CWAG Newsletter – July 2023
This Update includes the following
Learning from the First Round of Consumer Regulation Inspection Pilots
Many CWAG members attended the recent NFA webinar where we were able to hear directly from the Regulator of Social Housing (RSH), Eastbourne Council and their ALMO Eastbourne Homes about the experience and learning from the participation in the first round of Consumer Regulation Pilot inspections.
There was plenty of advice for those preparing for the new regime, notable was the ‘crumbs of comfort’ message from Richard Tomkinson from Lewis and Eastbourne councils who indicated the inspection had been a ‘generally positive experience’ and very different from the Audit Commission inspections of the past. However, he did caveat this with details of the very extensive preparatory work both the Council and ALMO have undertaken, with virtually every aspect of the service having been subject to detailed scrutiny and review since the 2018 Social Housing Green Paper .
Angela Holden, RSH Assistant Director, set out some key lessons from the pilot inspection programme and recent casework, signposting key areas landlords need to focus on in preparing for proactive consumer regulation and inspection.
Inspections will be tailored and specific to each organisation, focussing on key risks identified from a range of different sources such as the document review, Tenant Satisfaction Measures and Ombudsman complaints. There will be an explicit focus on resident safety, transparency, accountability, and service outcomes for tenants.
Tenants voice and accountability
The Regulator is particularly keen to understand how an organisation hears the voice of its tenants and inspectors will seek to engage directly with tenants using a variety of formats.
Questions:
- How do you evidence that as an organisation you hear the tenants voice?
- Does the organisation respond to tenant concerns and do tenants have confidence the organisation will respond appropriately when issues are raised?
- Are there differential satisfaction rates between different areas and demographics and how is the landlord responding?
Governance arrangements
Whilst it is the council as landlord that has responsibility for performance, the Regulator will be seeking to understand the chain of governance and where key responsibilities sit, and particularly whether the arrangements enable the organisation to respond to early warnings when things are going wrong.
The Regulator will be keen to review that arrangements and mechanisms are in place to ensure the oversight of contractors and engagement with tenants and that systems deliver transparency when things are going wrong.
In terms of ALMO involvement with inspections, the Regulator will focus on how operational decisions are made which may include attendance at the ALMO Board.
Key Question:
- How do you know that key outcomes and compliance are actually being achieved?
Data and Systems
The Regulator will be looking for evidence of challenge to ensure that systems and processes are robust and able to deal with non-standard issues and stresses. Inspections will focus on outcomes and assurance and how these are evidenced, for example, can the landlord evidence compliance with key policies and legislation. Good quality data is vital.
Following recent work on the extent of disrepair, damp and mould in the stock, there is likely to be a particular focus on stock condition and whether the landlord has relevant and up to date data to understand and plan for the investment priorities of the stock. Further guidance on stock condition surveys and requirement is planned as part of the new consumer standards.
Questions
- What arrangements are in place to assurance test key data, record keeping arrangements and protocols?
- Are systems and processes fit for purpose?
- Is key data readily available to evidence service outcomes, investment priorities, complaints handling etc?
Homes England announces changes to funding rules.
On 27th June 2023 Homes England announced changes to the Affordable Homes Programme 2021 -26 to allow funding of replacement homes alongside new affordable homes, as part of wider estate regeneration plans.
The change will allow grant funding to be used to replace outdated and substandard homes as part of estate renewal projects, an important step towards delivering improvements in the quality of accommodation and energy efficiency.
According to Peter Denton, Chief Executive of Homes England this change ‘is a real opportunity to accelerate the regeneration of social housing and help level up communities across the country’.
The change will come into effect immediately.
Social Housing (Regulation) Bill Update
The Social Housing (Regulation) Bill is now approaching the end of its legislative journey.
The Bill received its 3rd Reading in the House of Lords on 27th June 2023. This resulted in the Lords putting forward an alternative wording for the professionalisation amendment. The new version seeks to clarify that the professionalisation requirements set out in the Bill will also apply to managing agents (and therefore to ALMOs). Ensuring that the wording achieves the anticipated outcomes and doesn’t inadvertently ‘catch’ other roles and post holders is a key issue. According to government estimates, around 25,000 housing managers will be impacted by the change.
