The Northern Housing Consortium’s Private Rented Sector Network met for the first time in 2022 this month, with plenty to discuss since the recent Queen’s Speech. The Network was established to offer NHC members working in or connected to private sector housing the space to network and share good practice from across the northern regions and is Chaired by Dr Julie Rugg who informs discussion based on her expertise researching the Private Rented Sector.

This first session was used to digest announcements made in the Queen’s Speech and arrange a work programme to ensure the northern voice is heard. Announced earlier in the month, the introduction of the Renter’s Reform Bill is intended to fulfil the Conservative Party’s manifesto commitment to abolish Section 21 ‘no fault’ evictions; and to strengthen other grounds for possession, such as for rent arrears and anti-social behaviour. The Bill will also legislate for the extension of the Decent Homes Standard to the private rented sector (a Levelling Up White Paper commitment), introduce a new ‘property portal’ to give tenants performance information to hold their landlord to account and create an Ombudsman for private landlords.

Acknowledging the Network’s large, pan-northern membership, NHC members were joined by colleagues from the Department for Levelling Up, Housing and Communities’ Private Rented Sector Division. Discussing their work in Standards and Enforcement, David Selby and Lisa Whiting, shared their desire to hear the views of NHC members on the expansion of the Decent Homes Standard into the PRS. In particular, as the standard is developed, the Department would be looking closely at what success would look like for colleagues in the implementation of the Standard, and how any issues in relation to costs could be navigated.

In a wide-ranging discussion, NHC members discussed with the Department the need to avoid the duplication and ‘layering on’ of regulation, and the need to ensure that the Decent Homes Standard in the PRS compliments developments in the review of the Housing Health and Safety Rating System and Minimum Energy Efficiency Standards. NHC members saw an opportunity to create a ‘streamlined’ standard that Landlords could easily understand and importantly avoid any discrepancies that hinder Local Authorities in their work.

Equally, colleagues discussed the need to ensure that any work to enforce the new Standard be properly resourced. With sufficient capacity, it was felt that members could undertake proactive work providing support and education to professional landlords whilst effectively tackling the activities of criminal landlords.

Attendees also warned against the creation of ‘two-tier’ regulation where landlords in low-value housing markets could cite viability in alluding their responsibility to invest in their properties. Overall, it was felt that the wider Levelling Up agenda provided an opportunity to think holistically about how NHC members support homes of all tenures in their communities; looking at housing quality alongside decarbonisation and wider place-making to create better homes and places.

Recording and notes from the NHC’s Private Rented Sector Network are available to all NHC members signed up to the PRS Network Mailing List. To join the mailing list, please email Kristina.dawson@nhc.org.uk.

Levelling Up Community Regeneration

 The Government’s Levelling Up agenda has brought a renewed focus on tackling the place-based challenges that hold back many neighbourhoods; inequality and deprivation; poor quality, mismanaged private rented sector housing; and long term vacant and derelict housing. Amongst a number of proposed interventions, the Government plans to introduce measures to empower Local Authorities to bring empty homes back into use.

 In this guest blog, Brighid Carey from Action on Empty Homes discusses their new Community Action Toolkit, and the holistic and community-centred approach to building high quality homes and neighbourhoods that sits at the heart of keeping housing at the heart of a rebalanced country.

NHC members with an interest in the Levelling Up agenda are encouraged to contact Liam Gregson, Member Engagement Manager to discuss how to be involved in our work – liam.gregson@nhc.org.uk

 

Empty Homes – An Enduring Solution

Brighid Carey, Consultancy and Project Manager, Action on Empty Homes

Action on Empty Homes has launched a new Community Action on Empty Homes Toolkit, a guide for local authorities and communities working together with other partners through the process of bringing empty homes into use, to deliver affordable housing for local people. The Toolkit highlights the opportunity for new conversations and new ways of thinking, building creative collaborations to deliver lasting change.

In 2021, the number of empty homes in England stood at 238,306, a level symptomatic of a five year-trend of steadily rising numbers of long-term empty homes, despite a worsening housing crisis. Across the north of England, higher than national average concentrations of empty homes persist: in Scarborough 1 in 13 homes is empty, in Manchester it’s 1 in 30, and in Newcastle the figure is 1 in every 31 homes standing unoccupied. Recognising the scale of concern, the recently published Levelling Up and Regeneration Bill would double council tax on empty homes after one year instead of two, and enable local authorities to charge double council tax on second homes.

For communities, the cost of empty homes may be counted by the impacts on lives. Areas with high numbers of empty homes generally experience higher levels of vandalism and street crime, their residents are more likely to be in low-wage employment, and health and education indicators are poor[1]. Such areas are often characterised by high cost, poor quality privately rented accommodation[2].  Communities become trapped in a spiral of decline that can erode their confidence, lower aspirations and undermine well-being.

