The Week in Housing: shared ownership and Section 21 changes, and what we learned about council housebuilding

During the debate, Kemi Badenoch slammed the bill, saying the Conservatives “tried to make it work and we couldn’t”.

The shadow housing secretary claimed that the previous government’s attempt at rental reforms was abandoned because “it was having negative effects”.

Ms Badenoch, who is standing to be the next Conservative Party leader against former housing secretary Robert Jenrick, claimed that Labour’s new bill would lead to “more chaos”.

She went on to complain about the government’s record on housing supply and immigration since it was elected by a landslide in July. Her party was in power for 14 years.

As part of the changes under the bill, social landlords operating shared ownership are being urged to prepare for major changes to their legal options around the tenure.

Lawyers are warning that landlords will see a “significant shift” in how they can recover rent and service charge arrears, with extra staff training expected to be needed. The changes will potentially give more powers to residents.

There has been a flurry of merger activity. The boards of Longhurst and Grand Union have approved a tie-up to form a 36,000-home landlord, and Housing Plus and Wrekin also revealed they will complete coming together into a 34,000-home landlord in January.

A huge error at house builder Vistry will result in a change in its management team after it discovered that build costs on nine of its projects had been understated by £115m.

A number of annual financial accounts were published for the second week in a row. North East landlord Thirteen reported that it increased investment in new builds by more than three-quarters year on year and delivered 542 homes.

East Midlands landlord EMH Group revealed an increase in its maintenance spending, with major repairs costs rising by 51.7% per property.

At the same time, Grand Union retrofitted 203 homes last year, according to its latest sustainability report, and said it was on track to hit an Energy Performance Certificate rating of Band C on all its homes by 2030.

The new consumer-focused regulation regime claimed its first casualty this week, as a small Wiltshire-based landlord for over-55s is planning to wind down over financial concerns.

David Ingram, chair of Marlborough and District Housing Association, said that while the volunteer-led organisation supported the additional regulation, the “increased recording and reporting of compliance will result in substantially increased costs, which could only be covered by significant increases in rent and service charges”.

In what could act as a warning about the challenges facing those councils that have brought housing services back under direct control ahead of the new regime, Newcastle City Council has identified 16 compliance gaps with the consumer standards and Rent Standard following the closure of its ALMO.

Looking at investment into the sector, stock market-listed trust PRS REIT reported growth in its profit after tax of £51.2m for 2023-24, as the company undergoes a shake-up of its board.

New research found that pension funds make up around 40% of the £5.1bn being driven into providing social and affordable housing through the impact investing market.

Greystar Real Estate Partners secured a £600m deal to restore a former biscuit factory in Bermondsey that plans to deliver 338 homes for social rent.

In Northern Ireland, the latest government figures show housing satisfaction levels have risen by two percentage points year on year, and the Scottish government allocated £22m to issue two new bonds to housing associations.

Meanwhile, Scottish landlords warned that the government’s “short-sighted” cuts to adaptation grants could leave tenants trapped in hospital for longer.

With many local councillors across the UK raising concerns over the increased housing targets the new government is setting, Oxford City Council revealed that it was “considering its options” after its local plan was refused because the targets it set were too high.

Homes England and the Liverpool City Region Combined Authority have marked a new housing partnership with a joint investment in a regeneration project on the Wirral.

The government’s delivery agency also revealed why it had strengthened its ties with the North East Combined Authority.

With the new government’s first Budget due to be delivered at the end of this month, the National Housing Federation (NHF) has set out its key asks. These include a new long-term Affordable Homes Programme for social rent and shared ownership.

The NHF set out its requests alongside 76 homelessness organisations that signed a letter to the chancellor of the exchequer calling for an extension of £1bn of funding coming to an end next year.

Have a good weekend.

Stephen Delahunty, news editor, Inside Housing

Say hello: stephen.delahunty@oceanmedia.co.uk

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