Raising standards
The Tenant Services Authority’s new regulatory framework, introduced on 1 April 2010, signalled a new era for registered providers of social housing. Graham Archibald looks at the six standards underpinning the regime.
The Tenant Services Authority (TSA) was created by the Housing and Regeneration Act 2008 as an independent regulator for affordable housing in England and keeps a list of all Registered Providers; its aim for the short term is to secure a fair deal for tenants, protect the taxpayer and deliver modern and effective regulation.
To help it achieve these broad goals, the TSA has identified six core standards that all social housing providers must attain. Failure to do so could result in a registered provider of social housing facing inspection or enforcement action.
1. Tenant Involvement and Empowerment Standard
This standard encompasses three main areas; customer service, choice and complaints; involvement and empowerment; understanding and responding to the diverse needs of tenants.
In brief, all registered providers must open up channels of communication with their tenants to generate an understanding of their tenant’s needs and to assist in providing good levels of customer service. The registered provider must keep its tenants informed about all housing services on offer and encourage its tenants to become involved with as many aspects of the management of their housing as possible so as to develop co-regulation between landlord and tenant.
Tenants must have the opportunity to provide the registered provider with feedback on the choices and information on offer to them. The landlord can use this information to develop services and address any areas of concern.
Registered providers will be open to scrutiny from tenants. Specifically, registered providers must have a clear and timely complaints procedure, including an appeals process should the complainant be unhappy with the outcome of the complaint. Information about the number, nature and outcome of complaints received must be published by the landlord each year.
To discharge the registered provider’s obligations under this standard, all tenants must be consulted at least every three years on the best ways to involve them in the governance of the registered provider’s housing management service.
2. Home Standard
The home standard governs the quality of accommodation and all repairs and maintenance to social housing property. The government has issued Decent Homes Guidance which sets the minimum standard for all social housing post 31 December 2010; registered providers should therefore be in the midst of improving any property that would fall short of these guidelines.
However, if the standards of design and quality that applied when the home was built are superior to the compulsory requirements detailed in the guidance, the registered provider should retain the elevated standards. Any registered provider who cannot meet the end of December deadline may be able to negotiate an extension with the TSA as long as the reasons for this are reasonable and the tenants have been informed.
The registered provider must have a structured plan for repairs and maintenance of properties (including communal areas). The plan must address both emergency repairs, a schedule of routine maintenance and be cost effective. The registered provider also has the responsibility of providing an adaptations service to meet the tenant’s needs.
3. Tenancy Standard
The tenancy standard covers three main areas of concern to tenants; allocations, rents and tenure. The aim of this standard is to ensure that registered providers are letting social housing in a fair and efficient manner and that the needs of potential and existing tenants are met. All registered providers must therefore develop a clear application, decision-making and appeals process for potential tenants.
The registered provider must co-operate with the local authority to identify and address local housing needs. The time between lettings should also be minimised by the registered provider to maximise efficiency. It is also the registered provider’s responsibility to record all lettings and sales.
To ensure fairness and transparency, registered providers can only charge rents in accordance with a Government direction given to the TSA in November 2009. Tenants must be told by their register provider, in a clear and concise manner, how the rent and service charges are set.
Tenants must be offered the most secure form of tenure compatible with the circumstances; for example, the purpose of the housing. As regards the tenancy agreements, all applicable statutory and legal requirements must be complied with and the registered provider must have a process in place to ensure that the home remains in occupation by the contracted tenant.
4. Neighbourhood and Community Standard
The registered provider has a responsibility to the community surrounding their social housing properties as regards neighbourhood management, local area co-operation and anti-social behaviour.
Registered providers must seek, together with their tenants and any other interested parties, to keep their social housing neighbourhoods clean and safe. Registered providers must also work together with the local housing functions to assist them in attaining their objectives for the areas surrounding the registered provider’s housing.
It is the registered provider’s responsibility to develop an anti-social behaviour policy and co-operate with other interested parties to tackle anti-social behaviour in the social housing neighbourhoods where they own homes.
5. Value for Money Standard
To comply fully with the TSA standards, landlords must provide resources and solutions to tenants that are cost effective and offer value for money; evidence that value has been taken into consideration by the landlord will need to be given to the TSA in the event of challenge.
6. Governance and Financial Viability Standard
All registered providers must adopt and comply with a code of governance. The code of governance must ensure that all relevant legislation is adhered to during day-to-day operations of the registered provider, an efficient risk management framework has been implemented and that each level of the landlord’s management structure (for example, Board, Chairman, Chief Executives) is clearly defined with identifiable responsibilities.
Registered providers must ensure that there is sufficient liquidity at all times and that all controls and procedures have been put in place to ensure the proper use of public funds and security of assets.
Inspection and Enforcement
In order to measure a registered provider’s performance against the standards outlined above the TSA has the right to carry out housing services inspections; in practice these are carried out by the Audit Commission. An inspection is likely to be carried out where the TSA suspects that the registered provider may be failing to meet one of the standards, or if the TSA suspects that the registered provider has been operating incorrectly. The TSA will communicate to the registered provider why they feel that an inspection is necessary.
The registered provider should take primary responsibility for self-improvement against these standards. However, should the registered provider fail to address areas for improvement, the TSA has the statutory power under the 2008 Act to use enforcement powers against any registered provider. Any action taken by the TSA must be proportionate.
Consents to Disposal of Social Housing
Section 172 of the 2008 Act also came into force on 1 April 2010 and has introduced a new set of requirements surrounding the requirement for consent from the regulator (the TSA) for the disposal of social housing dwellings.
Conclusion
Overall, registered providers will need to be transparent with the TSA and tenants to ensure that they are providing and maintaining safe and suitable housing to meet their tenants’ needs in a particular locality. In addition, the registered provider must pay attention to the use of public funds and protect these accordingly.
An annual report must be published by the registered provider that shows how they are meeting all of the above standards and how they will continue to comply with the TSA’s requirements in the future.
Graham Archibald is a partner at Hill Dickinson. He can be contacted on 0151 600 8800 or by email at This email address is being protected from spambots. You need JavaScript enabled to view it..
