Source · Select Committees · Housing, Communities and Local Government Committee
First Report - The Regulation of Social Housing
Housing, Communities and Local Government Committee
HC 18
Published 20 July 2022
Recommendations
2
Acknowledged
Para 18
Whatever the extent and causes of housing disrepair, we call on everyone in and connected...
Recommendation
Whatever the extent and causes of housing disrepair, we call on everyone in and connected to the social housing sector to work together and prioritise above all else the quality of housing being provided to existing tenants.
Government Response Summary
The government agrees the sector needs to prioritize the quality of housing and states that their messaging to the sector has been unequivocally strong and clear on this issue.
Ministry of Housing, Communities and Local Government
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5
Not Addressed
Para 30
To reduce the social housing sector’s reliance on outdated stock, we recommend that the Government...
Recommendation
To reduce the social housing sector’s reliance on outdated stock, we recommend that the Government introduce funding specifically for regeneration that does not require the delivery of net additional housing and deliver on its commitment to increase the supply of …
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Government Response Summary
The response focuses on setting clear outcome-based expectations for registered providers and seeking assurance that they are achieving them, but it does not address the specific recommendations regarding funding for regeneration or amending the Affordable Homes Programme.
Ministry of Housing, Communities and Local Government
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6
Not Addressed
Para 31
To prevent the further erosion of the social housing stock, we urge the Government to...
Recommendation
To prevent the further erosion of the social housing stock, we urge the Government to set out how it plans to fully fund the one-for-one and like-for-like replacement of every home sold under the proposed extension of the statutory right …
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Government Response Summary
The response focuses on setting clear outcome-based expectations for registered providers and seeking assurance that they are achieving them, but it does not address the specific recommendations regarding funding for regeneration or amending the Affordable Homes Programme.
Ministry of Housing, Communities and Local Government
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8
Para 37
We recommend that the Government provide an update on social housing providers’ access to funds...
Recommendation
We recommend that the Government provide an update on social housing providers’ access to funds for building safety remediation and commit to ensuring they have exactly the same access to funds as private landlords. It should also provide an assessment …
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Ministry of Housing, Communities and Local Government
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10
Para 41
We urge all providers of social housing to support tenants who, through no fault of...
Recommendation
We urge all providers of social housing to support tenants who, through no fault of their own, cannot heat or ventilate their homes properly. This support should include the provision of dehumidifiers and mechanical ventilation systems to deal with condensation …
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Ministry of Housing, Communities and Local Government
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12
Accepted
We recommend that housing providers put in place systems for regularly monitoring the condition of...
Recommendation
We recommend that housing providers put in place systems for regularly monitoring the condition of their stock, rather than relying on tenants to report problems. We also 70 The Regulation of Social Housing recommend that, as part of its review …
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Government Response Summary
The government agrees it is imperative that providers understand the condition of their stock, referencing the Consumer Regulation Review 2021/22 and highlighting the importance of good quality stock condition data and accurate reporting of compliance with the Decent Homes Standard (DHS).
Ministry of Housing, Communities and Local Government
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14
Deferred
Para 63
We call on social housing providers to take stigma and discrimination seriously, not to assume...
Recommendation
We call on social housing providers to take stigma and discrimination seriously, not to assume its staff are immune from such prejudices, and to ensure their boards better reflect their communities. We also encourage them to make every effort to …
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Government Response Summary
The government states it is considering how requirements on diversity among boards and senior management will be set in a future suite of consumer standards and how they might proactively regulate them, with a consultation planned for 2023.
Ministry of Housing, Communities and Local Government
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16
Deferred
Para 68
We recommend that, as part of its review of the consumer standards, the Regulator of...
Recommendation
We recommend that, as part of its review of the consumer standards, the Regulator of Social Housing amend the tenant involvement and empowerment standard to require providers to support the establishment of genuinely independent tenants and residents associations, including by …
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Government Response Summary
The government is considering how requirements will be set in a future suite of consumer standards, and how they might proactively regulate them; a consultation is planned for 2023, subject to enactment of the Social Housing (Regulation) Bill.
