Three local authorities have been rated non-compliant by the Regulator of Social Housing (RSH) after “serious failings” on issues from unknown hazards to fire safety.
In regulatory judgements issued this morning (25 February), Runnymede Borough Council in Surrey was issued the lowest rating, C4, due to “very serious failings”.
Both the City of London Corporation, the governing body for the capital’s Square Mile, and Rugby Borough Council in Warwickshire also received non-compliant C3 gradings following inspections.
Runnymede Borough Council, which owns around 2,830 social homes, self-referred to RSH in June 2025, after identifying issues with rent setting.
After an inspection, the regulator found serious failings in the council’s approach to rent setting for some homes. It said the council has drawn up a plan and is now working to address the issue.
However, the RSH also found other problems, including that the council had carried out surveys of 58% of its homes since 2021, but only 30% had a full stock condition survey.
There was also inadequate monitoring and reporting of hazards in tenants’ homes, with almost 250 previously unknown hazards identified as a direct result of the inspection.
The RSH also found no evidence that Runnymede Council was checking the accuracy and integrity of data for required health and safety checks and actions.
Although the council had “indicated a willingness” to address these very serious failings, the RSH said it has not seen evidence that it fully understands the potential risks to tenants.
The City of London Corporation owns and manages around 1,900 social homes in central London, most of which are located across six boroughs outside the City.
The corporation also self-referred to the RSH, with the regulator then identifying serious failings including large numbers of outstanding remedial actions arising from electrical safety checks.
The RSH also found over 1,000 overdue fire safety actions, some of which are high risk and have been overdue for over a year.
The inspection also revealed that 18% of homes do not meet the Decent Homes Standard (DHS). The RSH said the corporation acknowledges that there has been “considerable historic underinvestment” in its homes, and that the authority has approved plans to spend £211m on a 10-year investment programme across its estates.
However, the RSH said that based on current forecasts, the landlord does not anticipate meeting the requirements of the DHS in all of its homes until 2035.
“We consider that the proportion of non-decent homes and long timescales for resolution is a serious failing that has resulted in poor outcomes for tenants,” the judgement said.
At Rugby Borough Council, which owns and manages 3,448 social and affordable rent homes, including 1,223 independent living homes, the RSH also found serious failings.
Prior to the inspection, the council self-referred to the regulator after a third-party assessment highlighted issues relating to the accuracy of repairs information.
The RSH said that the council was “unable to demonstrate” it had an accurate understanding of how its repairs service was performing, reporting that the issues were in part due to a lack of integration across its systems.
The regulator’s inspection revealed that Rugby Borough Council commissioned stock condition surveys for 86% of its homes but only holds partial data, so cannot fully analyse the results.
While the council reports that 99.54% of its homes meet the DHS, this has not been verified against the survey information, the RSH said.
The inspection also found that the council has 800 homes with electrical installation condition reports over five years old – and 600 homes without a smoke alarm.
The RSH said that each of the local authorities is “engaging constructively” to address the failings and weaknesses identified.
In a statement, the City of London Corporation said it accepted the C3 grading and had “already begun” delivering improvements across its housing estates to address the “long-standing issues” noted in the report.
Chris Hayward, City of London Corporation policy chairman, said: “We recognised that there were historic issues in our housing stock, which is why we agreed a multimillion-pound housing investment action plan in December. We accept these findings in full and are determined to meet the standards our tenants deserve.
“The safety and comfort of our residents is an absolute priority, and our funding package marks a significant investment in ensuring they receive the high-quality housing they deserve.
“I want to reassure residents just how seriously we take this and how dedicated we are to improving our performance for everyone who lives in our homes.”
Claire Edwards, Rugby Borough Council portfolio holder for communities, homes, safety and regulation, said: “When I became portfolio holder, it was clear that significant work was needed to ensure our housing services were operating at the standard our tenants deserve.
“Over the past 18 months we have invested in our services, strengthened engagement with tenants and progressed major improvements to our repairs service.
“We welcome the regulator’s assessment and see it as an important part of our improvement journey. We remain committed to investing in our workforce and systems, and to working closely with tenants as we continue to strengthen our housing services.”
Runnymede Borough Council was also approached for comment.
In addition to the council gradings, South West landlord Willow Tree Housing Partnership Limited saw its consumer grade improve to C2, the first time a housing association has moved up from a C3 rating.
Christian Action (Enfield) Housing Association was upgraded from G3/V3 to G2/V2 for governance and viability as a result of the landlord improvement plan it agreed with RSH.
Other judgements included an interim judgement for newly merged Bromford Flagship LiveWest Ltd, which was unchanged at G1/V1.
Magna Housing Limited had its governance grade of G1 reconfirmed and a financial viability regrade to V2.
North Northamptonshire Council and Westmorland and Furness Council both received a consumer grading of C2 following first inspections.
Yorkshire Housing Limited was given its first consumer grade of C1, a reconfirmed governance grade of G1 and financial viability grade of V2.
The RSH said it was also removing a regulatory notice for the London Borough of Greenwich, which received the notice in 2022 for a breach of its standards.
Kate Dodsworth, chief of regulatory engagement at RSH, said: “Our inspections continue to highlight significant gaps in some landlords’ understanding of tenants and their homes, reinforcing the need for accurate, up‑to‑date information to ensure safe, decent housing.
“We will continue to hold landlords to account, and drive continuous improvement, to ensure tenants live in good-quality homes and receive effective services.”
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