Gove to block new funding for landlords that breach consumer standards

News25 Nov 2022Michael Lloyd

Housing secretary Michael Gove has vowed to block funding from the government’s current Affordable Homes Programme (AHP) for social landlords that breach the regulator’s consumer standards.

Michael Gove (picture: Parliament TV)

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Michael Gove has vowed to block funding for social landlords that breach the regulator’s consumer standards #UKhousing #SocialHousingFinance

Mr Gove said will he also consider stripping providers of existing AHP funding, unless construction has already started on site.

The Home Standard, which a number of landlords have breached, is among the four consumer standards overseen by the Regulator of Social Housing (RSH).

The crackdown follows the high-profile death of two-year-old Awaab Ishak because of mould in his home, which was managed by Rochdale Boroughwide Housing (RBH).

Mr Gove said yesterday that RBH will not receive an expected £1m of AHP funding, or receive any new AHP contracts, until the RSH has concluded an investigation into the housing association.

The government will also continue to monitor standards in RBH’s homes, working with the regulator and Housing Ombudsman, to ensure that tenants have appropriate housing, Mr Gove said.

In the case of Awaab, a coroner concluded that a lack of action from RBH meant the toddler continued to be exposed to harmful mould.

Mr Gove said: “RBH failed its tenants, so it will not receive a penny of additional taxpayers’ money for new housing until it gets its act together and does right by tenants.

“Let this be a warning to other housing providers who are ignoring complaints and failing in their obligations to tenants. We will not hesitate to act. Everyone deserves the right to live in a safe, decent home and this government will always act to protect tenants.”

A statement from an RBH spokesperson said: “We are completely focused on our existing homes and we welcome the opportunity to work with the regulator on that.”

“We are absolutely focused on improving the quality of our existing homes and improving any operational areas where we have previously underperformed. Our immediate priority is to maintain the stability of the organisation and to appoint a new interim chief executive, which we are in the process of doing.

“The board is reflecting on the appropriate blend of skills and experience needed to lead the organisation going forward. The board will take the decision in dialogue with the regulator and RBH’s representative body to ensure that there is a well-managed succession plan for the future.”

Mr Gove sent a letter to social landlords earlier this week, urging them to “absorb the lessons” from the death of Awaab by taking the issues around damp and mould “seriously”.

The RSH then ordered social landlords to show they have systems to identify and deal with damp and mould in homes.

The regulator is being handed extra powers to help address tenants’ issues as part of post-Grenfell measures in the Social Housing Regulation Bill.

Sadiq Khan, the mayor of London, has also warned affordable housing providers that they could lose access to Greater London Authority funding if they fail to maintain their properties to a high standard.

The government said it will launch a £1m public information campaign early next year to make sure tenants know their rights and can hold housing providers to account.

The Social Housing Regulation Bill, which is making its way through parliament, aims to grant the RSH greater powers to protect residents, including plans for Ofsted-style inspections of housing associations’ stock and unlimited fines for poorly performing social landlords.