The Bill has therefore entered a process known as ‘ping pong’ where it is passed rapidly back and forth between the House of Commons and House of Lords until agreement on the exact wording is achieved.
Following this the Bill will move forward for Royal Assent.
Recent Publications
Damp and Mould in Social Housing – Learning the Lessons (June 2023)
This report by the Regulator of Social Housing draws on the survey work carried out following the coroner’s report into the tragic death of Awaab Ishak in Rochdale.
The report sets out how social landlords are approaching the tackling of damp and mould in their tenants’ homes and highlights the features of the strongest and weakest approaches, so that landlords can learn lessons from others in the sector.
The key findings are:
- Better performing landlords manage their data well. They have accurate and up-to-date information about tenants’ homes, and they use it to find and resolve problems proactively.
- Strong oversight from boards or councillors is essential. They should gain assurance that landlord management teams are responding effectively when tenants raise concerns.
- Some boards and councillors had limited oversight of the condition of tenants’ homes, and in some cases they didn’t have specific processes for identifying and tackling damp and mould.
English Housing Survey: local authority housing stock condition modelling (June 2023)
These statistics from the English Housing Survey provide sub-regional estimates of housing stock condition for the first time ( covering Decent Homes and HHSRS Category 1 hazards)
The paper provides estimates by local authority area of the number and proportion of occupied homes that are deemed non decent according to the DH Standard / or unsafe due to a Category 1 hazard (HHSRS) by tenure and dwelling type.
This is modelling data and therefore aimed at highlighting wider trends and issues rather than as a specific tool for policy making at a local level. It does however show local authorities where housing quality might be poorer/ worse than average and how quality might vary by tenure and dwelling type.
The data is presented as a series of colour coded maps.
Better Places – A Matrix for Measuring and Delivering Placemaking Quality (June 2023)
This Policy Exchange Report follows up on ideas in the 2020 report of the Building Better, Building Beautiful Commission ‘Living with Beauty: promoting health, wellbeing and sustainable growth’ which was endorsed by government. It proposes a new tool or Placemaking Matrix, that can be used to score the placemaking characteristics and qualities of proposed and existing developments. The report suggest that the tool could be used when determining planning permission, providing a quantifiable baseline measurement of placemaking features that are often difficult to capture early in the development process. The underlying objective is to improve housing quality and create better places.
Why we need a long-term plan for housing – National Housing Federation (June 2023)
This NHF report sets out the case for a long-term plan to end the housing crisis and how this would improve the health, income and life chances of millions of people and drive economic growth, jobs, and prosperity. The aim is to challenge all political parties when setting out their priorities for the General Election next year to commit to a long-term and measurable plan to tackle the housing crisis and deliver decent, affordable housing.
Diary Date – CWAG Annual General Meeting
The CWAG AGM will take place over Teams on Thursday 28th September 2023 (10.00 – 12.00). Further details will be circulated shortly.
CWAG Newsletter – June 2023
This Update includes the following
Renter’s (Reform) Bill 2023
The Renters (Reform) Bill published on 17th May 2023 aims to tackle issues in the private rented sector in England. It includes a number of the measures set out in the June 2022 White Paper ‘A fairer private rented sector’ as well as fulfilling the 2019 Conservative Manifesto commitment to abolish so called ‘no fault’ evictions in England.
The Bill includes the following measures:
- The abolition of assured shorthold tenancies and with them, Section 21 ‘no fault’ evictions. Tenancies in the private rented sector will become more secure monthly periodic assured tenancies with no end date.
- The grounds on which landlords can seek to repossess properties will be amended and strengthened so landlords can still recover their property (including where they wish to sell or move in close family) and to make it easier to repossess properties where tenants are at fault, for example in cases of anti-social behaviour or repeated rent arrears.
- Stronger protections against backdoor eviction by ensuring tenants can contest excessive above -market rents increases which are purely designed to force them out. Landlords will still be able to increase rents to market level, however tenants will be able to appeal to an independent tribunal which will determine the market rent of the property.
