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Sector divided over regulator’s post-Grenfell role
The sector is divided over whether the regulator should take more responsibility for consumer standards, a survey has shown.
In an exclusive survey for Inside Housing, accountants RSM asked 91 housing associations whether they thought the Regulator of Social Housing (RSH) should focus more on consumer standards in the aftermath of the fire. Of the 91 respondents, 48% said that it should and 52% disagreed.
The issue has become particularly relevant in the aftermath of the Grenfell Tower fire, amid allegations that tenant complaints about safety were ignored before the fire.
Consumer regulation in social housing was greatly reduced when the government scrapped the Tenant Services Authority in 2012.
Keith Ward, head of social housing at RSM, said: “The RSH’s emphasis on viability and governance has been critical to reduce failures and keep funders’ confidence.
“But some have started to question whether the RSH should now take greater account of consumer standards and interactions with tenants.”
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Greg Campbell, partner at Campbell Tickell, told Inside Housing: “If people are being realistic, they need to appreciate that [an increased focus on customer standards is] going to happen.
“We’ll see what’s in the [Social Housing] Green Paper when it’s published. But one way or another I am pretty sure that it’s going to happen. Whether people recognise that or not, I think it’s a reality. They may not like it in some ways, but the game has changed.”
RSM’s survey also revealed that 66% of associations have not considered further changes to their pension schemes.
This is despite a number of larger associations leaving the multi-employer Social Housing Pension Scheme, whose deficit had increased at its last three valuations. The current valuation is widely expected to deliver another increase, which could see employers’ contributions rise.
Of the third of associations taking further action, 68% have closed their defined benefit scheme to new members.
Meanwhile, associations are raising staff salaries. A total of 57% of respondents said they planned to raise salaries by 2%, while 33% said they would raise them by 1% and 10% would raise them by 3%.
A new era for social housing
It's a new era for social housing.
The startling change in government policy over the past 12 months has led to a renewed sense of optimism and inspired a change in tack for many.
RSM’s latest Health of the Sector survey shows RPs have started to re-focus, shifting their attention from cost-cutting and instead looking forward to a future of delivery, innovation and transformation.
Our survey shows that the sector and the government are more aligned than they have been for years. The recent commitment to provide an extra £2bn for social housing offered a clear vote of confidence in the sector. After years of being seen as part of the problem, associations are now seen as part of the solution.
Associations said funding, availability of land and planning reforms were major factors that could spur development. The government has shown it is prepared to listen, recently promising to address each of these issues. It is a clear signal that ministers are willing to understand the challenges facing the sector, and offers yet more hope of a more conciliatory relationship over this parliamentary term.
“Our survey shows that the sector and the government are more aligned than they have been for years”
Against this backdrop, RP priorities have begun to flex. Just 48 per cent will focus on cost-saving initiatives over the next 12 months – down from 86 per cent last year. At the same time, our survey shows that 79 per cent plan to increase their development plans over the next four years. The sector’s foot is firmly on the gas.
Our survey reveals that RPs are set to deliver homes of all types, including low-cost home ownership and market value properties. But 79 per cent of RPs say the extra government funding to the sector will help to increase the development of social homes.
Amid a worsening housing crisis, it is good news that the government and the sector are now more in tune. The extra funding and eased development landscape gives associations the certainty they need to develop the homes the country desperately needs.
Keith Ward, head of social housing, RSM
