Industry news


Fresh concerns raised about tower block safety


construction experts, with warnings that the properties are at risk of collapse. In a report run by The Independent newspaper it


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is claimed that 41,000 flats in total are at risk due to flaws in the Large Panel System (LPS) construction method used by many councils in the 1960s and 1970s. This is identical to the way Ronan Point was built in east London – it collapsed in 1968 after a gas explosion. The flawed construction method has reportedly


left cracks in some flats wide enough to allow residents to slide their hands in between the walls. It also leaves them at risk of collapse in the event of a fire or gas explosion. The newspaper says that structural defects have


already been discovered at LPS blocks in Leicester, Rugby, Portsmouth and two estates in London over the past year. Hundreds of council tenants and leaseholders are said to be in the process of being moved out for their safety. It is feared the defects could be present in at least 575 similar tower blocks across the UK. Tower Blocks UK, a campaign and research


group, is calling for the Government to set up a nationwide safety audit, ensuring inspections are carried out at all LPS tower blocks in the UK. “This is an even bigger issue than Grenfell


oncerns over the safety of hundreds of tower blocks housing an estimated 100,000 people have been raised by residents and


because more tower blocks are affected by these structural problems than by cladding problems,” said Sam Webb, a retired architect who is the co- founder of Tower Blocks UK. “The Government needs to take responsibility for this as a matter of urgency.” The campaign group is urging the Government


to commission the Ministry of Housing, Communities and Local Government or the Building Research Establishment to lead the inspections. “The Government needs to carry out a safety


audit to identify all the large panel system tower blocks, and make sure qualified experts check whether or not these blocks are safe,” said Frances Clarke of Tower Blocks UK. “We have the face up to this because residents can’t be left at risk living in potentially unsafe buildings,” she added. A spokeswoman for the Ministry of Housing told


The Independent that the department held its first forum last week to discuss the LPS tower block problem with local authority representatives. “Building owners are responsible for checking


their properties and we have given councils and housing associations advice on checking the structural safety of buildings which use large panel systems,” said the Government spokeswoman. The Local Government Association confirmed


the meeting had taken place but could not say how many council representatives attended.


HA boards alerted to sector’s reputational risks


After a turbluent year in the wake of the Grenfell Tower fire and with austerity measures still affecting rents, the social housing sector has been warned by its regulator that it is under greater scrutiny than ever before. In its annual Sector Risk Profile which runs


to just over 30 pages, the regulator has summarised what it sees as the major risks which HA boards need to be alert to and have appropriate plans for dealing with them. It opens by drawing attention to three


specific risks it sees as increasing in importance. These are: • Health and safety risks; • Reputational risks; and • Sales risks. On health and safety it reminds boards that


they are ultimately responsible for ensuring the safety of their tenants and staff. It acknowledges that significant investments in fire safety have taken place in the aftermath of the Grenfell Tower fire, but it advises HAs to ensure they have the appropriate controls in place to comply with the full range of health and safety requirements. Highlighting the higher level of scrutiny


Welsh regulator intervenes over ‘serious’ failures at HA


The Welsh Government is intervening at a medium sized housing association after it found evidence of “serious failures of governance.” Hendre requires regulatory intervention


because a “significant risk has not been effectively managed”. It has also failed across a number of areas, including “leadership and culture”, “board oversight and control”, “ non-compliance with policy” and “ineffective management and poor professional practice”, the judgement said. Currently the 6,000 home association, which


operates in nine council areas across South Wales and is part of the Welsh Housing Partnership joint venture along with three other landlords, has been told to undertake an “independent review of governance and leadership across the organisation”. It will need to implement any recommendations or actions from the review to a timetable agreed with the regulator.


The regulator did not specify what issues it had


uncovered at Hendre, but mentioned “concerns” with its compliance with three performance standards, relating to “board and executive management”, “self-evaluation” of compliance and “compliance with regulatory requirements”. Hendre has maintained its “standard” grading for financial viability. Nigel James, chair of Hafod, said: “The board


fully accepts the regulatory judgement and we have entered into a voluntary undertaking with the Welsh Government regulator, which clearly sets out their expectations for improvements and what we will do to address the issues. “We would like to stress that nothing in the


judgement relates to our frontline services. There is no impact on our tenancies or care packages. These are unaffected and our dedicated staff will continue to deliver high quality housing, care and support services.


facing the sector, the regulator says “It is vital that boards should have regard to stakeholders’ expectations in their decision making.” This can be seen as an indication of a greater focus on consumer protection and resident engagement in the future. It will also be interesting to see how much attention is given in next year’s report to the likely introduction of league tables for HAs. It is clear from the many charts and tables


included in the report that the regulator has concerns over the potential exposure which many HAs have to a possible downturn in the property market, particularly with more social landlords undertaking open market sales. “More registered providers than ever are


reliant on sales income to fund their development programmes including some registered providers with limited previous experience in this area. While sales revenues can make a valuable contribution to delivering much needed affordable housing, it is vital that boards should understand the markets they operate in and have skills appropriate to the activities their business undertakes.” With Brexit on the horizon and further


interest rate rises possible, it is clear the regulator wants HA boards to plan carefully for a challenging environment and a variety of scenarios including falls in the value of land. This could be made more difficult by cuts in welfare benefits and the future roll out of Universal Credit to existing claimants.


www.housingmmonline.co.uk | HMM November 2018 | 21


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