industry news
Clampdown on rogue landlords includes new minimum bedroom size
clampdown on landlords who cram tenants into overcrowded homes. The measures are contained in a new
A
Government consultation to tackle the problem of landlords who squeeze tenants into “rabbit- hutch” properties. The proposals will introducte a new minimum bedroom size of 6.52 m2
(70 ft2
classed as homes in multiple occupation (HMO). The size would be applied for each bedroom in the property. The Housing Act 1985 specifies minimum
space standards but a tribunal case in April 2015 caused confusion when it ruled that standards could only be guidance.
Exploiting
The Government wants to make the standard mandatory as part of a package of measures it said would help councils to bring an end to bad practices by ruthless landlords, who exploit tenants and charge them extortionate rents to live in poor conditions. Other proposals in the consultation paper include extending mandatory licensing rules to flats above shops and other business premises; requiring landlords to provide decent storage and disposal of rubbish; and tightening up the
new minimum bedroom size and extending licensing to thousands more properties both form part of a
) in shared houses
“fit and proper person” test for landlords ensuring that criminal record checks are carried out to weed out rogues. Where a landlord fails to obtain a licence they will be liable to pay a potentially unlimited fine. The rules only apply to HMOs requiring licences, which are shared homes with five or more people from two or more households. The changes would bring about 174,000 more properties into licensing, on top of the existing 60,000. The Government is also seeking views on whether the licensing arrangements for purpose-built student accommodation are appropriate.
Protection
The Housing and Planning Minister Gavin Barwell said: “In order to build a country that truly works for everyone we must ensure that everyone has somewhere safe and secure to live. “These measures will give councils the powers they need to tackle poor-quality rental homes in their area. By driving out rogue landlords that flout the rules of business, we are raising standards and giving tenants the protection they need.” Commenting on the proposals David Smith,
policy director at the Residential Landlords Association, said: “We agree that tackling
“About 174,000 more properties will have to be licensed”
criminal landlords must be a priority. We wait to see the full details, but powers are already available to tackle overcrowding which is about the number of people crammed into a room, not the size of a room. What is needed is proper enforcement of existing powers.” Powers in the Housing and Planning Act, which are also being introduced, will further crackdown on poor quality homes by introducing a database of rogue landlords and property agents, banning orders for the most prolific and serious offenders, penalties of up to £30,000 and extended rent repayment orders. The new measures are intended to
complement other Government efforts. More than £5 million of targeted funding for 48 councils has brought a big increase in the number of homes checked over recent months. In early 2016, more than 33,000 homes were
inspected and nearly 2,800 rogue landlords are now facing prosecution for providing substandard homes. Since 2011 the Government has provided £12m so local authorities can carry out more raids, issue more statutory notices and demolish ‘beds in sheds’ and other prohibited buildings.
Governments across Britain have pledged to legislate in an attempt to reverse the Office for National Statistics decision to classify housing associations (HAs) as part of the public sector. The Office for National Statistics (ONS) has announced that HAs in Scotland, Wales and Northern Ireland are to be treated as public sector bodies, meaning their private loans will be added to the Government’s balance sheet. This follows a similar decision made last year
to re-classify English housing associations as public sector bodies. Westminster has already included measures in the Housing and Planning Act 2016, to
Governments pledge to reverse ONS reclassification Deregulation
address the same issue in England. If the ONS decision stands despite the legislation, it could lead to the Treasury placing limits on associations’ borrowing. Nicola Sturgeon, the Scottish First Minister,
has promised a new law to reduce the control over associations’ activities and management, including the need for the regulator’s consent to dispose of assets or to merge with another landlord. Representatives of the Welsh Government and the Northern Ireland Executive also vowed to pass similar deregulatory measures to reverse the reclassification.
The ONS has now decided that housing associations in all four parts of Britain should be classed as “public non-financial corporations” for the purpose of national accounts. Derek Bird, head of public sector at the ONS,
said: “The ONS has reclassified housing associations in Scotland, Wales and Northern Ireland to the public sector purely for the purpose of economic statistics. “This has no direct impact on the ownership, management structures or borrowing constraints of the organisations concerned. It is for the devolved governments, rather than ONS, to consider the impact this classification decision may have on budgeting and fiscal management.”
“HAs in Scotland, Wales and Northern Ireland will be treated as public sector bodies adding their private loans to the Government’s balance sheet.”
www.housingmmonline.co.uk | HMM November 2016 | 7
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