Ministry of Housing, Communities and Local Government
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18
Acknowledged
Para 76
We urge the Government and the Regulator of Social Housing to work together to ensure...
Recommendation
We urge the Government and the Regulator of Social Housing to work together to ensure the TSMs and the access-to-information scheme are implemented in such a way that tenants can have confidence in their reliability and effectiveness as a means …
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Government Response Summary
The government has published a final suite of TSMs, which they will use as a source of regulatory intelligence, and they intend to review their TSM requirements at an appropriate point after implementation.
Ministry of Housing, Communities and Local Government
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20
Para 82
We recommend that the Government establish the Social Housing Quality Resident Panel on a permanent...
Recommendation
We recommend that the Government establish the Social Housing Quality Resident Panel on a permanent basis as the national tenant voice body that tenants representatives have been calling for. The Government should send the strongest possible signal to tenants that …
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Ministry of Housing, Communities and Local Government
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23
Acknowledged
Para 97
We urge all social housing providers, especially the larger ones, to prioritise putting the tenant...
Recommendation
We urge all social housing providers, especially the larger ones, to prioritise putting the tenant at the centre of how they deliver housing services, including by relying far less on impersonal and remote methods of communication and increasing the number …
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Government Response Summary
The government states that the overall intention for the new standards will remain to set clear outcome-based expectations, and that registered providers and their tenants are enabled to design the most appropriate way to meet their outcomes according to the needs of their tenant base.
Ministry of Housing, Communities and Local Government
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25
Not Addressed
We call on the Government to provide an update on the progress of its review...
Recommendation
We call on the Government to provide an update on the progress of its review of qualifications and professional training in the social housing sector, including a timeline for implementation of any new qualifications. (Paragraph 103) The Housing Ombudsman
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Government Response Summary
The response states that they look forward to continuing to work with tenants and other stakeholders as they develop a new proactive consumer regulation regime, but does not provide an update on the progress of its review of qualifications and professional training in the social housing sector, including a timeline for implementation of any new qualifications.
Ministry of Housing, Communities and Local Government
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29
We recommend that the Government legislate through the Social Housing (Regulation) Bill to place a...
Recommendation
We recommend that the Government legislate through the Social Housing (Regulation) Bill to place a legal requirement on social housing providers to self-assess against the Housing Ombudsman’s complaint handling code and to report to the ombudsman when they have done …
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Ministry of Housing, Communities and Local Government
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34
Para 126
The Government must commit to ensuring social housing tenants get the same levels of compensation...
Recommendation
The Government must commit to ensuring social housing tenants get the same levels of compensation it has said tenants in the PRS will be entitled to under its proposals for a new ombudsman. We recommend it does this by amending …
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Ministry of Housing, Communities and Local Government
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38
Acknowledged
We strongly recommend that the Government immediately make it clear to local councils that they...
Recommendation
We strongly recommend that the Government immediately make it clear to local councils that they have a duty to inspect all unsafe homes, irrespective of who owns it, including, if necessary, by producing new enforcement guidance. This must include setting …
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Government Response Summary
The Government recognises the importance of safe and secure homes and local authorities' powers to enforce housing standards, working to raise awareness of these powers regarding hazards like damp and mould. The Social Housing (Regulation) Bill will strengthen tenant rights and regulator powers.
Ministry of Housing, Communities and Local Government
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42
Para 156
To ensure that the consumer regulatory regime does not continue to let down tenants whose...
Recommendation
To ensure that the consumer regulatory regime does not continue to let down tenants whose providers are responsible for serious mismanagement that does not meet the ‘systemic failure’ test, we strongly urge the Regulator of Social Housing to reconsider its …
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Ministry of Housing, Communities and Local Government
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44
Accepted
Para 163
We recommend that the Government use the Social Housing (Regulation) Bill to amend the Housing...
