee as revealed that UK inflation rates will once again stay at 5.25%.  

The battle to lower inflation rates is one that is continuously being fought by the Bank of England. Back in December 2021 the Bank began increasing rates and continued to do so 14 times until August 2023 – when they hit 5.25%.

Although the saying goes ‘what goes up must come down’, unfortunately it can’t be applied here, as the Bank of England are yet to lower rates. This morning, officials from the Bank declared that for the fourth time in a row figures would stay at 5.25%, because it looks as though the UK is on the brink of a recession.

However, this decision was not taken lightly. In a rare three-way split, two members of the Bank’s Monetary Policy Committee (MPC) preferred to increase the Bank rate by 0.25% so the total would sit at 5.5%. One other member preferred to reduce the rate so it would sit at 5%.

In a statement, the Bank said: ‘Six members (which include Andrew Bailey, Sarah Breeden, Ben Broadbent, Megan Greene, Huw Pill and Dave Ramsden) voted in favour of the proposition.

‘Three members voted against the proposition. Two members (Jonathan Haskel and Catherine L Mann) preferred to increase Bank Rate by 0.25 percentage points, to 5.5%. One member (Swati Dhingra) preferred to reduce Bank Rate by 0.25 percentage points, to 5%.’

Below is a video from X (formely known as Twitter) of governor Andrew Bailey explaining why the Bank made the decision to keep interest rates the same:

Governor Andrew Bailey explains today’s decision to hold interest rates at 5.25%. pic.twitter.com/7DUyd2BumC

— Bank of England (@bankofengland) February 1, 2024

Commenting on the news, William Marsters, Sales Trader at Saxo UK, said: ‘Two calls for a rate hike and one call for a rate cut may seem very disjointed from the Bank of England’s MPC. But it is really a reflection of the difficulties the central bank is facing. Markets have set their sights on cuts this year, so much so that both the ECB and the Fed have made a point to realign expectations on the speed and depth.

‘For the BoE, they are still facing the highest nominal inflation rate in the G7 whilst also sporting low growth. Given these factors, the split decision is no surprise. Directional conviction for UK markets may remain elusive until inflation is more under control.’

In addition, other industry professionals have echoed a similar tone. Sekar Indran, Senior Portfolio Manager at Titan Asset Management, claimed the decision has put the Bank of England is a ‘less fortunate decision’.

‘Bailey offered a not-too-dissimilar tone to his peer across the pond, Jerome Powell, stating further evidence of inflation easing is needed before we see a rate cut,’ Indran said. ‘The reality is the MPC is in a less fortunate position than the FOMC with the highest inflation in the G7 and economic growth among the lowest.’

Indran added: ‘The downturn in manufacturing output also shows no signs of abating as per this morning’s PMI data with demand continuing to soften and supply chain disruptions re-emerging.

‘The swaps market continues to price that the US will move first which we would agree with, but we believe the magnitude of cuts may end up being greater in the UK relative to the US, contrary to what the market is pricing.’

News of interest rates staying the same have also left UK households devastated. Throughout this winter thousands of people have had to go without sufficient heating or food as a result of squeezed budgets. According to recent figures from the Joseph Rowntree Foundation (JRF), around one million households have said that since May 2023 they have had to disconnect their fridge or freezer for the first time in a bid to save money.

In addition, figures from JRF also found that in October last year a quarter (2.8m) of UK low-income households ran up debt to pay for food, a third sold belongings to raise cash, and one in six had used community ‘warm rooms’ – heated community areas that began popping up all over the UK last April.

Against this backdrop, Daniel Austin, CEO, and co-founder at ASK Partners, has explained that the Bank of England’s decision might be for the best.

Daniel said: ‘A hold on interest rate rises was expected now that inflation has started to fall. Although there was an effect on the affordability of debt, yesterday’s slight uptick in house prices is a positive indication that prices may have reached their lowest point.

