CWAG Newsletter – June 2026

Government Watchdog to review quality of social housing

The National Audit Office (NAO) has announced that a research report into the quality of social housing is included in the 2026/27 work programme. The report will examine whether the reforms to the sector, and to the way it is regulated, are financially sustainable and likely to meet government’s aims for the quality of social housing.

The report will focus the following issues:

• How well the government (MHCLG) understands actual housing conditions and whether it has a clear and credible plan for improving these.
• Whether current regulatory arrangements are working effectively and as intended to ensure homes are safe and decent.
• Whether recent reforms (e.g. new standards, Awaab’s Law) are affordable and financially sustainable for landlords in the longer term.
• Effectiveness of regulation (including new consumer standards and safety requirements) in driving compliance and protecting tenants.
• The pace and scale of change and outcomes for tenants.

Consultation – VAT treatment of land intended for the construction of new social housing

HM Revenue & Customs and HM Treasury have published a joint consultation which looks at the VAT treatment of land intended for the construction of new social housing.

Through this consultation the government is seeking evidence on how the current VAT rules affect the feasibility and timing of social housing developments, and how the introduction of a new zero rate on the sale of bare land intended for social housing development might influence behaviour across the sector. The government is also seeking comments on the design of the proposed relief to inform the final design of the policy.

The consultation highlights that any relief will need to be targeted, effective and fiscally responsible. It must be genuinely supportive of social housing delivery whilst protecting vital tax revenues and minimising the scope for abuse.

Consultation closes 18 August 2026

The Housing Ombudsman has published three new reports:

Window Disrepair

This is the third report on window disrepair and related hazards in the ‘learning from severe maladministration’ series.  The report highlights a worrying pattern of “apathy” and delayed action on window repairs. Around 9% of window-related cases result in a finding of severe maladministration, much higher than the typical casework rate of 2%.

Main issues highlighted in the report:

• Window repairs are often subject to long delays and left unresolved for extended periods, sometimes lasting years despite clear risks to residents.
• Landlords frequently delay urgent works, deferring them to major works programmes which exposes residents to continuing hazards while waiting for long-term projects.
• Casework highlights failure to carry out proper risk assessments linking window related issues with other hazards including damp and mould, excess cold and structural issues.
• Landlords frequently ignore or fail to act on known vulnerabilities, and don’t adequately take into account the impact on residents.

 Handling of Pest Infestations

This report on findings from two “wider orders” on pest infestations involving different landlords.  One case related to pests accessing properties from communal areas, the other to a bed bug infestation within the property.

Both cases revealed failures in handling pest infestations, including:

• Delays which impacted residents, including children
• Poor escalation, limited treatment options, and inadequate compensation (e.g. bed bugs case)

• Common problems included unclear responsibility between landlord and tenant, poor record-keeping and reporting and weak coordination and oversight of contractors

The key learning points from these cases highlight the need for clear policies and responsibilities, proactive management along with good coordination and communication.

Pest hazards are expected to fall under Awaab’s Law, increasing scrutiny of landlord compliance in this area.

Continuous Learning

The latest insight report Learning from further investigations considers how root cause analysis can be used to better understand repeated failures and strengthen learning from complaints.

Complaints should be treated not just as individual cases but as intelligence which should be actively analysed to identify recurring patterns and diagnose systemic weaknesses.

Root cause analysis enables organisations to look beyond human error explanations to identify and address deeper organisational issues. You cannot reduce complaints or improve services without systematically understanding and fixing the root causes of failure across policies, processes, systems, and governance.

Government responds to HCLG Committee report on poor housing conditions in temporary accommodation

In April the Housing, Communities and Local Government Committee published a report on Housing Conditions in Temporary Accommodation which found that too many households are living in poor-quality temporary accommodation, with conditions that are unsafe and sometimes unfit for habitation. The report argued that temporary accommodation should be safe, decent, suitable, and genuinely temporary, and that government and councils needed to apply higher standards, stronger enforcement, and increase the supply of good quality accommodation to protect homeless households, especially children.

MHCLG has now published the Government’s response which acknowledges that too many households—particularly families with children—are living in poor‑quality temporary accommodation and frames this as part of a wider “broken system” of rising homelessness.

