C4-rated London council still has ‘some way to go’ to achieve compliance, investigation finds

Capsticks’ 89-page report recommends the council focus its improvements on data gaps and reporting to make sure there is “consistency and accuracy throughout the housing function”.

The law firm also highlighted issues with other aspects of the council’s governance of its service including KPIs, follow-up and the delivery model, and put forward a total 45 recommendations.

Investigators acknowledged that some of the problems are historical and the council is already taking steps to improve its housing services, such as digitalising data and introducing resident engagement.

But in its report, it added: “Newham still though has some way to go to ensure the effective performance of its housing function and compliance with the consumer standards.”

Capsticks also warned that some of the issues are “complex and longstanding”, and “meaningful improvement will require sustained effort and resource over time”.

“This will not be a quick fix, but rather a long-term commitment to change,” the firm added.

In meeting papers from last month, officials said the council is working with Savills to address all of the recommendations in the Capsticks report and claimed “significant progress” had been made in the main areas highlighted as needing improvement. 

A spokesperson for Newham Council told Inside Housing it is considering entering a legally binding voluntary undertaking with the regulator which would have compulsory targets and timescales.

“Capsticks LLP has undertaken an exhaustive process over the past 12 months, examining governance, corporate reporting and oversight arrangements for housing services.

“Their conclusions closely match what the council itself identified as it responded to the regulator’s requirement to produce a Housing Services Improvement Plan.”

Capsticks’ report, published in full with council papers last month, said data collection and handling at the council was “arguably the most significant driver” of the C4 rating.

Problems included inaccurate, missing and potentially misleading data, such as a discrepancy in electrical safety information meaning compliance dropped from 100% to 55% within three months.

There was also a lack of data on hate crime separate to anti-social behaviour (ASB) cases, and a KPI dashboard that showed overdue fire safety actions just for high-rise properties rather than for the council’s total stock.

Capsticks also found a limited reporting of compliance on fire safety, despite the council agreeing this would be a priority back in 2018.

The firm said they saw a large focus on certain housing areas, such as temporary accommodation, at council meetings but only “limited discussions” on other areas raised by the regulator.

The investigation also found that the council should have self-referred to the regulator due to the significance of its non-compliance with the standards around fire safety, smoke alarms and electrical safety.

But investigators did say they had seen evidence the council had referred itself to the RSH twice since the inspection over different fire safety failings.

These included a disclosure in February that 51 homes did not have a smoke alarm and that there had been historic failures to test these alarms in 277 properties. 

Newham also referred itself to the RSH in June over issues with people in nearly 360 homes being told incorrect evacuation strategies, and gaps in data to distinguish street houses from blocks of flats.

Newham Council’s spokesperson added that the council had published Capsticks’ findings in full as part of its intention to be “fully transparent” in its response to the regulator.

“The Capsticks report will further inform the council’s improvement plan and its planned voluntary undertaking commitment to the regulator. It will also support ongoing plans to strengthen accountability across the organisation.”

“As [our] Housing Services Improvement Plan reporting highlights, the council is making huge strides in improving key parts of our housing services to comply with the regulator’s consumer standards.

“We are developing a deeper understanding of our housing stock and the needs of our tenants, and have vastly improved our performance reporting, which we regularly share with our residents.

"The mayor, cabinet and council remain committed to providing the secure and comfortable homes that our tenants and leaseholders deserve.”