Round up of housing law and news: October 2024
Legislation
Council tax regulations governing empty dwellings, and leasehold reform.
Council Tax Regulations 2024
These regulations set out exceptions to the long-term empty homes premium and the second homes premium. Some of the exceptions are limited for 12 months and others continue as long as the property meets the criteria.
Council tax rules are updated to reflect the second home premium introduced by the Levelling-up and Regeneration 2023.
Leasehold and Freehold Reform Act 2024
Part 8 of the Leasehold and Freehold Reform Act 2024 amends the Building Safety Act 2022. This includes giving power to the First-tier Tribunal to order a landlord to provide or produce an expert report on a building's condition.
These regulations bring the amendments into force on 31 October 2024.
The Leasehold and Freehold Reform Act 2024 (Commencement No. 1) Regulations 2024
Case law
New case law on introducing new grounds after a possession claim is issued, evidence under the Environmental Protection Act, Equality Act and allocation schemes, rent increases, and Rent Repayment Orders.
Mandatory ASB grounds for possession
In two joined appeals, the Court of Appeal addressed procedures for a landlord seeking possession on a mandatory antisocial behaviour ground after starting a possession claim on other grounds.
In Hajan v Brent, Brent Council started possession action against a secure tenant using grounds 1 and 2. The authority obtained permission from the court to amend this claim to rely on the mandatory ASB ground under s.84A Housing Act 1985. The Court of Appeal held that the landlord can amend the claim rather than start a new one.
In Poplar HARCA v Kerr, the landlord obtained a suspended possession order for rent arrears against an assured tenant. The Court of Appeal held that the suspended order could be varied to an outright order using the antisocial behaviour mandatory ground.
Hajan v Mayor & Burgesses of the London Borough of Brent [2024] EWCA Civ 1260 (23 October 2024)
Environmental Protection Act
A tenant took action against their landlord under the Environmental Protection Act 1990 due to severe damp and mould in the property. The tenant presented expert evidence, but the Magistrates' Court found no case to answer as the evidence did not prove the landlord was responsible.
The High Court allowed an appeal and remitted the case for re-trial. The magistrates did not explain why they dismissed the expert evidence. The court also addressed the adequacy of the tenant's notice under s.82(6) Environmental Protection Act 1990. It held a notice must give enough details to inform the landlord of the issues, but it does not need to be technical or comprehensive.
Ferko v Ealing Magistrates Court & Ors [2024] EWHC 2592 (Admin)
Allocation schemes and the Equality Act
The Housing Act 1996 requires local authorities to have an allocation scheme to manage housing distribution fairly. Under the Equality Act 2010, authorities must consider how their actions impact groups with protected characteristics, gathering data to address potential inequalities. In R (DXK) v Secretary of State, the High Court found that failing to monitor this data for vulnerable groups breached the Equality Act.
In this case, an applicant argued that a local authority’s points based allocation scheme discriminated against them due to his wife’s disabilities. The High Court found that the scheme was clear and had been properly applied, but it held the authority breached the Equality Act for not monitoring the scheme’s impact on disabled people.
RR, R (On the Application Of) v London Borough of Enfield [2024] EWHC 2501 (Admin)
Student who jointly owned property not entitled to council tax exemption
A joint leaseholder in Bath sought a student council tax exemption, claiming the Bath property was his primary residence while he studied in London. The local authority rejected the exemption, determining there was insufficient evidence that the Bath property was his 'sole or main residence.'
The High Court dismissed the appeal, finding the 'sole or main residence' test applies to student exemptions, and rejected the argument that the student's occupancy was the same as residence.
Marshall v Bath And North East Somerset Council [2024] EWHC 2551 (Admin)
Rent repayment orders
A landlord commits an offence if they have control of or manage an unlicensed HMO. An occupier can apply for a rent repayment order to recover rent if the offence was committed in the period of 12 months ending with the day on which the application is made.
In this case, the Upper Tribunal held the 12 months includes the start and end date of the period. The tenants applied for a rent repayment order on 4 May 2023. The 12 month period ending with the day the application was made started on 5 May 2022. The tenants were out of time as the landlord applied for a licence on 4 May 2022.
The Upper Tribunal held the landlord has a defence from the day they apply for a licence or have a reasonable excuse. In this case, the landlord applied for an HMO licence on 4 May 2022, so the last day they committed an offence was 3 May 2022.
Moh & Ors v Rimal Properties Ltd [2024] UKUT 324 (LC) (18 October 2024)
Section 13 rent increase notices
An assured tenant who disagrees with a section 13 rent increase can refer the notice to the First-tier Tribunal. The tenant must make the referral before the notice period expires and on the prescribed form.
In this case, the tenant did not use the prescribed form, or a form substantially to the same effect. The Upper Tribunal held that the First-tier Tribunal should not have struck the application out and could have used its powers to remedy to defect. Under s.41 Housing Act 1988, the First-tier Tribunal has the power to require the landlord or tenant to provide information it needs to make its decision.
News and guidance
The second reading of the Renters' Rights Bill, a Housing Ombudsman report into shared ownership complaints, the LGSCO recommends £10,000 compensation, and briefings discussing compulsory purchase powers and DHPs.
Renters' Rights Bill: second reading
The Renters' Rights Bill returned to Parliament for a second reading on 9 October. The Bill intends to abolish assured shorthold tenancies and end section 21 'no fault' evictions. The Bill will introduce several new grounds for possession for assured tenancies, including grounds for when the landlord wants to move in or sell the property.
UK Parliament: Renters' Rights Bill
Shelter: Renters' Rights Bill: second reading
Housing Ombudsman: shared ownership complaints
The Housing Ombudsman published a report identifying common themes in complaints about shared ownership properties, including delays in dealing with sales and staircasing. There is a growing number of complaints about fire safety problems.
Insight report: shared ownership complaints
Local Government Ombudsman recommends £10,000 compensation
The Local Government and Social Care Ombudsman recommends Tower Hamlets council pays more than £10,000 in compensation. It found a lack of joined-up support led to significant gaps in a disabled man's care and help when he became homeless.
Homeless Tower Hamlets man suffered because of lack of joined-up support from council
Compulsory purchase powers
The House of Commons Library published an explanation of recent and proposed changes to compulsory purchase compensation. The government's first King's Speech included a Planning and Infrastructure Bill aiming to reform the law on compensation or compulsory purchase.
Compensation for the compulsory purchase of land
Discretionary Housing Payments
The House of Commons Library published a research briefing discussing discretionary housing payments (DHPs) and their impact. DHPs provide extra financial help for people receiving Housing Benefit or the housing costs element of Universal Credit.
Data and trends
New government homeless figures, and Museum of Homelessness research into the number of people dying while homeless.
8,309 people slept rough in June 2024
On 3 October, the government published the results of a new framework with metrics to better understand rough sleeping, including how far rough sleeping is prevented when possible.
The findings include that, in June 2024, 8309 people slept rough, up 15% on June 2023. Of those:
2,714 people were new to sleeping rough
1,253 people returned to sleeping rough
2,808 people slept rough for at least three out of the previous 12 months
Ministry of Housing, Communities & Local Government: Rough Sleeping Data Framework, June 2024
12 per cent increase in people dying while homeless in 2023
The Museum of Homelessness published new statistics covering 2023. They report that:
1,474 homeless people died in 2023, up 12.2% on 2022
37% of deaths were drug-related
the North East had the highest death rate outside of London
Museum of Homelessness: New research shows 1474 homeless people died in 2023
The monthly round up of legislation, cases, news and data from Housing Matters