Recommendation
We recommend that the Government use the Social Housing (Regulation) Bill to amend the Housing and Regeneration Act 2008 to place a much clearer requirement on the Regulator of Social Housing to engage with tenants whenever it investigates possible breaches …
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Government Response Summary
The government agrees that tenants' voices should be at the center of social housing regulation, and has amended the Social Housing (Regulation) Bill to strengthen tenant engagement with their landlords and ensure the Regulator engages with tenants when undertaking inspections. The Regulator has also introduced Tenant Satisfaction Measures (TSMs) to provide greater transparency on landlord performance.
Ministry of Housing, Communities and Local Government
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48
Acknowledged
Para 186
We urge the Government and the Regulator of Social Housing to make sure the latter...
Recommendation
We urge the Government and the Regulator of Social Housing to make sure the latter has the resourcing, skills and capacity to continue to regulate the economic standards properly. As part of this, the Government must first assess the regulator’s …
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Government Response Summary
The government states that they will seek to ensure they have the capacity and skills to continue to regulate the economic standards robustly and keep pace with the evolving challenges faced by the sector.
Ministry of Housing, Communities and Local Government
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50
Acknowledged
Para 198
We urge the regulator to publish details as soon as possible of how it plans...
Recommendation
We urge the regulator to publish details as soon as possible of how it plans to use its enhanced regulatory powers under the Social Housing (Regulation) Bill, particularly those on inspections and surveys, and to place them at the centre …
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Government Response Summary
The government welcomes the Committee’s recommendations regarding their role, will carefully consider them as they continue to develop their approach to proactive consumer regulation.
Ministry of Housing, Communities and Local Government
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52
Deferred
Para 202
We recommend that the Government make it clearer to the regulator that its statutory duty...
Recommendation
We recommend that the Government make it clearer to the regulator that its statutory duty to minimise interference does not preclude it from using its enforcement powers. We call on the regulator to make more use of its enforcement powers, …
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Government Response Summary
The government will consider how and when they might use their powers as part of developing the proactive consumer regulation regime, and are required to issue statutory guidance on the use of their powers, to be updated and subject to consultation after the Bill has received Royal Assent.
Ministry of Housing, Communities and Local Government
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54
Deferred
Para 209
We recommend that the Government invite the Office for National Statistics to make a public...
Recommendation
We recommend that the Government invite the Office for National Statistics to make a public announcement on whether requiring all social housing providers to register with the Regulator of Social Housing would prompt a reclassification. If the conclusion is that …
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Government Response Summary
The government is engaging with the Office for National Statistics on the classification implications of the Bill's measures, and will keep the Committee updated on progress.
Ministry of Housing, Communities and Local Government
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Conclusions (34)
1
Conclusion
Acknowledged
Para 17
It is not possible to gauge exactly how prevalent poor quality is within the social housing sector. Given that the English Housing Survey (EHS) estimated that 13% of homes in the social rented sector failed to meet the decent homes standard in 2020, it is fair to conclude that the …
Government Response Summary
The government agrees that the majority of social housing in England is of a decent standard and that examples of disrepair highlighted by the Inquiry are not representative of the majority of social housing tenants’ experiences.
3
Conclusion
Para 28
The level of disrepair in some parts of the social housing sector can undoubtedly be attributed partly to the age and design of the housing stock, some of which was never built to last and is now approaching obsolescence. For this, some blame must attach to successive Governments for not …
4
Conclusion
Para 29
We are concerned, however, about the Government’s decision to extend the statutory right to buy to all tenants of private social housing providers. The existing policy has reduced the number of homes available for social rent and increased the proportion of the social housing stock that is hard to maintain, …
7
Conclusion
Para 36
The social housing sector is under serious financial pressure, and the Government is asking it to do far too much without sufficient resources. We therefore welcome the progress made towards finding a financial solution to the building safety crisis and the Government’s commitment to exploring ways of exempting social housing …
9
Conclusion
Acknowledged
Para 40
We agree with our witnesses that housing disrepair, particularly damp and mould, is often aggravated by the inability of tenants to heat or ventilate their homes properly or by overcrowding, or by a mixture of both. We also agree that tenants cannot, and must not, be held responsible for either …
Government Response Summary
The government agrees that the sector needs to prioritize the quality of housing and states that their messaging to registered providers has been unequivocally strong and clear on maintaining a constant focus on delivering safe, good quality homes and treating tenants with respect.
