Industry News
Regulatory fees for HAs to rise by 1.5% from April
Te Regulator of Social Housing has announced there will be a rise in regulatory fees of 1.5% in April, with a possible further increase to follow later in the year. Te size of a second increase (which
would apply from 1 July) depends on the outcome of the consultation exercise on proposed changes to the regulator’s fee regime and is also subject to approval from the Housing Secretary. Te regulator has said it anticipates that
large private registered providers with 1,000 homes or more will pay no more than £1.37 per home for the first quarter (April to June 2024). For these large RPs, this will work out at £5.48 per home annually.
Fees for small private registered providers, with fewer than 1,000 homes, are anticipated to be £75 for the first quarter. This is equivalent to £300 on an annualised basis, in line with prior years.
When the proposals were published last
September, the regulator said that once it is fully staffed social landlords with more than 1,000 properties will pay between £9 and £10 per social housing unit, up from £5.40 per home in 2023/24. Landlords with fewer than 1,000 social homes would still be charged an annual flat fee, but this is set to double from £300 a year to between £600 and £700. A letter sent to all social landlords earlier
this year stated that an invoice for the first quarter will be issued in March 2024, and a subsequent invoice for quarters two to four will be issued in June 2024. Te March 2024 invoice will include a rebate for unspent fees from 2022/23. Small private registered providers will
receive one invoice in 2024/25, which will be issued in June. Te invoice will be made up of £75 for quarter one and the quarter two to four fee. Tere will be no rebate for small landlords
as the cost to regulate and register is no less than the fee charged.
New homeless
households outnumber new social homes by six to one
N
ational Housing Federation analysis of affordable housing figures and homelessness statistics has found that
for every new social home built in England last year, six households were accepted as homeless by their local council. Government figures show that 52,800 households
were accepted by their local council as homeless last year (2022/23) including 30,300 families with children – this equates to 145 households and 88 families every day. In comparison, only 8,386 new social rented
homes were built in the same period – equivalent to just 23 per day. Tere was a net total of 9,561 additional social rent homes last year, including acquisitions, a figure that has fallen by a staggering 76% since 2010. Social rented homes are typically 50% of market rents and the only homes affordable to homeless families. To prevent rough sleeping, where possible
homeless people and families are housed by councils in emergency accommodation, including hostels with shared facilities and bed and breakfasts. Government figures reveal there are now 105,750 households living in temporary accommodation, including 138,930 children. Tese levels are the highest since records began. As a result of rising homelessness, largely caused
by the severe shortage of social homes, Government spending on emergency accommodation and homelessness prevention has drastically increased. English councils spent a record £1.74bn on
temporary accommodation in 2022/23 which represented 9% of their annual budget. Total spending on temporary accommodation has increased by 62% in the last five years alone. In addition, the shortage of social homes means
more and more families on low incomes are forced to live in expensive and insecure private rented homes, leading to a sharp rise in government spending on housing benefit. According to the Institute of Fiscal Studies the housing benefit bill has doubled since the early 2000s. Te current crisis has been caused by decades of
underinvestment in affordable homes by successive governments. In 2010 the Government cut funding for affordable housing by 63%, the biggest cut to any capital budget at the time. It also cut all funding for new homes at
social rents. Tis led to a rapid decline in the number of new social homes being built, thereby intensifying an already existing shortage. While in recent years, the government has allowed grant funding to be used to build
8 | HMMFebruary/March 2024 |
www.housingmmonline.co.uk
The shortage of social homes means more and more families on low incomes are forced to live in expensive and insecure private rented homes
homes for social rents, funding remains at historically low levels. According to NHF research, there are now
4.2 million people in need of social housing in England, including homeless people and those in overcrowded, unaffordable and unsuitable homes. Despite already reaching record levels, the
number of homeless households and families is set to continue worsening at a rapid rate, without urgent action from the Government. Research carried out by Pragmatix Advisory, on
behalf of the NHF, highlighted that the numbers of children in temporary accommodation is estimated to reach 150,000 by 2030. Tis would be the equivalent of six children in every school in England living in emergency accommodation. Ahead of the next general election, the National
Housing Federation is calling on all political parties to commit to a long term national plan to solve the housing crisis, which prioritises social housing. Kate Henderson, chief executive of the
National Housing Federation, said: “Te disparity between rising homelessness and the delivery of new social homes puts into stark perspective just how far away we are from tackling England’s worsening housing crisis.” “Our research shows we need to build 90,000
socially rented homes each year to house all those in need including homeless families, more than 10 times the number built last year. As homelessness continues rising at record levels, we need comprehensive action to ramp up delivery of social homes to the numbers needed.” “Te chronic shortage of social housing is having
wide ranging impacts, not only for those becoming homeless and living in poverty and overcrowding, but also in the private rented sector where increased demand from people who cannot access social housing has pushed up rents and in turn house prices. Tis is also costing the government and indeed the taxpayer huge sums, with costs of temporary accommodation, homelessness prevention and the housing benefit bill soaring.”
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