Regulator of Social Housing consults on changes to fees regime ahead of July 2024 deadline for social landlords to meet full costs of regulation

Councils that own more than 1,000 homes face a charge of £7-8 for each to finance the work of the Regulator of Social Housing as it takes on inspection of local authority housing services.

The regulator has launched a consultation on proposed changes to the way it charges fees to social landlords of different kinds.

It will carry out regular inspections of larger social landlords including councils and must finance this from fees paid by regulated bodies.

This money would be needed to ensure the regulator “has the resources, skills and capacity to deliver its new, proactive consumer role, building on its existing regulation of landlords’ viability and governance”.

Under its proposals, from July 2024 social landlords will need to pay for the full costs of their regulation, and it will start charging fees to councils owning more than 1,000 homes.

It has estimated the annual fee will be £7-8 per social housing unit, though it may be less in the first year.

Fees for councils with fewer than 1,000 homes will be waived as they are not subject to the same consumer engagement that larger providers face, or the economic regulation which applies to small private registered providers.

The regulator will increase the fees larger housing associations to recover the full cost of regulation, based like the charging structure for councils on a fee-per-home. Associations with fewer than 1,000 homes will be charged a flat fee.

Fiona MacGregor, chief executive of the regulator, said: “Our stronger regulatory remit will empower tenants and help us to hold social landlords to account.

“We need to make sure we have the resources to deliver this expanded remit, building on our regulation of landlords’ governance and viability.

“That is why we’re proposing changes to our fee principles, and we encourage landlords, tenants and others in the sector to respond to this consultation.”

Council housing was previously regulated by the Housing Inspectorate, which was part of the former Audit Commission.

Roy Irwin held the chief inspector post from its creation in 1999 until its abolition in 2011 since when there has been no specific regulator.

Mark Smulian