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London boroughs express short-term let concerns ahead of summer changes
Authorities in the capital city have voiced their concerns over shortcomings in government plans for regulating the short-term and holiday lets sector, warning they could exacerbate the housing crisis.
This morning, Tuesday 21st May 2024, a letter to housing secretary Michael Gove from London Councils was made public, which highlights the government’s proposal to create a new planning ‘use class’ for properties already used as short-term lets.
The new planning rules for short-term let properties were first introduced in February 2019 with an aim to freeing up more affordable housing for locals. They are due to come into place ‘this summer’.
However, the cross-party group have claimed that transferring short-term lets into this new planning category under permitted development rights will see thousands of homes removed from London’s permanent housing stock. London Councils estimates there are at least 43,000 short-term lets in the capital, which is equivalent to one in every 85 London homes.
Although, despite apprehensions, London Councils have welcomed other aspects of the government’s action on short-term lets. This includes introducing a much-needed regulation and oversight of the sector. These include a mandatory national register of properties and continued planning permission requirements for future short-term lets.
Despite this, London Councils argue that reclassifying existing short-term lets into a new planning category – the ‘C5’ use class – without requiring planning permission undermines efforts to preserve homes for residents amid worsening housing pressures and homelessness rates.
Research that was published last year by the cross-party group found a 41% in reduction in the number of London properties available for private rent since the Covid-19 pandemic, although data from the Office of National Statistics shows London private rents increased 7% in the year to 2024 – the highest jump on record – and the new change in planning rules could hinder progress.
Commenting on the news, Cllr Darren Rodwell, of London Councils, said although government plans mean well, the blanket reclassification of existing short-term lets into a new use class could strip the capital of thousands of homes.’
‘For too many years the short-term lets market has been growing out of control,’ Cllr Rodwell said. ‘With housing and homelessness pressures in the capital worse than ever, boroughs are extremely concerned about losing permanent housing stock. The priority has to be ensuring homes are available for long-term residents.’
Cllr Rodwell added: ‘Boroughs are keen to work with ministers on developing these proposals further and ensuring London is better placed to tackle this challenge.’
Image: Robbie Duncan
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All change for consumer regulation: The start of new social housing rules
Last month saw the beginning of introducing a new scheme to monitor standards of social housing in England. In this feature, Catherine Little, director of Campbell Tickell discusses what’s changing and what still needs to be done.
1st April 2024 marked the start of a new regulatory regime for English social housing providers. A new set of consumer standards, with a proactive programme of inspections, came into force, as well a statutory complaint handling code and new powers for both the Regulator of Social Housing (RSH) and the Housing Ombudsman. The date signalled some stark changes.
That’s at least partly true. At our recent webinar in March, more than 200 attendees heard that the regulator’s approach will: be steady; roll out across a four-year cycle of inspections; and be a process of continual learning for providers.
Here we discuss the key themes of the webinar, as well as drawing on the recently published documents from the RSH and Housing Ombudsman.
Finalising the consumer standardsThe high level of support for the consultation, particularly from tenants, has provided credibility for the approach and more details. As such: the four standards remain the same; the thematic headings are largely unchanged; and the Code of Practice has been amended, only to provide greater clarity in some areas.
Consultation changesThe key differences in the final standards are:
- Changes to the Neighbourhood and Community standard: An increased focus on the safety of shared spaces (not shared space overall), and clearer focus on anti-social behaviour and hate incidents, within the context of safe neighbourhoods
- Extension of some requirements to prospective tenants: For example, understanding diverse needs as appropriate
- Extension of the tenant engagement requirement: Such as providing feedback on the impact of engagement to tenants
- Adding requirements for the provision of tenants’ rights and complaints information based on government direction
The code of practice has been updated with further examples and clarification. Alongside the expectation to collect and use data about their tenant base, landlords may also use external data and information to meet the requirements around diverse needs. Confirmation has also been added that landlords need to be aware of legal requirements, the advice of the Information Commissioner’s Office (ICO) and tenant privacy.
Changes still to come- Awaab’s Law (consultation closed in March)
- Competence and conduct standard (consultation closed in April)
The RSH co-regulatory approach is based on the principle that the board or councillors is responsible for compliance with regulatory standards, including as publishing information to tenants and self-referral to the Regulator in cases of material non-compliance.
In practice this means that board members/councillors will need to seek assurance that regulatory standards are being met. Those organisations that have completed a gap analysis with the draft standards are in a good place to review and move forward. Others should complete a compliance assessment now.