The response accepts many of the Committee’s concerns and commits to improving standards through its National Plan to End Homelessness (December 2025), which includes strengthening protections, extending the application of the Decent Homes Standard and Awaab’s Law to temporary accommodation, and taking wider action on other issues of concern such as ‘out‑of‑area’ placements.

The Government response restates its commitment to eliminating the use of bed and breakfast accommodation for families, except in emergencies. The government has also launched the first year of a three-year £30 million Emergency Accommodation Reduction Programme which seeks to end the illegal use of bed and breakfast accommodation for families by the end of this Parliament and improve the quality and suitability of temporary accommodation placements.

Regulator of Social Housing Updates:

More and Better Homes – Open call for evidence

The Regulator of Social Housing (RSH) has initiated an open call for evidence to inform a formal consultation on revising the economic standard which is expected in 2027.

Whilst the economic standard does not apply directly to local authorities, the issues raised in the consultation signal a significant shift in regulatory expectations with potential implications for council business planning.

The RSH is signalling a shift to a more interventionist and outcome focussed regulatory regime which aims to ensure the sector can scale up the supply of new homes whilst maintaining quality and stability within the existing social rented stock.

Key themes

• Expectation that social housing remains the core organisational activity with potentially greater scrutiny of diversification and non-social housing activities.
• Increased scrutiny of business planning.  The RSH will be seeking to ensure that financial capacity is channelled into homes delivered and improved with business plans tested against actual delivery, not just financial metrics.
• Renewed emphasis on maximising value from limited resources. Landlords will need to demonstrate improved cost efficiency, better asset management and justify investment decisions around newbuild versus existing stock.
• New emphasis on being able to ‘fail safely’ without risk to tenants’ homes has implications for governance, assurance and oversight arrangements.

Call for evidence closes 30 September 2026

Independent Review to evaluate the impact of consumer regulation

The RSH has appointed an independent research consortium to carry out an evaluation of recent consumer regulation changes.  The evaluation will be carried out by a research consortium comprising RAND Europe, Shared Intelligence and the Cambridge Centre for Housing and Planning Research. The project will span more than two years, with the final report expected to be published in 2028.

Other Publications

Renew Interim Report – Unlocking 500,000 good quality homes in the North – Northern Housing Consortium (NHC)

This Northern Housing Consortium report makes the case for housing‑led regeneration to deliver new homes, revitalise communities and deliver economic growth across the North. This is an ambitious project that seeks to re-establish regeneration as a key priority and driver within housing policy.

The report sets out a roadmap for government and the sector, highlighting that without long-term funding and structural reform, large-scale regeneration and the associated expansion in housing supply, will not be achievable.

Key recommendations

• Long-term devolved funding through a 10-year Place Based Regeneration Fund for mayoral authorities to provide the certainty required to unlock complex regeneration schemes.
• Appoint a Minister for Regeneration to co-ordinate activity across government and ensure alignment between housing, planning and growth policies.
• Establish a National Centre for Regeneration to strengthen local delivery capacity, skills and innovation.
• Devolve powers to mayoral and local authorities to lead regeneration and enable place based, locally tailored solutions to housing need.
• Strengthen resident engagement and trust through clear standards and rights for residents involved in regeneration schemes.
• Recognise and address financial viability barriers e.g. low land values and high remediation costs.

Clearing the Decks: Tackling Energy Debt to Lower Bills – June 2026

This policy paper published by National Energy Action sets out the case for expanding Ofgem’s Debt Relief scheme to restore stability, reduce anxiety, improve wellbeing, and enable households to re-engage with their energy use and wider support. Clearing energy debt would also reduce costs for all consumers as debt-related costs currently add around £50 to £70 per year to typical bills. Bringing down overall levels of debt would reduce these costs, delivering ongoing bill savings across households.

Procurement – the price we pay, and the path to improvement (June 2026)

This Housing Forum report sets out how councils and housing associations are paying more than private developers to build new homes due to slow and overly complex procurement processes. This new report argues that reforming procurement practices represents one of the quickest and most practical ways for councils and housing associations to improve delivery and reduce costs within their control.

Diary Dates

Finance and Business Planning Meeting – Thursday 16^th July 2026 (9.30 – 12.00)

Steve Partridge – Savills Director of Housing Consultancy will be leading this event for finance officers and others with an interest in HRA strategy and business planning.

2026 CWAG Annual General Meeting

This year the CWAG Annual General Meeting will be on Thursday 1st October 2026. Further details will be available in due course.