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Senior sector figures have described the King’s Speech as “desperately disappointing” and a “missed opportunity” over the lack of commitment to new affordable homes.
The speech, written by ministers and delivered by King Charles on Tuesday, included commitments to leasehold and private rented sector (PRS) reform, which were welcomed, but the sector urged the government to include support for new and existing social housing in the Autumn Statement.
Delivering the speech, King Charles said: “We’re announcing new laws to reform the housing market with a leasehold and freehold bill, making it easier for leaseholders to extend their lease or purchase their freehold and tackling the exploitation of millions of homeowners through punitive service charges.
“And our renters bill will ensure a fairer deal for renters and landlords, by outlawing no fault evictions and enabling landlords to evict antisocial tenants fast.”
In the background briefing notes to the speech, the government said that the leasehold and freehold bill “will address one of the longest-term challenges that the country faces: fairness in the housing market”.
The document included further detail on what will be delivered through the bill, including making it “cheaper and easier” for more leaseholders to extend their lease, buy their freehold and take over management of their building.
It will require transparency over leaseholders’ service charges – costs should be in a “standardised comparable format” so they can be scrutinised and better challenged “if they are unreasonable”.
The government also plans to consult on capping existing ground rents. “Subject to that consultation, we will look to introduce a cap through this bill,” according to the document.
The Renters’ Reform Bill was also included in the King’s Speech, which pledged to deliver a “fairer deal for renters and landlords, by outlawing no-fault evictions and enabling landlords to evict anti-social tenants faster”.
Much of the details have been published, with some recent announcements included.
In October, the government revealed that it will not introduce the abolition of Section 21 until stronger possession grounds and a new court process is in place. This was confirmed in the briefing notes on Tuesday.
Prime minister Rishi Sunak announced in September that he was scrapping energy efficiency targets for new private rental properties, in a move dubbed “disappointing” and a “colossal error” by the sector. This was also confirmed during the speech.
“Landlords can still take advantage of the many government-backed schemes available to improve energy efficiency but at a time that suits them,” the document stated.
The briefing document also pledged to protect leaseholders by extending the measures brought forward by the Building Safety Act 2022.
Andy Hulme, chief executive of Hyde, said the reforms to leasehold and the PRS are “welcome”.
“But the King’s Speech has been another missed opportunity to give social housing and the people we provide homes to the support that is needed.
“We need a long-term plan to ensure that everyone on a low income has an affordable, secure, and decent place to live,” he added.
Lee Bloomfield, chief executive of Bradford-based Manningham Housing Association, criticised the government for “failing to include a firm commitment” in the King’s Speech to build more new affordable homes.
He said: “The tone for the King’s Speech was set over the weekend when the home secretary defined homelessness as a ‘lifestyle choice’ and stated her desire to ban homeless people from sheltering in tents.
“As such, no one should be shocked that taking more homeless people off the streets by building more affordable homes would be at the top of government’s policy agenda between now and the general election.
“Community-based organisations such as Manningham Housing Association simply wish to do the right thing for our tenants and, indeed, prospective tenants by expanding the number of properties we have available.
“But we cannot do this alone, the government must take the lead.”
Mr Bloomfield added that the absence of any renewed commitment to build more new affordable homes in the speech is “desperately disappointing, but in the wake of Suella Braverman’s crass and heartless comments, not in the least bit surprising”.
Ms Braverman had floated the idea of restricting the use of tents for people experiencing homelessness, and argued that some people see it as a “lifestyle choice”.
But the sector united in condemnation of the home secretary’s plans, describing them as “punitive”.
Rachael Williamson, head of policy and external affairs at the Chartered Institute of Housing (CIH), said: “We’re pleased to see the government’s continued commitment to take forward a Renters’ Reform Bill in the next legislative programme, along with the introduction of a leasehold and freehold bill.”
She said the CIH now looks to the government to use the Autumn Statement to “address the pressing issues facing many people with the rising cost of living”.
“Namely uprating local housing allowance, reforming the social security system, providing support with energy costs and efficiency, and increasing grant levels to provide much needed social homes,” Ms Williamson added.
Responding to the King’s Speech, the National Housing Federation tweeted: “It’s good to see leasehold reform is confirmed to be introduced in this parliamentary session.
“We’ll work with government on the details to understand the implications for our members.”
“We hope to see more of a focus on housing in the Autumn Statement.”
A spokesperson for the End Our Cladding Scandal campaign group said it welcomed the announcement that leasehold reforms will be brought forward in this parliamentary session. But they added that the initial proposals “do not yet appear to go far enough to end the current exploitation of leaseholders in flats”.
They said: “We are pleased to see there is a promise to extend the measures in the Building Safety Act to protect leaseholders and ensure that freeholders and developers cannot escape their liabilities to fund building safety remediation, but we need to see the detail to ensure this will really deliver the substantial improvements leaseholders are crying out for.”
The spokesperson said the group looks forward to continuing to engage with the government to “urgently bring forward improvements”, but it “will not accept compromises in our battle to ensure all leaseholders are protected”.
Darren Rodwell, housing spokesperson for the Local Government Association (LGA), said the Renters’ Reform Bill “will help to achieve better standards” in the PRS.
“It will also increase councils’ oversight of and ability to enforce against the small minority of landlords guilty of criminal behaviour,” he added.
Mr Rodwell said the removal of no-fault evictions is a “ significant step towards tackling our national homelessness crisis”, but said the LGA “remains concerned by the delay”.
“We believe the government should consider publishing the evidence base for the delay and bring forward the abolition of Section 21 at pace,” he stated.
Mr Rodwell said the GLA supports measures that will enable councils to keep the proceeds of financial penalties to reinvest in enforcement activity. But stated that the funding “won’t cover the costs of the new duties in the bill or the scale of the proactive work that is needed to improve standards for tenants”.
In a statement, the Housing Forum said there were “no big surprises” in the King’s Speech.
However, it added: “There was no mention of planning reform, the construction sector, or of a new bill to tackle the nutrient neutrality issues, despite [housing secretary] Michael Gove having indicated that he hoped to bring a bill on this forward.
“The nutrient neutrality rules are holding up large numbers of new homes so this will be a disappointment to the housing sector.”
Alex Diner, senior researcher of housing policy at the New Economics Foundation, said the government “continues to treat renters’ lives as a political football” and that the failure to progress with the ban on no-fault evictions will “deprive people of the security they need to build a good life and drive homelessness”.
“At a bare minimum, this government needs to end no-fault evictions without delay and make sure the courts have the resources they need to enforce it,” he added.
Geeta Nanda, chief executive of Metropolitan Thames Valley, said that tackling the housing crisis is “one of the great challenges of our time, and we desperately need a cohesive and coherent proposition with realistic targets and a plan to execute these”.
She stated that housing associations “must be a part of this conversation”.
Ms Nanda added: “What we need is a long-term housing strategy, investment, consultation, and a planning system which supports development of the affordable housing all communities need.
“A secure, affordable and safe place to call home is a distant dream for too many people.
“As the next election approaches, our politicians have the chance to show they are serious about helping to deliver the secure, affordable homes which give people the chance to live well.”
Scott Black, chief operating officer at Places for People, said: “Today cannot be seen as a positive outcome for affordable housing. A continued shortfall of new homes and a worsening homelessness crisis are critical issues for society, and the need to drive down energy bills whilst futureproofing our planet remain vital. The Government’s plans for the next year, unfortunately do not do enough to tackle these problems at the required scale and pace."
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