InspectionsUpdated detail around proactive inspections and the publication of results includes a couple of unheralded, but unsurprising details. These include:
- The potential for the Rent Standard to be included in local authority inspections. (See: How we approach regulatory judgements and gradings)
- A confirmation of a four-year inspection cycle, with more visits where risk is found, and a six-week notice period
- While inspections for local authorities won’t be carried out during a local election, the RSH makes no such commitment for reactive engagement
- The inspections will consist of a document review and follow-up observations of board and the relevant customer committee or scrutiny group. Interviews will follow, likely with: the executive team (together or separately); the Chair; the Chair of audit committee; and possibly Chair of customer committee (or the equivalent)
- A range of tenant engagement mechanisms ranging from time spent with a tenant scrutiny group (without staff present) to neighbourhood walkabouts, surveys, or something else
- Proactive inspections will result in Regulatory Judgements, and a consumer ‘C’ rating – for housing associations added onto the existing G and V ratings. The Regulator has been consistent in setting a likely range of outcomes from C1 to C4 and has dampened expectations around many C1s – although their documentation makes clear that this must be the ambition and accepted level
- The use of Regulatory Judgements will expand to cover reactive engagement, including with smaller providers, although the RSH will continue to apply a rating only to Registered Providers over 1000 homes
The number of changes from 1 April 2024 may feel quite overwhelming, but some central messages emerged during our webinar about how best to navigate and adapt.
- Organisational culture is central to meeting the new regulatory requirements
- Curiosity at board level is crucial: look beyond the basics and ask the right questions
- Good quality data is essential to meeting the standards: holding the right data about property, people and services (including complaints) – and using this to inform decisions
- Ensure residents have an active seat at the table: move beyond engagement to real inclusion and influence
- Finally, the importance of collaboration – sharing good practice, but also challenges, can help to create an environment of transparency and ambition so that the standards are the baseline of what can be achieved
Images: Matt Brown and
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Repairing broken homes could save the NHS thousands
The Centre for Ageing Better have revealed that fixing older people’s faulty homes would save the NHS and social care more than £1.5bn a year and deliver more in health benefits.
How many times have you heard Prime Minister’s and MPs promise to help the NHS and social care by providing them with more funding? Well, new research has found that funding may need to go into another industry as the key to helping health services has been found to be an unlikely one.
Experts from the Centre for Ageing Better have revealed that removing the most serious risks to people’s health and safety from the country’s poorest quality homes, where the head of the household is aged 55 or over, would result in savings to the NHS of almost £600m per year.
In addition, new analysis from academics at the Care Policy and Evaluation Centre (CPEC), which is based at the London School of Economics and Political Science (LSE), found formal care costs could be slashed by £1.1bn a year by 2027.
The LSE analysis indicates the potential for a further £3.5bn annual savings in unpaid care costs for older people. Previous research from the Centre for Ageing Better, an independent charity identified £19bn of annual health benefits from investing more in home improvement.
Arguably, this research couldn’t have come at a better time. Not only could fixing elderly people’s homes save the sector billions, but it could also reduce pressures on the NHS and social care, who are currently facing their worst staffing crisis to date. Likewise, the charity have also previously discovered that almost eight million people live in an unsafe home: approximately 2.6 million of these are aged 55 and over and 1.8 million are children.
Dr Carole Easton OBE, chief executive at the Centre for Ageing Better, said: ‘There is a terrible personal cost for older people who live in homes that are making them ill and which have the potential to seriously injure and even kill them. Older people are more likely to live in a dangerous, damp or cold home and are among the most vulnerable to the health impacts which can exacerbate conditions such as asthma and arthritis, as well as increasing the risk of an acute episode such as a stroke or heart attack.
‘But this country’s poor-quality housing crisis also reaps a terrible cost on our already stretched health and social care sectors. Fixing unsafe homes is a value-for-money solution that will not only help people to live healthier and longer lives, but will also reduce pressures on health and social care.’
‘With so much supporting evidence pointing to significant benefits, it beggars belief that home improvement is not higher up the political agenda,’ Dr Easton added. ‘Improving the country’s health cannot be done without improving the quality of our homes.’
Focusing investment just on mitigating excess cold, which claims the lives of up to 9,000 people a year in England and Wales, in every home in the country headed by an older person would deliver an estimated £325 million worth of savings to the NHS every year and pay back the repair costs within nine years.
The Centre for Ageing Better recently launched the Safe Homes Now campaign with eight other charities including Barnardo’s, Asthma + Lung and St John Ambulance.
Following the publication of this research, the campaign is calling for a national strategy to tackle the poor quality of the country’s homes and has challenged the government to halve the number of non-decent homes, which currently totals 3.7 millions, within the next ten years.
Dr Nicola Brimblecombe, senior researcher at the Care Policy and Evaluation Centre and lead of the LSE research project (CAPE), said: ‘Our study clearly shows how poor quality and unsuitable housing can increase people’s care needs and their ability to live independently, negatively affect wellbeing, and reduce choice.
‘Improving housing has the potential to improve people’s quality of life, reduce health and care inequalities, and save money for government as well as having wider benefits to the environment and society. Negative effects of poor housing for social care can be long-term – action to improve poor quality housing cannot come soon enough.’
The new research will be presented at a special event on the cost of poor-quality housing to health and social care at LSE on Tuesday 21st May.
Image: The Centre for Ageing Better