24 May 2019

Consumer standards obligations on housing stock-owning councils

The Regulator of Social Housing has written to local authorities that own housing stock, and who are therefore automatically registered with us, to remind them about our consumer standards and that those standards apply to them.

The four consumer standards include the Home Standard; Tenancy Standard; Neighbourhood and Community Standard; and the Tenant Involvement and Empowerment Standard. Currently, legislation only permits us to take enforcement action where there has been a breach of a consumer standard, and that breach has, or could, cause serious detriment to current or future tenants.

As can be seen from several of our annual Consumer Regulation Review publications, we most commonly find breach and serious detriment in relation to the Home Standard. Indeed, many of you will know that last year and this month we have had to issue regulatory notices to two local authorities in respect of compliance with the Home Standard, and specifically a range of health and safety requirements. As is the case for all registered providers it is vital that local authorities ensure that they meet all their obligations in relation to tenants’ health and safety.

Our letter to local authorities was therefore prompted by those recent Regulatory Notices as we are conscious that we do not engage proactively with local authorities in the way that we do with private registered providers via our economic regulation role. In that letter, I have drawn attention to part 1.2 (b) of the Home Standard, which requires that registered providers shall: meet all applicable statutory requirements that provide for the health and safety of occupants in their homes.

Just under two years ago, following the Grenfell Tower fire, we reminded all registered providers of social housing about their obligations under the Regulatory standards. We wrote that: Meeting health and safety obligations is a primary responsibility for registered providers. Boards and councillors must ensure that they have proper oversight of all health and safety issues (including gas safety, fire safety, asbestos and legionella).

It is vital to understand that this obligation remains with the local authority where it is the stock-owning body, even if the management has been contracted to another body such as an ALMO. As stated in our letter in 2017: Contracting out delivery of services does not contract out responsibility to meet the requirements of legislation or standards, so providers need systems to give boards assurance of compliance.

While the Regulator currently only considers information that is referred to us, this does not diminish the requirement for all providers, including local authorities to meet the consumer standards. Our co-regulatory approach to regulation is set out in Regulating the Standards. Should any provider find that they have systemic failings in relation to internal control of health and safety, which indicate that they are not in compliance with our Consumers standards, we expect them to notify us as Regulator and work to resolve the issues immediately.

Fiona MacGregor is chief executive of the Regulator of Social Housing.

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