‘This will bring investment capital back into the real estate market from buyers who have been waiting to make opportunistic, distressed purchases.

‘Those with finance in place are well poised to capitalise on the situation but the market in general will benefit from increased activity bringing back buyer confidence. As a lender to property developers and investors, we have seen first-hand the impact that rate hikes have had on borrowers and the market; stabilisation will be welcome news.’

Images: iStock and Etienne Martin

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Research has found that of the millions of homes that were built in England during 2013/14 one in 13 are in a national flood zone.

Aviva, a British multinational insurance company, have recently deep dived into new findings from the Office of National Statistics (ONS) and discovered that 8% – equivalent to 109,017 new homes, face the highest risk of flooding in England.

Experts unveiled that in flood zone three, a area with the highest risk, there is a one in 100 or greater annual probability of river flooding or a one in 200 or greater annual probability of flooding from the sea in any year.

News of these figures being released, which can be found in full here, have also come just weeks after storms in England caused severe damage to people’s homes across the country. Storm Henk, one the latest storms that unleashed hell this winter, caused over 400 homes to be vandalised.

As a result of previous severe weather conditions, new homes are being advised to be constructed with better flooding protection.

‘It’s concerning that almost 110,000 new homes have been built in the last decade in a flood zone, leaving thousands of homeowners and tenants at risk,’ Aviva’s Jason Storah, chief executive for UK & Ireland general insurance, commented.

‘Crucially, these homes are not covered by the Flood Re insurance scheme and many may have been constructed without flood resilience. Not only are these newly built homes at high risk – they also face the prospect of repeated flooding and may not be protected by flood defences to prevent or limit flood damage.’

In addition to the data highlighting concerns over homes being built in high flood risk areas, it also outlined climate concerns. Almost two thirds (61%) of new home residents are concerned about the impact of heat on their home, compared with 46% of residents of homes that were built before 2018.

Storah added: ‘Insurance can play its part by restoring homes and offering financial reassurance, but it cannot replace cherished family possessions or prevent the emotional impact that floods bring. It is paramount that any future plans for new homes include strengthened rules to prevent the development of buildings in current and potential flood zones. But in some low-lying parts of the country, this is more difficult. In these cases, flood resilience should be made mandatory in planning rules and built in from the outset.’

Various new build homes have experienced some damage since they were built. According to the research, one in eight new build residents say their home has been affected by flooding inside and 16% have suffered flooding issues in the garden. However, researchers revealed new homes are not just at risk from flooding but wider construction problems.

26% have suffered a water leak; 18% have been damaged by storms and 15% have been affected by subsidence, severe movement, or tree damage.

‘It’s worrying that many newly-built homes have already suffered a flood within five years of construction. This suggests the homes may have been built in unsuitable locations to standards which are unable to withstand flooding,’ Storah said. ‘But the research reveals wider concerns about construction which could leave these homeowners and tenants at risk from other climate events, including hot, dry weather.’

Storah continued: ‘If we are to prevent more scenes of devastation caused by extreme weather, we need to work collectively to change where and how we build. By building houses that are climate-ready and able to withstand the multiple impacts of climate change we can provide safe and sustainable homes for our future generations.’

Research from the ONS notes that 2022/23 figures do not form part of the at-risk homes approximation as they aren’t available yet.

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The government has announced a last-minute £600m funding package to help deliver key services, amid fears of a wave of council bankruptcies and service failures.

The support package will primarily see an additional £500m added to the Social Care Grant to bolster social care budgets, a key cost pressure for local government.

Ministers said all councils would also see an increase in core spending power of at least four percent before any local choices on council tax, efficiencies or reserves – an increase from the three percent announced in the provisional local government funding settlement.

However, some warned that the funding doesn’t go far enough.

Levelling Up Secretary Michael Gove said: ‘We have listened to councils across England about the pressures they’re facing and have always stood ready to help those in need.

