New standards for “professionalisation” of social housing sector could cost councils £18m in first two years, LGA claims

The Local Government Association (LGA) has warned that councils could face a bill of nearly £18m to deal with new housing standards brought in by the Social Housing (Regulation) Act.

The organisation is calling on the Government to meet the additional costs for implementing the changes.

Under the Social Housing (Regulation) Act, senior housing management staff will be required to complete qualifications up to a certain level.

The LGA’s research has found that the changes are likely to cost councils £17.9m in the first two years and following that, £3.7m a year on an ongoing basis.

It also found that 66% of senior housing managers at respondent councils were “not yet sufficiently qualified to meet the new requirements”, and 54% of senior housing executives “likewise require further qualifications”. 

The LGA is calling for the implementation to be “properly managed, with council housing management teams already facing significant workforce pressures, and for the Government to work with the LGA and qualification bodies on a comprehensive strategy, delivered to a realistic timetable”.

Cllr Linda Taylor, LGA housing spokesperson, said: “Councils are fully committed to improving the quality of social housing, supporting housing staff and ensuring they receive appropriate training and can gain qualifications to help them in their roles.  

“With costs to councils likely to be almost £18m just for the first two years, it is essential that these new requirements are fully funded."

Cllr Taylor added: “Councils’ Housing Revenue Accounts are already facing unsustainable financial pressures, and this would be an additional burden which risks impacting on councils’ ability to fulfil their roles effectively as housing authorities.

“In addition, as our research shows, councils need more time to plan and implement these new requirements that are being imposed on them. This is why it is vital government works with us, and that these changes are carefully and properly managed, while being mindful of the significant workforce challenges housing teams are facing right now including recruitment and retention concerns.”

The Social Housing (Regulation) Act, which received Royal Assent on 20 July 2023, also brings forward the following changes:

• strengthening the Regulator of Social Housing to carry out regular inspections of the largest social housing providers and the power to issue unlimited fines to rogue social landlords;
• additional Housing Ombudsman powers to publish best practice guidance to landlords following investigations into tenant complaints;
• powers to set strict time limits for social landlords to address hazards such as damp and mould;
• introducing stronger economic powers to follow inappropriate money transactions outside of the sector.

Announcing the reforms last month, Secretary of State for Levelling Up, Housing and Communities, Michael Gove said: “The Social Housing Act will help to ensure that tenants get the safe, warm and decent homes they deserve – and those who have seriously neglected their responsibilities for far too long will face the consequences.”