The Housing and Planning Act 2016 — an

The Housing and Planning Act 2016 - an update Andrew Barry-Purssell – Place and Investment Policy Manager June 2016

Community Infrastructure Levy September 2015 The Act • The Act received its Royal Assent on 12 May. It aims to: • Boost housebuilding • Increase homeownership levels • Streamline the planning system • Use social sector housing more efficiently • Improve enforcement in the private rented sector • There is limited detail in the Act on some important aspects - most areas will be subject to further regulation and statutory guidance • This presentation sets out what we think we know about implementation – information pre-dates last Thursday and ensuing events

Community Infrastructure Levy September 2015 An overview of the Act • PART 1: NEW HOMES IN ENGLAND • Starter homes • Self-build and custom housebuilding • PART 2: ROGUE LANDLORDS AND PROPERTY AGENTS • Banning orders • Database of rogue landlords/agents • Rent repayment orders • PART 3: RECOVERING ABANDONED PREMISES

Community Infrastructure Levy September 2015 An overview. . continued • PART 4: SOCIAL HOUSING • Implementing the right to buy on a voluntary basis • Vacant higher value local authority housing • Rents for high income social tenants • Reducing regulation of social housing • Secure tenancies • PART 5: HOUSING, ESTATE AGENCIES AND RENTCHARGES • Electrical safety standards • Licensing of HMOs • PART 6: PLANNING IN ENGLAND • PART 7: COMPULSORY PURCHASE

Community Infrastructure Levy September 2015 Starter Homes New dwellings available for purchase by qualifying new first-time buyers to be sold at a discount of 20% of market value and at a price below set caps (£ 450 k in London; £ 250 k elsewhere) and subject to any restriction on sale/letting made in regulations. To be delivered through planning (as a condition for granting permission) • Lower age limit for buyers (23) as well as an upper one (40) • Regulations may allow for joint purchases involving people who don’t all meet the age requirement • Needs regulations to come into force • Have had a consultation paper on “Starter Homes Regulations”: • Restrictions on sales (8 year maximum tapered period) • Age 40 restriction and joint sales • 20% requirement, on sites of 10 units or more/0. 5 hectares, countrywide • Commuted sums (purpose built private rented housing may only have to make payments) • Exemptions: general viability, specialist housing with element of care, student housing, custom build

Community Infrastructure Levy September 2015 Self-Build Homes • A requirement to grant planning permission “in respect of enough serviced plots of land to meet the demand for self-build and custom housebuilding in the local authority’s area” • Section 11 allows for exemptions • Will come into force on date set by regulation

Community Infrastructure Levy September 2015 Rogue landlords/property agents • Banning orders • Database of rogue landlords and property agents to be maintained by LAs, content to be specified in regulations • Rent repayment orders • To come into force on date set by regulations. Next steps: • RPOs likely to be implemented from April 2017; database/banning orders from October 2017 • Consultation expected on database and post-BO management orders in September • Separate consultation on mandatory HMO licensing expected

Community Infrastructure Levy September 2015 Housing association right to buy and sale of high value voids • RTB being piloted by five associations. Details of the final scheme being worked up by Government with National Housing Federation based on pilot – looking at eligibility; discretion; application and sales process; portability and 1 for 1 replacement. • Guidance expected shortly with full roll-out autumn 2017 • High(er) value voids: Bill was amended to deal with “higher” rather than “high” to address situation in higher value areas • To be implemented by formula. LAs likely to be able to keep enough to repay debt, transaction costs and 30% of replacement cost. New homes likely to be exempt • DCLG crunching data – suggestion we will receive first estimates of determination this summer with payment in early 2017 • 2 for 1 replacement in London: new Mayor, devolution deal?

Community Infrastructure Levy September 2015 Mandatory rents for high income social tenants • High income means not more than £ 40 k pa in London (£ 31 k elsewhere). Regulations to allow thresholds to be increased every 3 years in line with rises in CPI. • Additional rent will be higher of 15% of income over the threshold or market rent • Won’t apply to households on universal credit/housing benefit. Income means “taxable income” (child benefit, DLA, Tax Credits will be disregarded) • “household” means any tenant, joint tenants and their spouses, partners or civil partners. Only income of two highest earners will be considered • In year 1 Las will only have to pay on sums actually collected (no formula) – Ministers may reconsider in light of experience. “Regulations will not expect LAs to collect where the administration costs would not be covered by the returns”. • Regulations expected in October, higher rents to apply from April 2017

Community Infrastructure Levy September 2015 Reducing regulation of social housing • A number of changes were made during the passage of the Act to reduce regulation of housing associations to help move them back into the private sector for public accounting purposes: • Removal of consents regime for disposals • Power for Secretary of State to make regulations to reduce or limit LAs’ influence over associations by appointing/removing officers and controlling voting rights (stock transferred to associations through LSVT)

Community Infrastructure Levy September 2015 Secure tenancies • New secure tenancies for a fixed term of 2 -10 years • Longer tenancies can be granted where households include children under 9 (to last until the child is 19) • Regulations will set out cases in which a lifetime tenancy can be granted • At end of fixed term, LHA will have to review to decide whether to offer a new tenancy, on the same or different property • Right of review – but only to determine if decision is in line with the landlord’s tenancy policy • Future succession (other than by spouse/civil partner) will result in a fixed term tenancy

Community Infrastructure Levy September 2015 Housing, estate agents and rent charges • Electrical safety standards: new duties on landlords to be made by regulation – may include requirement to have checks by a qualified person and set out qualifications required and when checks made • Fit and proper person test (HMOs etc): new criteria for landlords of licensed housing – should be able to remain in the UK and not be bankrupt • Financial penalties: LHAs will be able to impose civil penalties for some offences under the Housing Act 2004 as an alternative to prosecution (eg for failure to comply with an improvement ntice, offences committed by those controlling/managing HMOs, offences contravening management regulations in respect of an HMO)

Community Infrastructure Levy September 2015 Planning highlights • In the end, no neighbourhood right of appeal – LPAs will have to set out in planning reports how a neighbourhood plan has been taken into account in a recommendation to grant and identify any poits of conflict between recommendation and the NP. • Planning permission in principle – for “housing-led development”, but NOT minerals (ie fracking). Pi. P granted through plans/registers will last 5 years, on application 3 years • Provision added for “planning freedoms schemes” – removing/modifying specific planning provisions to help increase housing delivery in an area. • Carbon emissions So. S to conduct a review of “any minimum energy performance requirements approved by the So. S under building regulations in relation to dwellings in England”. Eh?

Community Infrastructure Levy September 2015 Land • Don’t forget: • Duty on ministers to engage with LAs on disposal of land • Duty on public bodies to prepare report of surplus land holdings • Power for Secretary of State to direct disposal of land • Reports on improving efficiency and sustainability of local authority buildings (and link with disposals of least well performingiloting alternative providers: Act states explicitly this only allows for temporary arrangements

Community Infrastructure Levy September 2015 That’s all over now… • No it isn’t • Plenty of regulations to come (any spare Government lawyers around? ) • Blackman Bill on homelessness • Neighbourhood Planning and Infrastructure Bill • Review of Community Infrastructure Levy • Anything flowing from Brexit • Anything flowing from having a new administration

Community Infrastructure Levy September 2015 Planning highlights (continued) • Piloting alternative providers: Act states explicitly this only allows for temporary arrangements • Regulations allowing pilots can only apply for five years at most • Requirement for Secretary of State to report on operation and effectiveness of any piloted arrangements • Regulations cannot allow LPA to be bound by anything said by an alternative provider