‘This additional £600m support package illustrates our commitment to local government. We are in their corner, and we support the incredible and often unsung work they do day-to-day to support people across the country.’

Shaun Davies, chair of the Local Government Association (LGA), said: ‘The LGA welcomes that the government has acted on the concerns we have raised and recognised the severe financial pressures facing councils, particularly in providing services to the most vulnerable children and adults through social care services and delivering core front-line services to communities.

‘We will continue to work with government to achieve a sustainable long term funding settlement and updated distribution mechanisms, as well as legislative reform where needed, so that local government can play its full part in delivering inclusive prosperity and growth through investment to support people, places, and the planet.’

But Sir Stephen Houghton, chair of the Special Interest Group of Municipal Authorities (SIGOMA), warned that more was needed.

‘This increase in funding is welcome and will help councils in the short-term,’ he said. ‘However, it won’t address the long-term funding gap or the need for reform of the broken local government finance model. This unprecedented increase before the final settlement shows that there is a growing understanding within the government about the crisis in local government finances. These pressures have been well-documented for some time, so it is disappointing that the funding has only been announced at this late hour.

‘More funding will be required to match the current level of demand-led pressures and stabilise the sector. It is welcome that most of the funding will be allocated though the social care grant. Social care, particularly children’s services, is the largest current pressure for the sector and the area most in need of additional grant funding.’

In light of the exceptional circumstances, the Treasury will be providing £500m with further details set out at the upcoming Budget whilst details on the distribution of this funding will be included in the final Local Government Finance Settlement in early February.

The government said the funding had to be used to address the pressures facing councils and improve performance, rather than saved for later use or spent on areas that are not a priority. Separately, councils will be asked to produce productivity plans which will set out how they will improve service performance and reduce wasteful spend – which the government defined as including spending on consultants and HR spending on equality, diversity and inclusion.

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Thanks to yet another historic deal signed with councils the number of places in England covered by a devolution deal has risen to 60%.

Around two years ago the government published their major levelling up plan, which included goals to transfer more powers to local authorities from central government. This is otherwise known as devolution.

When the plan was first introduced, 41% of the country was covered by the devolution agreement, now this has risen to 60% as a result of another historic deal being signed with Devon County Council and Torbay Council.

As a result, the new deal means an additional 10 million people will benefit from new powers handed from Westminster to their local leaders – covering a total of almost 34 million people across England. 

Commenting on the news, levelling up secretary, Michael Gove said: ‘This historic devolution milestone shows our commitment to spreading opportunity more equally across the country – empowering local leaders to take control on matters that mean most to their communities and improving local people’s lives.

‘And to support their plans we’re providing billions of pounds in new funding for the long term, helping people to feel the benefits of these changes for years to come.’

As well as the new devolution deal being signed by two councils situated in the South of England, in the Midlands, the percentage of people covered by a devolution deal has more than doubled in the past two years – up from 26% to 55%, covering almost six million people.

In addition, the government have previously secured devolution deals for nine of England’s 10 largest cities including, Manchester, Leeds, Birmingham, Liverpool, Newcastle, Sheffield, and Nottingham.

These deals are helping to provide areas with over £15bn of new, long-term funding from the government, which as costs are continuing to climb, are widely accepted.

The Department for Levelling Up, Housing and Communities aims to secure devolution deals by 2030 for every part of England that wants one. This is one of 12 levelling up goals set by the department in its flagship Levelling Up White Paper in February 2022.

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In the fourth annual State of Play survey, SME developers said depoliticising planning and offering more help for first-time buyers would speed up housebuilding in this country. 

Earlier this week, the Homebuilders Federation published their fourth annual State of Play survey, which, uncovered that 90% of the 303 respondents cited planning permission delays as a severe barrier to constructing new properties.

