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| The Welsh Government's Housing Bill is a wide-ranging law that aims to tackle "rogue landlords", address homelessness, improve social housing standards and reduce the number of empty homes. (Pic : The Guardian) |
It's fair to describe it as "flagship" legislation, and it's also a whopper, coming in at 85 pages.The Bill's available here (pdf) and the explanatory memorandum here (pdf).
It's been recently said elsewhere....apparently....that the Welsh blogosphere often "lacks thought and detail", is too safe and sanitised and has failed to "facilitate democratic engagement and scrutiny".
I'll admit it. I've let you, the Assembly, our AMs and the whole of Welsh society down.
It's a burden I carry every night, as I lie awake, wondering whether to cover gosspy, banal stories like the ongoing collapse of local democracy in Carmarthenshire, the impact of High Speed 2 on the Welsh economy or getting my chompers around the annual report of the Chief Dental Officer.
The blogosphere continuously fails to demand answers to the big questions. What does the Taxpayers' Alliance think about politicians eating and breathing at public expense? What does some chippy anonymous source think about press officers writing press releases at their place of work?
The blogosphere was supposed to open a window, casting light and transparency on Welsh democracy and those who claim to uphold it. Clearly, all opening that window ever did was let in a field's worth of beefy cow farts. It's a dereliction of duty. We need to return to fighting for what is right and cover the controversial.
I'll spend more time hanging around the Senedd, Eli Jenkins pub and TÅ· Hywel looking for receipts in bins. I'll use my extensive network of Assembly spies and media connections - because everyone outside the Bay Bubble establishment has them - more effectively; telling you if Assembly staff are using all those flatscreen TVs to watch Bargain Hunt, or what AMs really think of Peter Black's ties. The people have a right to know.
Instead of my typically concise, pithy blogs, I'm going to do something different today and go into a bit more detail than usual. There's nothing more worthy of democratic engagement and scrutiny than a new law; which could directly and indirectly affect tens of millions in public and private spending as well as thousands of households. The sort of thing I'd usually just gloss over.
Few of you are masochistic enough to delve through it yourselves, so I guess I'm going to have to try to cram more than 250 pages of text to as close to 2,000 words as possible. In my own time. By myself. For free.
What people think of that and whether people take time to acknowledge it is another matter.
Why does Wales need a Housing Bill?
It's claimed 14,000 new homes are required in Wales each year – up to 9,200 private new builds, and 5,100 from other providers like private landlords, housing associations and local authorities. They're all going to be of varying quality and owned/operated by many different companies and individuals.
One of the key aims is to create a mandatory licensing system for landlords and letting agents, as until now such schemes have been voluntary, with some landlords being bad news for both tenants and communities.
The Welsh Government say there are 22,000 empty properties, many of which can be brought up to a decent standard. Existing homes, especially older housing, also need upgrades. That's being carried out to social housing via the Wales Quality Housing Standard (WHQS), but not enough is being done in the private rented sector.
Homelessness is on an upward trend – some 5,800 households were accepted as homeless in 2012-13 - as housebuilding slows, social houses aren't built at a fast enough rate to keep up with demand, and welfare reforms impact households, like the infamous "bedroom tax".
In addition to that there's the perennial local campaign favourite of new gypsy and traveller sites, while the Bill could also lead to reforms in social housing standards and charges, and make an expansion of co-operative home ownership easier and more attractive to prospective tenants.
What does the Housing Bill propose?
The Bill itself is divided into 8 parts and 3 schedules. I'm clumping them together into broad themes instead.
Regulation of the Private Renting Sector
The Bill:
- Makes it a legal requirement for private landlords and/or letting agents to register and be licenced with any local authority in which they let property.
- Places statutory duties on local authorities to maintain a publicly accessible register of licenced landlords and agents.
- Places a duty on licenced landlords or agents to notify local authorities of any change of circumstances within 28 days of the change occurring.
