Tenants' rights and complaints: government response to the consultation
Updated 19 January 2024
Executive summary
1. The government has set out clear ambitions to improve the quality of social housing. We are determined to make sure that all social housing residents can live in homes that are decent, safe and secure and that are properly maintained; that they receive a high-quality service from their landlord; and that they have a strong voice which they are empowered to use to hold their landlord to account. Since publishing the Social Housing White Paper: A Charter for Social Housing Residents in November 2020, the government has been driving forward significant new reforms. The Social Housing (Regulation) Act 2023, which received Royal Assent in July 2023, marked an important milestone in the government’s work to improve the lives of social housing residents.
2. As part of the Social Housing (Regulation) Act 2023, the Secretary of State is required to give a direction to the Regulator of Social Housing (‘the Regulator’) for the purpose of securing that registered providers of social housing are required to provide their tenants of low-cost rental accommodation with information about:
a. their tenants’ rights in connection with the low-cost rental accommodation and with facilities or services provided in connection with that accommodation; and
b. how their tenants can make a complaint against them.
3. On 27 September 2023, the Department for Levelling Up, Housing and Communities launched a consultation on proposed directions from the Secretary of State to the Regulator, using powers under section 197 of the Housing and Regeneration Act 2008 (“the 2008 Act”).
4. The consultation sought views on our proposal to direct the Regulator to set standards relating to the provision of information to tenants on:
- making complaints
- tenants’ rights and
- relevant regulatory requirements
5. This is an important part of our work to strengthen the voices of social housing residents. Currently too many social housing tenants do not receive the information they need to understand their rights and to know how to make a complaint to their landlord. These changes will make sure that tenants know what they can expect from their landlord. They will work to empower tenants to hold their landlord to account for delivering the quality homes and services they deserve.
6. The consultation closed on 22 November 2023. We are grateful to organisations and individuals who took the time to respond. We have considered all responses received. This document summarises these responses and sets out the government’s response to the consultation.
7. Having considered the responses to the consultation, the government will issue the final directions set out in Annex A. This direction requires the Regulator to set a standard requiring registered providers of social housing to provide their tenants with information about tenant rights and relevant regulatory requirements in connection with the homes, facilities and landlord services they provide to tenants, and how they can make a complaint against them. While we are giving providers the flexibility to determine the appropriate approach to doing this, they must ensure they are seeking to make this information accessible to tenants. Providers will need to determine the most appropriate way to communicate to their tenants, ensuring that they understand the rights and relevant regulatory requirements and how to make complaints, without barriers to comprehension.
8. While a number of landlords already provide their tenants with this information, introducing these new requirements will ensure this happens consistently across the sector. These new requirements will also ensure the Regulator can hold landlords to account for meeting these requirements in the proactive consumer regulation regime. We anticipate the Regulator will reflect this direction in their suite of regulatory standards that will come into force in April 2024.
9. Copies of this document are available via the html print button.
10. Enquiries about the document should be addressed to: socialhousingdirectioninfoprovision@levellingup.gov.uk.
Introduction
11. Every social housing resident deserves to live in a home that is decent, safe and secure; to receive a high-quality service from their landlord; and to have a strong voice. This means having tools at their disposal to hold their landlord to account, having their complaints dealt with swiftly and effectively, and knowing that things will be put right when they go wrong. For too many residents in too many places, their experience has fallen well short of this promise.
12. The government is determined to change that, which is why it has been working hard to improve standards in the social housing sector – redoubling efforts following the devastating Grenfell Tower fire of 2017, and embarking on an ambitious programme of reforms set out in The Charter for Social Housing Residents white paper.
13. In July 2023, the Social Housing (Regulation) Act 2023 received Royal Assent. This marked an important milestone in the Government’s work to improve the lives of social housing residents, providing new powers to hold poorly performing landlords to account. It includes Awaab’s Law, introduced in response to the tragic death of two-year-old Awaab Ishak.
14. Following a campaign led by the Manchester Evening News and Shelter, with the support of the Ishak family, the Secretary of State for Levelling Up, Housing and Communities gave his backing to calls for Awaab’s Law, and the department has subsequently worked to consider the campaign’s recommendations.
15. This consultation sought views on one of the campaign’s proposals: a new requirement to ensure that registered providers of social housing give tenants information about their rights and how they can make complaints.
16. We consulted on directions to the Regulator that would ensure that the Regulator sets a standard requiring all registered providers of social housing to tell their tenants about their rights and how they can complain if they are being let down. These complaints should be taken seriously, and there will be consequences for housing providers who fail to meet their obligations.
17. The department is currently consulting on the other aspect of Awaab’s Law, introducing new legal duties for landlords to address hazards such as damp and mould in social homes within a fixed time period. The consultation on requirements for addressing hazards opened on 9 January 2024 and will close on 5 March 2024. To view the consultation and provide a response, see Awaab’s Law: Consultation on timescales for repairs in the social rented sector.
18. Awaab’s Law is just one part of the government’s ambitious programme of reform to drive up standards in the social rented sector and rebalance the relationship between landlord and resident. An overview of the government’s approach to improving the quality of social housing is set out on social housing quality.
19. Together, these reforms will ensure that social housing landlords are held to account for providing quality homes and services to their tenants of social housing.
Summary of responses
20. We received a total of 122 responses to the consultation.
21. 61 responses were from individuals and tenant organisations. The majority of these responses were from social housing tenants. 57 responses were from Registered Providers of social housing (35 from Private Registered Providers (PRPs) along with 8 from their representative bodies and 14 from Local Authority Registered Providers (LARPs). The remaining responses were from other organisations.
