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 SLL: Proposals for Housing Law Reform

The Society of Labour Lawyers (SLL) has produced a think-piece Proposals for housing law reform, containing ideas from the SLL’s housing law sub-group. Our focus is on detailed proposals for legal reform. We hope that it complements Labour Housing Group’s publication The Missing Solution: Council Housebuilding for 21st century.

SLL’ s Proposals can be read here:

https://societyoflabourlawyers.org.uk/2021/09/21/out-now-proposal-for-housing-law-reform/ .

In order to help councils purchase land and embark on significant council house building, we suggest that the Land Compensation Act (LCA) 1961 should be amended. Land could be bought at current value without additional ‘hope value’ (the ‘hope’ of estimated increased value if residential planning permission were to be granted to the landowner).

The current Empty Dwelling Management Order powers should be strengthened, so that empty properties in private ownership would be transferred to public ownership after they had stood empty for a certain number of years (one or two) (see Housing Act 2004).

Council tenancies should always be granted for life, so the power to grant flexible tenancies (fixed-term tenancies for a minimum period of two years) in the Localism Act 2011 should be repealed (not least because the Government has already announced its intention not to implement the subsequent legislation requiring flexible tenancies).

Right to Buy should be abolished in England, as it has been in Scotland and Wales, or at least very severely restricted. We call for substantial benefit reform by repealing the Bedroom Tax and benefit cap, linking Local Housing Allowance to the retail price index, Discretionary Housing Payments funded in full by government, and ending the two-child limit.

The SLL has been working with Labour’s front bench on building safety proposals. We propose that a Labour Government should follow Australia’s lead on fire safety. That would involve conducting a full audit of all residential multi-occupancy buildings regarding fire safety, assessing which buildings are the highest risk and need to be prioritised for remediation without delay, and funding remediation works in full, without reclaiming the costs from leaseholders.

Leaseholders would assign the right to sue those responsible for the defects to Government. The Limitation Act 1980 needs amendment to allow so that developers can be sued for building defects installed earlier than six years previously (the current position) or 15 years (as proposed in the Government’s Building Safety Bill).

We call for legislation so that those responsible for installing defective products can be traced, through a sometimes complex network of dissolved companies. Some costs could also be recouped by a levy on developers and product manufacturers.

We call for reforms in the area of home ownership, including a holistic review of housing costs so that home ownership becomes more affordable. The contributors support the Law Commission’s proposals to reform leasehold and make commonhold much more widely available.Specifically, planning legislation should provide that consent for new flat building would carry a legal presumption that units (including communal facilities and shops in the residential development) are held under a commonhold agreement, not leasehold.

We also call for wealth-based property taxation, through progressive council tax, and penalising owners of vacant properties (with the aim of those properties either being transferred to the public sector or available for private letting). We support London Mayor Sadiq Khan’s call for councils to buy back homes that were bought under right to buy.

In relation to the private rented sector, the SLL supports the commitment to abolishing ‘no fault’ evictions under Housing Act 1988 s21. Once section 21 possession claims are abolished, then private residential tenants will be assured tenants. In effect, therefore, there would be security of tenure in the private rented sector.

We propose that existing defences to section 21 possession claims should apply to all possession claims brought against private rented tenants, so that if the landlord has failed to comply with tenancy deposit regulations or gas safety or energy performance certificate requirements, or where possession proceedings are in response to a complaint about the condition of the property, possession cannot be ordered.

We also propose repealing the mandatory Ground 8 possession claim for assured tenants who have accrued eight weeks’ rent arrears. All grounds for possession concerning rent arrears should be discretionary, so that courts can consider the reasons for the arrears and the personal circumstances of the tenant. Along with security of tenure, Labour should introduce rent controls, with rents set by a locally based expert tribunal, taking into account the condition of the property as well as market scarcity. Labour should take steps to abolish all aspects of the ‘hostile environment’ discriminatory measures against migrants, including ending the right to rent.

The best way to reduce homelessness is to increase the supply of affordable houses, delivered through the social rented sector, and to invest in genuine homelessness prevention. With more affordable homes, the numbers of people sleeping rough or seeking homelessness help from local authorities should diminish. For those who do face the catastrophe of homelessness, the SLL proposals are that emergency accommodation should be provided to everyone who is homeless, and the tests of eligibility, priority need and ‘becoming homeless intentionally’ should be abolished.

While in emergency accommodation, everyone would receive an offer of suitable accommodation, and local authorities would be encouraged to use the Housing Firstmodel whereby the priority is to provide secure accommodation along with support to maintain the accommodation, budget etc. These proposals derive from Crisis’ Plan to End Homelessness. The punitive Vagrancy Act 1824 should be repealed and public spaces protection orders should not be used to prevent rough sleeping or begging.