‘The debate around planning has become increasingly political over the last year,’ Stewart Beasley, executive chairman of Homebuilders Federation said. ‘Policy uncertainty is causing further delays where local authorities are withdrawing or pausing local plan consultations. Only when SMEs do well can the housing supply we need be delivered.’

In a bid to aid this issue, small and medium-sized enterprises (SMEs) have claimed they would like to see local councils’ planning committees replaced by an independent body of trained planning experts with residents’ input at the forefront.  

In addition, SMEs are also calling for more financial help to be implemented for first-time buyers and that there should be a national review of the green belt.

As the government have set the goal of building 300,000 new homes a year, researchers and ministers across the country have argued whether certain areas of the green belt should be used as construction space. Findings that were published by a Centre for London report in December 2023 said building on such land would enable the capital to double annual housebuilding to 74,000 homes a year for 15 years.

Furthermore, SMEs have called for smaller sites in local plans, with the process streamlined to make land available quicker.

Respondents included within the new survey also asked for housing delivery targets to be ‘mandatory’ again as an estimated 64 local councils have stalled on their local plans since the government made them advisory in 2023.

Nine out of ten SMEs said that local planning authorities were under-resourced and 46% said planning permission costs had risen by more than 30%.

Rowland Thomas, managing director of Close Brothers Property Finance, which played a part in the study, said: ‘SME house builders are particularly exposed to delays caused by under-resourced local authorities and the inefficient, embedded processes as they often don’t have the time or funds to navigate the system. If they aren’t building, they aren’t earning.’

Respondents called for the threshold for affordable housing contributions to be raised from more than 10 dwellings to 50 and that they should be paid at the end of the project rather than the start.

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In this day and age rent setting can be extremely complicated. In our latest industry-lead feature Helen Routledge, director at Campbell Tickell, offers four key areas to help Registered Providers ensure they’re getting it right. 

It is no secret, setting rents can be quite complex and can have serious consequences if not carried out correctly. We’ve identified four areas Registered Providers should consider to help ensure their rents meet the requirements of the Rent Standard.

The Rent Standard is a set of rules the Regulator of Social Housing has developed to which Registered Providers need to adhere. The Rent Standard applies to low-cost rental accommodation as defined by section 69 of the Housing and Regeneration Act 2008, which states that low-cost rental accommodation is accommodation that meets the following criteria:

• It is made available for rent
• The rent is below the market rent 
• The accommodation is made available in accordance with rules designed to ensure that it is made available to people whose needs are not adequately served by the commercial housing market

The Rent Standard applies to most low-cost properties however, there are some exemptions. Some examples where the Rent Standard does not apply include:

• Social tenants with high income (HIST)
• Shared ownership, low-cost rental accommodation
• Student accommodation
• Specialised Supported Housing

Weekly formula rent is equal to:

• 70% of the national average rent
• Multiplied by relative county earnings
• Multiplied by the bedroom weight

Plus

• 30% of the national average rent multiplied by relative property value

This gives the rent for 2000/01 which is then uprated by the published rates.

1999 Valuations – calculating rent for a social housing property is based on size, location, quality and relative property value.

The relative property value is based on the 1999 valuation of the property.

The Rent Standard does not permit revaluations, but exceptions are made for certain circumstances such as for structural alterations.

So, what happens if you have lost records of your 1999 valuations?

We would recommend searching for valuations, search for spreadsheets using 1999 valuations. Look at the earliest formula rent calculation and check subsequent increases. Look for information to support the calculation of formula rents. You can obtain new valuations to provide assurance on the rents but do not replace the 1999 valuation.

