Industry News


Fears of a new cladding crisis after blaze destroys timber-frame homes


B


arnet council in North London has warned of a potential new national fire safety crisis aſter it discovered hundreds of low-rise


timber-frame homes had been fitted with plastic cladding that can spread fire. Te council has alerted both the Government,


other councils and the Mayor of London, that other homeowners in similar properties across the country could be affected. It said the 580 homes that needed fixing in its area were “the tip of the iceberg” and there is a need for a national plan to raise awareness and work out how best to support homeowners. A row of homes in Moss Hall Grove in Finchley


was destroyed in June last year when a fire spread rapidly across the terrace, gutting the properties. Eight people escaped unhurt and 30 were evacuated from the surrounding area. Te council has found more homes with similar


UPVC panels that were also not built with measures to stop the spread of fire. Te one- and two-storey homes were built with timber frames from the 1930s to the 1960s but were retrofitted with UPVC cladding panels in the 1980s. Others have timber cladding, timber frames and inadequate fire compartmentation. Te repair bill is estimated at close to £17 million,


of which £3.6 million will be borne by the taxpayer to fix council houses. Nearly 4,000 buildings over 11 metres in height


in England have been identified with unsafe cladding. Only a fiſth have been fully fixed, while works are under way on another fiſth. About 80% of the buildings with the highly combustible Grenfell- style aluminium composite material cladding have been fixed. Te latest development could increase costs, further squeezing budgets for building


much-needed social housing or repairing substandard homes. Darren Rodwell, the building safety spokesperson


for the LGA, said: “In light of other recent fires, it’s clear the government cannot risk any further delay… the government should provide guidance to all owners, so they are aware of where they need to take action. Te government should also make funding


available to remediate problems where they are found so the cost of these works do not end up putting more pressure on already stretched council budgets.” Officials at the Housing Department said less


than 4% of England’s housing stock was postwar timber framed construction, based on the 2020/21 English Housing Survey


Tenants watchdog proposes big hike in fees


Te Housing Ombudsman has proposed a 40% increase in the fees paid by social landlords, as well as a “polluter pays” model, so that those who use the service more have to pay for it. Richard Blakeway has said the Ombudsman’s fees


need to increase as demand on the service continues to increase exponentially. Te Housing Ombudsman has proposed


increasing the fees it charges housing providers to £8.03 a home, up from £5.75 per unit in 2023/24.


Te new fee was originally set at £9.16 a home, but due to problems with recruitment the proposed fee was lowered. Te Ombudsman is also considering a potential


change to its funding regime, proposing a “polluter pays” model to drive better landlord complaint- handling behaviour. Te proposed model would see housing providers pay both a membership and a cost per case fee. Alternatively, it may involve higher charges for those with the highest maladministration rates and who’s tenants use the service proportionately more. Any changes to its fee regime will need to


be approved by the Housing Secretary and the Treasury. Blakeway says he recognises the financial pressures in the housing sector, but added that “while demand continues to increase exponentially,


we will require more resource to meet this”. Te document says that the fee has been


calculated to support increases in its caseworker headcount and to deliver more determinations on complaints. It also notes that the Social Housing (Regulation) Act has given the Housing Ombudsman Service new powers, including overseeing adherence to the complaint handling code from the beginning of the new financial year. Tis will be done through returns from landlords,


which will include their self-evaluations, in addition to insights from HOS casework. Te Ombudsman reported that demand for the service grew beyond its forecast, exceeding 78% in the first nine months of 2023/24, and is expected to be significantly above the 30% increase previously modelled for 2024/25.


Private landlords rents warning to Welsh Parliament


Te National Residential Landlords Association has warned that the threat of rent controls together with the introduction of new legislation has seen rents in Wales soar. Steve Bletsoe, NRLA operations manager for


Wales, told the Senedd’s Local Government and Housing Committee that from having the slowest rising rents in the UK, Wales is now recording the fastest rising rate as a result of this perfect storm. He said that the best way to offset these


challenges is not to introduce rent controls but to encourage the supply of more homes to rent, telling the Senedd: “Rents went up over 10% the month the consultation on rent controls happened…it scared a lot of people into either putting their rents up above


inflation or exiting the market completely”. He added: “If you increase the supply, and I


mean good quality supply, the market dictates rents. Governments don’t need to intervene; the market will dictate it.” Giving evidence as part of the committee’s Private


Rented Sector inquiry, Bletsoe stressed the need for the Government to support existing landlords as well as encouraging new investment – something that has fallen dramatically over the last 12 months. His argument was reinforced by evidence from


Richard Rowntree of Paragon Bank who quoted UK Finance data suggesting that only 2,000 properties were purchased in Wales with a buy to let mortgage last year, down from 4,000 the year before.


Bletsoe also used the session to call for an


urgent review of Land Transaction Tax (LTT) to further stimulate growth in the sector. He told the committee about the decades of under-provision of social housing that have seen more and more households look to the private sector for a home, despite the fact that private landlords are not always equipped to deal with the unique challenges facing social tenants. He called for additional support to drive bad


landlords from the sector and ensure consistent enforcement, also referencing ongoing issues with Rent Smart Wales, calling for greater clarity on what its purpose is and what is revenue being used for, as well as welcoming the forthcoming review.


www.housingmmonline.co.uk | HMMApril/May 2024 | 19


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