None of these proposals for legal reform will work without effective, accessible legal remedies. SLL argues that dismantling the provisions of the Legal Aid, Sentencing and Punishment of Offenders Act 2012 is necessary, and that Labour’s future policy on legal services should be to restore and enhance a comprehensive system of legal aid advice and representation. The courts themselves have been beset by cuts, closures and fee increases, delaying justice and placing it further out of reach.

Labour will have to rebuild a well-functioning judicial system, and effective methods of alternative dispute resolution. Finally, there is a debate about a single-access housing court or tribunal. The authors of the SLL proposals prefer a re-invigorated county court system to a specialist housing tribunal. We emphasise that, whatever reforms are undertaken, civil justice must function as a level playing field and legal advice and representation must be adequately funded.

The proposals are put forward as personal contributions by their authors, for discussion and consideration by the Labour Party but also all those who are campaigning for better housing and a fairer justice system.

<strong><span class="has-inline-color has-accent-color">Liz Davies</span></strong>
Liz Davies

Liz Davies is a barrister specializing in housing and homelessness law. She is co-convenor of the Society of Labour Lawyers Housing Law Sub-Group.

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Dangerous cladding: The government must end this crisis now

As Shadow Secretary of State for Housing, I am extremely concerned about the remediation of unsafe cladding on residential blocks and the impact this is having on leaseholders.

I have been contacted by pregnant women trapped in dangerous flats, elderly people unable to move into retirement accommodation and families on the brink of bankruptcy after receiving five-figure bills for a problem they did not cause. These are just a few of the heart-breaking stories now common across the country.

Because the government response has been so painfully slow, hundreds of thousands of leaseholders across the country remain trapped in unsafe blocks during a third lockdown, facing increasing interim costs. When you look at the knock-on effects, including those unable to sell or re-mortgage their property, the number of people affected is much higher.

Broken Tory promises

This week, the government announced another package of measures to try to fix the cladding scandal. While headline-grabbing figure of £3.5 billion is a huge victory for Labour and the campaigners across the country who have worked tirelessly on this, it will not protect many leaseholders from mounting debt.

For many of the people affected by this crisis, this latest announcement will feel like a betrayal. On at least 17 occasions, government ministers promised that leaseholders will not be left with the bill.

Sadly, these promises have been broken by this week’s announcement, which includes the detail that funds to fix buildings will only be given to those over 18 metres tall – and the residents of lower buildings will be forced to take out loans to pay to fix fire safety problems. You can watch my speech here.

This is not the first time that leaseholders have been let down in this this crisis. A year ago, the Chancellor said, “all unsafe combustible cladding will be removed from every private and social residential building above 18 metres high.” This has not happened. Buildings haven’t been able to access the fund. Nine of every ten pounds has not been paid out.

Many of these problems stem from a refusal to properly evaluate the risks. Three and a half years on from the Grenfell Tower disaster, the government still has not done a proper investigation of the number of buildings involved, the risks or the cost of reducing that risk. Until we know the scale and nature of the problem, any response will be ineffectual.

Labour’s plan

I am leading Labour’s response to this problem and am working with campaigners and specialists from across this country – and in other countries too – to get justice for those affected.

Last week I forced a vote in Parliament calling on the Government to: urgently establish the extent of dangerous cladding and prioritise buildings according to risk; provide upfront funding to ensure cladding remediation can start immediately; and protect leaseholders and taxpayers from the cost by pursuing those responsible for the cladding crisis. I am disappointed the government did not back the motion, they chose to abstain – despite many backbench Tory MPs speaking out to protect leaseholders in their constituencies.

I believe the UK Government must establish a National Cladding Taskforce to address unsafe cladding and protect leaseholders from the costs of remediation. The Taskforce should be underpinned with strong powers to establish the full extent of dangerous materials on buildings, prioritise them according to risk and ensure there is enforcement against those who refuse to undertake works. It must be backed with up-front funding and include a legally enforceable deadline of 2022 to make all homes safe. There is more on Labour’s plan here.

What’s next?

I spoke about the problems faced by leaseholders on Question Time last week, when a member of the audience spoke about how she is trapped in an unsafe flat, with no end in sight. I will be doing all I can to keep the pressure up and spur the government into action.

The next opportunity to force further changes out of the government will come on 24 February, when the Fire Safety Bill comes back to the Commons.

This date will be a chance for the Government to reflect on the failing of their latest announcement and bring forward a set of legally binding commitments to deliver on the promises they made to leaseholders. 

I am hopeful that Conservative backbenchers will also see sense and vote with us. I am particularly encouraged by the response from some Tories this week, who were vocal in their disappointment with Robert Jenrick’s latest announcement.

Last week, Keir Starmer challenged Boris Johnson on this during Prime Minister’s Questions. Justice for all those affected will continue to be one of my top priorities over the coming weeks and months.

<strong><span class="has-inline-color has-accent-color">Thangam Debbonaire </span></strong>
Thangam Debbonaire

Thangam Debbonaire is the Labour Member of Parliament for Bristol West and
Shadow Secretary of State for Housing.