Government to block social housing providers from Affordable Homes Programme funding if they are in breach of consumer standards

Rochdale Boroughwide Housing (RBH) will not receive its expected £1m funding from the Affordable Homes Programme (AHP 2021-26) or receive any new AHP contracts for new homes, until the Regulator of Social Housing has concluded an investigation and it can prove it is a responsible landlord, the Government has announced.

The move by the Department for Levelling Up, Housing and Communities (DLUHC) is the latest development in the aftermath of a coroner’s finding that two-year-old Awaab Ishak had died from a respiratory condition caused by long-term exposure to mould in a home provided by RBH.

DLUHC said the Government would continue to monitor housing standards of RBH tenancies closely, working with the Regulator and the Housing Ombudsman, “to ensure that tenants have appropriate housing”.

The Department also announced that, as part of a wider crackdown on poor standards, the Secretary of State, Michael Gove, would also block any housing provider that breaches the Regulator’s consumer standards from new AHP funding until they make improvements. The minister will also consider stripping providers of existing AHP funding, unless construction has already started on site.

At the weekend Gove wrote to all councils and housing associations demanding that they improve conditions. He told them that they should “not to hide behind legal process” when tackling damp and mould cases.

Housing Secretary Michael Gove said: “RBH failed its tenants so it will not receive a penny of additional taxpayers’ money for new housing until it gets its act together and does right by tenants.

“Let this be a warning to other housing providers who are ignoring complaints and failing in their obligations to tenants. We will not hesitate to act.

“Everyone deserves the right to live in safe, decent home and this government will always act to protect tenants.”

The Regulator of Social Housing has meanwhile demanded evidence from all housing association and local authority landlords this week, showing they are identifying and dealing with damp and mould issues in their homes.

DLUHC said the Social Housing Regulation Bill, currently making its way through Parliament, would also ensure tenants’ complaints are listened to and dealt with quickly and fairly, with new powers for the Housing Ombudsman to take action on complaints.

“A stronger regulator will have powers to enter properties with only 48 hours’ notice and make emergency repairs where there is a serious risk to tenants and the landlord has failed to act, with landlords footing the bill,” it said.

The Government will also launch a £1m public information campaign early next year, “to make sure tenants know their rights and can hold housing providers to account”.

DLUHC has awarded a share of £14m to seven areas with high numbers of poor privately rented homes to crack down on rogue landlords and test new approaches to driving up standards. Projects include:

This includes £2.3 million for Greater Manchester – including Rochdale and surrounding councils - to increase the use of fines where a landlord is found to have committed an offence.