Two Landlords Breach RSH Consumer Standards

Newcastle City Council and Nottingham City Council have both received a C3 grading from the Regulator of Social Housing, meaning there are serious failings in how they meet the outcomes of the consumer standards.

Following self-referrals from Newcastle City Council in January, May and September 2024, RSH's responsive engagement found:

• Over 1,800 overdue repairs cases (as of November 2024), with works outstanding on over 1,000 damp and mould cases.

• Around half of communal areas and a quarter of its homes do not have a current satisfactory electrical condition report.

• More than 850 overdue fire safety remedial actions.

• A lack of information about its homes, with the last stock condition survey completed more than a decade ago.

• Insufficient information to understand the diverse needs of its tenants.

• A lack of an up-to-date domestic abuse policy.

RSH's planned inspection of Nottingham City Council found:

• A lack of accurate, up-to-date data of its stock quality and decency. Almost 40% of its homes had not been surveyed for more than ten years.

• Almost 1,000 live disrepair cases, which is a significant driver of complaints, and issues around data integrity.

• Weaknesses in its approach to capping gas supplies when it could not gain access to complete gas safety checks and monitoring of compliance with smoke and carbon monoxide detection requirements.

• Tenants were not being meaningfully involved in decision making or able to challenge decisions.

RSH is engaging with both landlords intensively as they work to put things right for tenants.

Separately, Ravenscroft Re-Build Co-operative and Allnutt Mill Housing Co-operative Limited were both found to have failed to meet RSH's economic standards.

As smaller landlords which own fewer than 1,000 homes, they do not receive gradings.

RSH's investigation found that Ravenscroft does not have effective governance arrangements in place and has failed to manage its resources effectively. It faces significant liquidity issues, putting social homes at risk and there is insufficient assurance that it has the ability to deliver services and meet obligations to ensure tenant safety.

Ravenscroft has also failed to have a robust risk and internal control framework in place, leaving it exposed to the potential for fraud and material loss of public funds.

RSH received information regarding alleged viability issues at Allnutt Mill via a third party and its investigation found that it could not demonstrate appropriate internal controls over its spending, which has led to a deterioration of its liquidity position.  

Allnutt Mill was unable to provide routine financial information such as an up-to-date cashflow forecast or a complete understanding of its current liabilities. It is therefore unable to demonstrate an ability to manage its future liquidity position appropriately and inhibits its committee in being able to make informed strategic decisions. 

Kate Dodsworth, Chief of Regulatory Engagement at RSH, said:

Having an effective repairs service and keeping accurate data are both vital for keeping tenants safe in their homes, especially when it comes to serious issues such as fire safety as well as damp and mould.

It is positive that our planned inspections continue to bring issues to light earlier than they might otherwise. However, it is essential that landlords self-refer to us. As well as being a requirement in our standards, it shows us that they understand their responsibilities and take accountability.

We are continuing our responsive investigations, including for small social landlords. It is vital that all housing associations and other private registered providers meet the outcomes of our Governance and Financial Viability Standard which remains as important as ever.

RSH also carried out stability checks on a further 22 landlords and three providers, Halton Housing, Hundred Houses Society, and Golden Lane Housing, were regraded from V2 to V1.

The rest retained their previous governance and financial viability gradings.

Stability checks are a yearly exercise where RSH looks at the financial information private registered providers have submitted (including their most recent business plan and annual accounts) and considers whether their current viability grade is consistent with this. 

Notes

1. On 1 April 2024 RSH introduced new  consumer standards  for social housing landlords, designed to drive long-term improvements in the sector. It also began a programme of inspections for all large social landlords (those with over 1,000 homes) over a four-year cycle. The changes are a result of the Social Housing Regulation Act 2023 and include stronger powers to hold landlords to account.