- The creation of a new Private Rented Sector Ombudsman which will provide fair, impartial, and binding resolution to many issues and prove quicker, cheaper, and less adversarial than the current court system.
- A Privately Rented Property Portal will be set up to help landlords understand their legal obligations and demonstrate compliance. It will also provide better information to tenants, helping them make informed decisions when entering into a tenancy agreement. It will also support local councils’ enforcement activity.
- Tenants will have the right to request a pet in the property, which the landlord must consider and cannot unreasonably refuse. To support this, landlords will be able to require pet insurance to cover any damage to their property.
Other commitments from the White Paper not been included in this Bill:
- To apply the Decent Homes Standard to the private rented sector.
- To make it illegal for landlords and agents to have blanket bans on renting to tenants in receipt of benefits or with children.
- Strengthen local councils’ enforcement powers and introduce a new requirement for councils to report on enforcement activity – to help target criminal landlords.
Further legislation is planned to implement changes in these areas.
Housing Ombudsman Spotlight Report – Knowledge and Information Management
This latest spotlight report from the housing ombudsman is a major wake-up call for the sector highlighting widespread poor practice in record keeping and data management with major implications for service delivery.
Poor information management is a reoccurring theme in the Ombudsman’s casework, often slowing down investigations as landlords are unable to provide background information and evidence relating to cases. According to the report ‘complaints can be an exceptionally strong indicator of data gaps and information mismanagement’.
Accurate records and data management are the essential starting point; if the input data is poor, incorrectly recorded or the management systems inadequate, any use made of this data will be inherently flawed.
Service failures are generally linked to missing, inaccurate or misused resulting in a lack of appropriate responses and timely action. Using data from 2022/23, the report highlights a series of case studies to demonstrate key areas of poor performance and the consequent negative impact on residents. Examples include a disabled woman left without a suitable toilet for more than a year, and a resident having to endure water ingress for eight years because the landlord did not have a system to record customer communications. Another case involved a man losing 14 days annual leave because of appointment failings by the landlord.
Translating information and data into usable knowledge, insights, and action plans is vitally important and has a key role in governance providing assurance and contributing to business and financial planning. Interestingly, the report notes that even where a landlord has fulfilled its obligations, if it doesn’t have the data to evidence this, it is professionally vulnerable.
The report highlights the importance of governance and organisational culture to encourages clear expectations and management standards, with systems underpinned by clear quality assurance measures and performance management.
The report makes 21 detailed recommendations.
Social Housing Regulation Bill
The Bill is currently in ping-pong, having completed the Commons Report Stage on March 1st. The next stage on 27th June 2023 is the Consideration of Commons Amendments by the House of Lords. Once completed, the Bill is expected to receive Royal Assent before the end of this Parliamentary Session.
The Bill includes two late amendments:
Professionalisation: a requirements for senior housing managers and senior housing executives to hold or be working towards a Level 4 or 5 housing management qualification. This is in addition to measures already introduced through the Bill for new ‘competence and conduct’ regulatory standards.
‘Awaab’s Law’: setting timeframes for landlords to investigate and repair hazards in tenant’s homes.
Once the Bill achieves Royal Assent the way will be clear for the RSH to consult on the detail of the new consumer regulation regime.
Looking ahead
Other linked consultations planned for later in the year include:
- Consultation on time limits for repairs (Awaab’s Law)
- Consultation on minimum energy efficiency standards
- Consultation on professionalisation, competence and conduct standards
- Consultation on the future of the rent standard and call for evidence on a catch-up mechanism following rent cap applied in 2023
- Consultation on updated Decent Homes Standard proposals
Recent Publications
Critical Friends: What tenant scrutiny brings to landlord performance – NFA April
This timely NFA Report focuses on the importance of tenant scrutiny as a key tool in good housing management within the ALMO sector which is even more relevant as the Regulator of Social Housing will include feedback from tenants in its new inspections regime.
This report goes beyond a review of current scrutiny models approaches employed within the ALMO sector. The authors have spoken to tenants who are involved in scrutiny to understand why they do it and what makes it work. Much of the feedback comes down to the relationship they have with their landlord, based on honesty, trust, openness, good communication and organisational follow through that recognises the value of the work of scrutiny panels to the organisation.
