Government asks regulator to ‘reflect importance of new supply’ after new CEO appointed

He continued: “I ask that through this process you actively consider what more the regulatory system can do to encourage and support the sector to deliver the increase in social and affordable homes that this country needs.

“I would ask that this includes consideration of how the regulatory framework and the engagement that the regulator has with registered providers can better reflect the importance of new supply, as well as how the regulator can ensure that its practices support increased investment in the sector.

“This should be achieved while of course continuing to hold providers to account for delivering high-quality and safe homes and services.”

Mr Reed said he looks forward to hearing the pair’s proposals.

The regulator plans to review its economic standards and broader regulatory principles in the coming months, Inside Housing reported in March.

At the time, outgoing chief executive Ms MacGregor said the project was aimed at making sure the current system is “agile and modern”.

The RSH introduced its current financial viability and governance standards just over a decade ago.

In 2024 it added consumer standards, which assess housing quality and tenant engagement, and shifted to a four-year cycle of inspections.

Ms MacGregor also told a conference last September that the RSH will commission an external assessment of the new regime, which was brought in as part of post-Grenfell regulatory reforms.

Since coming to power two years ago, the Labour government has vowed to address the housing crisis by building 1.5 million homes this parliament.

Rates of building have been falling, with the Affordable Homes Programme 2021-26 expected to deliver about three-quarters of its planned target of 180,000 homes.

Last year, the government unveiled plans for a 10-year programme to fund affordable homes backed by £39bn, as well as a National Housing Bank to provide extra finance for social landlords.

In December Homes England, the housing and regeneration agency overseeing new affordable homes, set out a strategy with a target of 280,000 new homes in the next five years.