The English regulator has handed a C3 grade on the consumer standards to a council and downgraded the governance grade of three housing associations to G2.
In its latest batch of regulatory judgements, the Regulator of Social Housing (RSH) gave Harlow Council a C3 grade, which means “there are serious failings and it needs to make significant improvements”. This was specifically in relation to outcomes in the Safety and Quality Standard.
The regulator also downgraded the governance grades of Calico Homes, Bolton at Home and Islington and Shoreditch Housing Association (ISHA) from G1 to G2.
Calico Homes and Bolton at Home also received C2 grades, while ISHA was not handed a grade under the consumer regulation as its ratings were a result of responsive engagement related to governance issues.
Elsewhere, Great Places Housing Group, Saxon Weald, Rooftop Housing Group and Mosscare St Vincent’s Housing Group all received G1-V2-C2 grades.
Meanwhile, the RSH gave Havebury Housing Partnership G1-V2-C1 ratings.
For-profit registered provider Legal and General Affordable Homes also retained its G1*/V1* grades and, as this was a stability check rather than a planned inspection, a consumer grade was not issued.
The regulator investigated Harlow Council, which manages 9,100 social housing homes, after reviewing its tenant satisfaction measures (TSM) results.
The RSH cited reporting by the council that it had only carried out fire risk assessments for a little over 20 per cent of its tenants who live in blocks that require them.
In addition, the regulator found more than 500 overdue high-risk remedial actions and around 1,500 overdue medium-risk actions, of which more than 1,000 have been overdue for longer than 12 months.
The RSH said that it had not seen detailed evidence of how the associated risks are mitigated in the period between remedial actions being identified and when they are completed.
Harlow Council has commissioned a third-party review of the “accuracy and integrity” of its landlord health and safety information, which the regulator said it is exploring further as part of ongoing engagement with the landlord.
The RSH said the council has been “engaging constructively” with it. The landlord has employed an external compliance consultant to develop a “detailed improvement plan” to address the failings identified, according to the regulatory judgement.
“We have been informed that appropriate oversight of information relating to compliance is now in place and that the council is committed to putting right the issues outlined,” the regulatory judgement said. “Harlow Council has confirmed that it is working to complete the outstanding fire risk assessments, starting with the highest-risk blocks.”
Kate Dodsworth, chief of regulatory engagement at the RSH, said: “It is unacceptable that Harlow Council has failed to meet fire safety requirements. Providing safe, decent homes for tenants begins with robust data, and this must include fire risk assessments for every home that needs one.
“We identified these failings by scrutinising the council’s TSM results. It is the landlord’s responsibility to notify us themselves of material issues.
“Our new proactive approach and expanded consumer remit is helping to bring issues to the surface earlier. We expect all providers to regularly review and evaluate their services to improve outcomes for tenants.”
Elsewhere, the RSH downgraded the governance grades of Calico Homes, Bolton at Home and ISHA from G1 to G2.
In response to a self-referral from ISHA in October 2023, relating to “fraudulent activity”, the RSH carried out responsive engagement that focused on the landlord’s risk management and internal controls assurance framework.
The regulator said that ISHA, which owns and manages around 2,500 social housing homes in north and east London, meets its governance requirements but needs to improve some aspects of its oversight of risk and internal controls to ensure continued compliance.
The RSH said ISHA’s system of internal controls has not been sufficient to identify when issues have occurred.
When ISHA was made aware of an issue having arisen in relation to fraudulent activity, it commissioned an independent review and has “responded in a timely and comprehensive way” to recommendations made as a result, according to the regulatory judgment.
“Although we have assurance that ISHA has made improvements in its arrangements for identifying, managing and mitigating risks to the organisation, it is evident that further improvement is needed,” the RSH said in the judgement.
“ISHA has been proactive in making a self-referral and is engaging positively with us to resolve the issues identified. ISHA has made changes to further strengthen internal controls and once fully implemented will need to seek assurance that these have led to sufficient improvement in how its arrangements operate in practice,” it added.
