Love is all we need

Amid all the joy at lightertouch regulation under the Tenant Service Authority, it comes as a surprise to learn that some housing associations are less happy to be left to their own devices.

Small housing associations – those with fewer than 1,000 units – are not inspected unless they run into problems. The principle of ‘proportionate’ regulation in the proposed TSA framework published last month also tips the scales towards larger organisations. TSA resources are expected to shrink with coming public sector spending cuts, so intervention and support are likely to contract further.

As such, small associations must look to develop their own system of self-regulation, according to Simon Dow, former Housing Corporation head and chief executive of the Guinness Trust. Speaking to a meeting of small London-based associations last month, he told them: ‘You are unlikely to be regulated unless things go really badly wrong.’ (Inside Housing, 11 November)

While some smaller housing associations are pleased about less intervention, others are unhappy. Radojka Miljevic, senior consultant at Campbell Tickell, says that there is a definite split in attitude. ‘Some prefer external validation for their partnering and so on, while you’ll find other people who are just relieved they are under 1,000 units if there’s a prospect of less paperwork.’

However, the message coming from many smaller housing associations is that they want attention from the regulator, and not only when they are in trouble. The TSA approach of ‘proportionate’ regulation would give most attention to the riskiest social landlords – which must take size into account. Small housing associations made up 78 per cent of all social housing providers and more than 1,300 were registered with the regulator last year. But the ripples if a tanker with thousands of homes goes under will be much larger than if a dinghy of 200 homes sinks, so that is where the TSA will put its resources.

Fair enough – but smaller housing associations still want support and benchmarking. According to Elizabeth Clarson, chief executive of Housing for Women and chair of the G320 group of smaller housing associations, regulation isn’t just useful to prevent failure. It is a way for tenants to get an independent rating of their landlord. She explains: ‘Tenants of all housing associations have a right to know how their association is doing – I think there is a discussion to be had around how that information can be collated and published.’

Independent rating can also be very useful when small associations come to look for partnerships and want to be able to demonstrate cross-sector, in language that everyone can understand, that they work to the highest standards. At the moment, the only thing that smaller associations can offer is their audited accounts, which may not tell the whole story, according to Lara Oyedele, chief executive of Odu-Dua housing association.

‘We know that as much as we don’t want any more forms to fill in, we don’t have any independent accreditation or definition of how good we are compared to our peers. All we have to give is our audited accounts, there is nothing that assesses our performance,’ she explains.

The Housing Corporation was concerned enough about smaller associations needing some extra love that in its final months it commissioned a report from Campbell Tickell, published in March 2008, which included some recommendations for the new regulator (see box opposite).

Dr Miljevic wrote the report and says that peer networking and benchmarking are the most important things that smaller associations can do to keep ahead on best practice – and the TSA can help with this.

‘The key thing is, how do they learn from others?’ she says. Dr Miljevic thinks it is likely that the associations that are most vocal about wanting more support are unlikely to run into problems and are probably well run. Of more concern are the small housing associations – often below 250 units – who don’t know what they are lacking. They are also less likely to have rigorous board scrutiny, as their boards are often recruited by word of mouth, not external recruitment.

‘Tenants could be more at risk from a small housing association with 75 dilapidated units, they are more vulnerable because they don’t have checks and balances.’ She hastens to add that this doesn’t mean tenants are in danger, just that they might not know what they are entitled to. ‘If you’re really small, things like decent homes can be really hard. In thinking about promoting choice and every tenant matters, some tenants [of the smallest landlords] may be unaware that they should have more.’

If you are a small association, everything is more expensive because you can’t buy in bulk. Networking associations can help with shared procurement, joint staff conferences and training, and joint tenant communication. However, those kind of partnerships can’t cover everything and solid board recruitment is one area where extra resources may be needed – which again, can be found in the Housing Corporation’s recommendations.

The TSA has a lot on its plate just now but it must not neglect to support and value smaller housing associations, where a little can go a long way.

Have your say

You must sign in to make a comment