Social Landlords warned not to slip up on new Housing and Regeneration Act

Published: 26th September 2008

A leading North West law firm is urging Registered Social Landlords (RSLs) to ensure they are fully informed of the legal implications of the Government's newly introduced Housing and Regeneration Act 2008.

The Act was introduced on 22 July this year and it creates the Homes and Communities Agency which will support the delivery of social and affordable housing. This aims to allow the Government to implement its pledge of building three million new homes by 2020. The Act also reforms social housing and social housing regulation aiming to promote better services for tenants. It will also provide the opportunity to modernise powers on establishing new settlements like eco-towns.

Mace & Jones' head of real estate Karl Jackson said the Act has enormous scope and RSLs need to ensure they understand the legal implications of the changes.

"This Act makes seismic changes to the housing sector, which are easy to slip up on unless you are properly prepared," he said. "While RSLs will be well aware of the Act we would urge them to ensure they are fully briefed and have a firm grasp of the changes. To achieve this thorough legal advice is essential. There are new rights for both tenants and local authorities as well as a raft of new Government bodies set up to manage the sector."

Mr Jackson said the major changes in the Act are:

• Creates a new agency to deliver social and affordable housing and promote regeneration - the Homes and Communities Agency (HCA). English Partnerships will be abolished. In creating HCA, it brings together land and housing, so that funding of new social housing and investment in infrastructure are delivered jointly.
• Creates a new social housing regulator - the Office for Tenants and Social Landlords (Oftenant). The Housing Corporation will be abolished.
• Gives council tenants powers to consider options for the future management of their stock, and if they wish, to `effect a change' of landlord.
• Puts a duty on local authorities to hold a mandatory ballot to ascertain tenants' views before transferring stock to a private sector landlord.
• Allows some local authorities to opt out of the Housing Revenue Account (HRA) subsidy system (partly as a way of encouraging councils to build new affordable homes).
• Allows some local authorities to keep rental income from new supply (as a way of encouraging councils to build new affordable homes).
• Introduces a mandatory rating against defined sustainability standards for new homes.

Key areas:

• Supports the delivery of three million new homes by 2020.
• Provides for the establishment of new settlements like eco-towns, and for simplifying the ways in which the Homes and Communities Agency would facilitate delivery of these projects.
• Introduces sustainability certificates.
• Changes the 'Right to Buy' legislation.
• Implements a European Court of Human Rights ruling on Gypsy and Traveller sites.

For advice contact: karl.jackson@maceandjones.co.uk or call the Mace & Jones real estate teams in Manchester: 0161 214 0500 Liverpool: 0151 236 8989 Knutsford: 01565 634234.