The Social Housing (Regulation) Bill has been passed into law, ushering in a wave of reforms in what the housing secretary has heralded as an “important step towards righting the wrongs of the past”.
The new law enables a number of key regulatory changes set out in the Social Housing White Paper in 2020, which formed part of the government’s response to the Grenfell Tower fire, which killed 72 people.
Housing secretary Michael Gove said that the legislation would drive up standards of social housing and “give residents a proper voice”.
The bill gained royal assent on Thursday (20 July) to become an act, with the new regime expected to come into force in April 2024. It enables the Regulator of Social Housing (RSH) to carry out regular inspections of the largest social housing providers and provides it with the power to issue unlimited fines.
The Social Housing (Regulation) Act gives the RSH the capability to enter properties with only 48 hours’ notice if required, and make emergency repairs where there is a serious risk to tenants.
The act has an amendment, known as Awaab’s Law, which housing secretary Michael Gove tabled in February to force social landlords to investigate and fix damp and mould in their properties within “strict new time limits”.
The clause is named after Awaab Ishak, who died aged two in December 2020 as a result of a respiratory condition caused by exposure to mould in his family’s Rochdale Boroughwide Housing home. A coroner’s report into his death, published in November 2022, said the incident must be a “defining moment” for the sector.
The RSH has previously announced that damp and mould will form a “key focus” of the sector’s new consumer regulatory regime.
The Social Housing (Regulation) Act contains the requirement for social housing managers to gain professional qualifications. Around 25,000 people across the sector will be required to have an appropriate-level housing management qualification regulated by Ofqual, equivalent to a Level 4 or 5 Certificate or Diploma in Housing, or a foundation degree from the Chartered Institute of Housing (CIH).
The CIH is working on offering flexible study options for professional qualifications and exemptions for those with the right skills and knowledge.
The act also features additional Housing Ombudsman powers to publish best practice guidance to landlords following investigations into tenant complaints. It also gives the RSH stronger economic powers to follow financial transactions outside of the sector to ensure probity.
The Department for Levelling Up, Housing and Communities (DLUHC) said the act will “drive forward significant change” in holding poor landlords to account. It said it places the needs of tenants at the “heart of government reforms” to improve the quality of life for those living in social housing across the country.
Mr Gove said: “Today is an important step towards righting the wrongs of the past. Our landmark laws will drive up standards of social housing and give residents a proper voice.
“The Social Housing Act will help to ensure that tenants get the safe, warm and decent homes they deserve – and those who have seriously neglected their responsibilities for far too long will face the consequences.
“Awaab’s Law will force social landlords to take immediate action on dangerous damp and mould as we introduce new strict time limits to fix their homes. I am incredibly grateful to Awaab’s family who have displayed such courage, dignity and leadership in pushing for change and securing these vital reforms.”
The act also makes changes to what activities the RSH can charge landlords fees for, ensuring it has the resources it needs to do its job.
DLUHC said that it expects future changes to fee-charging will see all social housing providers, both private registered providers and local authority landlords, paying for regulation costs.
This will include new consumer standards as well as other costs such as investigating when things go wrong, it said.
The regulator will shortly publish its consultation on new consumer standards to help protect tenants.
Fiona MacGregor, chief executive of the RSH, welcomed the introduction of the act, which she said will “empower tenants” and give the regulator “stronger powers to hold social landlords to account”.
Ms MacGregor said the regulator will launch its consultation on the new consumer standards next week (commencing 24 July).
“Our next step is to consult on the new consumer standards that landlords will need to meet, and we encourage tenants, landlords and others in the sector to have their say when we launch the consultation next week,” she said.
The RSH has previously said that it will expand its in-depth assessment from April next year to include consumer regulation, with quality of stock to be one of the “core regulatory focuses” within the new regime.
“We’re gearing up to start our new programme of regulatory inspections from next April, and landlords will need to demonstrate how they’re providing good-quality homes and services for tenants as well as meeting our governance and viability standards,” Ms MacGregor said.
Housing bodies also welcomed the introduction of the new act.
Gavin Smart, chief executive of the CIH, said: “We’re delighted to see that the Social Housing (Regulation) Act has now been passed and congratulate all involved in its development.
“The act will provide an important foundation for giving tenants a greater voice, improving access to redress and increasing the focus on professionalism in the sector.”
Kate Henderson, chief executive of the National Housing Federation, said: “We welcome the Social Housing (Regulation) Act and have worked closely with the government to support this legislation from the outset. It is essential that we strengthen powers to tenants and improve access to swift and fair redress.
“Housing associations are committed to taking the act forward and demonstrating transparency and accountability to their residents.
“Alongside stronger regulation, housing associations are committed to working with the government to address the severe shortage of social housing and helping to deliver a long-term plan, focused on delivering the homes the country needs over the next decade.”
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