- Disqualifies people from receiving a licence if they :
- fail a "fit and proper persons test" – including committing fraud, acts of discrimination or harassment, firearms offences, sexual offences or failing to comply with other housing/landlord laws.
- haven't been trained in managing rental properties to the local authority's satisfaction.
- don't agree to abide by a Welsh Government Code of Practice.
- Mandates that licences will be valid for 5 years from the date of issue and will allow licences to be renewed 3 months before they expire.
- Grants local authorities the power to :
- revoke licences if a landlord or agent breaches any rules (with a right to appeal).
- issue "rent stopping orders" - where no rent is payable – if a landlord fails to comply with licencing requirements.
- turn down a licence renewal (with a right to appeal).
- Creates new offences, like :
- failing to produce/display a licence - up to £1,000 fine.
- advertising, letting or managing a rental property without a licence - up to £1,000 fine, barring a "reasonable excuse".
- failing to provide documents to local authorities when required - up to £2,500 fine.
- providing false information to the local authority - up to £2,500 fine.
Homelessness
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| The Housing Bill aims to prevent people becoming homeless in the first place by placing duties on housing authorities to intervene early. (Pic :BBC) |
- Places a statutory duty on local authorities to carry out a homelessness review and publish a homelessness strategy every four years starting in 2018, which includes monitoring current and expected levels of homelessness, homelessness prevention activities and resources available to combat homelessness.
- Defines a "homeless person" as someone who :
- has no accommodation they can occupy legally.
- cannot occupy a home in the UK they would otherwise be entitled to occupy.
- cannot secure entry into a home they otherwise live in.
- lives in a movable home with no permitted place to put it.
- Defines someone as "threatened with homelessness" if they would become homeless (as defined above) within 56 days.
- Outlines that when dealing with homelessness applications, local authorities must :
- determine whether emergency accommodation is "suitable" for a person.
- provide information and advice to someone who's homeless or threatened with homelessness.
- prevent homelessness applicants from becoming homeless in the first place.
- guarantee accommodation for "priority need applicants".
- try and find accommodation within their area whenever they can. Though the Bill sets out the arrangements whereby they notify, in writing, any other local authority they intend house someone in.
- Sets out guidelines for appeals, reviews, and protection of a homeless applicant's property (where applicable).
- Makes it an offence to provide false, or knowingly withhold, information when making a homelessness application, punishable by a fine of up to £2,500.
- Gives local authorities the power to refer homeless applicants to another local authority in Wales or England if they don't have a local connection - unless they're at risk of domestic abuse.
- Defines "local connection" as a person who :
- was normally resident in the local authority they've made a homelessness application in.
- is employed in the local authority.
- has family associations in the local authority.
Eligibility for Homelessness Assistance
- "Priority need applicants" include :
- pregnant women (and a person they would normally reside with).
- people with dependant children, with disabilities, are elderly, have a serious illness or are subject to domestic abuse.
- people affected by a natural or man-made disaster.
- 16-21 year olds who've left care, fostering or are at risk of sexual or financial exploitation.
- former military personnel who are homeless upon leaving the Armed Forces.
- "vulnerable" released prisoners (or someone who's been held on remand) but only those with a "local connection" (as defined above).
- People ineligible for help under this law are :
- persons from abroad who are otherwise ineligible, including non-EU nationals.
- subject to immigration controls or are excluded from benefit entitlements under the Asylum & Immigration Acts 1996 & 1999
- Statutory homelessness duties on local authorities will end for people who:
- turn down emergency accommodation that the local authority has deemed suitable.
- become "intentionally homeless" (i.e. evicted due to anti-social behaviour) – though the Welsh Government will have the power to draw up who counts as "intentionally homeless".
- accepts either an offer of a private sector tenancy that lasts at least 6 months or a social housing tenancy.
Gypsies & Travellers
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| The Housing Bill could lead to an increase in the number of legal traveller sites in Wales. (Pic : BBC Wales) |
- Defines a "gypsy or traveller" as
- a person of a "nomadic lifestyle" regardless of race.