Download a copy of the report here.
The NFA has also published their Annual Review, and Annual Survey which provide an interesting overview of the current state of play in the ALMO sector.
Diary Date – NFA Webinar
The NFA is holding a webinar on Wednesday 21st June 2023 on ‘Regulating Consumer Standards and learning from pilot inspections’. Now that the RSH has has completed the first round of pilot inspections across the country, there is an opportunity to take stock. This is an opportunity hear from the only council with an ALMO to be inspected so far. The event is open to CWAG members. Further details
CWAG Newsletter – April 2023
This Update includes the following
CWAG Members Survey 2023
This year the annual members survey focussed on how councils and their ALMOs are responding to the introduction of enhanced consumer regulation. The survey aimed to explore how different organisations are preparing for the changes, highlighting the specific issues and challenges involved, with the aim of identifying key trends and sharing good practice.
The survey response rate was 86%. Survey returns provide useful insights into the sector’s preparations in advance of new regulatory arrangements which are due to go live in April 2024. The CWAG Client Officer Group will be reviewing the survey in more detail at their next meeting. In the meantime if you would like more information on the survey, please contact the Policy Officer.
Set out below are some of the headline findings from the survey:
Survey Findings
1. ALMO Reviews
Most CWAG member councils have reviewed or are planning to review their ALMO management arrangement. Reviews are generally focused on ensuring council and ALMO services are better aligned, with responsibilities and reporting lines clearly defined.
- 16% of respondents are currently undertaking a review of the ALMO,
- 74% of respondents reported a recent or planned ALMO review,
- 10% of respondents are not planning a review at this time.
2. Changes to the Client Team
42% of respondents are recruiting additional staff to strengthen the client team whilst others reported that they are reassessing client-side resources and current roles, including how existing staff are deployed.
Virtually all authorities reported that they are reviewing and augmenting data collection and reporting arrangements. Issues include enabling real time reporting and regularising enhanced senior level scrutiny and oversight arrangements.
Some councils are reviewing certain functions currently delegated to the ALMO, but this is not a general trend.
3. Changes to reporting and accountability structures
Authorities are also reviewing existing systems and reporting arrangement, making changes to improve information flows, oversight, and assurance. Councils are looking critically at each element of performance and how they are getting assurance.
Current examples include:
- Specialist governance and systems reviews
- Additional internal audit checks with a focus on consumer standards
- Bringing KPIs into alignment with TSMs
- Additional information and reporting for Council Members
- New Council /ALMO structures to review key elements of performance.
- Use of council scrutiny and audit panel
4. Collection of Tenant Perception Information for TSMs
The survey highlights different approaches to the collection of tenant perception information. 61% of respondents indicate that this exercise will be undertaken by a specialist contractor. Arrangements vary with some councils leading on the commissioning arrangements in partnership with the ALMO whilst others have fully delegated this activity to the ALMO.
5.Preparation for In-Depth Assessments (IDAs)
78% of respondents indicated that they have used the checklist from the CWAG/NFA report ‘Excellence in management and partnership’ to review their current arrangements in preparing for changes to regulation.
26% of respondents have commissioned an external ‘health check’ as part of their IDA preparations.
Parliamentary Committee to investigate financial sustainability of social housing sector
On 28th March 2023 the Levelling Up Housing and Communities Committee launched an enquiry, including a call for evidence, into the financial resilience of the social housing sector in England.
This follows the Committee’s earlier ‘Regulation of social housing’ report (July 2022) which identified evidence of ‘appalling and unsafe’ conditions in some social housing. The aim of this enquiry is to examine the financial resilience and resources available to the sector given the increasingly challenging operating environment.
Issues that will be considered include the impact of inflation, high energy costs and other funding challenges. Social landlords are facing significant pressures to increase investment in the maintenance and improvement of their existing stock. A key concern is the extent to which tackling issues such as damp and mould, energy efficiency, fixing defects and delivering on new building and fire safety regulations will impact on the delivery of much needed new affordable homes.
