Covid-19 and the RSH

Last month, the Regulator of Social Housing (RSH) wrote to all RPs and local authorities regarding its expectations and regulatory approach in response to the coronavirus pandemic.  In its letter, the RSH confirmed that its shared priority across the sector was to maintain tenant safety.

Subsequently, the RSH has published a further update to indicate how it expects to conduct regulation throughout this unprecedented period.  In particular, the RSH has confirmed that:

• It has postponed the deadline for Financial Viability Assessment submissions;
• It will take a proportionate approach to value for money regulation;
• It has paused its programme of In-depth Assessments for the time being; and
• It has paused its work to upgrade current G2 and G3 judgements.

Rent Increases in the Social Housing Sector come into effect after 4 years of Rent Reductions

In October 2017 the government announced its intention to introduce a new policy to permit annual rent increases on both social rent and affordable rent properties.  The policy would allow rent increases of up to the consumer price index (CPI) plus 1% from 2020 and would apply for at least 5 years.  In practice this currently would mean a 2.7% rent rise. 

The Government’s response to the consultation was issued in February 2019, in which it confirmed that the new policy would proceed and directed the Regulator Social Housing to issue a Rent Standard for 2020-2021.

Coronavirus Gas Inspections

We are seeing an increasing number of cases recently where tenants will not allow their landlord access to complete a gas safety inspection. Why? Because of Covid-19.

Understandably, people are anxious about letting others into their homes during this scary time, but landlords must still comply with their duties under the Gas Safety (Installation and Use) Regulations 1998. Regulation 36 requires landlords to maintain in a safe condition any relevant gas fitting and any flue and ensure that each appliance and flue is checked for safety every 12 months.

What does emergency volunteer leave mean for employers?

In the midst of a global crisis, with the health of hundreds of thousands of people at risk, many losing their loved ones, job losses, business closures, families and friends separated for an uncertain amount of time, it is easy to feel overwhelmed by the seemingly endless negative aspects of the pandemic.

Alongside this, the emergency measures put in place by the Government to attempt to prevent the spread of the virus and mitigate the economic impact of the measures can be challenging and confusing for employers.

Rent Charges - The little charges that can be a big issue?

Historically a rent charge on land has not been an issue on the sale of land or a property, even where it is not collected or demanded, and sellers have been able to deal with the issue in a few ways including:

• Providing a receipt to confirm the payments are up to date.

or

• If the rent charge is not demanded/collected, obtain an indemnity policy to cover the rent charge - these generally cover successors in title but can usually only be used where there has not been any contact with the rent charge owner.

The ideal position is that the rent is demanded and paid and a receipt to confirm this is available. Where the rent hasn't been demanded or paid indemnity policies have recently been the main way of dealing with a rent charge to enable a transaction to proceed.

This seems like a perfectly reasonable solution, so what has changed?

New Budget, New Cladding?

A new budget has brought new funding for landowners of high-rise buildings containing ACM and other unsafe cladding. This represents acknowledgment by the Government that in addition to ACM (cladding similar to that present at Grenfell Tower) there are other types of cladding which may be life-threatening (such as that present at the Bolton student flats which lit ablaze in November 2019).

The £1billion Building Safety Fund extends Government help to remove dangerous cladding present in both social and private sector buildings. On the face of it, this appears to be good news for those faced with the task of replacing unsafe cladding, but it is important to note the caveats which come with this.

Spotlight on...

Francesca James, Associate Solicitor

I work as an Associate Solicitor within the Housing & Regeneration Team, acting for registered providers on a wide range of property related transcations. I routinely advise in connection with development acquisitions, purchases and sales of individual properties, portfolio acquisitions, leases, licences, deeds of variation, s.106 agreements (and variations to them)., utility agreements (including s.104, s.185, s.38 and s.278), easements and title rectifications. I am also heavily involved in preparing the legal documentation and contract packs in readiness for plot sales.

I assist our Head of Department and wider team in the expansion of our bank of precedent documents for use by the team to streamline transactions. I am also one of the first ports of calls for any questions the team members may have. I am also presently heavily involved in developing protocols so the team can move towards conducting our transactions on a paper light basis. Prior to joining Forbes I worked as an Associate Solicitor at a large regional practice within their commercial property department. In that role I gained experience of dealing with right to buy, right to acquire and staircasing transactions and also developed a particular specialism in supported living transactions, be that acting for investors purchasing the properties or registered providers taking leases post acquisition by a REIT.

Describe yourself in three words - Problem solver, team player and approachable

Qualifications - First class Law degree from MMU and LPC with distinction from the University of the West of England. I qualified as a solicitor in March 2015.

Hobbies & Interests - Hiking in particular mountain climbing and walking long distance footpaths. I have recently completed the West Highland Way and the Welsh Three Peaks. I'm also partial to musical theatre - watching, not participating!

Favourite holiday destination - USA - I love big American road trips, stopping at the Cheescake Factory, Denny's and IHop along the way. It's all about the food!