NHC Spring Budget representation calls for boost to Local Housing Allowance

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With Chancellor Jeremy Hunt’s Spring Budget statement coming on the 15th March, the NHC has submitted a budget representation to the Treasury. The NHC has long-term asks on investment in energy efficiency of existing homes, on brownfield land remediation and local authority capacity, which we set out in our 2021 Spending Review Representation. However, at the Spring Budget, we are focusing our representation on the need to uprate Local Housing Allowance (LHA) so that it reflects the real cost of renting in the private sector. We believe that the most pressing priority for the Chancellor is to take urgent action to tackle the cost-of-living crisis by making this policy change.

The NHC and our members believe that a continued freeze on LHA would make it even harder for existing private renters to make ends meet, risking homelessness and making it increasingly difficult for local authorities to discharge their homelessness duties effectively. Therefore, our recommendation is that the Chancellor must re-set the Local Housing Allowance to cover at least the 30th centile of local rents, and then relink the benefit to the real cost of renting for future years.

While Local Housing Allowance has been frozen for the last two years, rents have continued to rise in the North, resulting in a situation where last year’s Northern Housing Monitor found just 7% of rental ads in the North were affordable to those reliant on Local Housing Allowance. This change would primarily benefit private renters who are struggling with the cost of living crisis. It will particularly benefit the 246,000 renters across the North facing unaffordable rents and affordability pressures. Another benefit, as aforementioned, would be to aid local authorities in the discharge of their homelessness duty, enabling them to secure private rented homes rather than using temporary accommodation or bed and breakfast.

The NHC will continue to focus on our influencing objectives of meeting the net zero challenge and putting housing at the heart of a rebalanced country, through engagement with parliamentarians, civil servants and other relevant stakeholders.

Look out for our on-the-day briefing on the 15th March, which will cover all of the details announced in the Chancellor’s statement, and put it into context for the North’s housing sector.

LUHC Committee publish report on Reforming the Private Rented Sector          

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In June 2022, the Department for Levelling Up, Housing and Communities (DLUHC) published its White Paper, A Fairer Private Rented Sector, which outlines the Government’s long-term vision for the private rented sector (PRS). The Government has confirmed that the proposals are to be implemented this Parliament through a Renters’ Reform Bill. The proposals in the White Paper include the abolition of section 21 and the replacement of fixed-term tenancies with open-ended tenancies. It also focuses on housing quality and the condition of private rented accommodation, which is more likely to be non-decent than homes in other tenures.

In February, the Levelling Up, Housing and Communities Committee – the Committee that scrutinises the policy, administration and spending of DLUHC – published a report into Reforming the Private Rented Sector. The report provides recommendations for government on reform to the PRS, in response to the White Paper. Following a call for evidence from the Committee, the NHC submitted written evidence in August 2022, responding to the questions posed by the Committee around the proposals in the White Paper. Our response was informed by consultation with our local authority member organisations with direct experience of supporting residents in the PRS, and who work to improve and enforce decent standards throughout the North East, North West and Yorkshire and the Humber.

The Committee report cited the NHC on multiple occasions, including on a new decent homes standard (DHS) and incorporating minimum energy efficiency standards (MEES) into the DHS. With thermal efficiency in the private rented sector typically poorer than in the social rented sector, the NHC called for the Government to confirm the EPC MEES standard for the PRS, which would accelerate progress towards meeting one element of the DHS. The LUHC Committee recommended that the MEES be incorporated into the DHS with financing solutions included for landlords faced with excessive necessary improvement work costs.

On ending Section 21 evictions, the NHC evidence submission stated that removal of no-fault evictions would be a key step toward increased protection for renters, and that longer tenancies could improve relationships between tenants and landlords. The Committee echoed this view in the report, stating “we conclude that the abolition of fixed-term tenancies, combined with the repeal of section 21, would undoubtedly give tenants greater security of tenure, and we therefore welcome the proposals.”

