Local authority handed regulatory notice after ‘significant’ rent overcharge

The regulator found the council was not compliant with the Welfare Reform and Work Act 2016 as it charged inaccurate rents from additional charges to the majority of its stock, which should have been included in the rent.

 

It also did not apply the one per cent rent reduction to these additional rental charges, another breach of the act.

 

The regulator also found that the council had not carried out fire risk assessments on all its buildings and did not have evidence that remedial actions had been completed following previous assessments.

 

The council could not provide assurance that it had completed inspections within the relevant timescales for electrical safety, water safety, asbestos management or lift safety.

 

The regulator said this was a breach of Part 1.2 of the Home Standard.

 

East Suffolk Council is in the process of addressing these failures and the regulator said it will not take statutory action at this stage.

 

Steve Gallant, leader of East Suffolk Council, said: “Following a report provided to me earlier this year by the council’s newly appointed head of housing, I announced that an immediate and thorough review of issues dating back to the time of Waveney District Council was urgently needed.

 

“I am pleased that a wide-ranging programme of remedial work is now under way, both in relation to the issue of rent-setting and health and safety.

 

“The regulatory notices which have now been published are fair, and essentially present what we already knew, incorporating a range of issues which we are working hard to resolve. The work will continue and it will be completed as soon as possible.”

 

Elsewhere, Swan Housing Association was also found to have breached the Home Standard, following concerns over fire risk assessments and remedial actions, asbestos management surveys, water safety risk assessments and issues with the quality of its data management and performance reporting.

 

Swan is currently non-compliant with the regulator after it had its viability and governance ratings downgraded in December 2021 following a “material deterioration” in its financial position.

 

The regulator said the provider was under intensive regulatory engagement which had highlighted outstanding fire risk assessments, among other safety concerns, and Swan made a self-referral to the regulator.

 

In the notice, the regulator said: “At the point of the self-referral to the regulator in March 2022, Swan had almost 1,500 remedial actions overdue.

 

“Of these, more than half were high or medium-risk actions. At the end of April 2022, over 650 high and medium-risk actions remain overdue.”

 

Susan Hickey, chief executive of Swan Housing Association, said: “We would like to apologise to our customers for the failures in our approach, which have led to the regulator’s notice issued today.

 

“We have put a robust improvement plan in place and are working closely with external advisors to ensure that this situation is rectified as a matter of urgency.

 

“Swan Housing Association’s absolute priority is to ensure our customers are safe in their homes and we will continue to engage with the regulator throughout the delivery of the improvement programme.”

The RSH also placed Christian Action Housing Association Enfield on its gradings under review list.

 

The provider’s current published grades are G1/V2, and the regulator said it is investigating a matter which may impact on Christian Action’s compliance with the governance element of the standard.

 

In a statement, Christian Action said: “Even though this is disappointing for us, we understand that the regulator has a duty to investigate and we will be working closely with the regulator through this investigation to give the assurance required.

 

“We are also communicating with internal and external stakeholders to allay any worries they may have about our partnerships.”