11
Conclusion
Para 49
Whilst social housing providers cannot be blamed for the age of their stock or for government policy, they must certainly take responsibility, where they have failed to respond properly to requests for repairs, have preferred quick fixes to structural problems, have failed to properly investigate the causes of serious disrepair, …
13
Conclusion
Acknowledged
Para 62
The presence of a stigma attached to being a social housing tenant is very hard to dispute, although it is difficult to say how prevalent stigmatising views are among contractors and staff working for social housing providers. It is also difficult to say how prevalent other types of discrimination are. …
Government Response Summary
The government agrees that providers must take concerns over stigma and discrimination seriously, and work towards reducing the factors leading to it, restating the existing standards.
15
Conclusion
Acknowledged
Para 67
The power imbalance between tenants and housing providers is one of the biggest problems facing the social housing sector today. One of the most effective ways of empowering tenants, however, is through the establishment of tenants and residents associations, led by tenants themselves, with which providers must engage first and …
Government Response Summary
The government agrees that providers must take concerns over stigma and discrimination seriously, and work towards reducing the factors leading to it, restating the existing standards.
17
Conclusion
Acknowledged
Para 75
The tenant satisfaction measures (TSMs) and the new access to information scheme are central to the Government’s plans for making the sector more transparent. While we do welcome the steps taken to improve transparency, we must note how underwhelmed the sector is by these proposals. In their current form, we …
Government Response Summary
The government has published a final suite of TSMs, which they will use as a source of regulatory intelligence, and they intend to review their TSM requirements at an appropriate point after implementation.
19
Conclusion
Para 81
We are pleased the Government is setting up the Social Housing Quality Resident Panel, but we believe there is a strong argument for committing now to making it a permanent national voice for tenants, or at least to establishing such a body in The Regulation of Social Housing 71 one …
21
Conclusion
Acknowledged
Para 95
The commercialisation of social housing can be traced back to the cut to government funding in 2011. Whilst we would like the Government to provide more central funding for specific purposes, such as regeneration, building safety, decarbonisation and new housing, the sector is now clearly dependent on high levels of …
Government Response Summary
The government states they continue to apply consumer powers robustly, encourage providers to improve services and engage with tenants, and share learning from casework with the sector to strengthen systems and processes.
22
Conclusion
Acknowledged
Para 96
It is difficult to say for certain whether very large providers are more likely to lose sight of their core responsibility, which is to their tenants, but it seems obvious that there is a tendency for such providers to become more remote and impersonal. If such providers struggle to provide …
Government Response Summary
The government states they continue to apply consumer powers robustly, encourage providers to improve services and engage with tenants, and share learning from casework with the sector to strengthen systems and processes.
24
Conclusion
Whatever external or impersonal forces might be contributing to the very poor treatment some tenants have to endure, ultimate responsibility must lie first with the individuals concerned and then with senior management. We therefore strongly welcome the Government’s review of qualifications and professional training. Ensuring those working in the sector …
26
Conclusion
Acknowledged
Para 111
The primary responsibility for resolving disputes between tenants and providers lies with the providers themselves, and yet too often their complaint handling processes are inefficient and obstructive. It is understandable if tenants sometimes conclude they have been specifically designed to prevent them from ever referring their complaint to the Housing …
Government Response Summary
The government looks forward to continuing to work with tenants and other stakeholders as they develop a new proactive consumer regulation regime.
27
Conclusion
Acknowledged
Para 112
The introduction of the Housing Ombudsman’s complaint handling code and complaint handling failure orders must drive improvement and consistency in the way providers respond to complaints. We are pleased therefore that the Government is legislating through the Social Housing (Regulation) Bill to place the power to establish such a code …
Government Response Summary
The government looks forward to continuing to work with tenants and other stakeholders as they develop a new proactive consumer regulation regime.
