EHJ June 2003, page 180-181 The long-awaited draft Housing Bill was published for consultation in March and the measures look set to have a huge impact on the private rented sector. Tracey Khanna reports

The Government's draft Housing Bill was published for consultation earlier this year to many cries of "at last!" and "about time!". Six years on from the 1997 Labour Party Manifesto, and following extensive earlier consultation exercises on some of the measures now being proposed, the Bill looks set to be presented to Parliament in the autumn. Here, EHJ takes a brief look at the main proposals.

HHSRS

Part 1 contains provisions to repeal the current housing fitness standard (section 604 of the Housing Act 1985) and provides the Secretary of State in England and the National Assembly for Wales with a power to prescribe by order a method for calculating the seriousness of hazards. This method - the housing health and safety rating system (HHSRS) - is an evidence-based risk assessment process that local housing authorities will, in future, be able to base assessments and enforcement decisions on. It enables a hazard to be judged according to the risk of harm or potential harm it may cause to potential or actual occupants of a building.

This reform is aimed at enabling local authorities to address more effectively, the severity of the health and safety hazards in dwellings (EHJ, October 2000, page 330; EHJ, December 2000, page 386). The Government says that the previous consultation on the replacement of the current housing fitness standard1 produced a favourable response to switching to an evidence-based approach to housing standards. The HHSRS will apply to all types of dwelling, including the structure and associated outbuildings and garden, yard and/or other amenity space. According to the Government: "The purpose of the HHSRS assessment system is not to set a standard but to generate objective information in order to determine and inform enforcement decisions." The HHSRS assesses 24 broad categories of housing hazard, including factors that were not previously covered, or were covered inadequately, by the housing fitness standard, and provides a rating for each hazard. The hazards are those arising from:

• excessive temperatures;
• falls;
• fire;
• hot surfaces;
• damp and mould growth;
• air pollutants (CO2 etc);
• radiation;
• electrical hazards;
• noise;
• lead;
• asbestos;
• intruders;
• crowding and space;
• explosions;
• infections from pests and inadequate domestic hygiene;
• food safety;
• sanitation and drainage;
• contaminated water supply;
• poor provision for personal hygiene;
• structural failure;
• poor ergonomics
• Inadequate lighting;
• entrapment and collision; and
• uncombusted fuel gas.
  

The proposal states that action by local authorities will be based on a three-stage consideration:

• the hazard rating determined under HHSRS;
• whether the local authority has a duty to act, determined by the presence of a hazard above or below a threshold set in the Regulations; and
• the local authority's judgement as to which is the best means of dealing with the hazards.

There are two categories of hazard (1 and 2) and the courses of action available to local authorities where they have either a duty or power to act include:

• improvement notices;
• prohibition orders;
• voluntary or mandatory warning notices;
• demolition orders (for category 1 hazards only); and
• to declare a clearance area (for category 1 hazards only).

The Bill will retain the powers available to local authorities to act in default and to prosecute lack of compliance.

HMO licensing

Parts 2 and 4 of the draft Housing Bill set out proposals for the introduction of a mandatory licensing scheme for houses in multiple occupation (HMOs). The mandatory licensing scheme will focus on the larger, high risk HMOs, for example three-storey houses occupied by five people or more. Local authorities will, however, have discretionary powers to licence smaller properties with multiple occupants where there is a particular problem with that type of accommodation in an area.

Part 7 of the Bill provides for a new HMO definition as: a house, hostel, self-contained flat or relevant building which is occupied by persons who do not form a single household, and in which the toilet, bathroom or cooking facilities are shared by more than one of the households concerned.

There are some exemptions to this including: properties controlled or managed by registered social landlords, the police authority, a fire authority or a health service body; university accommodation; and religious communities. There are concerns, however, that hostels are only included in this new definition if there is some sharing of cooking and/or bathroom or toilet facilities.

The HMO licensing scheme is to be a fee-based system, subject to a maximum set by the Secretary of State or the national Assembly for Wales, and operating a HMO without a licence will be a criminal offence, subject to a maximum fine of £20,000. The draft bill also includes conditions for obtaining a HMO licence, one of which is the requirement that the licence holder be a "fit and proper person" - the definition of which is also included. A licence will normally be granted for a five-year period. Local authorities have also been given powers under part 4 of the Bill regarding enforcement action in respect of licensable properties. These include the provision to make interim and final management orders.

SELECTIVE LICENSING

Part 3 of the Bill allows for local authorities to introduce a licensing scheme for privately rented accommodation in all, or part of their areas. This has been designed to tackle areas of low housing demand, or areas where the introduction of licensing would be of benefit to the social or economic conditions of the area. There is also an intention to extend the scope of selective licensing to tackle areas with significant problems related to the private rented sector which adversely affect the community as a whole, for instance anti-social behaviour.

In an area where a licensing scheme exists, all private landlords will be required to obtain a licence to rent out property, with some exceptions relating to certain tenancies and other lettings. Again, licences are subject to a fee and letting or managing a property without a licence will be a criminal offence subject to a maximum fine. As in the case of HMOs, licence holders must be "fit and proper" and there is the provision to refuse to grant a licence and make an interim or final management order.

References

1. Housing Fitness Standard: Consultation paper, DETR, February 1998.