The Housing and Planning Act 2016 & other recent announcements Sarah Hall May 23 rd 2016

Housing and Planning Act 2016  Conservative manifesto commitment (May 2015)  Introduced to House of Commons - 13 th Oct 2015  2nd reading – 2 nd Nov 2015  Committee stages – considerable debate BUT little significant change  Royal Assent granted - 12 th May 2016  ‘death knell for social housing’ (John Healy – Shadow Housing Minister)  ‘we need to get on with helping people to fulfil their dreams’ (Brandon Lewis – Minister for Housing and Planning)  ‘The Bill was written too quickly and did not allow time for engagement with the sector’ (Terrie Alafat – Chief Exec, CIH)

Main Areas of Interest  Housing  Starter Homes  Sale of Higher Value Council Housing  Pay to Stay  Length of Tenancies  Right to Buy Extension  Other – rouge landlords  Planning  Pilots on competition in processing planning applications  Increased powers where LAs do not have up to date Local Plan  Planning Permission in Principle by development order for housing-led development  Brownfield Registers

Starter Homes  Objective to deliver 200,000 Starter Homes by 2020  New duty to promote supply of starter homes for local authorities  Sold with at least 20% discount to FTBs between 23 and 40 years old  Sale value no more than £250k (£400k London) after discount  Detailed regulation consultation closed 18 th May – outcome and further legislation awaited  Resale arrangements are to be finalised (tapering instead of windfall at year 5)  Likely that the Government will seek 20% provision on all private sites of 10 +homes as part of condition of planning permission except..... .....Rural Exception Sites which have been excluded from this requirement (!)

Sale of Higher Value Council Homes  The Act will enforce the sale of higher value Council homes as they fall vacant:  Or require a payment of equivalent value  Main purpose is to pay for the discounts the RTB extension offers to housing association tenants  ‘Pledge’ that for every house sold, a replacement affordable home will be provided (not necessarily same type, tenure or location!)  Further details are to be issued later in the year following further debate on:  whether there is a case to exclude rural areas that have particular difficulty in replacing housing  the definition of ‘higher value’ and how payments ‘in lieu’ are to be made

“Pay to Stay”  Any Council tenant earning more than £31,000 (£40,000 London) will be required to pay a higher rent  Will taper at the rate of 15% (every £1 increase in earnings will generate weekly rent increase of 15p up to market rent)  Threshold will be ‘uprated’ annually by CPI  Money collected will be paid to the Treasury (less admin costs)  Housing associations are excluded from ‘pay to stay’ (a voluntary option)

Fixed Term Tenancies  Marks the end of lifetime tenancies for new local authority tenants  Fixed term can be as short as 2 years  OR up to 10 years in exceptional circumstances (e.g. disabled housholds)  AND extensions beyond 10 years - but only where there is a child under 9 years in the household. Term can be lengthened until child reaches 19  Fixed term tenancies, when ending, are subject to review to check the household still has a need for social housing. This could result in:  renewal of tenancy  an offer of alternative accommodation or  tenancy termination

Other measures  Requirement for local authorities to grant development permission for self build plots to meet local demand  Actions against rogue landlords include:  Banning orders for landlords who commit certain offences  Creation of a national database of rogue landlords  Allowing tenants to get rent repayments if landlord commits certain offences  Private landlords will be able to regain possession of abandoned properties without court orders

Other recent news  Court of Appeal decision (11 th May)  Backed the Government and quashed earlier High Court ruling that had stopped the implementation of a Written Ministerial Statement which would have limited affordable housing obligations to sites of 10 units or more  No formal announcement yet from the Government  Uncertainty over whether a further appeal will be made (Supreme Court?)  Some Councils now have a Local Plan policy out of step with Government expectations

Views  Varied…..  Desire to reverse the decline in home ownership and increase supply  Impact on ability to retain and provide rented housing  Role of Starter Homes in relation to market and (other) affordable homes on sites  Use of remaining rented stock  More detail over the summer……  ….and beyond “My government will support aspiration and promote home ownership through its commitment to build a million new homes” Queens Speech 2016  Neighbourhood Planning and Infrastructure Bill (England & Wales)