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The Week in Housing: a settlement in sight?
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Good afternoon.
In the week that we published our interview with Matt Downie, chief executive of Crisis, which highlights the dire state councils’ homelessness services are in, it emerged that social landlords may get a 10-year rent settlement in October’s Budget.
According to the Financial Times, chancellor Rachel Reeves intends to increase annual rents in England by the Consumer Price Index (CPI) measure of inflation – which currently stands at 2.2% – plus an extra 1%.
The government remained tight-lipped about the potential plans, which are reportedly aimed at encouraging the building of affordable homes by providing certainty over cashflow, but they were widely welcomed by the sector.
It came shortly after London’s largest landlords called on the government to introduce a “minimum” long-term rent settlement of 10 years.
The G15 said a new decade-long settlement should have “cast-iron guarantees” that it cannot be changed “partway through” and should be tied to inflation.
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The group is also calling for “sufficient time” to comply with new legislation that will allow social housing tenants to access information about the management of their homes.
It outlined its concerns in response to a government consultation launched in May. Under the plans, a tenant or their representative, such as a lawyer, can request information for free.
The group said: “While we welcome these objectives, we’re concerned that the current proposals lack the clarity and detail needed for successful implementation. To best serve residents, G15 members require clear guidance, realistic timeframes and consideration of our current capacity.”
After what feels like a long wait, the Ministry of Housing, Communities and Local Government revealed the full responsibilities for its six ministers, which includes a Lords minister for housing.
The department, which is led by housing secretary Angela Rayner, who renamed it last month, includes two ministers of state and four lower-ranking under-secretaries of state: Matthew Pennycook, Baroness Taylor of Stevenage, Jim McMahon, Rushanara Ali, Alex Norris and Lord Khan of Burnley.
The confirmation comes around six weeks since Labour’s landslide victory in the general election and two weeks before parliament returns after the summer recess.
Elsewhere, G15 landlord Hyde said it was exploring a “business combination” with Tower Hamlets Community Housing (THCH). It comes after merger talks between Poplar Harca and THCH, which is currently non-compliant with the regulator’s standards, fell through in April.
Anita Khan, chief executive of THCH, branded the chance to join Hyde an “exciting opportunity”, while Andy Hulme, chief executive of Hyde, described THCH as a “great organisation that shares our commitment to customers and communities”.
Riverside told Inside Housing that it was not bidding on new Section 106 properties “for the foreseeable future” as it focuses on existing properties and build contracts.
While the landlord is continuing to build, Riverside said it was concentrating on schemes it was already in contract for, or regeneration projects where it had a commitment to current residents following a ballot.
It said its other priority was investment in existing properties.
In the courts, a contractor won a High Court appeal over a legal battle with a London-based housing association over late payments.
The case involved Providence, which tried to end a contract with Hexagon Housing Association over missed payment deadlines involving a £7.2m contract for a 37-flat scheme in Purley, south London.
The High Court initially ruled in Hexagon’s favour after it took Providence to court on the basis that the notice of termination was invalid.
Providence appealed the decision, arguing that it will have a “trickle-down effect” of promoting late payments and will make the final date of payment “optional”.
The court allowed the appeal. A lawyer who acted for Hexagon claimed the latest ruling will introduce a “significant risk” to clients in dealing with contractors.
A mother of two has been granted a judicial review into whether Bexley Council breached its duty to provide her with suitable accommodation and conduct a needs assessment for her children.
Judge O’Connor, presiding over the case, referred to the government’s homelessness code of guidance for local authorities, which states that “living in B&B accommodation can be particularly detrimental to the health and development of children”.
The judge concluded that “no reasonable local housing authority could have found that room G5 of the Erith B&B was suitable to accommodate the claimant and her family, even for the limited 14-day duration proposed”.
Elsewhere, many of the country’s biggest social landlords are being urged to introduce a code of practice on domestic violence to reflect the regulator’s new consumer standards.
The recommendation is included in a 29-page report, commissioned by Brighton and Hove City Council alongside Stonewater, aimed at helping domestic abuse victims in the city amid the housing crisis.
Kent-based landlord Moat reported a 54% drop in annual surplus this week, after a sharp fall in staircasing on shared ownership homes and higher interest costs.
According to its annual report, the 23,000-home group recorded a post-tax surplus of £20.9m in the year to the end of March 2024, compared with £45.9m the year before.
Another landlord’s annual report revealed a £23m uptick in income from social housing lettings had driven up overall turnover.
LiveWest reported in its accounts for the year up to 31 March 2024 that turnover from social housing lettings rose from £203m to £226m year on year, representing 74% of turnover. The increase was driven by the delivery of 788 new affordable homes, a full year’s income from 2022-23 developments and the annual rent increase.
Midland Heart posted an increased surplus and turnover, but falling income from shared ownership sales, in its 2023-24 annual results.
It said that the higher surplus was largely due to increased income, insourcing more housing operatives and placing less reliance on sub-contractors to reduce costs.
It emerged this week that Livv Housing Group workers are voting on whether to strike over pay. If they vote for industrial action, walkouts could begin in the autumn.
Southwark Council scrapped its direct housing allocation policy after a legal challenge from residents. The local authority admitted it “goes against our values of openness and transparency”.
Also in the capital, some stark figures: nearly a quarter of Lewisham Council’s homes do not meet the Decent Homes Standard, according to its annual report for tenants and leaseholders.
In Scotland, Aberdeen City Council revealed around 500 homes in the city with potentially dangerous concrete will be demolished and rebuilt at a cost of at least £150m.
Councillors agreed the plan after RAAC (reinforced autoclaved aerated concrete) was found in the roof panels of 366 council homes and 138 private properties in the Balnagask area.
In Northern Ireland, we reported that the minister for communities paid tribute to frontline housing staff following a rise in hate crime incidents.
Speaking at a visit with Northern Ireland Housing Executive staff in Antrim this month, Gordon Lyons praised their “courage and commitment” in light of the increase. He said 22 hate crime incidents were reported in the first week of August.
In Wales, it emerged that Schroders is set to invest in affordable housing as part of a £400m mandate awarded by the Wales Pension Partnership.
The large asset management firm said the money will be invested in affordable housing, healthcare and schemes that generate employment.
Have a good weekend.
Grainne Cuffe, deputy news editor, Inside Housing
Say hello: grainne.cuffe@oceanmedia.co.uk
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