Welsh White Paper Consultation Better Lives and Communities Introduction The Country Land & Business Association (CLA) is a member of the European Landowners Organisation and represents over 34,000 members in England and Wales. Our members both live and work within rural areas; they operate a wide range of businesses including residential, agricultural, tourism and commercial ventures at the last count the CLA represents some 250 different types of rural businesses. We have been looking after the interests of our members, as well as promoting the positive aspects of land ownership, land management and rural business activities for the past 100 years. CLA members own or manage approximately half the rural land in England and Wales, and the resulting expertise puts us in a unique position to formulate policies and lobby effectively. In terms of the subject Consultation Paper, the contact is CLA Housing Advisor danielle.troop@cla.org.uk. Preamble The Welsh Government is to be congratulated on producing a comprehensive document. In particular, the stated aim of tenancy reform is welcomed as a difficult, time consuming but necessary intervention. When looking at the three strategic benefits scheduled for delivery at page 79, however, it becomes clear that housing supply comes bottom with 11 actions as compared to 20 actions registered for housing services. The strategic focus on housing services as opposed to housing supply is at odds with the English position despite homelessness rising and housing supply shortfall being acute in Wales. Without adequate volume of supply, Welsh revenue spend will be further imbalanced towards supporting those in housing need. CLA Response Strategic Objectives: Housing Supply, particularly new build, should be the primary strategic objective for the White Paper Homelessness The document states (pg 70) that between 2004/5 and 2009/10, homelessness acceptances fell year on year. Since 2009/10 and the global property crash, the homelessness acceptance 1
trend in Wales has been upwards (Pg70). At page 73, the document acknowledges that one in four new social lettings is made to a homeless household. This is high and the Welsh proposal to make better use of the private rented sector mirrors action being taken in England. CLA Response Homelessness: Increased homelessness likely to be a function of housing supply shortfall, particularly new build, of any tenure. Suitable Accommodation Proposals to discharge the homelessness duty into the private rented sector do not define suitable (page76). Statutory guidance is proposed at 8.49 but the following are not identified as key criteria: Employment availability Support networks (family/social) linked to local connection It is important that homeless households are not isolated in inappropriate locations. This includes rural locations. CLA Response Homelessness: Suitable accommodation to be defined prior to discharge of the homelessness duty into the private rented sector. Criteria incorporating employment availability/accessibility and local connection to be included. Priority Needs Groups CLA membership often provides housing as part of employment provision which then comes to an end when employee retirement occurs. Without suitable alternative accommodation for older people in the countryside close to existing social/family networks, silt up of existing rural housing stock can occur. It is therefore requested that loss of tied accommodation is included as a priority need group. This evidence will then be used to trigger new developments in the countryside based on Housing Waiting List data. CLA Response Homelessness: Loss of Tied Accommodation to be a priority needs group Intentionality The rationale for taking intentionality away because the ability to discharge the homelessness duty into the private rented sector is to be introduced, does not take account of anti-social behaviour. The proposal to remove intentionality is not supported. CLA Response Homelessness: Intentionality to remain in recognition of anti-social behaviour 2
Private Rented Housing The focus on private rented housing as a sector and the stated importance of seeing this sector increase as a tenure type (pg6) is welcomed. The White Paper focuses on generating new supply through bringing empty properties back into use as private rented accommodation which: a. in some areas are likely to represent genuinely residual stock of the wrong unit size when Welfare Reform is taken into account (see removal of the bedroom tax in NW England) b. will represent a lesser resource than the 22,000 units identified when typical probate terms of 12months plus are taken into account The White Paper at no point focuses on generating new private rented supply through increasing the number of new build units available to market rent. CLA Response Rented Housing: Some Empty units represent genuinely residual stock in the context of Welfare Reform. This should be recognised as a safeguard when new Council Tax powers are proposed. New Market Rented Housing The omission of new build market rented housing as a tenure solution extends to the White Paper overview Broad Policy outcomes from Investment in Housing (pg10) with the outputs column failing to identify new market homes for rent. New build market renting is also absent from the Increasing the Supply of Homes