Company Secretary Snapshot - September 2024

Welcome back to the Company Secretary Snapshot. This month we are ‘back to school’ with lots of pertinent updates including key findings from the final Grenfell Report, the launch of the Decent Homes Standard consultation, a review of the latest Regulatory Judgements, the Housing Ombudsman’s most recent learning from severe maladministration report; key takeaways from the Housing Community Summit and a reminder regarding some of the changes introduced by the Economic Crime and Corporate Transparency Act. 

Happy reading! 

Grenfell Report:

The final report of the Grenfell Tower Inquiry Phase 2 has delivered vital recommendations focused on fire safety, accountability, and the management of high-rise buildings. Though the Social Housing (Regulation) Act 2023 already enhances the regulator’s powers, these findings underscore the critical role housing providers must play in preventing future disasters. We highlight some key points below:

1. Regulation of Social Housing 

The report specifically criticised Kensington and Chelsea Tenant Management Organisation for neglecting fire safety, mishandling complaints, and fostering toxic relationships with residents, who felt ignored and belittled. However, it refrains from broader commentary on the social housing sector, as the Social Housing (Regulation) Act 2023 already empowers the Regulator of Social Housing (RSH) to enforce safety and management standards and enhances landlord duties through the recent changes we’ve seen to Consumer Regulation. The report also references the Government’s commitment to implementing Awaab’s Law which will further strengthen these protections.

2. Fire safety and building compliance

Housing providers must ensure regular inspections of self-closing fire doors (every three months), sprinkler systems, and firefighting lift mechanisms. These measures are key to improving fire response in high-rise buildings. Additionally, clear and visible internal floor signage is required, particularly important in emergencies when visibility is low.

3. Cladding removal and use of combustible materials

One of the primary causes of the Grenfell fire’s spread was the building’s ACM cladding. Although legislative changes have banned such materials in new builds, providers must urgently prioritise the removal of combustible cladding from existing properties. Many high-rises are still awaiting cladding removal, and the report calls for this to be completed as “vigorously as possible”.

4. Communication with fire services and residents

The report stresses the need for all high-rise buildings to maintain updated building plans and emergency procedures. Housing providers are expected to ensure this information is both readily accessible to local fire services and understandable to all residents, ensuring no one is left uninformed in case of emergencies.

5. Improving emergency procedures

Housing providers should collaborate closely with fire services to create comprehensive evacuation plans for all high-rise buildings. A failure to communicate evacuation strategies was highlighted as a significant issue during the Grenfell fire, and the report emphasises that future policies should move beyond the ‘stay put’ advice when situations call for evacuation.

For a full list of recommendations, you can view the report here: Publication of the Grenfell Tower Inquiry phase 2 report - GOV.UK (www.gov.uk)

Decent Homes Standard consultation:

The Ministry of Housing, Communities and Local Government (MHCLG) has confirmed that it is set to launch a consultation on a new Decent Homes Standard for both social and private rented sectors. This consultation will seek to ensure that safe and secure housing becomes a standard expectation for all tenants.

In addition to this, the update confirmed that the following legislative actions and standards are planned:

1. Awaab’s Law: the outcome of the consultation is awaited on Awaab’s law; however, MHCLG confirm legislation will be introduced this autumn to address housing hazards such as damp and mould in the social rented sector. This law will be extended to the private rented sector through the Renters Rights Bill, aiming to ensure timely repairs and reduce health risks.
2. Access to Information: again, we are yet to have the consultation outcomes on the ‘Social Tenant Access to Information Requirements’ (STAIRs) consultation social; however, the update confirms that new requirements will be implemented for housing associations, providing tenants with better access to information to hold landlords accountable and improve housing quality.
3. Competence and Conduct Standard: whilst we await the outcome of the consultation on the standard, the update from MHCLG confirms a new standard will be introduced for the social rented sector to ensure staff have the necessary skills and qualifications, including for senior managers, to deliver professional and respectful service to tenants.
4. High-Quality Housebuilding: Further plans for high-quality housebuilding will be outlined in the revised National Planning Policy Framework (NPPF), following the NPPF consultation, which closed on September 24th.

Read the full update here. 

Regulatory grades:  

The Regulator of Social Housing’s publication of Regulatory Judgement’s, including consumer gradings (or-C-grades) continues. Following on from our July Snapshot edition, we report on the recent key themes:

• Safety and Quality Standard failure including
  • Only 20% of buildings which required Fire Risk Assessments having them in place;
  • Over 2,000 overdue fire safety remedial of medium or high priority;
  • Delays with repairs services with large backlogs;
  • Out of date stock condition surveys;
  • Unable to evidence the RP is meeting requirements as to smoke and carbon monoxide alarms;
  • Unable to accurately report compliance with the Decent Homes Standards;
  • Unable to demonstrate compliance with health and safety;
  • Homes without electrical safety reports;
  • Lack of understanding regarding the condition of homes;
• Transparency, Influence and Accountability Standard failures resulting from:
  • Weaknesses in understanding of tenants, with incomplete information regarding tenants;
  • Complaints not being recorded consistently;
  • Not consistently responding to complaints in a timely manner; and
  • Failure to collect TSMs data.

