Source · Select Committees · Housing, Communities and Local Government Committee
Recommendation 15
15
Accepted
New regulatory compliance costs risk limiting investment in new social homes
Conclusion
While we welcome the steps the Government has taken to rebuild the sector’s financial capacity, a lot of the extra rental income social landlords receive could be absorbed by the new compliance costs placed on them, thereby limiting their ability to invest in new social homes. Even with the Government’s investment in social homes and the changes to the rent settlement, we concerned that the sector will not have sufficient resources to effectively meet the Government’s new social homes target while also raising standards over the decade. (Conclusion, Paragraph 63) 47
Government Response Summary
The government highlights existing programmes and investments aimed at improving the safety, quality, and supply of social housing, including rent policy, building safety funding, low-interest loans, and the Warm Homes: Social Housing Fund.
Government Response
Accepted
HM Government
Accepted
27. In order to deliver a ‘Decade of Renewal for social and affordable housing’, we are focused on delivering transformational and lasting change in the safety and quality of homes, alongside the biggest increase in supply in a generation. Within this, we are committed to rebuilding the financial capacity of housing associations and councils. We have set a long-term rent policy for social housing, announced over £1 billion of building safety funding between 2026/27 and 2029/30 to accelerate remediation of social housing, announced £2.5bn of low-interest loans for private registered providers and the Warm Homes: Social Housing Fund has allocated £1.29 billion over 2025–28 to support social landlords make energy efficiency improvements to their homes. 28. The Decent Homes Standard Final Impact Assessment, published on 28 January, and social housing MEES Impact Assessment, published on 1 April, set out potential impacts on the supply of new social housing. Reforms are expected to deliver meaningful improvements for tenants but will also place significant new obligations on landlords. That is why social landlords will be required to meet the new DHS by 2035 at the latest, an implementation timeline that gives them the time and the certainty they need to boost housing supply as well as drive up the quality of the homes they manage. Though we recognise that reforms are substantial, they are designed to be complementary, for example work done to meet MEES and the new DHS will reduce damp and mould in homes and therefore the need for emergency repairs to take place under Awaab’s Law. 29. Government is of course aware that there will be some unavoidable cases where landlords either cannot or should not comply with the standard, for example where it is prohibitively hard or impossible. We have set out, in the response to the Decent Homes Standard consultation, how these circumstances will be addressed and will provide further guidance in due course. This proportionate approach will help mitigate the risk of disposal.