The enquiry will also consider the policy and regulatory challenges facing DLUHC and the Regulator of Social Housing in ensuring policy on social and affordable housing is appropriately focussed and adequately addressing the diverse issues and challenges facing the sector.
Call for evidence – submissions to the Enquiry can be made up to 12th May 2023.
Older Person’s Housing Taskforce
Proposals for an Older Persons Housing Taskforce set out in the Levelling Up White Paper (February 2022) look set to get underway with the recent appointment of Professor Julienne Meyer, a leading expert on care for older people as the taskforce Chair.
The new taskforce will run for around 12 months; it will report and make recommendations to Government on improving the choice, quality, and security of housing for older people. It will also consider evidence relating to regional disparities in the supply of appropriate and specialised housing for older persons.
The taskforce will bring together expertise from the social housing and retirement sector, local government, health, and adult social care as well as investment specialists and developers.
4 Million Homes Programme
Following the earlier Make Things Right campaign, the 4 Million Homes Programme is a further DLUHC funded initiative which aims raise tenant awareness of their rights and rebalance power between residents and landlords.
Programme publicity emphasises that it will help tenants stand up for their rights and where necessary provide guidance on how to deal with difficult landlords. Tenants will also gain knowledge on how to form and get involved in residents groups to influence and shape the services they pay for.
The programme will provide information, guidance, and training on residents rights. Training events will begin in May 2023 and run over 24 months starting with ‘Exploring your right to engage and be heard’, advising residents of their rights and how to make complaints.
The campaign website www.fourmillionhomes.org signposts guidance, training events and webinars.
Diary Date - Finance and Business Planning Meeting – Tuesday 6th June 2023
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. This will be an interactive meeting focussing on issues for the next budgeting and business planning round.
The event is a free event that is open to CWAG members – please note the date in your diary. Booking arrangements will available shortly.
Recent Publications
Research into Expenditure within the Housing Revenue Account - LGA, ARCH, NFA
This is the third and final Savills research report commissioned by the LGA, ARCH and the NFA as part of a wider examination of the financial issues and pressures facing Housing Revenue Accounts. The report looks in detail at the specific factors currently driving the growing disparity between available resources and increasing financial demands. The report highlights the vulnerability of HRAs which are likely to move into deficit over the next couple of years.
The report is available to download from the NFA website.
Progress Update – Social Housing Regulation Bill
The Bill will provide the legal basis for implementing measures in the 2020 Social Housing White Paper. The intention is to empower residents, provide greater redress, better regulation and improve the quality of social housing. By strengthening the regulatory regime for social housing, the Bill aims to ensure landlords are held to account for their performance and focus more effectively on addressing the needs and concerns of tenants.
The Bill started out in the House of Lords in June last year, completing first and second readings in the House of Commons by November 2022. The Bill has now reached its third reading in the House of Commons (having already completed its third reading in the Lords). At this stage no further amendments can be made to the Bill. The final stage of the legislative process will see the Bill returned to the Lords for a final debate and consideration of amendments. Royal Assent is expected before the end of the current Parliamentary session.
Important amendments added to the Bill:
Awaab’s Law
On 9 February 2023, the Secretary Of State introduced an amendment known as ‘Awaab’s Law’, which will require landlords to investigate and fix damp and mould in their properties within specified timeframes. A consultation will be held later this year to set the timeframes within which landlords will have to investigate hazards and make repairs.
Professionalisation
The Bill will introduce new rules intended to protect residents and raise standards in the sector. Managers in the social housing sector will in future be required to have a minimum set of professional qualifications.
Amendment 47 requires the regulator to set out professional standards ensuring that those with management responsibilities within the social housing sector have, or are working towards getting, professional qualifications.
The change is intended to bring social housing into closer alignment with other sectors such as social work, teaching and health.
Complaints and the Housing Ombudsman
The Bill identifies a new responsibility on the Regulator of Social Housing (RSH) to set standards for providers on the handling of complaints. In addition, the Housing Ombudsman will be granted powers to issue and publish guidance on good practice in the sector.