- people who used to live a nomadic lifestyle but no longer do (i.e. health reasons).
- travelling circuses and show people.
- anyone who lives in a mobile home for cultural reasons.
- Places a statutory duty on local authorities to :
- carry out an assessment of, and publish a report into, gypsy and traveller site requirements every five years from the publication of their first report.
- use their powers under the Mobile Homes Act 2013 to provide sites for travellers where there's an assessed need.
- Gives Welsh Ministers the power to :
- approve, amend or reject any gypsy and traveller needs assessment, and issue guidance to local authorities.
- force local authorities to meet certain duties with regard gypsy and traveller sites as stipulated in the Mobile Homes Act 2013.
Social Housing Standards
The Bill :
- Gives Welsh Ministers the power to set and revise standards for social housing, including :
- rent levels and service charges (which will be charged separately).
- rules relating to rent levels and service charges.
- the quality of social housing itself.
- Gives Welsh Ministers (or someone working on their behalf) the power to issue warnings, intervene, and the power of entry, if they believe housing authorities aren't complying with standards.
- Removes a requirement in the Housing Act 1985 for housing authorities - when setting "reasonable rents" - to keep social rents broadly in line with private sector rents. Instead, they'll need to comply with any new guidance/limits Welsh Ministers introduce.
Finance, Tenancies and Council Tax on Empty Properties
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| Long-term empty and abandoned homes will be liable to a 150% council tax rate. (Pic : BBC Wales) |
- Abolishes the Housing Revenue Accounts Subsidy (HRAS), and gives Welsh Ministers the power to set a "settlement payment" for the eleven Welsh local authorities forced to leave the scheme as a result.
- Amends the Housing Act 1988 to enable mutuals and co-operatives to provide assured tenancies, enabling co-operative/mutual tenants to benefit from the same legal protections as assured tenancies offered elsewhere.
- Via amendments to the Local Government Finance Act 1992, gives local authorities the option to set an additional 50% rate of council tax (150%) on "long-term empty properties" (unoccupied and unfurnished for at least a year). It also gives Welsh Ministers the power to decided what properties this would apply to.
Costs
Now things start to get complicated.
Creating a mandatory landlord and agent register will cost £500,000, but would be self-financing because of fee income. Start-up costs for local authorities are estimated to be £250,000. Most of the burden falls on landlords and agents - upwards of £8million (between 2015-2017) - with costs falling to £265,000 per year once landlords/agents are registered and properly accredited as outlined in the Bill.
With regard the homelessness measures, the explanatory memorandum estimates ~32,100 applications for homelessness assistance will be made in 2015-16. The total cost, under existing laws, is estimated to be ~£21.3million. Under the preferred option in the new law, additional costs are estimated to be £5.9million, based on increases in homelessness assistance applications - an extra 3,200 - as a result of the Bill's provisions (for example, increasing the limit of "threatened with homelessness" from 28 to 56 days).
The total cost of the homelessness provisions is estimated to be in the region of £27.2-32.4million, based on expected homelessness figures, which themselves are dependant on multiple factors, including welfare reform and the state of the economy.
The gypsy and traveller measures will cost ~£1.6million per year until 2019-20, with most of that being the existing £1.5million grant to fund new traveller sites.
The preferred option for social housing standards sees a £15,000 per year cost fall on the Welsh Government, and £7,000 per year falling on social housing providers to collect and submit data. The preferred option for rent and service charge changes would initially cost £1.7million to set up – the vast bulk falling on local authorities – and £397,000 per year afterwards.
Abolishing HRAS has apparently been agreed with the Treasury, estimated to cost ~£990,000. However, an estimated £33million of rent income from Welsh local authority housing would then remain in Wales instead of being paid to Westminster.
The costs of the co-operative housing tenancy provisions will be around £130-140,000, mostly taking the form of continued funding to the Wales Co-operative Centre.
