Background
The Social Housing Regulation Act 2023, was developed as a result of the Grenfell Tower fire in 2017 and subsequent publication of the Charter for Social Housing Residents in November 2020. It aims to reset the relationship between registered providers of social housing (RPs) and their residents by introducing a new, proactive approach to regulating social housing landlords on consumer issues, as well as new enforcement powers to tackle failing landlords. The Act is being implemented in stages, which started in April 2024.
New Consumer Standards
The Act puts the regulation of consumer standards on the same footing as economic regulation of social housing from 1st April 2024. It also made compliance with the Housing Ombudsman’s Complaints Code mandatory. This applies to all Registered Providers of Social Housing, regardless of size, although providers with under 1000 units will not be inspected nor given a rating. The new Consumer Standards are:
- Neighbourhood and Community Standard
- Safety and Quality Standard
- Tenancy Standard
- Transparency, Influence and Accountability (including Tenant Satisfaction Measures)
Note, the Transparency, Influence and Accountability Standard is expected to be expanded from October 2026 to incorporated the requirements of STAIRs and the Competence & Conduct Standard.
The Regulator of Social Housing (RSH) began its programme of planned inspections in April 2024 and has since published consumer gradings for a growing number of large landlords. Providers are graded on a four-point scale: C1 (meets the outcomes of the consumer standards), C2 (some weaknesses, improvement needed), C3 (serious failings, significant improvement needed), and C4 (very serious failings). While providers with fewer than 1,000 units are not subject to planned inspections or gradings, those who partner with or manage services on behalf of larger RPs should be aware of the standards their partners are being assessed against.
Where providers fall short, the Act removed the previous 'serious detriment' test, meaning the RSH no longer has to wait until tenants are at risk of serious harm before it can intervene. The Regulator can now impose unlimited fines on providers who fail to meet the consumer standards and has a range of enforcement tools including performance improvement plans, regulatory notices and, in the most serious cases, the power to appoint a manager or transfer management to another organisation.
Implications for providers.
- Registered Providers must be able to produce evidence of compliance with the standards and publish key information including the results of its Tenant Satisfaction Measures survey and complaints performance. The National Housing Federation has a range of information, resources and support for Registered Providers on the new consumer standards.
- Non-RPs that partner with RPs to run supported accommodation services may have to provide additional evidence or work more closely in partnership with RPs to help them meet the standards, for example, encouraging tenants to complete the Tenant Satisfaction Measures surveys and engage with the landlord.
- As the Act made compliance with the Housing Ombudsman's Complaint Handling Code mandatory, all registered providers must have a complaints process that meets the Code's requirements. This includes set timeframes for responding to complaints, clear escalation routes, and a requirement to self-assess against the Code annually and publish the results. Providers should ensure their complaints policies and processes are up to date and that staff understand the requirements, as the Housing Ombudsman can issue complaint handling failure orders where landlords are not complying.
- Accurate, up-to-date data is essential. Published inspection judgements have repeatedly highlighted poor data quality as a factor in lower gradings, particularly around stock condition, health and safety compliance, and repairs performance. Providers need reliable systems for recording, monitoring and reporting on the condition of their homes and the services they deliver.
- All registered providers, regardless of size, must collect and publish Tenant Satisfaction Measures (TSM) data. Registered providers with 1,000 or more homes are required to carry out an annual TSM survey and submit the results to the RSH. Smaller providers must publish the most recent results annually but can carry out the survey every two years. The measures cover areas including overall satisfaction, repairs, safety, complaints handling and tenant engagement, and are used by the RSH to identify potential concerns and inform its regulatory activity.
Links
Social Housing (Regulation) Act 2023