The regulator, meanwhile, said that Bolton at Home meets the required governance requirements but needs to improve some aspects of its governance arrangements to support continued compliance. The provider manages around 19,600 social housing homes.
The RSH observed “weaknesses in financial planning, board oversight and in the effectiveness of risk management processes”.
“We found evidence through the inspection that improvement is needed in the board’s financial management and planning,” the regulatory judgement said.
“Bolton at Home needs to develop a business plan that is more sustainable and resilient. The board needs to consider how its strategic financial planning and delivery of strategic objectives aligns with Bolton at Home’s capacity and risk appetite.”
On Calico Homes, which has over 5,000 homes in Burnley, Lancashire, the regulator said that although the landlord meets governance requirements, it needs to improve some aspects of its governance arrangements to support continued compliance.
This was specifically in relation to board effectiveness and to strengthen the effectiveness of risk management processes, the regulator added.
“We found evidence through the inspection that improvement is needed so that Calico’s board can demonstrate that it ensures decisions are made in the best interests of the organisation and with the independence needed, particularly in being able to achieve value for money from use of charitable resources,” the RSH said in its judgement.
Comments from the landlords
Harlow Council – C3
Dan Swords, leader of Harlow Council, said: “This historic issue has not been dealt with well or quickly enough by the council. For several years, we have not carried out enough fire risk assessments and that is why this moment will be a very clear turning point.
“We are already working closely with the regulator to make specific improvements against these new requirements, and we are making rapid progress to that effect.
“We will also bring forward an action plan which will be considered by the cabinet at the very first opportunity to ensure we are taking every step necessary to right this historic failure.
“I am absolutely confident that as a result of the actions we have already put in place and those which are to be considered by the cabinet, we will resolve this issue and at the next round of review, the council will not be in a C3 position.”
Mr Swords added: “All Harlow Council tenants should know that the whole cabinet and I take this matter extremely seriously. That’s why one of our corporate missions is to transform Harlow’s housing and we will leave no stone unturned to ensure we deliver on that mission.
“This action comes on top of many others we are already taking to transform our council housing, including the 100 per cent specialist stock condition survey of all our properties, the fact we have cleared the backlog in repairs, which are now at the lowest level in well over a decade, introduced proactive tenancy audit inspections of council properties, totally overhauled the way we deal with damp and mould, and reformed the way we allocate council housing to name just a few.”
Bolton at Home – G2/V2/C2
Noel Sharpe, group chief executive of Bolton at Home, said: “Following a routine, periodic inspection by the regulator, we remain compliant with all regulatory standards.
“To retain our compliant V2 grading in challenging economic conditions for the housing sector, and at a time when we’re investing significantly more into improving homes, this demonstrates our commitment to being a financially secure organisation that is always working to provide customers with value for money.
“We recognise the need to make improvements in specific areas and understand the reasons for the change to our governance grading to a compliant G2 grading. We’re already working to improve aspects of our governance arrangements with a view to getting back to the highest grading as quickly as possible.”
Ms Sharpe added: “Our compliant C2 grading for the new consumer standard means we have other improvements to make. However, the regulator was complimentary about many aspects of our service and recognises our ongoing work to improve customer experience.
“We want to reassure our customers that this judgement does not affect the services they can expect from us, and our day-to-day operations continue as normal.”
Islington and Shoreditch Housing Association – G2/V2
Mervyn Jones, chair of ISHA, said: “ISHA was deeply saddened to discover it was the victim of collusive fraud between some of its staff and a contractor.
“Notoriously difficult to spot, this fraud showed a weakness in our management of bulk refuse, which we have now addressed. We are confident that the additional controls we have put in place have been effective and we will continue to review and refine them.
“We look forward to demonstrating as soon as possible that we meet the highest standards of governance, and stewardship of the assets we hold in trust for the communities we serve. A forensic examination of service charges has determined there was minimal impact to a limited number of our residents and we are refunding relevant costs in full.”
