Passing on the key to success

Last month’s announcement that the role of the Tenant Services Authority is to be reviewed was not an unexpected one. The coalition government’s desire for efficiency and rationalisation meant it was only a matter of time until changes to the future of regulation in housing were made, but the lack of clarity provided thus far places the sector in limbo.

We will learn where the TSA responsibilities will lie as part of the comprehensive spending review in October, but while we wait there is a risk that the current authority of the regulator will be diminished, despite the fact that its chief executive has moved quickly to make clear that it is business as usual.

Housing associations provide more than 2 million affordable homes and represent the most successful public/private partnership for any government since the mixed funding regime came into being in the early 90s. Now we know the TSA is likely to be absorbed, we must be vigilant against the change affecting previous success.

The abolition of the TSA can be closely compared to the abolition of the Learning and Skills Council earlier this year. The closure date for the LSC was announced before clarity regarding assigned responsibilities was produced. This led to widespread confusion and concern that functions would not be properly carried out. Colleges did not know who the new contacts were, what the regulation changes were to be , or any detailed information about the transfer of bodies right up until the abolition date. This resulted in doubt that the transfer would actually come to fruition and anxiety that the previously successful functions would be lost into the ether.

In my view, we need clarification of the handover processes to ensure the new bodies cover not only financial viability but also customer service standards on which the TSA had made a good start. We must not forget that residents themselves require explicit guidelines to enforce high standards of service and to protect the integrity of their landlord. The new controlling body must be able to deliver this as, realistically, social housing residents are not able to move away from poor performing landlords. Establishing a system with a clear regulatory process will protect the services most important to residents.

In addition, clarity of the new governance structure is necessary as currently the housing sector is predominantly overseen by boards formed of unpaid volunteers. Responsible boards need the support of a strong regulation function and it would be unfair to ask them to take the risk and responsibility without sufficient reinforcement.

My fear is that the value of the TSA and its predecessor, the Housing Corporation, will only really be recognised fully once it no longer exists and, therefore, we need to see a comprehensive plan. Reducing costs and streamlining structures are clearly government priorities but we must avoid a situation where we know the cost of everything and the value of nothing.

Arthur Merchant, head of social housing at Grant Thornton UK LLP