Building a new structure

The launch of the Tenant Services Authority has not resulted in the flexible tenant-led regime that was promised. The requirements of the Housing & Regeneration Act 2008, which established the TSA, were more rigid with far less influence for tenants. Now, with the likely abolition of the TSA as housing regulator, do housing associations need a free-standing quango to administer the mostly administrative powers in the 2008 act?

The TSA’s predecessor the Housing Corporation was responsible for 2,500 housing associations, including regulation, grant funding and inspections. These roles are now divided between three quangos, including the TSA, which solely handles regulation.

Housing associations are the most heavily regulated entities within Europe, being subject to scrutiny by seven other public sector bodies plus continual oversight by their funders. In my view, this situation requires a radical solution which could incorporate a number of useful reforms and strengthen governance.

Regulatory responsibilities for local authorities (including arm’s-length management organisations) should transfer to the Audit Commission and responsibility for housing associations should be transferred to a new division within a revamped National Housing Federation.

The NHF already has a key role in dictating governance requirements for its members and it would be logical for this role to be extended replicating professional bodies such as the Institute of Chartered Accountants. The NHF would have to reform itself. It is perceived as a housing association chief executives’ club and it would need to radically alter its structure with a governing body having equal numbers of independents, tenants and association employed staff. The independents would be appointed for their business, legal, financial and regulatory skills and (together with tenants) would form the backbone of the board responsible for the regulatory functions.

Other reforms would include:

• housing associations being regarded as private sector entities;
• opportunities for other non-public sector finance, including housing association equity investment for the development of more non-grant funded homes;
• more accountability, with a mandatory requirement for tenants on boards and creation of a national tenant led arbitration panel;
• encouraging local housing trusts to reflect the localism agenda.

As a former NHF council member, I realise it would be difficult for the NHF to contemplate these changes, but the opportunity to regulate its members through a revised structure, while retaining its campaigning role, is a goal worth achieving.

Simon Randall is a consultant for Winckworth Sherwood (the views expressed here are personal)