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A new draft bill will be introduced to Parliament today (1 November 2017) to ban letting fees.

The draft Tenant Fees Bill will set out the government’s approach to banning letting fees for tenants, helping millions of renters by bringing an end to costly upfront payments.

Evidence shows the level of fees charged are often not clearly or consistently explained, leaving many tenants unaware of the true costs of renting a property.

This latest action will help improve transparency, affordability and competition in the private rental market. It will also prevent agents from double charging both tenants and landlords for the same services.

Today the government has also launched a consultation on making membership of client money protection schemes mandatory for letting and managing agents that handle client money.

These schemes ensure greater financial protection for landlords and tenants, giving them complete confidence that their money is safe when it is with their agent and they can be compensated if all or part of their money is not repaid.

Communities Secretary Sajid Javid said:

This government is determined to make sure the housing market works for everyone. Tenants should no longer be hit by surprise fees they may struggle to afford and should only be required to pay their rent alongside a refundable deposit.

We’re delivering on our promise to ban letting agent fees, alongside other measures to make renting fairer and increase protection for renters.

As part of wider plans to improve the rental market, government has already introduced measures that crack down on the small minority of rogue landlords that shirk their responsibilities. Earlier this year, the law was changed to allow councils to impose new fines of up to £30,000 as an alternative to prosecution for a range of housing offences.

The draft Tenant Fees Bill, which reflects responses from a public consultation also published today, will:

• Cap holding deposits at no more than one week’s rent and security deposits at no more than 6 weeks’ rent. The draft bill also sets out the proposed requirements on landlords and agents to return a holding deposit to a tenant.
• Create a civil offence with a fine of £5,000 for an initial breach of the ban on letting agent fees and creating a criminal offence where a person has been fined or convicted of the same offence within the last 5 years. Civil penalties of up to £30,000 can be issued as an alternative to prosecution.
• Require Trading Standards to enforce the ban and to make provision for tenants to be able to recover unlawfully charged fees.
• Appoint a lead enforcement authority in the lettings sector.
• Amend the Consumer Rights Act 2015 to specify that the letting agent transparency requirements should apply to property portals such as Rightmove and Zoopla.

More than 9 out of 10 tenants who responded to the government consultation backed the action to ban letting agent fees, with 7 out of 10 of them saying these fees affected their ability to move into a new rented property.

Overall more than 4,700 responses to the consultation were received from a range of individuals and representative bodies from across the sector.

The government’s housing white paper sets out measures to build the homes Britain needs now and to give those that rent a fairer deal. It puts tackling the high cost of renting at the heart of its plan to fix the broken housing market.

The new measures set out in the draft bill are now subject to Parliamentary scrutiny before they can be introduced into law.

Further information

All proposals relate to England only. The ban on letting fees will apply to assured shorthold tenancies and licences to occupy in the private rented sector.

The consultation on making membership of a Client Money Protection Scheme mandatory for letting and managing agent will help to ensure that all tenants and landlords have they financial protections they deserve.

Client money protection schemes give landlords and tenants confidence that their money is safe when it is with their agent, it also means that when things do go wrong – both tenants and landlords will be compensated if all or part of their money is not repaid.

The consultation will run for 6 weeks from 1 November 2017.

Read the government response to the consultation on banning letting agent fees.

The fourth meeting of the biannual UK-Sudan Strategic Dialogue was hosted by the Government of the United Kingdom in London on 16 October 2017, co-chaired by Neil Wigan, Director for Africa at the Foreign and Commonwealth Office of the United Kingdom, and Ambassador Abdelghani Elnaim Awadelkarim, Undersecretary of the Ministry of Foreign Affairs of the Republic of Sudan, accompanied by delegations from both countries.

The dialogue covered bilateral issues, the peace process, human rights, development, trade and investment, migration, defence engagement, counter-terrorism and countering violent extremism, and regional issues.

Both sides welcomed the steps taken since the last Strategic Dialogue meeting in Khartoum in March 2017 and agreed to continue joint work over the coming months. The parties welcomed the visit to Sudan by the Archbishop of Canterbury and the recent visit by the UK’s Department for International Trade’s East Africa Director. The UK congratulated the Government of Sudan on the recent decision by the Government of the United States of America to permanently lift bilateral economic sanctions, and both sides discussed steps to be taken to ensure that all Sudanese citizens benefit from this decision. This included agreeing to make progress on Sudan’s Poverty Reduction Strategy Paper and an offer from the UK to provide increased support on macroeconomic reform.

Both parties discussed the reconfiguration of the United Nations-African Union Mission in Darfur (UNAMID) and the implementation of UN Security Council Resolution 2362 (2017) . The United Kingdom welcomed the improved humanitarian access and operating environment and the recent decision by the Government of Sudan to extend its unilateral cessation of hostilities in Darfur and the Two Areas. The Government of Sudan expressed its continued commitment to the implementation of the African Union High Level Implementation Panel (AUHIP) Roadmap. Both sides agreed to continue the regular dialogue on human rights between the two governments at all levels, including UK support for Sudan’s accession to the Convention against Torture (CAT), and the subject of trafficking in people.

