Company Secretary Snapshot - November 2024

Introduction

As the festive season approaches, we bring you our November ‘Snapshot’ – a summary of the key developments shaping the housing sector this past month. This edition highlights the introduction of key measures under the Economic Crime and Corporate Transparency Act (ECCTA), the implications of policy uncertainty as we near 2025 and key outcomes from the recent Budget announcements.  

So grab a mince pie and get cosy for a roundup on the latest updates and what lies ahead for the New Year!  

Economic Crime and Corporate Transparency Act (ECCTA)

Nearly a year since the ECCTA became law, significant changes continue to unfold. These include:

• Expanded powers for Companies House to audit and verify information, query inaccuracies, and strike off companies formed on false premises;
• Measures to prevent fraud in limited partnerships; and 
• Enhanced law enforcement tools, including recovering suspected criminal crypto-assets and sharing customer data to combat economic crime.

Key updates  

Spring 2025

The following are expected to take effect:

• Authorised Corporate Service Providers (ACSPs): Organisations must appoint AML-regulated individuals to verify their details with Companies House. Organisations may wish to consider which advisers (if any) should be appointed as ACSPs now; and
• Updates to registers to allow suppression of residential addresses in specific cases.

For further updates on the upcoming changes over the next 18 months please monitor see here: Changes to UK company law website.

Fraud Offences

From September 2025, large organisations (as defined under Section 201 ECCTA) can face prosecution if associated individuals commit fraud and the organisation lacks “reasonable prevention procedures.”

To start preparing for compliance, organisations should consider scheduling Board training and developing a robust fraud prevention policy informed by these six principles:

• top level commitment;
• risk assessment;
• proportionate risk-based prevention procedures;
• due diligence;
• communication (including training); and 
• monitoring and review.

Proactive measures now will safeguard against potential prosecution while aligning with broader compliance, including tax and audit standards. 

For further details, please see: failure to prevent fraud.

Policy uncertainty  

In our September 2024 update, we discussed the recent Ministry of Housing, Communities and Local Government (MHCLG) announcement that a consultation would be launched on a new Decent Homes Standard as well as various updates on other key policies which were due to be forthcoming. 

We are still awaiting updates on these key areas, as follows:

• Awaab’s Law: expected imminently, with strict timelines for addressing hazards, proactive inspections, and robust record-keeping;
• Social Tenant Access to Information Requirements (STAIRs): new obligations for housing associations re tenants access to information are anticipated soon; 
• the Competence and Conduct Standard: the Ministry of Housing, Communities and Local Government has indicated that the implementation date for the standard has been delayed and is no longer feasible for April 2025. A slower implementation will be a welcome relief to the sector; 
• Decent Homes Standard: formal consultation to launch in early 2025. 

Watch this space… 

Key budget announcements for housing

Housing was high on the agenda on the October 2024 autumn budget. Key announcements included the following to support the delivery of much needed affordable homes at a high quality: 

• £1 billion is being provided to extend the Household Support Fund and Discretionary Housing Payments to help low-income households with the cost of essentials such as food, energy and water. An additional £500 million of funding is being put towards the Affordable Homes Programme to help deliver up to 5,000 additional new social homes. 
• Right-to-Buy scheme reductions to try to limit the loss of social homes to the private sector in order to address the ongoing depletion of social housing stock and protect exiting homes. 
• £1 billion investment for cladding remediation following the findings of the Grenfell Inquiry.  
• The Warm Homes Plan is kick-starting with an initial £3.4 billion over the next 3 years to transform 350,000 homes and tackle the fuel poverty and climate emergency.  
• £230 million of funding will go towards the ongoing mission to reduce homelessness and rough sleeping. 
• Consultation on a 5-year rent settlement of CPI + 1% gives greater financial security, enabling landlords to plan and invest their housing stock without the threat of unpredictable rent fluctuations in the market and ensures tenants that they can afford their homes; which will support the overall health of the housing market. 

Housing Ombudsman – embedding positive complaint handling

The Housing Ombudsman continues to emphasise an ethical approach to complaint handling in its first report since its Complaint Handling Code was placed on a statutory footing. The report highlights the importance of:

• focusing on the tenant behind the complaint;
• embedding a positive complaints culture; 
• aligning with the Complaints Handling Code and leveraging resources such as Centre for Learning.

Despite improvements, many landlords still face Complaint Handling Failure Orders. Proactive action and staff training are critical for improvement. 

Future Rent Consultation

Consultation opened on 30 October 2024 as to the proposed introduction of a “Future social housing rent policy” which seeks to be implemented from 1 April 2026. The consultation closes at 11.45pm on Monday 23 December 2024 and can be found here.

The proposals seek to have a policy which will:

1. Remain in place for at least 5 years (from 1 April 2026 until 31 March 2031) - with an intention to set a further 5 year settlement for the period beyond this, or the possibility of a policy for a longer period on a rolling basis, and
2. Generally permit social housing rents to increase each year by up to CPI plus 1% (applying to Social and Affordable rent).

The proposals welcome views from providers as to alternative lengths of settlement, for example 7 or 10 year, or a ‘rolling’ 5 year settlement. 

The aim is to support the ambitions to provide the "biggest increase in social and affordable housebuilding in a generation" and to support the Government's commitment to deliver 1.5 million homes.

The consultation also confirms an apparent intention for the Government to consult shortly on plans to introduce minimum energy efficient standards that might require social housing to meet Energy Performance Certificate C or equivalent by 2030 – again, watch this space.

This all being complemented by the planned reforms to the Right to Buy (the consultation on this also planned imminently), hinted further at by the Chancellor in her recent budget that the RTB discount will be reduced and local authorities should be expected to retain the full receipts so that this can be invested back into housing stock and supply.

The Government states that they recognise the need for a stable social rent policy in order to enable registered providers, lenders and investors to have confidence to commit to the level of investment needed. 

The proposals do not seek to amend the way in which rent is set via the rent formula for the maximum initial rent, when a property is let for the first time, or subsequently re-let to a new tenant. 

Upcoming Events

Experiences in the Coroner’s Court – 5 December 2024, virtual
SID Network – 15 January 2025, virtual 

AOB

The Employment Rights Bill – “the biggest upgrade to workers' rights in a generation" 
Employment Eye – October 2024 
Renters’ Rights Bill – Spotlight on: Tenancy Reform
Housing Finance Snapshot – October 2024 
Preparing your housing stock in order to support new funding
Renters’ Rights Bill – Supported Housing Providers focus: New Grounds for Possession

We will be taking a break over the Christmas period, with the next Snapshot arriving in January.

If we do not get to see you at one of the upcoming events, may we take this opportunity to wish you all a very Merry Christmas and a prosperous New Year… see you all in 2025!!