The Regulator of Social Housing (RSH) has opened a consultation on how it proposes to use its intervention and enforcement powers in the future. The consultation is available here and closes on 16^th January 2024.

The changes are to reflect the Social Housing White Paper reforms which were introduced by the Social Housing (Regulation) Act 2023 (the 2023 Act), which came into force on the 20 July 2023.

What has changed?

The 2023 Act granted additional powers to the regulator:

• The RSH can now require a registered provider (RP) to prepare and implement a performance improvement plan, setting out how it proposes to address issues identified by the regulator. The proposed statutory guidance will require the regulator to approve or reject the plan and if approved, an obligation for the RP to implement the plan in full, and to provide a copy to its tenants.
• The RSH has the power to enter social housing premises and carry out emergency remediation where there is a risk of harm. The proposed statutory guidance advises this power will be used only in exceptional circumstances, on a case-by-case basis, such as serious health and safety concerns. If the RSH exercises these powers, it can recover the cost of its expenses from the RP. 

The 2023 Act also amended a number of the existing powers granted to the regulator in particular:

• repeal of the ‘serious detriment’ test for consumer issues – meaning that the RSH can intervene more readily where there has been a breach of the consumer standards
• expanding the grounds in which regulatory and enforcement powers can be used, e.g. to require RPs to comply with health & safety requirements; to publish performance information; and to impose obligations where a performance improvement plan is in place
• extending enforcement powers to for-profit providers
• extending enforcement powers to charities even where they have not received public assistance
• requirement to notify the Charity Commission of the regulator’s exercise of certain enforcement powers
• amendments to provisions relating to surveys, inspections, inquiries, penalties, appointment and removal of managers and officers, appeals and moratorium.

What is the impact for RPs?

It is clear from the provisions of the 2023 Act and the proposed statutory guidance that regulations are becoming more stringent for RPs. Additional powers of the regulator, particularly where registered providers are not meeting standards, are all a part of this.

The changes reflect a move towards improved tenant engagement. Where RPs are failing to meet standards, they can expect to receive firmer penalties and additional involvement from the regulator as a consequence. This is particularly the case where health and safety of residents could be compromised.

Next steps

The public consultation will run until 16 January 2024.

Whilst RPs remain committed to their goals for high quality housing and safety for tenants, they can expect to see tighter enforcement and involvement from the regulator as the statutory guidance is brought in line with the new powers introduced by the Social Housing (Regulation) Act 2023.

Following the outcome of the consultation, the updated statutory guidance is expected to be published on 1 April 2024.

How Capsticks can help

Capsticks aims to be the firm of choice to RPs, offering a full service across, corporate and securitisation, development and planning law, housing management, housing leasehold and asset management. We can provide advice and assistance on changes discussed above and any updates that come in the future on this topic.

If you have any queries around what's discussed in this article, and the impact on your organisation, please speak to Susie Rogers to find out more about how Capsticks can help.