The NHC hosts a quarterly Private Rented Sector Network for all NHC members working in connection with, or with an interest in, private sector housing and private sector housing reform to discuss day-to-day challenges and track and respond to national policy development. All meetings are Chaired by Dr Julie Rugg, Senior Research Fellow, Centre for Housing Policy, University of York.

The next meeting takes place 22nd March 2023, 13.00 – 14.30, online via Zoom, and will focus on the supporting on the cost of living crisis. For further information and to book your place visit MyNHC: https://www.mynhc.org.uk/event/general?id=Private_Rented_Sector_Network2873515587

 

 

 

Where does ESG finance come into retrofitting social housing?

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Blog by: Luke Cross, Director, Social Invest

ESG and sustainable finance are so last season, don’t you agree?

No, me neither. In actual fact, ESG and sustainable finance are now part of the landscape for the UK social housing sector.

We are beyond the idea that ESG is some sort of fad, that it’s simply the latest iteration of CSR or even that it is something that housing associations don’t need to work at because it’s ‘in our DNA’.

The growth of the sustainable finance market more broadly is a good thing on multiple levels. This includes a fundamental shift in direction for the financial services industry compared with where it has been historically, a drive for more accountability and transparency across finance and business (including calling out greenwashing) and the opportunity for HAs to showcase their ESG credentials and risk management, where they are heading with sustainability (holistic and not just environmental) and how they can improve as businesses.

Making existing buildings greener and fitter for the future sits at the intersection of the three pillars of the E, S and G – from the energy efficiency and performance of homes and buildings, to the wellbeing of tenants living in more efficient, warm, dry and cheaper to run homes, and the ability to measure and manage data and information that’s really crucial to driving improvement, and in demonstrating what’s being done and how.

On the finance side, lenders are increasingly finding opportunities to work with landlords on bespoke ESG-linked deals that can deliver some discounts, and play a role in both moving HAs towards sustainability goals and encouraging accountability through KPIs linked to EPC C targets and other green criteria.

HAs of a certain size can tap into green private placements or design Sustainable Finance Frameworks that link debt capital markets funding to the ‘greening’ of the organisation and its developments.

And there is also the opportunity for lenders to evolve this market and introduce more products to the sector that promote greater discounts.

But as we know, competing financial pressure are bearing down on interest cover covenants (forecast to dip below 100% by the RSH in the current period) and retrofit doesn’t deliver a cashflow as new build does, so funding will often go into the ‘for corporate purposes’ box, meaning it will then flow into various parts of the business.

ESG finance alone will not solve the retrofit challenge.

We need a blend of funding and finance to answer what was once framed as an £100bn question, but in reality will be far more given inflation and interest rates have gone.

To help the sector on its way, The Housing Finance Corporation (THFC) and engineering consultancy Buro Happold set out a roadmap for funding retrofit. This essentially called for three key components: economies of scale, to reduce per unit capital cost; matched grant funding, to reduce the housing association’s own cost; and government guaranteed debt funding, to reduce the cost of borrowing to fund initial retrofit investment.

Given the scale of the challenge and need for government support, the sector needs to ensure it is taking every opportunity that government gives it – not least via the Social Housing Decarbonisation Fund.

But there are also new ways of thinking and potential partnerships coming into the picture too.

This includes via new players in the affordable housing sector, including the likes of Octopus Real Estate, who are looking to leverage their sister company, Octopus Energy, to deliver Zero Bills homes with developers in this sector and roll out solutions for existing homes too.

HACT’s retrofit credits scheme, is aiming to provide carbon credits produced on the back of works to decarbonise housing stock, which can be sold onto investors and organisations wanting to offset their own carbon by funding emission-reduction projects.

Coalitions and collaborations are crucial too. NatWest Group launched a ‘Sustainable Homes and Buildings Coalition’, with British Gas, Worcester Bosch, and Shelter, and have been running energy efficiency pilots and calling on government and industry to help roll out solutions at scale.

The truth is that there is no single solution, or single organisation, that can deliver on this alone.

But ensuring that the sector is seizing all opportunities it can – whether it be in finance and funding, partnership or technological solutions – is ultimately what will enable it to tackle the retrofit challenge.

