This Update includes the following
Government demands action to drive up standards in rented housing
The coroner’s verdict that the tragic death of Awaab Ishak was caused by prolonged exposure to mould in his parents’ Rochdale flat has prompted Secretary of State Michael Gove to seek wider assurances from local authorities and social landlords that risks relating to mould and damp in tenanted homes are being addressed.
On 19th November 2022 Michael Gove wrote to all social housing providers reminding them of that they must meet the Decent Homes Standard and be aware of, and carry out rapid remedial works to, any properties that do not. Landlords are expected to know the extent of damp and mould issues in their stock and be addressing these.
A follow up letter from the Regulator of Social Housing seeks specific assurances that all providers have a clear understanding of the nature and extent of damp and mould issues in their homes with detailed survey information confirming the position to be submitted to the Regulator by 19th December 2022. Where properties do not meet the relevant standards there should be immediate self-referral to the Regulator.
A further letter to all local authority Chief Executives and council leaders references local authority duties toward tenants in the private rented sector as set out in the Housing Act 2004. The Secretary of State has issued a direction that local authorities urgently review and report back on categories 1 and 2 damp and mould hazards affecting privately rented properties in their areas. In addition, authorities are required to supply data on enforcement action and prosecutions in the past three years.
On 24th November 2022 the Secretary of State issued a press notice further reinforcing the government’s determination to hold landlords to account for the condition of their homes. This included the following measures:
- Rochdale Boroughwide Housing, the landlord in the Awaab Ishak case, will not receive allocated Affordable Homes Programme (AHP) funding until the Regulator of Social Housing has completed its investigation and the landlord can prove it is a ‘responsible’ landlord.
- The Secretary of State will also block any housing provider that breaches the Regulator’s consumer standards from receiving new AHP funding and will consider stripping providers of existing AHP funding, unless construction has already started on site.
- A government funding package totalling £14million was announced for 7 areas with high levels of poor quality private rented homes to test out new approaches to driving up standards in the PRS.
Chancellor sets rent cap at 7% in Autumn Statement
As part of the Autumn Statement on 17th November 2022 the government announced the outcome of the Social Housing Rents Consultation with the rent cap for 2023 set at 7% but with an exception for supported housing. Registered Providers of social housing have the flexibility to apply a lower increase, or to freeze or reduce rents, if they wish to do so.
The 7% figure is higher than suggested in the earlier consultation paper where a cap of 5% was the suggested option. The higher figure has been presented as an attempt by government to strike a balance between protecting tenants from high rent increases and ensuring that Registered Providers of social housing remain financially viable.
The government intends to consult separately next year on social housing rent policy from 2025 onwards. To inform this, DLUHC will launch a call for evidence on whether social landlords should be permitted, gradually over time, to bring rents back up to the level they would have been had 7% cap not been applied. Other factors including affordability for tenants and welfare expenditure will also be taken into account.
Retrofit Credits scheme
A new scheme developed by the Housing Association Charitable Trust (HACT) in partnership with Arctica Partners may be of interest to councils putting together funding packages for energy efficiency and decarbonisation works.
Retrofit credits is a UK based carbon credits scheme that enables organisations to offset their carbon emissions by investing in social housing. The scheme involves using a tested methodology to measure both the carbon savings and social value created through retrofit activity. To ensure the environmental integrity of the issued credits, the scheme has been developed under the Verified Carbon Standard, the world’s leading certification programme for emission reduction projects.
It is anticipated that the scheme has the potential to generate significant funding for retrofit schemes in social housing. The scheme is currently being piloted but will be formally launched in 2023.
More information is available in the prospectus document and frequently asked questions.
Housing Ombudsman call for evidence on record keeping
The Housing Ombudsman has announced that its next systemic investigation and Spotlight Report will look at record keeping and data management around complaints handling. This reflects a concern that poor record keeping is a key factor in 67% of maladministration determinations.
A call for evidence has been issues that seeks to understand more about current barriers to effective information management on complaints.
The aim is to share best practice around record keeping and data handling and help landlords develop policies and procedures that are consistent and effective and improve the experience of all residents.
Diary Dates
CWAG Client Officer Group – Monday 12th December 2022
CWAG members interested in setting up a networking group to discuss issues relating to the managing the ALMO client role including performance, regulation, and assurance issues will be meeting to discuss Terms of Reference for the group and agree an initial programme of issues for review. Contact the Policy Officer for further details.
LGA Building Safety Webinar – Monday 19th December 2022 (1p.m – 3p.m)
The LGA is hosting a further building safety webinar that will provide updates on councils’ responsibilities as landlords/ALMO overseers in respect of the new Building Safety regime, the Fire Safety Act and new fire safety regulations arriving in January. This is a free event open to council / ALMO officers with an interest in the new building safety regime and the Fire Safety Act. To book use link
CWAG Finance and Business Planning Meeting – 24th January 2023 (10.30a.m – 12.30p.m)
Steve Partridge - Savills Director of Housing Consultancy will lead this event which will focus on current finance and business planning issues including the implications of the recently announced rent cap, inflation and other pressures on the HRA. The meeting will be of particular interest to finance officers, and anyone involved in HRA strategy and business planning. The event is open to CWAG members - to book a place, please contact the Policy Officer.
Recent Publications
Sector Risk Profile 2022 – Regulator of Social Housing (RSH)
This RSH report sets out the most significant current risks to maintaining compliance with the regulatory standards and is essential reading for social housing providers facing an increasingly complex operating environment, reducing resources and a growing list of priorities. Read Report
Decarbonising Social Housing – Lessons from the ALMO Sector
The National Federation of ALMOs (NFA) has just published a new report which examines the decarbonisation challenge facing the sector alongside seven case studies which illustrate various approaches ALMOs are taking to decarbonise the stock and make tenants homes more energy efficient. It also sets out recommendations for government and policymakers to support housing providers in moving forward on the decarbonisation agenda.