Local authorities and housing association have central roles: ·       Get your council to discuss using the Toolkit and supporting communities to bring empty homes into use, to help revitalise neighbourhoods and provide much-needed local housing ·       Housing associations – think about how you can support community action, especially through ethical divestment of street stock ·       Send communities a positive message that you’re willing to collaborate with them and support their empty homes work ·       Get in touch with AEH for more information: brighid.carey(at)emptyhomes.com

It’s time to ask different types of questions when it comes to empty homes. Local authorities and housing providers ask ‘How can we reduce the numbers of empty homes?’ and ‘Will enforcement work this time?’ Communities see things differently. They ask ‘How can we find somewhere decent to live?’, ‘Why are there so many homes going to waste?’  ‘How can we live well here and feel proud when it all looks so uncared for?’ What can we do about it? Communities ask questions about the things that really matter to them – they are concerned about the details of life that can make the difference between feeling well and optimistic or feeling anxious and powerless. Because of their understanding, communities are very well placed to find solutions and act to put things right – for themselves.

AEH has been working alongside communities bringing empty homes into use for the past six years. For the first three of these years, we studied six community groups, some well-established in property renovation, others at the beginning of their journey.  All had recognised unmet housing needs within their communities, had been frustrated by the numbers of homes standing empty, and had decided to do something about it.

The groups were studied represented very diverse communities. Cultures CIC in Stockton on Tees was originally formed to support individuals and groups from BME, migrant and refugee communities and help their social, economic and cultural inclusion. Cultures CIC knew that new entrants to the UK often ended up in poor quality privately rented housing and in low paid work. Working in collaboration with Thirteen HA, Cultures CIC started the process of leasing and renovating empty homes, to provide homes for community members. Cultures CIC had a very small amount of funding but through its outreach work and onsite training, was able to attract donated labour and materials.  Giroscope in Hull had decades of experience in renovating empty homes. Set up in the mid 1980’s to bring empty homes into use, Giroscope has gone from strength to strength, pulling significant capital funding into the areas of Hull where they work.

Of the communities were worked alongside, only one, Giroscope, had actually started out as a housing project. The others were community or neighbourhood groups who wanted both to create more and better affordable housing options for local people, and to address some of the underlying issues that had led to areas having long-term empty homes in the first place.

We found communities to be very effective at addressing these underlying issues. All of the community-led projects in our study provided work experience and on-site training for local people, people with vulnerabilities and people from frequently excluded groups. Some created commercial and office spaces for new community businesses such as bakeries, cycle workshops, gardening services, community shops and venues for training and events. They provided broadband services, advice and information centres and tenancy support, and a range of other services and amenities for local people. Bringing empty homes into use was the catalyst and the medium through which communities delivered the changes they wanted to see, which in turn helped to rebuild the local social and economic infrastructure.

Because communities are ‘intelligent’ about themselves, they understand the roots of issues for local people, and when empowered with leadership and decision-making, can target resources directly towards their resolution, and inspire positive lasting change.

You can download a free copy of the Community Action on Empty Homes Toolkit here.

[1] House Of Commons Briefing Paper 3012 ‘Empty Housing (England)’ (Oct 2020)

[2] Sic

The demise of section 106 and everything else you need to know

The Levelling Up and Regeneration Bill, announced in the Queen’s Speech started its progress through Parliament with its first reading on 11 May.

This is one of the flagship bills of the Parliamentary session and, of all the bills announced in the Queen’s Speech, it is likely to be one of the most controversial, enshrining into law the 12 missions of the Levelling Up White Paper to drive local growth, empower local leaders and regenerate areas.

The Bill’s 4 broad objectives are to:

• boost productivity, pay, jobs and living standards by growing the private sector
• spread opportunities and improve public services
• restore a sense of community, local pride and belonging
• empower local leaders and communities

There will be no standalone Planning Bill and planning reform will instead be framed around the Levelling Up programme with the Levelling Up Bill taking forward some of the planning reform outlined in the earlier Planning for the Future White Paper (August 2020).

Six ways the Bill will change planning

1. PLAN-LED – Strong reasons required to override Local Plans
2. BEAUTY – Design codes will have full weight in decisions on development
3. INFRASTRUCTURE – Section 106 replaced with a locally set Infrastructure Levy
4. REGENERATION – New types of Development Corporations and powers for using compulsory purchase
5. LAND SUPPLY – Dropping five-year housing land supply requirements
6. NEIGHBOURHOODS – Street Votes on local design codes and obligation to consider neighbourhood priorities.

This briefing outlines the main provisions of the Bill of relevance to NHC members, and describes the impending shake up to the planning system.