section (pg18). Cross-referencing to Innovation and Finance (pg24) little detail is provided on models moving forward to deliver new market rented properties. There is no acknowledgement of institutional investment opportunities or the role that the tax regime can play. There is detail only on new ways of delivering intermediate rented property through housing association funding with these units assumed to be available only to persons on housing waiting lists. At pg28, the White Paper states: We cannot directly influence its (private sector housing) contribution to the supply of homes but we can help to create conditions which could encourage new landlords to invest. Our proposals to address this are set out in Chapter 6. CLA Response Rented Housing: The Welsh Government is recommended to view the CLG Select Committee Report, and the government response, on financing Housing Supply released May 7 th. In terms of increasing private rented supply: a. Small Private Sector Landlords - Shelter and a range of consultees evidence the importance of changes to the tax regime in delivering new investment into the private rented sector. b. Large/Institutional Landlords The ability and necessity of levering-in pension fund finance is evidenced. 3
The CLA will seek to be represented on any stakeholder groups formed to investigate new-build market rent housing or the streamlining of the tax regime for private sector landlords. Housing Standards - private rented Chapter 6 A Better Private Rented Sector is identified as the White Paper location for solutions to extending the private rented sector. The chapter focuses on increased regulation for the private rented sector as opposed to outlining the financial solutions required to increase supply (see May 7 th CLG Select Committee Report). Chapter 6 makes a number of references to the Housing Health and Safety Rating System. This is understandable since: a. The system is in place b. The system deals with housing quality c. Local Authorities have enforcement powers The chapter also makes reference to the Tenancy Deposit Protection scheme and voluntary landlord accreditation as monitored by all 22 local authorities in Wales. Voluntary letting agent accreditation schemes are not mentioned (although they do exist) and Green Deal, with associated enforcement powers requiring EPC s at grade E, is not mentioned in this chapter but instead under improving existing homes. The White Paper identifies therefore that there are a range of existing powers in place with which Local Authorities can police rogue landlords without the need to introduce Mandatory Landlord Registration. If existing powers are not being used, it may be that budget issues within individual Local Authorities do not allow for adequate EHO appointment. CLA Response Rented Housing: Mandatory Landlord Registration may not encourage new entrants to the sector particularly when the costs of financing the scheme by the industry, is taken into account. As opposed to establishing a new system of Landlord control ( reinventing the wheel ), the Welsh government should look to putting adequate resources into the existing system. This is likely to be more cost effective. Tenancy Reform The Welsh Government instigation of Tenancy Reform is welcomed as a difficult but necessary undertaking. The 2006 Law Commission Report underpinning this section has been accessed. In the same way that the Localism Act has recognised the merit of affordable rents as a means to increase investment into the social/affordable rented sector and the subject White Paper articulates at pg33 an intention to: Enable local authorities to set rents that are above social rents, for example at affordable or intermediate rent levels 4
the limitations placed on landlords wishing to invest in properties let under 1977/1976/AHA tenancies, needs to be recognised. The CLA would seek representation on stakeholder groups formed to deliver this programme. CLA Response Tenancy Reform: Tenancy Reform in the rural housing sector will help to enable investment in and supply of, rural rented (and affordable) housing to increase. New Build Housing White Paper recognition of the pressures that limited housing supply exerts in rural areas (4.62 Pg 27) is welcomed. We also support at page 27 Welsh Government intention to assist the mortgage market and to ensure that selected models work as well in rural areas as in urban areas. Proposals at 4.61 supporting local authorities that choose to introduce their own Mortgage Indemnity Schemes are particularly welcome. Without such schemes, households commanding adequate monthly salaries with which to pay a mortgage, are forced to access statutory housing waiting lists when with support, these households can access open market property. Conversely, proposals at 4.46: Work with local authorities to enhance their potential to build new homes are not supported: CLA Response New Build: In the context of PSBR and the limited pool of borrowing finance available, it is more appropriate to see Local Authorities enabling private sector activity through mortgage indemnity schemes and provision of land for affordable, than stretching PSBR limits by seeking to build new stock themselves (4.42 Pg 24). The White Paper estimates (pg11) that 14,300 new homes are required annually in Wales (9,200 market, 5,100 