Sunak marks 100 days with Cabinet reshuffle

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With Rishi Sunak reaching 100 days of his premiership in early February, the prime minister decided to reset his government with a Cabinet reshuffle and a reshaping of departments. Sunak has created four new departments, resulting in a split to the Department for Business, Energy and Industrial Strategy (BEIS).

The new departments formed out of BEIS include a Department for Energy Security and Net Zero – BEIS Secretary of State, Grant Shapps, has been appointed as the Secretary for this new department. It is likely that this department will handle housing energy efficiency funding programmes such as the Social Housing Decarbonisation Fund, Home Upgrade Grant and ECO+.

Business will now be separated from energy, with a new Department for Business and Trade, with Kemi Badenoch being appointed the Secretary of State – Badenoch was formerly Secretary for the Department of International Trade which has now been merged into this new department. The prime minister has also formed a new Department for Science, Innovation and Technology (DSIT), with Michelle Donelan moving from the Department for Digital, Culture, Media and Sport (DCMS) to head this department. DCMS has lost its digital remit – which has moved over to DSIT – and is now the Department for Culture, Media and Sport. Former housing minister, Lucy Frazer, has been appointed Secretary of State for this department.

Greg Hands has been appointed as the new chairman of the Conservative party, replacing Nadhim Zahawi who was sacked following inquiry findings that he breached ministerial rules over his tax affairs.

Rachel Maclean, MP for Redditch, has been appointed as the new housing minister, the sixth in 12 months. Maclean has previously been a parliamentary private secretary to Sajid Javid when he was Chancellor and was a junior minister in the Department for Transport and the Home Office. She has also previously sat on the BEIS Committee. On Monday 27th February, our Chief Executive Tracy Harrison, and Director of Policy & Public Affairs, Brian Robson, met with the new housing minister to outline the priorities for housing in the North, highlight the work of the NHC and our members and to explore how the NHC and DLUHC can continue to work together on the issues facing the North.

See the full list of ministerial appointments here.

The Regulator of Social Housing Launches Pilot Customer Inspection Programme

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In September 2022, the Regulator of Social Housing (RSH) published the outcome of its consultation on Tenant Satisfaction Measures (TSMs). As a result, from the 1st April 2023 all registered providers of social housing will need to collect and publish a range of data on areas such as repairs, safety checks and complaints – in order to assess the performance of landlords.

These TSMs are a key component of the Regulator’s new proactive consumer regulation plan. Earlier this month, the RSH published its implementation plan for reshaping consumer regulation. This plan sets out the steps the RSH is taking to get ready for the landmark Social Housing Regulation Bill, which has nearly finished its passage through Parliament. The new approach will include inspecting all large social landlords against new standards, every four years.

Ahead of a national inspection roll-out, the RSH has selected eight social landlords to help test how it inspects performance against the new regulation by launching a pilot inspection programme. Of these eight landlords, there are four Northern organisations involved – Bernicia, Peaks & Plains Housing Trust, The Guinness Partnership, and Torus. The RSH will then use learnings from the pilot inspections to inform its approach.

The NHC will be looking to engage with members involved in this pilot once it is underway, to provide an understanding for all NHC members and their tenants of the new inspection measures.

DLUHC Publish Social Housing Residents Quality Survey Results

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The Social Housing White Paper published by the Department for Levelling Up, Housing and Communities (DLUHC) in November 2020 set out wide ranging reforms designed to improve the quality of social housing, and ensure residents felt safe, listened to, and had access to redress when issues arise. The Levelling Up White Paper reinforced this commitment to improving quality, setting out the government’s ambition to halve the number of non-decent rented homes by 2030.

In Spring 2022, DLUHC commissioned research to establish baseline metrics for the reforms the Government plans to make to improve the quality of social housing. This will allow DLUHC to understand where residents are less satisfied and the reasons for this, providing evidence to be used when developing reforms and to enable monitoring of the success of interventions based on the experience of social housing residents.

