Industry News


Details of new standards and inspection regime revealed


T


he Regulator of Social Housing has published its new set of consumer standards and regulatory approach to deliver a “well-


governed social housing sector” which provides quality homes and services to tenants. Te biggest change and a potential challenge


or even a threat to some social landlords, is that from 1 April, the regulator will inspect large landlords, with 1,000 or more social homes at least once every four years to ensure they are meeting the consumer standards. Te RSH will carry out inspections outside of this four-year programme, on small landlords. Under the new programme of inspections,


all large landlords will receive a grade on how well they are meeting the consumer standards ranging from C1 (‘the landlord is delivering on the standards’) to C4 (‘there are very serious failings in the landlord delivering the outcomes of the consumer standards’). Te first judgements are expected to be issued this summer and it is likely there will be some surprises, both good and bad. Te big question is whether the new regime


succeeds in driving up the quality of service delivery and whether tenants are more satisfied with their housing, their services and the outcomes of their landlords’ services.


Fiona MacGregor, chief executive of RSH, said: “Social landlords must keep tenants safe in their homes, listen to what they say and put things right when needed.”


Te regulator will assess landlords against


four new consumer standards carry out regular inspections and scrutinise data on tenant satisfaction and repairs. Te tenant satisfaction measures were introduced a year ago as a means of assessing how well housing associations and councils are doing at providing quality homes and services. Large landlords need to submit their first data returns to the regulator by 30 June 2024. Te economic standards set by the regulator


remain unchanged. Te four new consumer standards are the Safety and Quality Homes standard, the Transparency, Influence and Accountability standard, Te Neighbourhood and Community standard and the Tenancy standard. Te regulator’s powers have been expanded to


include additional enforcement powers to use in more serious cases. Te ‘serious detriment’ test has been removed, making it easier for the regulator to use its monitoring and enforcement powers in relation to the consumer standards without having to show there is actual or potential risk of significant


detriment to tenants. Tese powers include requiring a registered


provider to submit a performance improvement plan or to take particular actions set out in an enforcement notice. Te regulator will also be able to authorise


an appropriate person to enter a social housing premises to take emergency remedial action and issue penalties or require the RP to pay compensation. Fiona MacGregor, chief executive of RSH,


said: “Social landlords must keep tenants safe in their homes, listen to what they say and put things right when needed. We are introducing new standards to drive improvements in social housing, and we will actively inspect landlords to check they are meeting them. “We have spoken to thousands of tenants and


other stakeholders who have helped shape our new approach, and we are extremely grateful for their input and involvement. It is vital that landlords make sure they are ready.”


Call for greater clarity on rent-to-rent schemes


Private landlords need more clarity on rent-to-rent arrangements, with a national body (the NRLA) calling for better official guidance to prevent landlords falling foul of rogue operators. Te National Residential Landlords Association


recognises the model has been open to misuse, and, in response to a consultation run by National Trading Standards, said that stronger guidance and improved information about how rent-to-rent operates, would help landlords and tenants identify legitimate schemes. Recent research carried out by the NRLA found


landlords have had mixed experiences with rent- to-rent, with some citing a lack of clear guidance from sources such as the Government and Trading Standards as an issue. Instead, it was reported, many landlords are relying on advice from other landlords, oſten via social media.


THE ISSUES When working as it should, rent-to-rent schemes allow landlords to pass responsibilities and compliance over to third party rent-to-rent agents. Tese agents pay the landlord a guaranteed rent, typically below market value then they let out the property to tenants at a higher rent, keeping the difference as their payment or management fee.


On paper it could be seen as a win/win.


Landlords with little time at their disposal can outsource day-to-day management, while those without large capital payments to put down on a property can make a living from property. However, landlords need to be careful, as there


are risks. Some landlords who have entered into such arrangements said their properties were returned in a poor condition, while others said that third parties were renting their homes to undesirable, sometimes criminal, tenants. Others did not receive the rent as promised. In addition to this mortgage conditions


sometimes prohibit rent-to-rent, and the practice has also been given a bad name by those running unlawful rent-to-rent schemes – by sub-letting properties without the landlord’s permission.


WHAT DOES THE NRLA WANT? In its submission, the NRLA outlined the complexities of rent-to-rent and called for the Government to produce clear guidance to raise awareness of the potential risks for landlords, and as well as clear directions on how to correctly operate such a scheme themselves. Te NRLA has also responded to an inquiry into the regulation of property agents, by asking for the


6 | HMMApril/May 2024 | www.housingmmonline.co.uk


introduction of new training and service standards. Te NRLA supports the proposals, which were


first mooted by a working group back in 2019. With many landlords relying on the guidance of their agents when it comes to navigating complex housing legislation, the NRLA believes it is essential they have confidence that those they are employing to manage this aspect of their lettings are meeting required standards. It also said that to ensure a smooth transition


once the Renters (Reform) Bill becomes law measures must be in place before changes are implemented, to ensure that consumers are provided with adequate service standards and advice. It has asked the Government to ensure that:


• Property agents comply with minimum training and service standards, including adherence to an overarching code of practice;


• Consumers (including tenants and private landlords) are treated fairly and equally, with a clear route to redress should it be needed; and


• Any extension of the Regulation of Property Agents (RoPA) to private landlords does not duplicate requirements of the Renters (Reform) Bill or introduce a disproportionate level of additional bureaucracy and cost.


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