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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) |
Continuing the housing theme, the Welsh
Government's Housing Bill was introduced to the National Assembly on Tuesday by Housing and Regeneration Minister, Carl Sargeant (Lab,
Alyn & Deeside).
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 Tŷ 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) |
The Bill:
- 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) |
The
Bill :
- 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) |
The Bill :
- 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?
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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) |
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.