Fair and secure rents can often pose many problems compared to other areas in relation to rents. Some of the issues to keep in mind when setting rents include:

• Rent Standard still applies so the annual maximum increase remains at CPI+1%/7%
• Rents charged may not exceed the Registered Rent level
• Such rents should be registered every two years with the Rent Officer
• Increases can be implemented in the intervening years
• A Registered Rent includes service charges
• Welfare Reform and Work Act 2016. This is a complicated area. In determining if the rent reduction of 1% is required you need to compare Registered Rent with the social rent rate. One would expect it to be the rent charged

Registered providers need to ensure that their rent policy and procedures reflect the latest Rent Standard and Rent Policy. They need to encompass the following:

• Clear on the areas of discretion
• A decision has been made on the re-let rent levels
• If flexibility of +5% applied to formula rent (10% Supported Housing) is to be applied, give consideration to the local market context when deciding whether to implement a rent increase and the level of that increase, as well as the levels of Housing Benefit or Universal Credit that are available to claimant households who might occupy their properties
• Cover all stock including types exempt from the Rent Standard
• Clear definitions of stock types
• Cover new lets annual increases and re-lets
• Specifies how frequently the board requires assurance on rents

Affordable rents should be re-let at up to 80% of the market rent (not the previous rent) and should also include service charges in this valuation. With supported housing it may be difficult to obtain comparable valuations. Registered providers should review similar models and services in the same area. If these are not available, different areas can be used and the results extrapolated.

Other factors to consider in relation to setting affordable rents are:

• Annual increase applies to service charges (problematic if variable service charges exist)
• Personal charges can be separate (need to check the tenancy agreement)
• Affordable rent should be no lower than formula rents
• At re-let, rebase the rent at 80% of market rent however, if the re-let is to the same tenant the rent cannot be rebased
• Required to have ‘regard’ for the Local Housing Allowance (LHA) when setting rents
• Any planning requirements which may limit the percentage of market rent to be charged

Images: Chris Robert and Campbell Tickell 

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A coalition of 17 housing organisations have written an open letter to the Prime Minister and housing secretary voicing acute concerns about reported plans to introduce a ‘British homes for British workers’ social housing policy.

Most foreigners in the UK are already barred from accessing social housing, and reforms introduced under Gordon Brown mean that councils can factor in local connections, and the time already spent living in the area, when prioritising social housing applications.

But reports have suggested the government is planning to either tighten the rules or introduce new rules in order to make it harder for foreign nationals to secure social housing, despite the vast majority of new social tenancies going to UK nationals already.

The letter, authored by the Chartered Institute of Housing, was co-signed by organisations including the National Housing Federation, the Local Government Association, Shelter and the Joint Council for the Welfare of Immigrants.

The letter states: ‘We all deserve safe housing, regardless of where we are from. Further rationing of an already scarce resource does not address the fundamental failures of the last 40 years – we have simply not built the homes the UK needs to ensure everybody has a safe and secure place to live. At the same time, we’ve seen net losses of social rented homes grow – exceeding 200,000 since 2011 – mainly due to right to buy.’

It adds: ‘Social housing is designed to support those in the greatest need. Government data shows that 90% of new social housing lettings go to UK nationals, with long waiting lists in all areas. Imposing extended qualification periods before people can even get on the housing register is likely to force more people into homelessness. If the government’s main concern is to increase the availability of social lettings, it could achieve this far more effectively by building more social housing.’

Under current rules, local housing authorities are meant to decide social housing allocation based on need, giving priority to those who are homeless or living in overcrowded or squalid conditions. Refugees are allowed to claim social housing, but anyone who is not entitled to benefits is not, meaning most foreigners in the UK are already excluded.

Gavin Smart, chief executive at the Chartered Institute of Housing, said: ‘It’s hard to comment on speculative policy but we are entrenched in a housing crisis and focusing on the wrong policies will not alleviate the escalating situation.

‘We’ve currently got 1.4 million people on the social housing waiting list and it’s growing by the day. Homelessness is at record levels and councils are struggling with the cost of rising temporary accommodation. We urgently need to increase the supply of social rented homes – that means building more and reducing the loss generated by policies such as right to buy.

‘Further rationing of an already scarce resource does not address this. And with government data showing that 90 percent of new lettings in social housing go to UK nationals it’s questionable whether the new approach suggested would achieve its intended aims.