non-market). Programmes identified within the White Paper to mitigate against the shortfall deliver insufficient numbers to 2016 and again, the Welsh Government is urged to consider instigating a build to market-rent programme. Standards of New Homes This section (pg 33) is non-informative and more clarity is needed. Paragraph 4.101 underlines the issue when it states that new build standards have been enhanced with public funding. The White Paper does not propose to extend this funding, merely stating that a cross cutting approach is needed. Neither this section nor wider reading of the White Paper has uncovered any reference to placeshaping or placemaking the Building for Life Standard covers both design quality and build quality and could be used as the standard through which new Welsh housing development is assessed. CLA Response New Build: Despite a move away from Building for Life in England as part of deregulation, it is proposed that a score of 10 under the BfL regime represents a fair benchmark for Welsh newbuild of all tenures. The scoring criteria is 5
comprehensive incorporating palate, orientation and massing and provides developers with the clarity that they need to plan new schemes. Planning and Governance The planning and governance elements of this section are welcomed. The knee-jerkism that is Localism is not visited upon Welsh planning or governance systems on account of the large trigger Regional Development Agencies not having been in existence. Instead, the Welsh White Paper usefully recognises the limits of district council boundaries and proposes concerted strategic action by Local Authorities over larger geographic areas, based on (robust) evidence sources. CLA Response New Build: The Planning White Paper due 2013 will be received with interest. Based on the content of the current White Paper, references to Localism, viewed by the CLA as unstrategic and a reaction to the power of the RDA s, are not anticipated. Specifically: 1. The spatial approach to planning and delivery of housing taking City Regions and travel to work areas into account (pg19), without the need to resort to risky Localism/NIMBYISM, is welcomed. However, the importance of the rural hinterland in delivering economic development outcomes and housing solutions for City Regions needs to be more clearly stated. 2. The service delivery overlay to 1 above at 7.18 (pg 57) meaning that outdated district council boundaries are rendered academic, is also welcomed. 3. Recognition that a Champion for Housing is required within each Local Authority to counter local opposition (pg 22), without the need to resort to risky Localism/NIMBYISM, is welcomed. 4. The requirement for up-to-date Housing Market Assessments is welcomed, however, Housing Market Assessments (HMA s) are expensive and the White Paper does not specify regular in terms of updating studies. Further guidance on Local Housing Market assessments outlined at 4.25 (pg 22) has not been accessed. It is hoped that the requirement for fine grained Housing Needs Studies are incorporated in this guidance. The Statutory Housing Waiting List is the primary evidence base for such studies and often, LA s have either: a. Failed to ask the correct questions on their Housing Application Form b. Failed to cleanse their Housing Waiting lists so that true housing needs figures are not known There is a requirement therefore for all LA s to identify all rural settlements and therefore rural housing need, on their housing application forms. This will identify local connection in terms of 6
family or employment for that settlement and be used as the evidence base for generating new housing supply. CLA Response New Build: Housing Market Assessments should incorporate Housing Needs Studies which in themselves should be underpinned by robust Housing Waiting List data. Housing Application forms must ask the correct questions and identify every rural settlement within the Local Authority area in addition to identifying household income data - for the purposes of identifying eligibility for affordable or alternatively clients for mortgage support schemes. Gypsies and Travellers The following wording (pg 37) is noted in the context of this section: Current legislation imposes various duties on local authorities. It requires then to have regard to the provision of suitable and sufficient sites in their area but falls short of an explicit statutory requirement This section does not identify management requirements for such sites not does it specify the criteria under which sites will be identified as suitable for the client group by the LPA. Such criteria are crucial if statutory duties are to be imposed on local authorities. CLA Response: Where sites are identified for Gypsy and Traveller communities and the owner is not seeking to sell, the full transcript of site assessment must be made available to the site owner by the LA prior to any CPO activity. Conclusion The CLA have established a Housing Working Group to look at housing delivery in England and Wales. There is an appetite across CLA membership to deliver new open market, market rented and affordable units. Responses on the previous pages identify barriers and opportunities for delivering new supply. New Supply is proposed as the primary Strategic Objective for this White Paper. Danielle Troop 16.8.12 A2412 7