Conservatives face fight as they mull governance role for councils
Sector rallies for regulator
The Conservative Party is considering a plan that would see local authorities handed power to regulate housing associations and the Tenant Services Authority disbanded.
Inside Housing can also reveal that the radical approach, being floated by shadow housing minister Grant Shapps, has sparked a rearguard action among the sector’s representative bodies to save the TSA. The campaign is known as ‘operation pink’, due to the TSA’s distinctive branding.
One source close to the talks with the Conservatives said this week that ‘the idea of local authorities regulating housing associations has been floated by Mr Shapps and his team’ as part of a focus on small government.
Mr Shapps has yet to make public his future plans for the governance of the housing sector. However, he has recently made clear that he is unhappy with what he has seen from Peter Marsh, chief executive of the TSA, and his team to date.
As a result, bodies including the Council of Mortgage Lenders, the Chartered Institute of Housing, the G15 group of London’s largest associations, and tenant bodies the Tenants’ and Residents’ Organisation of England and the Tenant Participation Advisory Service have begun lobbying to protect the TSA under a Conservative administration.
It is understood that three key arguments have been made: that the TSA is needed to promote tenant choice; to protect the estimated £120 billion of public sector investment in councils (£90 billion) and housing associations (£30 billion); and to reassure private investors, which have committed £40 billion to the sector, so they continue to lend at relatively low rates of interest.
It has been calculated that the value of an independent regulator is around £500 million each year in lower interest payments.
Michael Gelling, chair of TAROE, said: ‘We must give the TSA the support it deserves to ensure it can deliver on its objectives. Anything less would be letting tenants down.’
Mr Shapps denied any concrete plans to disband the TSA, but added: ‘It is already well known that I am not a great fan of the TSA. They have spent £38 million, most of that on setting up, and there are probably much better ways to help tenants.’
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Readers' comments (12)
AE | 20/11/2009 11:14 am
Good luck in Tower Hamlets is all I will say....
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Peter | 20/11/2009 2:01 pm
I do like the idea of LAs regulating HAs but coming from Mr. Shapps and the Tory 'localism' agenda, it will be as comical as the 'operation pink' charade.
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Chai Block | 20/11/2009 2:57 pm
By giving councils greater individual authority on regulating social housing it puts pressure on any collaborative work between councils that currently exists.
The people that will suffer most are those in the greatest needs who will see their options reduced.
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Len White | 20/11/2009 6:45 pm
This is utter madness. Grant Shapps appears to know little about the housing sector and to understand less, so well done to all the housing organisations for starting to stand up to him.
The TSA has been a force for good, far better than the old Housing Corporation, has pushed the rather complacent landlord organisations on the need to deliver better services for tenants, and is trying to develop a system of regulation that gives tenants a much bigger say in an outcome-focused regulatory regime.
That is the way to go. Local authorities who also have housing stock - nearly 200 of them - cannot be left in a position where they regulate themselves without any outside scrutiny. Tenants in places like Hammersmith and Fulham and other extremist boroughs will be left with no protection. Or perhaps that is what Shapps really wants to achieve.
An individual council trying to regulate housing associations that work across dozens of council areas would be a complete nightmare. Lenders will take one look at Shapp's ideas and that will be the end of private finance.
The TSA and the HCA are far from perfect but they and the government have done well to get the housing sector through the most difficult period in living memory.
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Voice of the City | 20/11/2009 7:31 pm
What makes Grant Shapps think that local authorities would be suitable regulators of housing associations ( or local authority housing for that matter)? Effective regulation necessitates a willingness to express independent and sometimes unpopular thought. Local authorities are political institutions with officers increasingly politicised.. and we all know with what esteem politicians are currently held by the public.
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Bryan Latter | 21/11/2009 8:52 am
The TSA is a 'misnomer' for a Government Quango that is supposed to regulate and exercise some control over the activities of Housing Associations.
Being a retired Business & Property Consultant I've had the time to become aware of the role of Housing Associations, past & present, and now the urgent need for more and more affordable homes to rent.
Housing Associations founded by local altruistic people and controlled by their membership fulfilled local needs in affordable rented homes. Now, the large organisations are controlled by 'professionals' recruited under the direction of what was the Housing Corporation and now its replacement - TSA. Tenants, and hopeful prospective tenants, have not been the beneficiaries.
The TSA should simply be 'reformed' with its function limited to 'regulation'. Public funds for the provision of affordable rented homes should be allocated to Local Councils to meet local needs. They are the only democratic elected bodies answerable to the public. The TSA, National Housing Federation and Housing Associations are not !
Bryan Latter
TYel : 020 7433 1325
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involved tenant | 22/11/2009 11:54 pm
I believe that the TSA may have been slow starting however it has listened to the voice of tenants and is I believe the best thing to happen to social housing in a great many years leave it alone and give it at least three years - the tenants who have been involved in its conception deserve at least that!
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Steve | 23/11/2009 10:24 am
In response to the first comment 'and in Havering too'. And I'm sure others would come up with further suggestions. On the more serious side, this is a thinly or unveiled proposal to attempt to save some money, which won't work that well unless the Tories go through the time-honoured process of not allocating any money to local authorities to do this work. Which is likely to happen. Plus this is change for change sake. And as Len states, who will regualte local authorities? And, without having much knowledge of the RSL sector, there will be varying pressures from councils, financiers and their tenants involving RSLs trying to square circles. So it's had about as much thought as someone saying 'let's go for a drink now' at 5.30 on a Friday evening.
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kass | 23/11/2009 3:59 pm
"...Mr Shapps denied any concrete plans to disband the TSA, but added: ‘It is already well known that I am not a great fan of the TSA. They have spent £38 million, most of that on setting up, and there are probably much better ways to help tenants.’... "
Like what? If the TSA disbands won't we have lost the £38 millions you are accusing them having spent on setting up?... And then we ill need another £38 million to dismantle them and setting something up under a different shape or name?
I don't see how all the musical chairs Shapps propose brings anything more to tenants as he claims. On the contrary there will be less money for services and more taxes for the taxpayer.
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kass | 24/11/2009 11:54 am
"Bryan Latter | Sat, 21 Nov 2009 08:52 GMT
...Public funds for the provision of affordable rented homes should be allocated to Local Councils to meet local needs. They are the only democratic elected bodies answerable to the public. The TSA, National Housing Federation and Housing Associations are not ! "
I strongly support your point. Al lthe so called 'accountability' HAs claim is imposed on them is nothing else than hogwash, because tenants do not elect their board members.
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