Great Places Housing Group – G1/V2/C2
Alison Dean, chief executive of Great Places, said: “We are pleased to retain our G1/V2 gradings, which are important to our continued growth and for delivering great services to our customers.
“Preparing for the new approach to consumer regulation has given us the opportunity to reflect on where we can make improvements. We have already taken steps towards this by including planned improvements in our recently launched three-year corporate plan named Here For Our Customers and we were able to share our plans with the regulator during the inspection process.
“I would like to thank the regulator for working with us and I look forward to working with our board, leadership team and talented colleagues, to make these changes with the involvement and for the benefit of, our customers.”
Mosscare St Vincent’s – G1/V2/C2
Charlie Norman, chief executive of Mosscare St Vincent’s (MSV), said in a statement on the landlord’s website: “The inspection process including new consumer standards is so important in ensuring quality homes and respectful services for social housing customers.
“We very much welcomed working with the inspection team and the positive feedback we received on customer safety, governance, financial viability, customer voice and meeting so many of the expectations set out within the new consumer standards. It is important to continue to focus on this.
“We are also focused on achieving the targets required with our stock condition survey programme, and we recognise that sound data-driven decision-making is vital. We currently hold first-hand stock condition data for 92 per cent of our customers’ homes within the last six years, 65 per cent of this within the last two years. We are confident we will meet the targets in place with our planned programme of inspections.”
Ms Norman added: “MSV is investing significantly in customers’ homes, with almost £70m set to be spent over the next five years on improvements and decarbonisation work. This is the right thing to do as we look to provide even higher-quality, warmer and more affordable homes for customers.
“We are pleased to have retained the G1 and V2 gradings which demonstrate compliant governance and financial stability, and we will continue to work with our customers to design and provide truly inclusive services that meet all regulatory expectations, including the consumer standards.”
Rooftop Housing Group – G1/V2/C2
Boris Worrall, group chief executive of Rooftop Housing Group, said: “We are pleased that following a recent inspection by the Regulator of Social Housing, we have retained the top rating of G1 for governance, and the compliant financial rating of V2 for viability.
“A compliant C2 rating under the new consumer standards has identified areas for improvement, which we are committed to addressing.
“In particular, we will continue to focus on reducing waiting times for repairs and improving complaint-handling. We also look forward to developing the work we are doing to expand the opportunities for our customers to influence how we deliver services.”
Saxon Weald – G1/V2/C2
Steven Dennis, chief executive of Saxon Weald, said: “We are pleased with our regulatory judgement, which reflects our effective governance, sound financial management and customer-focused approach.
“We acknowledge that we have areas for improvement and have solid plans in place to address these. In many cases, we have made good progress in the short time since our inspection was completed. We look forward to continued engagement with the regulator and aspire to achieving C1 levels of assurance in the near future.”
Havebury Housing Partnership – G1/V2/C1
Andrew Smith, chief executive of Havebury Housing Partnership, said: “We’re delighted that the Regulator of Social Housing has recognised the strength of our governance and financial performance, with our continued investment in our existing homes and our ambitious programme to deliver around 210 new homes a year.
“It also recognised how we engage with our residents, understand their needs, and work with them when things go wrong to put things right and learn.”
Calico Homes – G2/V2/C2
Anthony Duerden, chief executive at Calico, said: “We are reassured that we remain compliant with regards to our governance, and that we already had robust plans in place for all the issues raised.
“While we are disappointed to be rated as G2, we recognise that there is clearly still work to do in providing all the reassurance the regulator seeks for us to be a G1 organisation, particularly around our wider group services, how this best meets the needs of our customers and operating environment, and the continued investment in the quality of our properties.
“In coming months, we are confident that we will demonstrate that we are well led, responding effectively to challenging local needs through close partnership working, and, in doing so, delivering the right outcomes for our customers and communities.
“We also recognise improvements are still needed to our services and we consider C2 is a fair outcome. It reflects the hard work our teams have made in readiness for the recent introduction of the consumer standards, and their continuing focus on the quality of service we provide to our customers at such a challenging time.”
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