New era dawns for social housing regulation as TSA publishes framework

The Tenant Services Authority has published the new regulatory framework covering registered social housing providers ahead of its introduction on 1 April.

The new regime brings in a range of changes, notably around the future distinction between the regulator’s economic and consumer regulation roles.

The Regulation Committee of the Homes and Communities Agency will also take over responsibility for social housing regulation on the same date, when the TSA will be abolished.

The greatest changes in the framework relate to the consumer regulation field. The regulator will only intervene under the new arrangements in a service delivery matter where there is evidence of actual or potential serious detriment to tenants.

Less serious breaches will be dealt with by registered providers and their tenant panels, as well as with the input of councillors and MPs.

The Authority said the regulator would still expect the consumer standards to be met, “which will be the responsibility of boards and councillors (in the case of council housing)”.

Major changes are being brought in to the rules on tenure, tenant involvement and empowerment, and mobility.

The TSA meanwhile said the regulator’s top priority on economic regulation would “still be to ensure that private providers are financially viable for the long term and that their boards are providing effective direction and oversight to their organisations”.

A new Value for Money standard has been included as one of the economic regulation standards.

Anthony Mayer, Chairman of the TSA, said: “Although the Government has required significant changes to the 2010 standards framework, this new framework retains at its core the principle of co-regulation. Boards and councillors are responsible for the viability and proper governance of their organisations, and the effective service delivery and accountability of their tenants.

“The TSA Board’s top priority has been to ensure that we develop a regulatory framework that will maintain the confidence of all those with interests in the sector - whether landlords, lenders and investors, taxpayers or tenants. The priority is to ensure that social housing businesses are well run and can withstand the challenges of a difficult financial environment and housing market for the long term.”

Julian Ashby, Chair of the HCA’s Regulation Committee said: “We are grateful to the TSA for giving the Regulation Committee the opportunity to influence the new framework following the closure of consultation. We now look forward to working with the sector on its implementation. We will focus on governance, viability and value for money in response to increasing risks in the operating environment.”

Further information can be found here.