Regulator of Social Housing sets out finalised consumer standards

Landlords that deliver the outcomes in the four consumer standards will maintain tenants’ homes so that they are safe and of a decent standard and provide a quality service. They will handle complaints effectively where things go wrong, and listen to tenants and support them to influence decisions.

 

They will also have a relationship with their tenants that is underpinned by shared expectations of fairness and respect and a shared understanding of their respective rights and responsibilities.

 

Landlords should also demonstrate that they understand the diverse needs of the communities that they serve, and that their services reflect those diverse needs.

 

They will also need to know more about the condition of each of their homes and the needs of the people who live in them, and collect and use data effectively across a range of areas, including repairs.

 

‘Room for improvement’

 

The regulator said that all landlords, no matter their size or organisational structure, will need to deliver the outcomes in these standards from 1 April.

 

The RSH added that most social housing tenants live in decent homes, but it is clear that all landlords can improve.

 

Fiona MacGregor, chief executive of the RSH, said: “Social landlords must keep tenants safe in their homes, listen to what they say and put things right when needed. We are introducing new standards to drive improvements in social housing, and we will actively inspect landlords to check they are meeting them.

 

“We have spoken to thousands of tenants and other stakeholders who have helped shape our new approach, and we are extremely grateful for their input and involvement. It is vital that landlords make sure they are ready.”

 

To hold landlords to account, the RSH will inspect larger landlords regularly to check they are meeting the outcomes in the standards and scrutinise data about tenant satisfaction, repairs and other relevant issues.

 

It will also continue to push landlords to protect tenants and put things right when there are problems and use a range of tools when needed, including new enforcement powers.

 

The regulator will also continue to focus on the financial viability and governance of housing associations as part of its integrated regulation.

 

“Our new consumer standards sit alongside our existing economic standards in setting the outcomes that landlords must deliver for tenants,” Bernadette Conroy, chair of the RSH, said in the regulator’s document.

 

“Our integrated regulatory approach puts the regulation of our consumer standards on the same footing as our economic regulation.

 

“It allows us to drive improvements in the quality of housing and services in all landlords while continuing to scrutinise the financial viability and governance of housing associations and other private registered providers.”

 

Ms Conroy said that “much social housing is of decent quality”, and many landlords provide good services to their tenants, but “even the best landlords will have room for improvement”.

 

“Good landlords will have already started identifying any changes they need to make, ahead of the introduction of our new consumer standards,” she said.

 

“As our new regulation begins, landlords must step up to the challenge and deliver the homes and services tenants need. I am pleased to set out our new approach and how we will deliver it.”

Inspections over four-year cycles

 

The RSH will carry out a programme of inspecting large social landlords, replacing its previous in-depth assessment programme.

 

This inspection programme will start from April and run in four-year cycles.

 

Along with the inspections, the RSH will continue its “responsive engagement”, considering cases referred by tenants and other stakeholders, and taking action against landlords when required.

 

For all landlords, including local authorities, the regulator’s programmed inspections will look at service outcomes for tenants, and the landlord’s transparency with and accountability to tenants.

 

For housing associations and other private registered providers, it will look in detail at areas relating to their governance and finances.

 

But all landlords will want to have in place “appropriate arrangements so that they can take informed, sensible decisions in the interests of their tenants”, the regulator added.

 

“We will take into account a range of factors when deciding which landlords to inspect at any given time, this includes considering the risks we are concerned about,” the RSH said in its document.

 

“We will continue to collect and review information about landlords alongside the inspection programme. This includes data about tenant satisfaction, condition and quality of homes, and rents; and financial information from housing associations and other private registered providers.

 

“We will use this information to help us understand whether individual landlords may be at high risk of failing to deliver the outcomes of our standards, as well as gaining insight about the sector as a whole.

 

“Our TSM data in particular will give us a new source of insight into tenants’ experiences. We will use it to help us prioritise our engagement to understand how landlords are delivering against the outcomes in our new consumer standards.”

 

From 1 April 2024, the RSH will set out its views about how an individual landlord is delivering the outcomes of any relevant standard in a regulatory judgement.

 

The regulator said that it expects landlords to be transparent with their tenants about any actions they are taking as the result of an inspection or other engagement with the RSH.

 

It said that large landlords will receive a new regulatory judgement following their first programmed inspection.

 

Some landlords, large or small, may receive an earlier regulatory judgement following the regulator’s responsive engagement with them.

 

The RSH will also expand its existing system of grades to include new consumer grades alongside its current governance and viability grades.

 

All large landlords will receive a consumer grade following a programmed inspection, ranging from C1, the top grade, to C4, the lowest.

 

C1 means that overall the landlord is delivering the consumer standards outcomes, while C2 means that there are “some weaknesses” in how the provider is delivering against the consumer standards outcomes and improvement is needed.

 

C3 means there are “serious failings” in how the provider is delivering against the consumer standards outcomes and “significant improvement” is needed.

 

Meanwhile, C4 means that there are “very serious failings” in how the provider is delivering against the consumer standards outcomes and it must make “fundamental changes” so that improved outcomes are delivered.

 

Large housing associations and other private registered providers will continue to receive governance and viability grades.

 

The RSH has also published a code of practice to help landlords by providing more information about what it is looking for in relation to its consumer standards by highlighting specific areas and themes within the standards.

 

Identifying and addressing issues

 

The Social Housing (Regulation) Act has removed the ‘serious detriment’ test from consumer standards regulation.

 

This means that, from the start of April, the RSH will be able to investigate and take action where there is “evidence about potential landlord failures” in the consumer standards in the same way that it currently does for its other standards.

 

The RSH said that information about a potential issue with a landlord in relation to any of the regulator’s standards can come through many routes.

 

It expects that most of the time it will happen through an inspection, one of its regular reviews of information and data, self-referrals from landlords, referrals made by a stakeholder (including tenants) and information shared with the RSH by the Housing Ombudsman or another regulator.