The ‘Social Housing Quality Programme: Residents Survey Report’ was published in December 2022, collating the survey answers of just over 5,000 social housing residents. Some of the key findings were as follows:

  • Two-thirds (67%) of residents were satisfied with the service provided by their landlord overall, while just under a fifth (18%) were dissatisfied.
  • Satisfaction was notably higher for those living in the North of England, particularly the North East (NE) which was 74% – Yorkshire & Humber (YH) was 72% and the North West (NW) 71%.
  • Satisfaction was also higher among older residents – 83% of people aged 75 and older were satisfied.
  • Dissatisfaction was higher than average among those aged between 25 and 54 (22%); ethnic minority residents (25%); and those with a local authority landlord (21%).
  • 65% of residents said their landlord treats them with respect, with agreement on this higher in the North.
  • 71% of residents said it is easy to get in touch with their landlord, this was higher in the North East and North West at 80%, but 58% in London.
  • On the question ‘how satisfied or dissatisfied are you that your landlord listens to your views and acts on them’, 52% of residents nationally said they were satisfied, with 62% in YH, 60% in the NE and 57% in the NW.
  • Two-thirds (65%) of residents were satisfied with how well their home was maintained while a fifth (21%) were dissatisfied.
  • The most common response given by residents who were not satisfied with maintenance of their home was related to mould, damp or condensation (55%), with insulation second (33%) and ventilation third (23%).
  • 82% of residents were satisfied that their homes was safe to live in. Among the 8% who were dissatisfied, mould/damp/condensation (56%), insulation (20%) and ventilation (19%) were again the main drivers of this dissatisfaction.
  • 73% of residents said they had reported a repair to their landlord in the previous 12 months, with 58% saying they were satisfied with the service they received in response and 29% dissatisfied.
  • 59% of tenants said they were aware of the Housing Ombudsman Service, whilst 69% said they knew how to make a complaint about a service they received from their landlord.
  • The vast majority of residents knew how to get in touch with their landlord, at 97%.

Commenting on the results at this month’s Northern Housing Summit, NHC CEO Tracy Harrison said:

“I’m lucky enough to get to spend time with NHC members across the North. I see the hard work that’s going on; and the deeply personal commitment housing professionals have to their work. I know that all 140 of our members are working hard, and often in partnership, to provide great homes and services to residents, to engage tenants and to build trust – so it’s pleasing to see these result showing that the North is leading the sector in many ways.

But we’re only as good as the worst homes we manage; and while satisfaction is higher up here, it’s still not good enough; and the tragic Awaab Ishak case shows the tragic consequences of poor quality housing.”

National Planning Policy Framework (NPPF) Consultation – NHC Member Roundtable 9th February, 10.00 – 11.30

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Prior to Christmas an early present from Government came in the form of the consultation package Levelling-up and Regeneration Bill: reforms to national planning policy. In addition to a revised National Planning Policy Framework ‘prospectus’, the Government is also seeking views on National Development Management Policies, further policy to support the levelling up agenda, and how national planning policy is currently accessed.

The consultation ends at 11.45pm on 2 March 2023 and the suggestion from Government is that a response can expected by Spring 2023. The intention is that NPPF revisions will be published as part of this response “so that policy changes can take effect as soon as possible”. The Government also promises a wider review of the NPPF, to follow Royal Assent of the Levelling Up and Regeneration Bill. “The government will consult on the detail of these wider changes next year, reflecting responses to this consultation”, the planning reforms consultation says.

The NHC will be responding to the consultation on behalf of members and will be holding a short consultation meeting Thursday 9th February, 10.00 – 11.30, online via Zoom. 

Please register via MyNHC using the link below and please do help us reach as many interested people as possible by sharing the invite and link.

If you wish to submit comments to be included in the NHC’s written submission, please forward them by 10th February to

Karen Brown karen.brown@northern-consortium.org.uk

NHC / Ward Hadaway Safety in Neighbourhoods Network holds Partnership Working and Data Sharing Roundtable

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This month the NHC and Ward Hadaway’s dedicated Safety in Neighbourhoods Network held a special session focussing on improving partnership working between housing providers and other local agencies.