Additional council tax rate on empty homes would initially cost £359,000 to local authorities and Welsh Government to set up. From 2016-17, when the provisions come into force, it'll cost £527,000 per year in increased enforcement and tribunal costs. However, it's estimated a 150% council tax rate would raise somewhere between £11-14.4million for local authorities from the just over 24,200 homes left empty for more than a year.
What does this Bill mean?
There
are many significant provisions in this Bill, notably the creation of
a mandatory licensing system for private landlords, which should
professionalise the industry further, helping to drive "slumlords"
out – I'm thinking along the north Wales coast in
particular.
Alongside that, other provisions – like those relating to mutual and co-operative housing and a fairer system of rents and charges for social housing tenants – seem sensible, even populist in some circumstances. It's for AMs to decide if that's truly the case though.
The extra council tax rate on empty properties might cause problems, especially if many are old holiday homes that haven't been used in a long time, though it's unrelated to the proposed general 200% rate on second homes. It would also encourage owners either to sell, renovate or rent their properties, increasing housing supply.
The abolition of HRAS – one of the few ways Wales has subsidised England to the tune of hundreds of millions of pounds, perhaps more, for decades – will lead to rent being retained in Wales, and money that could be reinvested in social housing by housing authorities. If the Bill passes and HRAS is abolished, then the Bevan Foundation and Plaid Cymru can probably chalk up its abolition as a success for them as much as the Welsh Government.
The gypsy and traveller provisions could cause problems as many people have an "issue" with traveller sites. The prospect of more of them being required by law could lead to difficulties in some communities, and perhaps for individual AMs too. No AM will be able to campaign against extra traveller sites honestly if they back the provisions in the Bill as outlined.
Entrenched opposition to sites might be less if local residents knew travellers living on legal sites were paying their way (they pay council tax when living on local authority and private sites, and most - if not all - work), had a strict code of conduct, and had full access to local authority services like rubbish collection.
There needs to be a bit of common sense when deciding where they should go. They shouldn't be sited out in the sticks on busy main roads, but there's no point in siting them in built up areas either. I'm not sure if that's best left to any Welsh Government guidance/regulations to come from the Bill, or if it should be included as clauses within the Bill itself.
The homelessness provisions are extensive – perhaps to the point it should've been a stand alone Homelessness Bill. They could cause controversy, mainly due to the impact on recently-released prisoners and (as I understand it) the powers for Welsh local authorities to transfer any homeless applicants who don't have a local connection elsewhere - including back over the border where applicable. The only exceptions, it seems, would be those fleeing domestic violence.
The Bill maintains released prisoners as a priority homelessness group if they have a proven local connection. However, homelessness is often cited as a cause of re-offending. Like gypsies and travellers, sheltered accommodation for homeless and vulnerable young adults is often sited in unsuitable places and attracts local opposition.
It's a reasonable compromise, as is the general requirement for a "local connection" when receiving homelessness assistance. It's best people receive help where they have strong connections and are perhaps known to the authorities, instead of becoming vagrants. The same requirements should apply to social homes too.
Now things start to get complicated.
Creating a mandatory landlord and agent register will cost £500,000, but would be self-financing because of fee income. Start-up costs for local authorities are estimated to be £250,000. Most of the burden falls on landlords and agents - upwards of £8million (between 2015-2017) - with costs falling to £265,000 per year once landlords/agents are registered and properly accredited as outlined in the Bill.
With regard the homelessness measures, the explanatory memorandum estimates ~32,100 applications for homelessness assistance will be made in 2015-16. The total cost, under existing laws, is estimated to be ~£21.3million. Under the preferred option in the new law, additional costs are estimated to be £5.9million, based on increases in homelessness assistance applications - an extra 3,200 - as a result of the Bill's provisions (for example, increasing the limit of "threatened with homelessness" from 28 to 56 days).
