The Regulator of Social Housing published its consumer regulation review 2023-24 on 17 July 2024. This sets out the key themes from the consumer regulation casework it has undertaken over the previous year.

The review covers the 12 month period before the new consumer regulation regime came into force. In other words, the review only covers cases where there was shown to be “serious detriment” which is no longer a requirement for intervention under the new consumer standards. Going forward, we expect to see more cases of potential breaches of the consumer standards, but the themes will likely be the same.

The report notes that 986 potential referrals were made to it over the year and from these nine cases were found to be breaches of the consumer standards. Interestingly, all nine of these involved local government (LG) registered providers (RPs). This clearly indicates that some LGs have more work to do to ensure compliance with the consumer standards, and this is a message that has been echoed directly from the Regulator itself. This is one of the reasons we are hosting a webinar specifically looking at the consumer standards for LGs, where we will have the Regulator of Social Housing speaking. We would encourage all LGs to attend by signing up to the event here.

The most important themes coming out of the review are that landlords must:

• meet all health and safety requirements to keep tenants safe
• know the condition of the homes they own and manage
• handle complaints effectively
• engage effectively with tenants and treat them with fairness and respect.

Landlords must meet all health and safety requirements to keep tenants safe

It is unsurprising that a key theme of regulatory casework remains issues with health and safety. In every case over the last year where the Regulator found breaches of the Home Standard (now the Safety and Quality Standard) there were health and safety failures. These involved a mix of failures to complete assessments, failure to provide assurance that certificates or detectors were in place and failure to carry out identified remedial actions within required timescales.

Landlords must know the condition of the homes they own and manage

Another theme of recent regulatory casework, and one that will likely continue, is that there are too many registered providers (RPs) who do not have accurate, up-to-date and complete data about the condition of their homes. The Regulator continues to make the point that it expects landlords to know the condition of their homes and that an RP cannot comply with the consumer standards if it does not have this information.

Landlords must handle complaints effectively

A number of cases involving potential breaches of the consumer standards also involve ineffective complaints handling processes. Complaints are not just about resolving a specific issue in front of an RP, they are an opportunity to build trust and confidence with tenants, gather data and learn. Going forward, the expectation is that RPs will have simple, accessible and publicised complaints processes. RPs also now have to comply with the Housing Ombudsman’s code on complaints handling which was published in April 2024.

Landlords must engage effectively with tenants and treat them with fairness and respect

Following on from the previous point, there is also a theme amongst consumer regulation cases of RPs failing to effectively engage with and listen to their tenants. Going forward, the expectation under the new consumer standard regime is more specifically framed around giving tenants the opportunity to actually influence decisions taken within an RP.

Other points of learning

The review comments in detail on the cases where an RP was found to have breached the consumer standards and provides a number of practical points of learning. These include:

• Self-referral to the Regulator is the cornerstone of being an RP. Where an RP finds a potential material issue then they must promptly inform the Regulator, so there can be constructive engagement.
• Successfully resolving issues is not just about addressing the immediate issue, it is about understanding the underlying cause of the issue and implementing plans to improve those processes.
• Effective governance involves positive engagement from senior leaders as a reflection of the seriousness of the issue and desire to set things right.

How Capsticks can help

The consumer regulation review is an opportunity for all RPs to learn from the Regulator and ensure that they are taking the steps necessary to comply with the new consumer standards. As we transition into the new system of proactive regulation of the consumer standards, we expect to see more cases of potential breaches of the consumer standards.

Capsticks’ aim is to be the firm of choice for those that make a difference. We advise over 200 RPs of varying size and location across the country on all areas of housing.

Additionally, our specialist local government advice is cost-effective and strategic, complemented by practical knowledge of your daily challenges. Our team offers a full range of services including advising on governance, applying for and delivering large regeneration projects, updating constitutional documents, refresher procurement training and support in preparing for an upcoming employment tribunal.

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