‘We urge the government to focus efforts on housing solutions to boost supply. We’re committed to working with them on this – building on our collective calls for a genuine long-term plan for housing.’

Matt Downie, chief executive at Crisis, added: ‘These plans will do absolutely nothing to deliver the levels of social housing we need and only seek to pin the blame on a group of people in desperate need of support.

‘The government knows full well that councils already have strict rules in place so that only UK citizens and those with settled status can access a home. It also knows that the reason why waiting lists for social housing have topped 1.2 million is because of successive governments failure to build them.

‘What we need is reasonable, sensible solutions to the housing crisis that must involve a plan to deliver 90,000 social homes every year. Exclusionary tactics will not see us end homelessness for good.’

Image: Different Resonance

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Peter Truscott is due to step down from his position of chief executive of Crest Nicholson after it was revealed that profits have dropped by 70%.

After five years in the role, Peter Truscott will be handing over his role to Martyn Clark, who is currently the chief commercial officer at Persimmon Homes, later in the year.

Following three profit warnings that have been issued within the last six months – the most recent one being from a week ago – Crest Nicholson, a leading property developer, reported the 70% decline in adjusted profits before tax to £41.4m in the 12 months to 31st October 2023.

Research found that although Crest completed 2,020 new homes last year, it was down by a quarter from 2,734 the year before, leading to a 28% drop in revenue to £657.5m. The organisation have blamed the weakness of the housing market and Truscott claimed the company was aiming to build 1,800 to 2,000 homes this year.

Against this backdrop, Truscott explained he found the results ‘disappointing’, but added: ‘Recently there has been some positive macro trends with inflation and mortgage rates falling, which bode well for the housing sector.

‘Although it is too early to gauge customer behaviour, we have been encouraged by an increase in customer interest levels and inquiries this calendar year. However, we remain mindful of ongoing uncertainties within the broader economy.’

In addition to the property market being so weak it caused profits to fall, company funds were also affected by further costs of over £5m at the Brightwells yard site in Farnham – the project has been delayed because of a series of planning, legal and construction issues.

Furthermore, Crest has took a further charge of £11.3m for internal and external works on older buildings to rectify fire safety defects after the tragic fire that broke out in Grenfell Towers in 2017. As a result, the company’s total provision has increased to £144.8m from £140.8m.

Truscott has claimed that hurdles which are currently littering the planning system would lead to slower housebuilding volumes across the sector.

Andy Murphy, an analyst at Edison Group, said: ‘The announcement of CEO Peter Truscott’s retirement and the appointment of Martyn Clark signals a crucial leadership transition.

‘Clark brings extensive industry experience, and his role becomes crucial in steering the company’s strategic recovery, controlling costs, and sustaining growth. Investors will closely watch how the leadership change contributes to Crest Nicholson’s efforts to overcome the recent operational and financial challenges.’

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The Housing Ombudsman called for a Royal Commission to create a long-term plan for social housing after finding that current approaches for the sector are not working for residents with a vulnerability.

The Ombudsman’s Spotlight report, focusing on attitudes, respect and rights, assesses what it means to be vulnerable in social housing in 2024, what ‘vulnerable’ means and how social landlords can better respond to the needs of those residents.

The report makes the case that there is a need for human-centric provision of services, and an individual approach to a range of delivery methods. It also calls for a statutory definition of vulnerability and a renewed definition of general needs, alongside a duty to cooperate between agencies such as health bodies and social landlords.

The findings are made up of more than 1,663 public responses from a call for evidence and hundreds of Ombudsman cases, including almost 200 where staff conduct formed part of the investigation. The report used these case studies and direct quotes from residents and landlords to build a picture of how the sector is performing.

