Wednesday 23 July 2014

DWP Interim review of bedroom tax


DWP Interim review of bedroom tax


The DWP has now issued the interim review of the bedroom tax. The document can be found here -https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/329948/rr882-evaluation-of-removal-of-the-spare-room-subsidy.pdf

 
The notable headlines are …

  • Social landlord rent arrears rose by 16% between April 2013 and November 2013.
  • The percentage of tenants who have been able to downsize is very low (a stated aim of the policy): 4.5%
  • The percentage of tenants who have moved to the more expensive private rented sector is low : 1.4%
  • The percentage  of tenants subject to the bedroom tax who are in arrears because of the reduction is 59%.
  • Number of notices seeking possession served on ‘bedroom tax only’ arrears (to Nov 2013): 13,356 (10% of those affected)
  • Number of possession proceedings brought on ‘bedroom tax only’ arrears (to Nov 2013): 1,628
    Number of suspended possession orders (SPO) (to Nov 2013): 407
    Number of outright possession orders (to Nov 2013): 138
    Number of evictions (on bedroom tax only cases): 45

Wednesday 16 July 2014

Immigration Act 2014 – impact on housing law


Immigration Act 2014 – impact on housing law

 
The Immigration Act 2014 received Royal Assent on May 14, 2014 and it contains significant new developments in housing law in Part.3, Chapter.1.

S.21 introduces the concept of the person who is, by virtue of his immigration status, “disqualified” from “occupying premises under a residential tenancy.” A “residential tenancy” is any lease, licence, sub-lease or sub-licence (including an agreement for any such thing) which gives a right of occupation of premises (land, buildings, moveable structure, vehicle or vessel) for residential use (as an only or main residence) and which provides for payment of a rent (whether market or not) (s.37).

 

The disqualifed persons are:

(a) those who are not “relevant nationals” (i.e. British nationals, EEA nationals or Swiss nationals – ss.21(1),(5)); and,

(b) who do not have a “right to rent” (they do not have a right to rent if they require leave to enter or remain in the UK but do not have such leave or their right to enter or remain in the UK is subject to a condition preventing them from occupying the premises – ss.21(1),(2)).

 

A landlord must not authorise a disqualified adult to “occupy premises under a residential tenancy agreement”. Authorisation is given if a tenancy agreement is granted to either a disqualified adult or if a disqualified adult is named on the agreement (s.22(3),(4)). Further, subject to a “reasonable enquiries” provision (s.22(6)), authorisation is given if an unnamed adult who is disqualified is permitted to occupy the premises .

A landlord is also taken to authorise an unlawful occupation if a tenancy agreement is granted to someone with a ‘limited right to rent’ who later becomes disqualified (i.e. their leave to remain in the UK expires) and who remains in occupation after becoming disqualified (s.22(5)).

 

Penalty fines

Contravention results in a requirement to pay a penalty of up to £3,000, as the Secretary of State considers appropriate (s.23). There are two excuses open to landlords. The first is to show that they complied with prescribed requirements (yet to be prescribed). The second is to show that an agent was responsible for the breach (s.24(2)). Similar provisions are made for fining agents (s.25) and for excuses by agents (s.26). A person given such a penalty may give notice of objection to the Secretary of State (s.29 – effectively an internal appeal) and then may appeal (by way of re-hearing) to the county court (s.30).

 

Codes of practice

The Secretary of State must publish a code of practice, setting out how fines will be calculated and, more generally, the approach that the Secretary of State will take to enforcement (s.32). There must also be a code of practice to help landlords and agents ensure they comply with the law without breaking, for example, the Equality Act 2010 (s.33).

 

Exceptions

Schedule 3 has a list of agreements which are not caught by this provision. They include social housing provided under Pt.2, 1985 Act (secure/introductory tenancies etc), Pts. 6 and 7, Housing Act 1996 (allocations and homelessness).

Care homes, hospitals, hospices and other healthcare related accommodation is also excluded as are hostels and refuges and accommodation provided under the Immigration and Asylum Act 1999.

Mobile homes under the Mobile Homes Act 1983 are excluded.

Tied accommodation and student accommodation are excluded as are long leases.

'residence test' for civil legal aid found to be unlawful and discriminatory.


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This morning, the Divisional Court delivered judgement in a case brought by PLP regarding the Government proposals to introduce a 'residence test' for civil legal aid. The judgement has found the proposals to be unlawful and discriminatory. 

Our press release with further information on the case is at http://www.publiclawproject.org.uk/news/41/press-release-plp-wins-residence-test-case.-proposals-to-introduce-legal-aid-residence-test-are-unla

The judgement is at http://www.judiciary.gov.uk/wp-content/uploads/2014/07/plp-v-ssj-and-other.pdf

Ravi Low-Beer will be discussing the judgement at our North conference, taking place in Manchester on Thursday, during his session on the judicial review reforms. Some places are still available, and unless the conference sells out we will be accepting bookings until tomorrow afternoon. View the full conference programme and book you place at http://www.publiclawproject.org.uk/events/12/the-public-law-project-north-conference-2014

 
Thanks
PLP