WIREDGOV

Strong management Boards are vital if Registered Providers are to adapt to a changing operating environment and successfully meet future challenges, the new Regulator of Social Housing said recently this week.

Speaking as the HCA took responsibility for the Regulation of Social Housing Providers in England, Julian Ashby, chair of the Agency’s new independent Regulation Committee, said:

“The social housing sector has proven resilient in the face of the global financial crisis and continues to generate stable surpluses and to attract the private sector lending it needs.  

“But the operating environment has clearly changed and will get more challenging.  The capacity and appetite of lenders to offer low margins and long-term debt has diminished, while Providers will need to manage the impact of changes to the welfare system and an increasing reliance on private finance placing more stress on their balance sheets.  Many are diversifying and becoming more complex – potentially generating additional capacity – but also taking on more risk.  A robust approach to value for money will provide a crucial buffer against increased risk and be key in the future supply of social housing.

“In that context robust economic regulation is necessary to maintain lender confidence and protect taxpayers.  We will focus on governance, viability and value for money, but it is the skills of Providers’ Boards that will underpin all three.   We will expect to see evidence that Boards are up to the job of navigating their organisations through some challenging times ahead. ”

Pat Ritchie, chief executive of the HCA, said:

“We are committed to robust and transparent regulation of social housing providers, which will remain independent from our investment activities, but captures the benefits of co-location.  

“It is our responsibility as regulator to keep pace with developments in the sector, capitalising on opportunities and managing risks flexibly, as circumstances change.  So as well as regulating, we will also look at how and where regulation can be improved.”

Housing Minister, Grant Shapps, said:

“As we look to slash red tape and regulate social housing more effectively, it’s vital to ensure that landlords strive for the best value for money for taxpayers while maintaining lender confidence. I am confident that this is a strong committee which can achieve that.

“But the primary responsibility for the welfare of tenants should lie with the landlords themselves.  So the changes I have made will give more opportunities for tenants to influence local housing services and hold landlords to account.”

The HCA took responsibility for the regulation of Social Housing Providers in England as of 1 April, replacing the Tenant Services Authority with a new regulatory committee which will preserve independence from the Agency’s investment activity.  

The new Regulatory Framework details how governance, viability and value for money will be the focus of robust economic regulation designed to maintain lender confidence and protect taxpayers.  While the Agency will continue to set consumer standards for tenants, it will only intervene in cases of serious detriment that have caused, or are likely to cause, harm to tenants.  Tenant issues and complaints will be resolved locally through landlords, tenant panels and local councillors.