Among the recommendations for the sector, the Ombudsman has said landlords should:

• Implement a vulnerability strategy, including how it is defined, who assesses, and what the review process is. This must be in line with the Equality Act, the Human Rights Act and the Care Act
• Test the policy in practice against the 3Rs – recognise, respond and appropriately record vulnerabilities
• Implement a specific reasonable adjustments policy
• Carry out a ‘Resident of the Future’ forecast for the next ten years, drawing upon the available information around demographics, both locally and nationally
• Introduce minimum staff training requirements such as Dementia Friends, and training on customer care, mental health, learning disabilities, and sight and hearing loss
• Undertake a review at Board level as to whether the organisation is currently offering a “human-centric” service provision and identify the barriers to why it is not currently the case
• Ensure awareness and accessibility to the complaints procedure

In its call for evidence, the Ombudsman asked residents about how well informed they felt their landlord kept them on repairs, rents and service charges, complaints and policies. Most residents rated their landlord between 3 and 5 when keeping them informed about changes to rent and service charges. However, for everything else, more than half of residents rated their landlord at 1 – this led to one resident describing feeling like a ‘powerless cash cow’.

Nearly 70% said their landlord had not made any reasonable adjustments, despite being asked to.

Landlords responding to the call for evidence reported that a lack of resources and a breakdown of trust were the two main barriers to better communication. However, landlord respondents also said the internal culture and attitude of their organisations hampered communication with residents.

Housing Ombudsman Richard Blakeway said: ‘Central to our report is what it means to be vulnerable in social housing today, how landlords can respond effectively, and how to do so without stigma or marginalisation.

‘Too often in our casework, residents’ vulnerabilities are missed or the response is inappropriate. Too often the concept of vulnerability is ill-defined by the landlord. Disrepair in homes or poorly handled anti-social behaviour in neighbourhoods is creating – or exacerbating – vulnerabilities.

‘Procedures that should adapt lack agility. Staff are not empowered to deliver the right outcome or insufficiently trained to follow the right process.

‘These events can serve to exacerbate the imbalance of power that exists between the resident and landlord, which an Ombudsman is designed to redress.

‘I’d urge all social landlords to read this report and reflect how their services and policies can be adapted to bring about positive changes for all residents. We acknowledge that in some places the sector needs more help with this too and have made recommendations to that effect for policymakers.’

Images: Sasha Pleshco and Elliott

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The government has rejected a series of recommendations by a committee of MPs regarding cost of living support payments.

The Work and Pensions Committee’s report, published in November, called on ministers to consider widening the eligibility for any future cost of living support payments and for them to take account of the financial difficulties faced by disabled people and families.

The report concluded that payments had not been sufficient to meet the scale of the problem and offered only a short-term reprieve for many.

In its response, the government rejected the recommendation that any future cost of living support payments should take account of family size, and did not accept the committee’s suggestion that anyone who misses a payment due to receiving regular earnings on a non-monthly basis should be issued the missed payment in the mop-up system.

‘The Cost of Living Payment is being delivered in three separate payments over 2023/24 to reduce the chance of someone missing out altogether due to receiving a nil UC award,” the government said in its response. “The guidance for the current Household Support Fund in England asks local authorities to provide support with the cost of essentials to those most in need, and in particular, that they should consider supporting those who have missed out on other recent support made available such as the Cost of Living Payments.’

The government also rejected the committee’s calls to clarify guidance to local authorities on Household Support Fund eligibility for people with no recourse to public funds, suggesting that the range of different circumstances is too broad to capture in guidance.

The government’s response said that it was currently evaluating the cost of living payments scheme.

Sir Stephen Timms, chair of the Work and Pensions Committee, said: ‘Despite the support payments making an important impact in helping those in need, some either did not receive sufficient help or missed out.

‘It is also important that councils receive clear guidance on who is eligible for the Household Support Fund, which acts as a crucial safety net for those who do not qualify for payments or means tested benefits. The possibility that there will be no Household Support Fund in the next financial year is causing widespread alarm.’

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