English regulator may fine for-profit providers for breaches

The RSH has powers to fine social housing providers for breaches but it does not generally use them. 

There is also a £5,000 cap on the fines, although the Social Housing White Paper included proposals to enable the regulator to issue uncapped penalties. 

Asked why the RSH does not fine organisations, Mr Walters said it is “not a particularly effective measure”. 

“And unlike with [the ombudsman’s] scheme where the compensation paid by the landlord will be going directly to the tenants to compensate them for their experience, fines that we levy would ultimately end up going back to the Treasury,” he said.

He said the vast majority of social landlords are either not-for-profits or local authority bodies. 

“Fining those organisations significantly takes money out of the system ultimately.

“We would rather use other tools to get the job done,” Mr Walters said. 

Asked what, therefore, the point was in raising the cap, he said there are an “increasing number” of for-profits moving into the sector.

“Fines in that environment, where the shareholder – it’s their mind that is being concentrated by the fine rather than the consumer – I think that’s something that might be a useful tool in that context,” he said. 

Asked if the regulator might be accused of discrimination, he said: “We always try to use the right tool to get the job done. 

“What we’re looking for is the right outcome, which is our standards being met.”

At the end of the session, both Mr Walters and Mr Blakeway were asked what would help them deliver better housing for tenants. 

Mr Walters said the proactive regulation set to be introduced in the upcoming Social Housing Regulation Bill “is going to be really important”. 

“As soon as we can get on with that, the better,” he said. 

Mr Blakeway said: “Landlords need to think about how they learn from the issues that we see as well as comply with the standards that are produced.

“Landlords also need to ensure that they embrace and deliver and their board is confident that they are delivering a positive complaint-handling culture, which would improve awareness and access at a local level, as well as achieve earlier resolution of issues,” he said.