Both sides looked forward to celebrating the 70th Anniversary of the British Council in Sudan next year and affirmed their strong commitment to continuing cooperation on education and cultural exchanges. Both sides expressed strong concern about the ongoing conflict in South Sudan. The UK welcomed the Government of Sudan’s decision to open humanitarian corridors and their continuing commitment to supporting South Sudanese refugees. Both sides agreed the importance of a politically inclusive peace process and agreed to engage constructively in support of the current IGAD led Revitalisation Forum.

The two parties also agreed to continue working together on countering terrorism and violent extremism. They welcomed the recent exchanges of visits to share expertise and agreed to continue and broaden these exchanges in future.

The UK and Sudan reaffirmed the importance of continued progress towards our joint goals, and a continued broadening of the bilateral relationship, and agreed to hold another Strategic Dialogue in Khartoum in six months’ time.

On the side-lines of the dialogue, the visiting Sudanese delegation engaged with Members of Parliament through the two All Party Parliamentary Groups (APPGs) focusing on Sudan. The UK also hosted a technical workshop on human rights for the Sudanese delegation, including Sudan’s Special Rapporteur of the Advisory Council for Human Rights. Through this workshop, the delegation engaged with representatives from the Foreign and Commonwealth Office, Ministry of Justice and some of the UK’s independent human rights bodies to discuss issues such as accession to UN human rights treaties and the role of independent human rights bodies in monitoring and reporting.

The company failed to exercise the required due diligence when placing an artisan sideboard on the market, imported on 1 June 2016 from India.

A previous breach of the relevant regulations had earlier been identified and led to a Notice of Remedial Action being served on Lombok on 28 April 2015; this was followed by a warning letter dated 7 October 2015 when the company failed to comply with the notice.

On 20 October 2016, officers visited Lombok’s central London showroom and found the required due diligence checks had not been made for an artisan sideboard for sale that had been imported from India.

When convicting the company District Judge stated these offences are “important”, addressing environmental concerns, biodiversity concerns, and public confidence that companies do not endanger those. Companies are required to mitigate the risk of illegal logging. Lombok had failed to exercise due diligence when importing the artisan sideboard, with their previous failures an aggravating feature, though in mitigation they had reacted proactively.

Taking into account their mitigation and credit for an early guilty plea, Lombok was fined £5,000, plus a victim surcharge of £170 and prosecution costs of £2,951. The total of £8,121 was ordered to be paid within 28 days.

Mike Kearney, Head of Regulatory Delivery Enforcement, said:

The Government’s Regulatory Delivery team will take action against businesses that persistently, deliberately or recklessly fail to meet their legal obligations.

Lombok failed to change their practises in response to our advice and so, given the impact of illegal logging, a criminal prosecution was appropriate. I am pleased that Lombok is now improving its supply chain monitoring.

This prosecution was brought by the Insolvency Service Criminal Enforcement Team on behalf of the Department for Business, Energy and Industrial Strategy (BEIS) Regulatory Delivery team.

Notes to editors

Angora Limited (Company number 08680457), was incorporated on 6 September 2013 and trades as Lombok, a purveyor of ‘eastern-influenced and hand-crafted designer furniture, lighting and homewares’ from 204–208 Tottenham Court Rd, London W1T 7PL.

The prosecution was brought by the Insolvency Service Criminal Enforcement Team on behalf of the Department for Business, Energy and Industrial Strategy (BEIS) Regulatory Delivery team to address the company’s failure to exercise the required due diligence when placing a timber product on the market was contrary to Regulation 4(b) of The Timber and Timber Products (Placing on the Market) Regulations 2013. The judgment was pronounced at 12:30pm by District Judge Blake.

Regulatory Delivery is part of the Department for Business, Energy & Industrial Strategy (BEIS). It brings together policy expertise and practical experience to ensure that regulation is effectively delivered in ways that reduce burdens on business, save public money and properly protects citizens and communities. Regulatory Delivery is also responsible for sponsoring the British Hallmarking Council, a BEIS partner body.

The Insolvency Service, an executive agency sponsored by the Department for Business, Energy and Industrial Strategy (BEIS), administers the insolvency regime, and aims to deliver and promote a range of investigation and enforcement activities both civil and criminal in nature, to support fair and open markets. We do this by effectively enforcing the statutory company and insolvency regimes, maintaining public confidence in those regimes and reducing the harm caused to victims of fraudulent activity and to the business community, including dealing with the disqualification of directors in corporate failures. Further information about the work of the Insolvency Service, and how to complain about financial misconduct, is available.

