Social Housing Bill – the latest government amendments and what they could mean for housing associations

This week, the Government published its proposed amendments to the Social Housing Bill at Commons Committee stage. 

For housing associations, the principal changes concern disposals of social housing, a new duty to offer accommodation to certain homeless households and changes to tenancy protections. 

These amendments supplement the original provisions of the Bill that introduce various restrictions on the Right to Buy and increase protections for victims of domestic abuse.

We summarise here only the Government’s latest proposals and do not cover the multitude of other proposals made without government support. 

Over the coming weeks, we will be reviewing each of the subjects covered as they are debated and modified before they are passed into law. Whatever happens, it is likely some details will still be left to be set by the Secretary of State under supplementary regulations.

1. Disposals: a longer notification period and additional information

The Bill already proposes a requirement for private registered providers (PRPs) to notify the relevant local authority and other PRPs before selling social homes outside of the sector. The Government amendments propose to extend the period between notification and committing to a sale from four to eight weeks. PRPs could continue to market properties, engage with potential buyers and progress disposal plans during that period. Notifications would also need to identify the type of rent charged (eg. social or affordable rent) to help prospective PRP purchasers assess the rent they could charge.

The stated aim is to give councils and PRPs more opportunity to retain homes within the sector. The proposed notification period should not be confused with a return to the regulatory consent requirement that existed up until 2017. Please note the current government proposals do not require advance notice to be given to the Regulator of Social Housing, nor that these homes can be repurchased by PRPs or local authorities at an existing use valuation (which are proposals not supported by the Government).

2. Homelessness: a proposed duty to offer accommodation

A proposed new power would allow a local housing authority to refer a homeless household owed the main housing duty to a PRP. The PRP would have to offer suitable accommodation unless it had good reason not to. The Government describes this as a means of strengthening cooperation between authorities and PRPs where joint working is not operating effectively.

The scope of this obligation will depend substantially on regulations, including what constitutes a reasonable period for making an offer and the circumstances amounting to a good reason not to offer accommodation. The Government says it will work with stakeholders on those regulations and this will no doubt be where the Government’s agenda to reduce homelessness will meet the reality of the country’s housing crisis. Fundamental for PRPs will be the extent to which this could take existing housing stock and effectively make it accommodation for the homeless. What impact would this have? What rent levels could be charged? What happens to those waiting on the main housing list?

3. Tenancy protections: further domestic abuse reforms

The amendments would build on the Bill’s existing domestic abuse protections, which were broadened in the Lords to cover familial abuse in non-partnership relationships. They would strengthen discretionary possession provisions involving a relevant protective order, clarify tenancy transfer arrangements and make technical changes across tenancy regimes.

A Domestic Abuse Protection Order or Non-Molestation Order should be sufficient for the court to determine whether it is reasonable to make a possession order. This remains a discretionary court process, rather than an automatic entitlement to possession. The amendments would also ensure that the perpetrator’s interest in a joint tenancy ends where the court orders either that the victim remains as sole tenant or that suitable alternative accommodation is provided. This second route is described as applying where remaining in the home is inappropriate and the landlord has suitable alternative accommodation available – scarce chance indeed for most PRPs.

4. Other proposals to note

• Rural Right to Buy exemptions. Councils would be able to designate eligible rural areas themselves, rather than applying to the Secretary of State, to exempt homes from Right to Buy. Regulations would set the criteria and process, so this detail remains uncertain.
• Right to Manage. Proposals concerning the local authority tenant management organisation (TMO) framework would widen regulation-making powers, add mandatory requirements to existing management agreements and enable tiered governance requirements to cover the functions and risks involved. A court-backed intervention route would allow removal of officers, transfer of functions or termination of agreements in exceptional cases of serious failure. These proposals concern TMOs under the council Right to Manage framework, rather than a general new Right to Manage for housing association tenants.
• Wider homelessness duties. A new duty to collaborate for specified bodies would build on and replace the existing Duty to Refer, which only covers some public and statutory advisory bodies. They would cover identifying homelessness or its risk, notifying local housing authorities, taking appropriate action within normal functions and engaging with authorities and other services. Regulations would identify the bodies covered and provide further detail – we will need to wait and see how much this new duty could impact on housing associations.

5. What happens next?

For housing associations, the key areas to follow are the operation of the disposal notification regime, the scope and practical requirements of the proposed duty to offer accommodation, and the detailed tenancy provisions. The amendments indicate the Government’s intended direction but do not settle the final wording, the detail of future regulations or set out the wider impact of the changes.

We will be producing more detailed analysis as these proposals are debated and the Bill makes its way through Parliament.