28
Conclusion
Para 113
If they have not already done so, all providers must immediately review and where necessary improve their complaint handling processes. As part of this, all providers that have not already self-assessed against the ombudsman’s complaint handling code should immediately do so. We also recommend that the ombudsman more proactively monitor …
30
Conclusion
Para 117
The Housing Ombudsman’s new power to investigate systemic issues across the sector is an extremely valuable tool for improving quality across the sector, and we disagree strongly with the assertion that this represents any sort of encroachment on the remit of the Regulator of Social Housing.
31
Conclusion
Para 118
We encourage the Housing Ombudsman to continue investigating systemic failings across the social housing sector. In response to this report, the ombudsman should identify which further areas it may investigate. We further encourage both the ombudsman and the Regulator of Social Housing to continue co-operating and sharing information, building on …
32
Conclusion
Accepted in Part
Para 124
The Housing Ombudsman is supposed to award compensation to cover financial loss and avoidable inconvenience, distress and detriment. We do not think, however, that the levels of compensation being awarded come anywhere close to reflecting any of these things. We also think financial loss should explicitly include loss of earnings …
Government Response Summary
The government acknowledges the importance of both financial and non-financial remedies for tenants, supporting transparency in compensation decisions and the consideration of loss of earnings for missed appointments. It will consider explaining how its assessment of compensation can be further explained in investigation reports. However, they do not agree with increasing the compensation limit.
33
Conclusion
Acknowledged
Para 125
We welcome the ombudsman’s decision to increase the levels of compensation for the most serious service failings, but even these are inadequate. If the Government thinks tenants in the private rented sector (PRS) should be entitled to compensation of up to £25,000, it cannot argue otherwise for social housing tenants. …
Government Response Summary
The government believes non-financial remedies, as well as financial ones, are an important aspect of an Ombudsman’s toolkit. Our calculation of financial bands will increase. A key aspect of this review will be ensuring landlords recognize distress and disruption in their own awards of compensation, and use their discretion in their complaints procedure.
35
Conclusion
It is clear from the evidence we received during this inquiry, and from the constituency casework we deal with, that generally tenants are not aware of the Housing Ombudsman. We welcome the work the ombudsman has done recently to raise awareness of its service among tenants and agree that this …
36
Conclusion
Para 133
We encourage all social housing providers and the Housing Ombudsman to adopt a co-ordinated strategy to increase awareness among tenants of the ombudsman. As part of that, providers should routinely send letters and leaflets specifically about how they can complain to the ombudsman, as well as including this information in …
37
Conclusion
Acknowledged
Para 137
It appears that some local authorities might have misinterpreted the Housing Health and Safety Rating System enforcement guidance, and as such are not inspecting private providers. We welcome the Minister’s reiteration that a council can inspect a property owned by a private provider and issue an enforcement notice, although we …
Government Response Summary
The Government recognises the importance of safe and secure homes and local authorities' powers to enforce housing standards, working to raise awareness of these powers regarding hazards like damp and mould. The Social Housing (Regulation) Bill will strengthen tenant rights and regulator powers.
39
Conclusion
Acknowledged
Para 147
We welcome the removal of the serious detriment test, which has obstructed the effective regulation of the consumer standards for far too long.
Government Response Summary
The Government welcomes the Committee’s support on the removal of the serious detriment test, stating that this will give the Regulator stronger powers to proactively address issues of tenant safety and wellbeing.
40
Conclusion
Acknowledged
Para 154
The Regulator of Social Housing is independent of the Government and is alone responsible for the interpretation of its statutory duties. It interprets its duty to minimise intervention and act proportionately to mean that it should only find a provider non-compliant with the consumer standards if it also finds evidence …
Government Response Summary
The Department engages regularly with the Regulator to understand how it is discharging its duties and to ensure that the Department’s policy intentions are understood. The Department welcomes the Committee’s views on the Regulator’s interpretation and will raise these points with the Regulator. The Government has amended the Social Housing (Regulation) Bill to remove the ‘serious detriment’ test.