BEIS’ mission is to build a dynamic and competitive UK economy that works for all, in particular by creating the conditions for business success and promoting an open global economy. The Insolvency Service’s Criminal Enforcement Team contributes to this aim by taking action to deter fraud and to regulate the market. They investigate and prosecute a range of offences, primarily relating to personal or company insolvencies. Further information about the work of the Criminal Investigations and Prosecutions team is available

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Euro Car Parts must now sell a depot in each of these areas to a purchaser approved by the Competition and Markets Authority (CMA), so that customers don’t lose out.

Euro Car Parts bought most of the Andrew Page business in October 2016, after the company went into administration. Both companies own a network of depots across the UK from which they sell car parts to independent garages and workshops and to larger national or multi-regional customers, including repair centre chains, vehicle fleets and roadside assistance companies.

A group of independent CMA panel members identified 9 areas in England where the 2 companies were close competitors and where the merger could significantly reduce competition for local customers.

The group did not consider that larger national or multi-regional customers would be adversely affected by the merger.

Professor Alasdair Smith, Inquiry Chair, said:

Following an in-depth investigation, we have found that this merger has the potential to drive up prices or reduce levels of service for customers in 9 local areas. That’s why we are requiring a depot in each area to be sold to a buyer approved by the CMA.

Outside of these areas, we did not find that the merger will further reduce competition compared to what would have happened if Euro Car Parts had not purchased Andrew Page.

The 9 local areas are: Blackpool, Brighton, Gloucester, Liphook, Scunthorpe, Sunderland, Wakefield, Worthing and York. Swindon had also been identified during the provisional findings stage, but new evidence came to light which resulted in the group deciding that competition would not be affected in this area.

Notes for editors

1. The CMA is the UK’s primary competition and consumer authority. It is an independent non-ministerial government department with responsibility for carrying out investigations into mergers, markets and the regulated industries and enforcing competition and consumer law.
2. The final report can be found on the case page.
3. On 10 March 2017, the CMA started its initial investigation and on 22 May 2017 the CMA referred it for a phase 2 investigation. Provisional findings were published on 14 September 2017.
4. All the CMA’s functions in phase 2 merger inquiries are performed by independent inquiry groups, chosen from the CMA’s panel members, and supported by CMA staff. The appointed inquiry group are the decision-makers on phase 2 inquiries.
5. The members of the inquiry group are: Professor Alasdair Smith (Inquiry Chair), Lesley Ainsworth and Rosalind Hedley-Miller.
6. The CMA’s panel members come from a variety of backgrounds, including economics, law, accountancy and/or business; the membership of an inquiry group usually reflects a mix of expertise and experience.
7. For more information on the CMA see our homepage or follow us on Twitter @CMAgovuk, Facebook, Flickr and LinkedIn. Sign up to our email alerts to receive updates on merger cases.
8. Media enquiries should be directed to: press@cma.gsi.gov.uk, 020 3738 6337.

A tailored approach to protect and encourage the supply of a wide range of supported housing has been set out by government today (31 October). All long-term housing will remain in the welfare system and a proposed ‘sheltered rent’ for sheltered and extra care housing will keep rent and service charge at an appropriate level, protecting the housing needs of older and vulnerable people.

Local areas will be taking a bigger role in providing short-term and emergency housing through a ring-fenced grant to local authorities by April 2020, allowing vulnerable people to access secure accommodation without worrying about meeting housing costs at a difficult point in their lives. The grant will be underpinned by a National Statement of Expectation setting out how local authorities should plan effectively for provision in their area.

Supported housing provides a home to some of the most vulnerable people in this country and the vast majority is provided for older people. The government knows the supply of these homes needs to grow as this country’s ageing population means that demand is forecast to increase.

Currently supported accommodation is funded through the welfare system, including the housing costs and extra support services. These reforms will ensure:

• funding certainty for the sector, and encouraging long-term investment and new supply
• local areas have a greater role in commissioning services
• councils have a stronger role in providing the right services for their local areas

Local Government Minister Marcus Jones said:

This government is committed to boosting the supply of new homes, and helping people to live independently and with dignity for as long as possible. This is why we are giving the supported housing sector the certainty of funding they need to get building new homes.

These reforms will deliver quality and value for money, funding certainty for the sector and give local areas a greater role in commissioning services.

Minister for Family Support, Housing and Child Maintenance Minister Caroline Dinenage said:

We value the important role supported housing plays and that’s why we have worked closely with providers and listened to their feedback to come up with solutions that will safeguard its future and improve support for those that need a home that is safe and secure.

The new flexible funding model and reforms will give housing providers certainty over future funding and drive up quality and provide value for money.

The supported housing sector support provides homes from older renters. It also provides a home for other vulnerable groups such as people with learning disabilities, mental ill health, homeless people and victims of domestic abuse.

The government’s latest policy statement is published online including further consultation on the detailed implementation of the flexible funding models for both sheltered rent and long term supported accommodation.

Further information

The consultation on the detailed implementation of the flexible funding model for supported housing will run until 23 January 2018.

Last week (25 October 2017) the government announced that the Local Housing Allowance rate will not be applied to the social rented sector.