Feed aggregator

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.

Image: Josue Isai Ramos Figueroa

More on this topic:

Party conference season: What needs to change in the planning industry?

Bristol homes axed due to poor foundation problems

Burton Paul succeeds Carla Jones, who stepped down last year

The funds have come from voluntary payments from energy companies that have broken Ofgem rules

The Civil Society Group urges the government to implement an automatic transition mechanism for charities if the basic rate of income tax is reduced

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.

Understanding the basics

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

How is social rent calculated:

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.

Four areas to consider when setting rents

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 

More on Campbell Tickell:

New consumer standards for social housing in England: a brave new world, or business as usual?

10 measures to help guard your social housing providers against cyber attacks

All nine staff are set to be made redundant at the end of March

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

More on this topic:

New affordable homes constructed to honour British Army regiments

Powering British homes could send ‘wrecking ball’ through climate commitments

The Charities Aid Foundation polled more than 6,100 people in 10 countries

The High Court rules Fox’s comment about Simon Blake on social media was ‘seriously harmful, defamatory and baseless’

How to move between departments and agencies, including completing the Civil Service Employee Transfer form.

Supporting senior leaders who are new to their grade, to gain the knowledge and skills needed to lead successfully in the Civil Service.

The Actors’ Benevolent Fund says the votes, which have been disregarded, would have changed the outcome of the election

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.’

Image: Hunters Race

More on this topic:

Younger people are set to live at home longer as housing affordability shrinks

Picking up the pieces: the changing role of housing associations

General principles on the government's use of generative artificial intelligence (AI), which can be used to create new text, images, video, audio, or code.

The volunteering initiative will return for a three-day event in June

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

More on this topic:

Global accounts show record investment in social housing repairs despite problems

Ombudsman finds social housing provider failed resident who later killed himself

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.’

Image: athree23

More on this topic:

NatWest adds £900,000 to support households with cost of living

Energy companies are failing to pass on cost-of-living support vouchers, research shows

These forms contain the questions you'll be asked when letting the government know about an acquisition via the National Security and Investment notification service.

Staff and trustees of Arts Enterprise with a Social Purpose have been left ‘devastated’ by the loss of Tim Joss