Delivering the levelling up missions

The Government announced in February 2022 that it would introduce a statutory obligation to report annually on the progress towards meeting the Levelling Up missions.  Enshrining the missions into law is the strongest message the Government could give on its intention to deliver the package of proposals.  The missions include plans for housing decency, home ownership, regenerating towns and extending devolution.  With requirements to specify target dates for delivery and report annually on progress, with missions cutting across the whole of Whitehall, the Bill makes a significant statement of intent.

Local Democracy and Devolution

Part 2 of the Bill takes forward the mission for every part of England that wants one to have a devolution deal with powers at or approaching the highest level of devolution, and a simplified, long-term funding settlement by 2030.

It sets out models that will allow bespoke devolution deals, giving local leaders the powers to meet their communities’ needs. The aim is to achieve more joined up services and decision making, greater flexibility over funding and more inward investment. Alongside these new powers, the Bill includes measures to increase the accountability and transparency of local leaders. This will include supporting attendance at overview and scrutiny and audit committees through amending remuneration provisions.

A new type of combined authority model is proposed – ‘combined county authorities’ (CCA) – to be made up of upper tier local authorities (county councils and unitary authorities) only. Upper tier local authorities will be expected to work closely with their district councils, who will be able to be ‘non-constituent members’ of a CCA.

Improving the Planning Process – a plan-led system

The whole thrust of the planning reforms is that applications will be genuinely plan-led.

Clause 83 of the Bill gives Local Plans more weight when making decisions on applications so that there must be strong reasons to override the plan, with the emphasis being “unless material considerations strongly indicate otherwise”. The same weight will be given to other parts of the development plan which are given full legal force.  Some plan policies (such as general heritage protection) will be set out nationally with no need for local replication.  There will be a new power to prepare supplementary plans to replace the ‘supplementary planning documents.’  A new duty will be placed on infrastructure providers to engage in the process. A series of ‘Gateway’ checks during production will help to spot and correct any problems at an early stage.

The ‘duty to cooperate’ will be repealed and replaced with an ‘alignment test’ across groups of local authorities set out in national policy to collaborate to produce a voluntary spatial development strategy, where they wish to provide strategic planning policies for issues that cut across their areas. Groups of authorities will be able to collaborate to produce a voluntary spatial development strategy, where they wish to provide strategic planning policies for issues that cut across their areas.

The Bill will remove the requirement for authorities to maintain a rolling five-year supply of deliverable land for housing, where their plan is up to date. The intention is to limit speculative development.

Local plans should be produced within 30 months and new Local Plan Commissioners may be deployed to support or ultimately take over plan-making if local planning authorities fail to meet their statutory duties.

The process for producing the plans will be supported with new digital powers to allow more standardised data to inform plan-making.  The Bill includes a new power to prescribe the use of specific types of planning data software and require that electronic planning applications comply with “particular technical standards or specifications.”

Neighbourhood plans will be given greater weight in planning decisions and the Bill introduces a new neighbourhood planning tool called a ‘neighbourhood priorities statement’ which the local authority will be obliged to consider when preparing its local plan. Residents will be able to take part in new ‘street votes’ to make proposals to extend or redevelop their properties in line with their design preferences.

Infrastructure Levy

The Bill follows through with the proposal to replace the current system of developer contributions through section 106 with a mandatory, and locally determined Infrastructure Levy.

The rates will be set as a percentage of gross development value rather than based on floorspace, as with the Community Infrastructure Levy at present. Going forward, the Community Infrastructure Levy will be restricted to Greater London and Wales.

Infrastructure delivery strategies prepared locally will determine where and how infrastructure spending is allocated.

Following responses to the consultation on the 2020 White Paper, the Bill confirms that charges will be determined locally by local planning authorities who will be able to set different rates within their area. For example, different rates could be set for brownfield and greenfield sites within a local authority boundary to help boost development in certain areas.

The Bill includes a framework in Schedule 11 committing to the Levy securing at least as much affordable housing as developer contributions do now.

Local authorities will be able to determine the portion of the levy they receive in-kind as onsite affordable homes using a ‘right to require’ thereby removing the role of negotiation in determining levels of onsite affordable housing.

Further regulation will also consider how the levy will be applied to registered provider-led schemes and will detail a ‘retained role’ for Section 106 agreements to support the delivery of infrastructure on the largest sites.

While the Bill provides the framework for the new levy, much of the detail will be set out in future regulations.  The new non-negotiable and locally set Infrastructure Levy will be introduced through a phased ‘test and learn’ rollout and a consultation will be coming soon on the detail.

Beautiful places and environmental outcomes

Environmental impact assessments (EIAs) and strategic environmental assessments (SEAs) will be scrapped and replaced by a new “outcomes-based” approach to examining the likely environmental impact of proposed projects and plans.

