Commencing countdown

Council housing regulation has been pretty hands-off in the past. Communities and Local Government government officials and their predecessors have rarely shown much practical interest in frontline service delivery, except where Audit Commission inspectors have highlighted problems. Not for much longer. On 1 April 2010 the Tenant Services Authority will begin regulating all social housing providers.

The watchdog’s new standards for landlords are not due out until March. But we know what they will cover: tenant involvement and empowerment; homes; tenancies; neighbourhood and communities; value for money; and governance and financial viability. The TSA will regulate councils and arm’s-length management organisations on all of the above, save governance and financial viability. It won’t regulate ALMOs directly, dealing instead with their parent authorities.

As April approaches, how should councils and ALMOs prepare to face the new regime?

10. Engage with the TSA

A positive relationship with the regulator is the best way to ensure that, if difficulties arise, they can be understood and dealt with promptly. Like all watchdogs, the TSA hates surprises and will not react well if it thinks it is being bounced into a position. If you have problems complying with the standards, draw them - and the proposed solutions - to the regulator’s attention for smoother progress.

9. Engage with tenants

It isn’t called the Tenant Services Authority for nothing. Landlords are expected to listen to, involve and work with service users. Many councils and ALMOs have strong track records in this, like many housing associations. Others have some way to go. There are plenty of good examples around - many on the Audit Commission website. Involvement can take different forms: tenant panels, tenant inspectors, and tenant conferences for instance.

8. Get two-faced

Councils with retained housing stock have a dual interest as providers of social housing, directly or through ALMOs, and as strategic housing authorities. Authorities that have transferred their stock to housing associations still have an interest as strategic housing authorities, and hence enablers of local housing provision. This should feed directly into the development and monitoring of local standards.

7. Get ready to go local

Although the national standards take effect from April this year, further local standards are expected to be in place from April 2011. ‘Local’ is not defined; it is subject to tenant consultation. In practice this could apply to rules for anything from the county level regulation down to individual blocks.

Providers must publish their proposed local standards by October and councils need to work with other providers and tenants to ensure that proposals fit local priorities and strategic objectives - including agreeing what ‘local’ means for them.

6. Talk to your ALMO

If your council has an ALMO, you need effective mechanisms for reporting its performance against regulatory standards. You are responsible for the ALMO’s compliance, and you will be held to account if it fails. Similarly, if you work for an ALMO, you need robust liaison and reporting arrangements with your council. Cases have emerged of individual local authorities and their ALMOs heading in opposite directions. This reflects poorly on both, and could prompt the TSA to act.

5. Compare the market

Every provider should know how their performance measures up against that of other local providers. Discover you are near the bottom of the pack - or even simply mediocre - and it’s time to focus on improving performance in a coherent and targeted manner.

4. Don’t worry about the TSA disappearing…

Although the Conservatives have expressed unhappiness with the TSA, predications of the organisation’s death are premature. Even assuming a Conservative government is elected in the coming months, their suggested alternative of council-led regulation is unlikely to be workable.

If there is a hung parliament, the government party will probably focus on major political issues and matters to shore up its power base before worrying about the housing watchdog. If Labour remains in government, it is hardly likely to scrap the regulator and its new rule book.

3 … or a turf war

Some believe that disagreements between the TSA and the Audit Commission will prevent effective regulation. Sure there may be jockeying for position, but it is clear that both organisations are working together on inspection, and this should continue.

2. Remember leaseholders

So far, the argument to include leaseholders under the new regime has been resisted, although they could well have a legitimate interest in forming local standards. This could be a problem for councils, especially in metropolitan areas with high numbers of leaseholders. Councils should consider if and how leaseholders should be engaged.

1. Resist panicking

The TSA is new to regulating councils (and ALMOs). This is a learning time for the organisation and its staff, just as facing up to this regulation is for councils. The TSA will have to learn quickly and develop credibility. But from a local authority perspective, there should be time for the two sides to develop their working relationships.

Greg Campbell is a director of management consultancy Campbell Tickell. Tony Hirsch is head of policy and performance (housing and community care) for Brent Council

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