Asked by: Baroness Altmann (Non-affiliated - Life peer)
Question to the Ministry of Housing, Communities and Local Government:
To ask Her Majesty's Government what consideration they have given to the problems facing owners of retirement properties who are unable to sell such property; and whether councils are able to rent such properties to house older eligible individuals in need of housing.
Answered by Lord Greenhalgh
The Government recognises the benefits of specialist retirement housing, however, we are aware that some owners of retirement properties have experienced difficulties in selling or renting their properties due to a range of factors.
The Law Commission published a report in 2017 of their review of event fees in retirement properties. The Government responded to the Law Commission in March 2019, agreeing to implement the majority of the recommendations.
We would encourage all prospective purchasers of retirement homes to take legal advice on their purchase and ensure they understand any restrictions on the use or sale of the property. The Government’s How to Buy Guide (attached) has further advice on what to look out for when buying specialist retirement properties.
Where existing covenants are preventing the property being sold or rented there are a variety of potential remedies and the owner should take their own legal advice. For instance - it may be possible to vary or reduce restrictions through an application to the land tribunal.
Local authorities and housing associations already provide specialist accommodation for older and disabled people who are in need of it. The Government is committed to increasing the supply of affordable housing and has recently confirmed the details of £12.2 billion of investment. This includes a new £11.5 billion Affordable Homes Programme providing up to 180,000 new homes across the country, should economic conditions allow, and 10% of delivery will be used to increase the supply of specialist or supported housing.
Asked by: Baroness Altmann (Non-affiliated - Life peer)
Question to the Ministry of Housing, Communities and Local Government:
To ask Her Majesty's Government, further to their decision to extend the ban on tenant evictions by a further two months, what plans they have to support private landlords with tenants who had already built up rent arrears before the restrictions to address the COVID-19 pandemic were introduced and who are receiving no income from their property.
Answered by Lord Greenhalgh
The Government has put in place an unprecedented support package to help ensure that tenants are able to pay their rent throughout this period. We have introduced support for business to pay staff salaries with income support also available to the self-employed and have strengthened the welfare safety-net with a nearly £7 billion boost to the welfare system. This includes increasing Local Housing Allowance (LHA) rates so that they are set at the 30th percentile of market rents in each area.
To support landlords who are experiencing a temporary loss of income, mortgage lenders have agreed to offer payment holidays of up to three months where this is needed due to coronavirus-related hardship, including for buy-to-let mortgages. On 2 June, the Financial Conduct Authority confirmed that borrowers can apply for an extension to any holiday already taken while extending the window for new applications to 31 October. Landlords should contact their lender at the earliest possible opportunity to discuss if the payment holiday is a suitable option for them.
Asked by: Baroness Altmann (Non-affiliated - Life peer)
Question to the Ministry of Housing, Communities and Local Government:
To ask Her Majesty's Government when they plan to publish their response to the consultation Considering the case for a Housing Court, which closed in January 2019; and what are their reasons for not publishing it to date.
Answered by Lord Greenhalgh
We remain committed to working with the judiciary to improve court processes for users and the responses to the Call for Evidence will inform this work. However, it is important that any changes to court processes are considered as part of a wider package of reforms, which will deliver a fairer and more effective private rental market.
Our Renters’ Reform Bill will enhance renters’ security and improve protections for tenants by abolishing ‘no-fault’ evictions. However, we want to ensure that under the new tenancy framework, landlords are able to swiftly and smoothly regain their property through the courts where they have a legitimate reason to do so.
We will publish our response to the consultation ‘Considering the case for a Housing Court’ in due course.
Asked by: Baroness Altmann (Non-affiliated - Life peer)
Question to the Ministry of Housing, Communities and Local Government:
To ask Her Majesty's Government, further to their decision to extend the ban on tenant evictions by a further two months, what provisions are or will be in place to ensure that private landlords, who obtained a legal possession order prior to the suspension of evictions in March, are able to reclaim possession of their properties without further delay.
Answered by Lord Greenhalgh
On 5 June the Government announced that the current suspension of evictions from social or private rented accommodation will be extended by two months until 23 August 2020.
From 24 August 2020, the courts will begin to process possession cases again. This is an important step towards ending the lockdown and will protect landlords’ important right to regain their property. Work is underway with the judiciary, legal representatives and the advice sector on arrangements, including new rules, to ensure that judges have all the information necessary to make just decisions and that the most vulnerable tenants can get the help they need when possession cases resume.