A consultation will be issued shortly on changes to the National Planning Policy Framework to improve environmental outcomes. This will include changes to embed the Environment Act’s reforms into plan-making.

The Bill will require every local planning authority to produce a design code for its area. These codes will have full weight in making decisions on development. The ‘Office for Place’ will support local planning authorities to deliver design codes and better design outcomes.

Measures in the Bill will also strengthen the role the planning system plays in protecting the historic environment and puts Historic Environment Records on a statutory basis, placing a new duty on local authorities to maintain one for their area.

Regeneration

This Bill will make provision for a new type of Urban Development Corporation, with the objective of regenerating its area and accountable to local authorities in the area rather than the Secretary of State.  It also updates the planning powers available to development corporations, so that they can become local planning authorities.

Part 7 of the Bill on Compulsory Purchase puts beyond doubt local authorities’ powers for using compulsory purchase for regeneration.

Measures will be introduced to reform land compensation to ensure that fair compensation is paid for the value attributable to prospective planning permission (‘hope value’).

The Bill will also give local authorities an important new power to instigate high street rental auctions of vacant commercial properties in town centres.

Local Planning Capacity

The package of reforms will require an increase in skills for local authorities, for example digital and design skills and Government is carrying out work to assess the need for sufficient skills, capability and talent for the new system to run effectively.

To improve capacity in the local planning system, the Bill announced that planning fees will increase for major and minor applications by 35% and 25% respectively. This will be consulted on in the summer before changes are made through secondary legislation at the earliest opportunity following the consultation.

The Government has stated that increasing fees must lead to a better service and the existing planning performance framework will be expanded to measure performance across a broader range of measures.

DLUHC has committed to continue to work with sector experts to develop a planning skills strategy for local planning authorities.  A sector working group is discussing capacity issues now that the package of proposals is available.

NHC View

We welcome the provisions of the Bill to strengthen and add to the tools that can be used to deliver regeneration and make good use of brownfield land. The Bill will enhance compulsory purchase powers, make it easier to establish locally-led development corporations and improve transparency about the ownership and control of land. Housing on brownfield sites can deliver on many of the Government’s levelling-up priorities: restoring pride by tackling eyesore sites, creating opportunity through jobs in remediation and construction, and boosting living standards by creating new homes for sale and rent that cost less to run.

Reforms to section 106, and the creation of a locally-set non-negotiable levy will need careful assessment.  While not without its flaws, the existing system allows for flexibility and greater certainty on securing affordable housing.  It is good to see that the new Infrastructure Levy will be set at a local level – this is something we pushed for when the levy was first proposed.  Land values and development costs vary significantly across the country and therefore a mechanism that levy’s contributions to infrastructure and other planning obligations must be response to local conditions if it is to be part of a levelling up programme.

The focus remains on delivering affordable homes and there is a concern that the levy will be less prescriptive than section 106 in its requirements for affordable housing on site. In the North, 31% of all units completed since 2015/16 were achieved from developer contributions and there is still a question about how in practice the number of genuinely affordable homes currently provided though section 106 will really be ensured, particularly in low value markets. We welcome the phased ‘test and learn’ approach to the introduction of the levy to ensure the system delivers for all parts of the country.

Local planning authorities must be provided with the resources to manage the levy and ensure that obligations are delivered.  It is encouraging that work is underway to develop a skills strategy, but we know that Northern local authorities have been disproportionately impacted by reductions in spending since 2010. This could undermine their capacity to undertake the planning and housing reforms and support for skills and new roles will become more pressing. Upfront support will also be required during the transitional period where there would have to be two planning systems running simultaneously.

There is still some way to go for the Bill and there could be amendments following various consultations. Changes to regulations, guidance and wider support for councils, and ways to involve residents will be just as important as the new legislation. Also, we will need to wait to see what is covered by national development management policies.

With the Bill just starting its journey through Parliament, a significant amount of detail remains to be worked through and the NHC looks forward to working with Government and our Members to help shape the detail.

Next steps

Government will be consulting on:

• Changes to the National Planning Policy Framework including the removal of the requirement for authorities to maintain a rolling five-year supply of deliverable land for housing, and on the National Development Management Policies
• Detail of the Infrastructure Levy and changes to compulsory purchase compensation
• Consultation on the new system of Environmental Outcomes Reports
• Consultation on the quality standards that Nationally Significant Infrastructure Projects
• Proposals for changes to planning fees.

Transition plans will be set out but in broad terms changes to planning procedures will begin to take place from 2024.

Book your place at the Levelling Up Conference: Housing at the Heart of a Rebalanced Country – Thursday 14th July at Hilton Leeds City.  The conference will include keynote speakers, good practice case studies, and a core focus on networking and collaboration.