The Housing and Planning Act 2016 Brent Housing Partnership Eamon McGoldrick Managing Director - NFA

The Devil is still in the detail!

Key issues for Councils and ALMOs High Income Social Tenants: Mandatory Rents (Pay to Stay) Vacant High Value Local Authority Housing The ending of lifetime tenancies Implementing the Right to Buy on a voluntary basis Reducing social housing regulation

High Income Social Tenants: Pay to Stay Social tenants with high income to pay higher rents. Thresholds £31k outside London £40k in London. Aim to introduce the scheme from April All tenants not on HB or UC will be asked to declare income for Sept 15 – Sept 16 in Oct/Nov 16. Councils/ALMOs to assess income and market rent and apply formula to work out new rent if applicable for April 17.

High Income Social Tenants: Pay to Stay If tenant doesn’t declare the household income the council has to charge full market rent. It will be the taxable income of the two highest household member incomes that counts. Any household over the threshold will have to pay 15% of any income over the threshold or the full market rent whichever is the lower. Councils will then have to pay the additional rent minus admin charges to the Treasury. There will be a 30 day appeal period for the tenant to challenge the new rent.

High Income Social Tenants: Pay to Stay Some areas of the country the market rent is very similar to the social rent. NFA is arguing for exemptions in those cases. NFA part of a technical group looking at: o how market rents will be assessed o how costs will be agreed o Timescale o implementation issues

Vacant High Value Local Authority Housing Councils will be required to consider selling off high value empty properties and make payments to Government on that basis. Government using data from all councils to inform discussion with Ministers.

Vacant High Value Local Authority Housing Government would like to introduce the determination as soon as possible and get some money in for 2016/17. These regulations are subject to affirmative action by parliament. Timescales are tight but be prepared for an invoice this financial year. Draft determination for 2017/18 has to be made before 31 st March 2017.

Ending of Lifetime Secure Tenancies Will apply to new council tenancies and those moving in some cases. Councils will normally have to offer fixed-term lets of between 2 and 5 years. There is now an option of up to 10 years in certain circumstances and up to the 19 th birthday of the youngest child for families. It will also apply to people other than a spouse or partner who inherits a secure tenancy: o Those will be converted into a 5 year fixed term tenancy. Secure tenancies will remain for those made to move by their landlord.

Implementing the Right to Buy on a voluntary basis 8 ALMOs who are Registered Providers and at least 1 more going through the registration process. Not consulted on the deal but it will affect them. Arranging a meeting with the HCA and NHF for those ALMOs.

Reducing social housing regulation Clauses intended to get LSVT Housing Associations off the public sector books may impact on the 8/9 ALMO RPs. Clauses in the Act intend to remove council influence from LSVT boards. NFA discussing possible issues with DCLG and HCA. Regulations being drafted at the moment.

Impact on Councils and ALMOs

A dismantling of the HRA self-financing settlement and principles. Loss of local control and finance. Lots more bureaucracy on pay to stay and fixed term tenancies with less resource. Impact on ALMO and councils’ ability to build new homes, provide wider services on worklessness etc. and for some manage and maintain the existing stock.

The end of Council New Build?

Revenue losses (1% rent cut) mean less borrowing over next 5-10 years. Debt caps on HRA borrowing. Arrears risks from Universal Credit and wider welfare reform. Loss of stock through RtB and High Value Voids – HRA potentially unsustainable. Government support directed at owner occupation. Need to look for new financing models and more joint work with housing associations?

Impact on Communities

Ending of lifetime secure tenancies - higher turnover of tenants on council estates? Social and council housing especially seen as tenure of last resort. Will Pay to Stay drive more Right to Buy and push some into unsustainable homeownership? Inequality between HA tenants and council tenants.

NATIONAL FEDERATION OF ALMOs