41
Conclusion
Deferred
Para 155
We did not find the explanation by the Regulator of why Clarion could be compliant in the case of Eastfields to be convincing, especially given the comparison with Croydon Council and Regina Road. Croydon had been found guilty of systemic The Regulation of Social Housing 75 failure because it “simply …
Government Response Summary
The government acknowledges the Committee's views on the Regulator's interpretation of its statutory duties and will raise these points with the Regulator, which is independent of the Government and responsible for interpreting its statutory duties.
43
Conclusion
Acknowledged
Para 162
If the Regulator of Social Housing engages as little with tenants as seems to be the case, we are deeply concerned. It is impossible for the regulator to even give the appearance of putting tenants at the centre of its consumer regulation if it does not seem interested in their …
Government Response Summary
The government agrees that tenants' voices should be at the center of social housing regulation. The Social Housing (Regulation) Bill will ensure that the Regulator engages with tenants when undertaking inspections. The Regulator has also recently introduced Tenant Satisfaction Measures (TSMs), which will provide tenants with greater transparency on their landlord’s performance. The Government has amended the Social Housing (Regulation) Bill to strengthen tenant engagement with their landlords.
45
Conclusion
Acknowledged
Para 183
The social housing sector has commercialised and diversified almost beyond recognition since 2011. That nothing has gone seriously wrong yet should be no cause for complacency, especially as we enter a period of rising inflation and interest rates. A single failure in the sector could be catastrophic, particularly given that …
Government Response Summary
The government welcomes the Committee's recommendations regarding their role and will carefully consider them as they continue to develop their approach to proactive consumer regulation.
46
Conclusion
We are also uncertain about the argument that any increase in the regulator’s powers would prompt the Office for National Statistics to reclassify the social housing sector as belonging to the public sector and so push its debt on to the government balance sheet. The primary consideration should be the …
47
Conclusion
Para 185
We disagree with the regulator’s assertion that intervening to shape the market - for example, to encourage providers to consolidate their stock in particular areas - would take the regulator beyond its duty to minimise interference. As we have stated elsewhere, we think it should reinterpret this duty, as its …
49
Conclusion
Acknowledged
Para 197
The removal of the ‘serious detriment’ test will make it much easier for the regulator to inspect providers proactively and to survey properties where it has reason to suspect serious disrepair. We welcome this development as perhaps the most important reform of the consumer regulatory regime. We appreciate that proactively …
Government Response Summary
The government welcomes the Committee's recommendations regarding their role and will carefully consider them as they continue to develop their approach to proactive consumer regulation.
51
Conclusion
Para 201
Whilst understanding the advantages of a relatively light touch regulatory regime, we still find the regulator to be extremely reticent and passive in its use of its enforcement powers. It is appropriate for the regulator to punish providers responsible for the most serious service failures. If used sparingly, the power …
53
Conclusion
Deferred
Para 208
We are not convinced that requiring all social housing providers to register with the Regulator of Social Housing would necessarily prompt the Office for National Statistics to reclassify the sector as part of the public sector. It might well be the case, but without a definitive statement from the ONS, …
Government Response Summary
The government is engaging with the Office for National Statistics on the classification implications of the Bill's measures, and will keep the Committee updated on progress.
55
Conclusion
Acknowledged
We are concerned that potentially extremely vulnerable residents in receipt of unregulated support services do not currently benefit from the protection of regulation by the Care Quality Commission. We are encouraged by the Government’s stated commitment to improving standards in supported housing, but it is impossible to say from the …
Government Response Summary
The government recognizes that some supported housing residents are particularly vulnerable, and is committed to improving standards and quality of supported housing. They have announced a package of measures and will respond to the Committee's upcoming report on exempt accommodation in due course.