Partnership working and information sharing are key to tackling ASB effectively, ensuring that the full extent of the issues are known and the most informed decisions can be made by key stakeholders. Doing so maximises the chance of an early and satisfactory resolution. Whilst important, it is often cited as one of the main barriers when managing ASB cases. Indeed, it is common topic of discussion amongst NHC members at the NHC Safety in Neighbourhoods Network and a priority area of focus for 2023.

At the meeting the Network was joined by Janine Green, an award winning specialist in community safety and anti-social behaviour (ASB). Janine’s presentation focussed on fostering good partnership arrangements at a neighbourhood level, in and across organisations. She discussed the practical ways members could make best use of multi-agency working from stakeholder mapping, establishing shared priorities, being proactive in building relationships, and creating a culture of accountability.

Joining Janine was Clare Paterson of CP Data Protection, a consultancy specialising in data protection and sharing. Clare gave an overarching presentation highlighting the necessary features of good practice in sharing data across organisations. Her presentation touched on the legal basis of data, the stakeholders involved in data collaboration from controllers to processors, and the agreements that should be in place between each. In understanding the key differences between data processing and sharing, organisations can ensure they are legally compliant in their activities. Overall, Clare shared with attendees the key principles behind effective data storing and sharing.

After each presentation Janine and Clare took part in discussion with Network attendees. Members discussed the strategic and operational challenges of working in collaboration with other neighbourhood agencies. A key theme was the growing importance of cross-sector working with health agencies and role of mental health and addiction in rising ASB. The Network agreed that this would be the topic of a future meeting.

The Northern Housing Consortium and Ward Hadaway’s Safety in Neighbourhoods Network is a quarterly meeting for NHC members working in, or with an interest in, anti-social behaviour and wider community safety issues. Sessions are member-led and benefit from the input of colleagues at Ward Hadaway. Come to hear good practice from within the NHC membership, presentations from key external speakers, and network with colleagues dealing with similar issues.

 To be informed of future Safety in Neighbourhoods Network meetings please request to be added to the mailing list by emailing

kristina.dawson@northern-consortium.org.uk.

 

Janine Green ASB: https://www.janinegreenasb.co.uk/

CP Data Protection: https://cpdataprotection.com/

Northern Leaders Gather for the Convention of the North

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Political and business leader came together last week in Manchester for the Convention of the North. The mayors of Greater Manchester, South Yorkshire, West Yorkshire, Liverpool City Region and North of Tyne converged to discuss levelling up and how to address regional inequalities. Delegates had to opportunity to hear speeches from Secretary of State at the Department for Levelling Up, Housing and Communities (DLUHC), Michael Gove; and his opposite number, Shadow DLUHC Secretary of State, Lisa Nandy.

Michael Gove’s speech centred on closing the gap on the social and economic disparities between regions. Much of this focused on rebalancing through reforms to housing. This included his plan to devolve power on housing funding to mayoral authorities, Gove said: “We want to devolve even more housing funding, including exploring giving more control of the Affordable Homes Programme to West Midlands and Greater Manchester. At the moment London is the only mayoral authority controlling this budget and if we want more of the homes we need in the places where they are needed, regenerating those brownfield sites and driving growth, this devolution is vital and necessary.”

Michael Gove also announced funding for Greater Manchester and the West Midlands to improve the quality of social housing, saying “So today we are going further in our drive to make every home a decent home and allocating £30 million for Greater Manchester and the West Midlands to start making improvements in the quality of social housing.”

Commenting, NHC Chief Executive Tracy Harrison, who attended the event, said

“The Convention of the North is always an inspiring event, and it was great to hear the Secretary of State put housing at the heart of his speech last week. It is clear that the Secretary of State remains highly committed to the levelling-up mission on housing quality, and the NHC will continue to work with Government to influence the evolution of the Decent Homes Standard, and its extension to the private rented sector.”