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Information request scheme expected to cost £1.8m in year one

The government has estimated that new transparency powers for tenants will cost the sector an estimated £1.8m in requests for information to private registered providers (PRPs) in the first year alone.

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The government has estimated that new transparency powers for tenants will cost the sector an estimated £1.8m in requests for information in the first year alone #UKhousing #SocialHousingFinance

The Department for Levelling Up, Housing and Communities (DLUHC) launched its consultation into the transparency requirements brought in under the Social Housing (Regulation) Act shortly before the surprise general election announcement last month.

 

However, the department has confirmed that the process remains open as usual despite the general election.

 

Entitled Social Tenant Access to Information Requirements (STAIRs), the consultation launched on 20 May and  will run until 15 July 2024.

 

The new rules will allow social housing tenants or a representative, such as a lawyer, to request information for free about the management of their homes, for the first time. This could be on a range of issues, such as damp and mould, repairs, anti-social behaviour, and health and safety.

 

DLUHC said that PRPs must adopt and maintain a publication scheme, containing certain information about their activities and in which information is published proactively. Housing associations will also be forced to publish information about their performance, the department said.


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They must also provide relevant information in response to requests from tenants unless it is “reasonable to withhold the information from disclosure”, with clear expectations on how landlords should respond to requests. For example, PRPs will not be required to disclose information where doing so would bring them into conflict with any statutory provisions.

 

On information requests, DLUHC said, based on estimating additional requests and reviews, and applying estimates of how long it will take for PRPs to respond, in its ‘central scenario’ it expects information requests to cost around £1.8m across all providers in the first year.

 

Over a 10-year appraisal period, the requirements are expected to cost £16.7m (at 2022 value) across all providers, or on average £1.67m per annum.

 

DLUHC said in the STAIRs consultation: “Our engagement with social housing providers showed that most providers of social housing already have the infrastructure in place to answer requests for information. We anticipate an additional transition cost of around £850,000 to the PRP sector.

 

“There will also be a cost associated with the Housing Ombudsman Service (HOS) responding to complaints from tenants regarding landlords’ compliance with these requirements, which DLUHC intends for the HOS to recover via fees.

 

“A financial charge of this nature has not yet been established. The Housing Ombudsman will consult with registered providers on the proposed fee regime, expected to take place one year after go-live so proposals can take account of actual volumes and costs.”

 

With regards to the requirements for a publication scheme, DLUHC’s impact assessment estimated that it would take one member of staff around two weeks to set up a publication scheme.

DLUHC said: “Applying the same rationale, PRPs who would need to produce a publication scheme of a similar nature for STAIRs, assuming an average hourly salary for a member of staff working in regulatory compliance or a similar role of £26.19, including non-wage costs (according to ASHE) working eight hours per day for a five-day working week, this would bring the total one-off transition cost for setting up a publication scheme to £1,047.60 per PRP.

 

“Assuming there are 1,396 PRPs in the sector, this brings costs to a one-off sector transition cost of £1,462,450 in year one.”

 

The department said that while providers “may incur ongoing costs in proactively publishing information through the publication scheme”, these costs “cannot be sensibly monetised given the range of approaches that PRPs may choose to take”.

 

It is not possible to detach these costs from a provider’s existing activities, DLUHC added.

 

The department said the financial impact on PRPs will not be applied to local authority providers, as their tenants can already use the Freedom of Information Act to request information from their landlord.

 

Through this consultation, DLUHC is also seeking views on whether the requirements should also apply to local authorities in relation to information held by tenant management organisations contracted to manage housing on behalf of local authorities.

 

The department said the rules are being brought in after being a “key ask” from social housing residents for greater transparency following the Grenfell Tower tragedy.

 

Baroness Scott, minister for social housing, said: “We are creating a culture of openness and transparency among social landlords and tenants, giving residents the tools they need to hold their landlords to account so they can raise standards to the high level they rightly expect.

  

“This is part of the biggest government reforms to affect social housing in a decade, which will be crucial in addressing systemic issues relating to safety, quality and tenant-landlord relationships that were identified after the Grenfell Tower fire.”

 

The government recently closed a separate consultation on a direction to the Regulator of Social Housing to set a new Competence and Conduct Standard, and a consultation on Awaab’s Law, which introduces timescales for repairs.

 

The government said it intends to consult, at a future date, on directions on quality of accommodation, tenure and rent.

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