We have also discussed the learning from inspections in our recent article:  Consumers Standards - learning from recent inspections  

Housing Ombudsman: Learning from Severe Maladministration

The September 2024 report focusses on the prevalent issue of temporary accommodation with the key learning themes being:

1. Temporary accommodation failures: Many residents were left in temporary decants for prolonged periods, often with inadequate support, causing severe disruption to their lives.
2. Communication failures: Poor communication, with residents left in the dark about ongoing repairs or accommodation plans, exacerbated frustrations and distrust.
3. Stigma and Distress: In some cases, residents in temporary housing faced stigma and inadequate living conditions, intensifying the psychological and emotional toll.
4. Lack of accountability: The report stresses that landlords missed multiple opportunities to correct issues and rebuild trust, highlighting the need for proactive management and accountability. 

The report encourages registered providers of social housing (RPs) to strengthen communication, improve handling of temporary accommodation, and take swift action to resolve issues before they escalate into maladministration. 

Key Takeaways following the Housing Community Summit:

The Bevan Brittan team spent two slightly rainy days at the Housing Community Summit in Liverpool earlier this month. Some of our key takeaways include:

1. Commitment to social housing 

Despite fiscal challenges, there is a commitment from Government to building 1.5 million social homes. Housing is a structural priority within the Government. Uncertainty remains over funding with an anticipated long-term rent settlement as yet unconfirmed – we wait with bated breath for the Autumn Budget. There is also an important question on how we compel private developers to get on board with meeting building targets.

2. Regulatory insights & responsibilities

Greater emphasis on landlords understanding and addressing their responsibilities, particularly when using managing agents. Regulations can only go so far and RPs need to be fostering relationships for a strong culture of professional curiosity and tenant engagement. There also needs to be comprehensive data collection to better understand who occupies homes in order to address their particular needs.

3. Tenant engagement

There needs to be a better understanding of tenant needs and vulnerabilities, especially during repair works. In order to improve this the sector needs better tenant engagement. The focus should be on making conversations two-way rather than paternalistic.

4. Health & Safety standards

Now known as the non-negotiable standards: health and safety, home quality, and tenant engagement all must be prioritised, with a better data-driven approach. Where the sector has seen compliance failures, this has often been due to a large volume of outstanding work and a lack of knowledge around what needs to be done.

5. Inspections & assurance

Robust documents and records are essential - if there is no written record of it, it does not exist. Triangulation of data and scrutiny are essential. Landlords are encouraged to self-refer before inspections if they believe they are not meeting the required outcomes.

6. Labour & immigration challenges

There is a current tension between reducing immigration and addressing labour shortages in the housing construction industry and how this can be managed with the new Government’s pledge to increase social homes.

7. Costs beyond construction

Maintenance costs are increasing especially post Grenfell, which will be a financial priority, particularly for fixing cladding issues. 

8. Governance and financial pressure

During financial pressures, governance should not be forgotten. A well-governed organisation focuses on both home quality and services.

9. Continuous improvement

Boards need to focus on home quality and services alongside governance and viability. There should be professional curiosity, to improve; leaders should constantly ask questions, use evidence, and drive change where possible.

Allocation Consultation

The previous Government consulted on reforms to social housing allocations. The consultation focussed on proposed limiting eligibility based on local connection, disqualifying households earning over £30,000, and restricting access for those who own property. These changes aimed to ensure that social housing is allocated to those with the greatest need. 

On 2nd September, the Government published its response which confirmed that, after reviewing feedback, it would not be proceeding within implementing the proposals, citing concerns that the reforms would reduce flexibility and negatively affect vulnerable groups. The existing system was deemed adequate in supporting discretion while ensuring fairness and transparency in housing allocations.

For more details, visit here.

AOB

Grab your Pumpkin Spice latte and Join us at forthcoming events! 

As we head into autumn we will be attending an array of national conferences and events as well as putting on some of our own! 

Senior Independent Director Network - 9 October, Virtual 
Is your SID part of our network? If not, please share our next session with them. This session will be held virtually from 10:00-11:00. 

Treasury in Housing Conference – 10 October, London
Join Louise Leaver, Catherine Raynsford (Hyde Group) and Jonathan Clarke (Savills) at their breakout session on Equity and housing: can we deliver profit with purpose?

Unlocking Success in Housing Mergers - 16 October, webinar 
Book on to this webinar which will hosted by Rose Klemperer with industry expert Andy Roskell (MD at DTP) discussing mergers. 

Inside Housing Regulation & Governance Conference – 17 October, London

Other recent articles which may be of interest:  

Renters’ Rights Bill published 

Procurement Act 2023 delayed until 24 February 2025 

Legal Update Service

As you will be aware, all RPs are required to meet the Governance and Financial Viability Standard requirement to comply with ‘all relevant law’, and make certifications in their annual accounts in respect of this.
 
With so much change in the sector at the moment, it can be difficult to monitor, interpret and implement requirements. We offer a variety of services to enable you to demonstrate compliance, including a subscription-based legal update service covering key legal, regulatory and policy changes within the social housing sector.
 
Our approach has been created in partnership with the sector, for the sector, and moves away from a ‘tick box’ approach to a meaningful tool, enabling you to:

• integrate the product into your control and risk management frameworks
• easily and quickly identify priority actions and access tools to assist with this
• empower and inform your teams to take responsibility for effecting such actions
• confidently report back to your Board on key risks areas and how these are being addressed.

To find how you can subscribe and watch our video introduction to our legal update service, please contact Louise Leaver.