The total cost of the homelessness provisions is estimated to be in the region of £27.2-32.4million, based on expected homelessness figures, which themselves are dependant on multiple factors, including welfare reform and the state of the economy.
The gypsy and traveller measures will cost ~£1.6million per year until 2019-20, with most of that being the existing £1.5million grant to fund new traveller sites.
The preferred option for social housing standards sees a £15,000 per year cost fall on the Welsh Government, and £7,000 per year falling on social housing providers to collect and submit data. The preferred option for rent and service charge changes would initially cost £1.7million to set up – the vast bulk falling on local authorities – and £397,000 per year afterwards.
Abolishing HRAS has apparently been agreed with the Treasury, estimated to cost ~£990,000. However, an estimated £33million of rent income from Welsh local authority housing would then remain in Wales instead of being paid to Westminster.
The costs of the co-operative housing tenancy provisions will be around £130-140,000, mostly taking the form of continued funding to the Wales Co-operative Centre.
Additional council tax rate on empty homes would initially cost £359,000 to local authorities and Welsh Government to set up. From 2016-17, when the provisions come into force, it'll cost £527,000 per year in increased enforcement and tribunal costs. However, it's estimated a 150% council tax rate would raise somewhere between £11-14.4million for local authorities from the just over 24,200 homes left empty for more than a year.
What does this Bill mean?
 |
| Expect to see more of this. This Bill is....wait for it....potentially quite controversial, and there are more talking points than the media have let on. (Pic : Wales Online) |
Alongside that, other provisions – like those relating to mutual and co-operative housing and a fairer system of rents and charges for social housing tenants – seem sensible, even populist in some circumstances. It's for AMs to decide if that's truly the case though.
The extra council tax rate on empty properties might cause problems, especially if many are old holiday homes that haven't been used in a long time, though it's unrelated to the proposed general 200% rate on second homes. It would also encourage owners either to sell, renovate or rent their properties, increasing housing supply.
The abolition of HRAS – one of the few ways Wales has subsidised England to the tune of hundreds of millions of pounds, perhaps more, for decades – will lead to rent being retained in Wales, and money that could be reinvested in social housing by housing authorities. If the Bill passes and HRAS is abolished, then the Bevan Foundation and Plaid Cymru can probably chalk up its abolition as a success for them as much as the Welsh Government.
The gypsy and traveller provisions could cause problems as many people have an "issue" with traveller sites. The prospect of more of them being required by law could lead to difficulties in some communities, and perhaps for individual AMs too. No AM will be able to campaign against extra traveller sites honestly if they back the provisions in the Bill as outlined.
Entrenched opposition to sites might be less if local residents knew travellers living on legal sites were paying their way (they pay council tax when living on local authority and private sites, and most - if not all - work), had a strict code of conduct, and had full access to local authority services like rubbish collection.
There needs to be a bit of common sense when deciding where they should go. They shouldn't be sited out in the sticks on busy main roads, but there's no point in siting them in built up areas either. I'm not sure if that's best left to any Welsh Government guidance/regulations to come from the Bill, or if it should be included as clauses within the Bill itself.
The homelessness provisions are extensive – perhaps to the point it should've been a stand alone Homelessness Bill. They could cause controversy, mainly due to the impact on recently-released prisoners and (as I understand it) the powers for Welsh local authorities to transfer any homeless applicants who don't have a local connection elsewhere - including back over the border where applicable. The only exceptions, it seems, would be those fleeing domestic violence.
The Bill maintains released prisoners as a priority homelessness group if they have a proven local connection. However, homelessness is often cited as a cause of re-offending. Like gypsies and travellers, sheltered accommodation for homeless and vulnerable young adults is often sited in unsuitable places and attracts local opposition.
It's a reasonable compromise, as is the general requirement for a "local connection" when receiving homelessness assistance. It's best people receive help where they have strong connections and are perhaps known to the authorities, instead of becoming vagrants. The same requirements should apply to social homes too.
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