New RSH chief executive sets out plans for economic standards refresh and focus on new supply

Housing secretary Steve Reed wrote to Mr Walters upon his appointment asking the RSH to consider how its framework can “better reflect the importance of new supply”.

Mr Walters told attendees: “So we’ve got a big challenge, I think, as a regulator, to get ourselves ready to help deliver that agenda.

“The discussion document is going to start that discussion, and I really encourage you to get absolutely involved in that.

“We’re really interested in: how can we support the investment in existing homes and the provision of new homes? How can we support new entrants, new models coming into the sector?”

He suggested that the current Value for Money Standard may need updating.

“Our standard is quite old. The metrics that we use – I don’t think necessarily start the right debate, have the right conversation. So that’s one of the things we want to look at through the discussion document,” Mr Walters said.

The chief executive also said striking the balance between investment in existing stock and new development “is not an either/or question”.

“I think if all we do is create a walled garden that’s brilliant inside, but you’ve got millions of people outside, that is not a good outcome for anybody,” he told attendees.

When asked about new models of funding and partnerships coming into the sector, Mr Walters said the regulator does not want to “presuppose there is a right or wrong answer”.

He said: “But we are going to ask, ‘How secure is that stock in the sector? What happens if things go wrong? How do we make sure that’s retained in the sector?’”

On for-profit housing providers, Mr Walters said the RSH sees a “range of readiness” from those organisations seeking registration.

“We see organisations that have rational, really coherent plans, they’ve got credible structures in place, that they’re basically ready to go – I would say that’s the exception rather than the rule,” he said.

Mr Walters said the RSH sees more providers coming forward with “an idea and… some thoughts” rather than full plans.

“And, actually, that’s really hard for us because once you’re on our register, you’re then there, and we can’t have a register that’s full of organisations that maybe, in five years’ time, might deliver something. We really are looking for organisations that are ready to go,” he added.

When asked about the biggest threats facing the sector, Mr Walters said it is “always the quality of governance and risk management within organisations”, particularly given the volatility in the external environment.

He added: “One of my observations of the sector over the years is that it’s really bad at saying no when it really should.

“So I’ve had a ringside seat for many of the major failures in the sector. Most of those have been because boards have tried to do too much. They’ve tried to please too many people, and they’ve not been able to actually make difficult trade-offs. They’ve tried to keep everybody happy.”

Mr Walters said landlords should have the “ability to say ‘no’ in a really constructive way” and stick to their mission.