22. The table below sets out a breakdown of the respondents.
Type | Number of responses |
---|---|
Individuals | 52 |
Tenant organisations | 9 |
Private Registered Providers (PRPs) | 35 |
Local Authority Registered Providers (LARPs) | 14 |
Sector bodies | 8 |
Other organisations (including charities, consultancies and professional associations) | 4 |
Total | 122 |
23. For the purpose of this response, we have grouped the respondents into three categories:
- registered providers of social housing (‘RPs’), which includes LARPs, PRPs and their managing organisations/representative bodies (57 responses)
- individuals and tenant organisations (61 responses)
- other organisations (4 responses)
Responses to the questions
Question 1: Do you agree with the requirements in 3(1)(c) and (d) of the draft direction for registered providers to provide tenants with information on how to make a complaint about their landlord and about their landlord’s complaints policy and complaints handling process?
24. This question received a total of 122 responses, from 57 providers and sector bodies, 61 individuals and tenant organisations, and 4 other organisations.
25. 112 respondents agreed with the requirements for registered providers to provide tenants with information relating to complaints, as set out in 3(1)(c) and (d) of the draft direction (Annex B). Of those who did not completely agree, 2 respondents partially agreed, 4 respondents disagreed, and 4 respondents did not express a clear view either way.
26. A significant proportion of respondents agreed that it is important to provide tenants with information about how to make complaints so that they can hold their landlords to account. In particular, a number of tenants provided examples of how these requirements would help them resolve some of their own housing issues.
27. Many respondents agreed that information about complaints should be provided to tenants in a way that they can understand and in an accessible format. This could include providing information through a range of channels, including online and postal communications.
28. Some respondents acknowledged that many registered providers are already providing tenants with the relevant information about their complaints processes. Additionally, several respondents referred to and were aware of other requirements that will require registered providers to publish their complaints procedures, including the Housing Ombudsman Scheme’s Complaints Handling Code. Whilst some respondents welcomed the consistency across these requirements, others highlighted the need for the proposed and existing requirements to be streamlined to minimise duplication.
29. A small number of registered providers and representative bodies emphasised the need for the standard to give flexibility to providers on their approach to providing tenants with information on how to make complaints. This includes flexibility in how information is made accessible to tenants, and when information should be provided. Providers highlighted that this would allow them to take the needs of their tenants into consideration and would allow them to incorporate the requirements within existing practices, with providers referencing a number of ways in which they already provide tenants with information, such as through tenant handbooks and digital resources.
30. Some providers expressed concern about the lack of time they may have to prepare to comply with the requirements. These respondents noted the time required to update their complaints policies and procedures and that it would be preferable to align their approach to sharing the information required by these directions with their existing information sharing plans.
31. Some respondents argued that there is a need for the direction to be developed further. This included proposals that the direction should be more specific on how information should be provided to tenants, including a recommendation that providers should be required to publish information online. The rationale provided for this recommendation was to ensure visibility of information to tenants and to support the enforceability of the requirements, making it easy for the Regulator to determine whether providers are complying.
32. Some respondents also recommended that the direction require providers to provide tenants with information about where to go if they are dissatisfied with the outcome of their complaints.
Question 2: Do you agree with the approach to the direction on the provision of information on tenants’ rights and regulatory requirements, as set out in paragraphs 32-42 of the consultation document?
Question 3: Do you agree that the rights and regulatory requirements included in 3(2) of the draft direction are appropriate?
33. Questions 2 and 3 are closely related. Consequently, this section provides a summary of responses received to the two questions together.
34. Question 2 received a total of 122 responses, from 57 providers, 61 individuals and tenant organisations, and 4 other organisations. 108 respondents agreed with the approach set out in paragraphs 32-42, 3 respondents partially agreed, 7 respondents disagreed, and 4 respondents did not express a clear view either way.
35. Question 3 received a total of 122 responses, from 57 providers, 61 individuals and tenant organisations, and 4 other organisations. 108 respondents agreed with the approach set out in the direction, 5 respondents disagreed and 9 respondents did not express a clear view either way.
36. Respondents widely agreed that providers should be required to provide tenants with information about their rights and regulatory requirements, to enable tenants to hold them to account if they fail to meet their obligations.
37. A significant proportion of registered providers who supported the approach in paragraphs 32-42 welcomed the flexibility given to providers to decide how to communicate the information. Some responses from providers noted that they are already taking steps to make information more accessible to tenants, for example investing in digital technologies to improve tenant experience. Some respondents noted that tenants with no digital means should be given other options such as paper documents and focus groups.
38. A small number of providers also noted that they already provide their tenants with information in these areas. Some responses from providers stated that they provide tenants with information on a wider range of rights and requirements than those specified in the draft direction.
39. Many respondents requested more clarity on how tailored the information provided would need to be for individual tenants. Some respondents noted that, by not being more specific in telling providers exactly what information they would need to provide, it may lead to a lack of consistency between providers. Related to this, a number of respondents noted that it would be a considerable task to personalise responses for individual tenants, noting the range of different rights and regulatory requirements that apply to different types of tenancies and tenancy agreements.
40. A number of respondents noted that providers are subject to a wide range of regulatory requirements, and it would be challenging for them to determine what information to provide. Some respondents requested more clarity on what should be regarded as “relevant” requirements. Some respondents also noted that providers might overload their tenants with information to ensure they meet the requirement. Related to this, a number of respondents suggested that a template or list of rights and regulatory requirements should be provided, which providers could then adapt to their individual circumstances, to support them in complying. There were also some respondents who suggested other information requirements that should be specified in the direction. This includes requirements relating to fire safety, and information on service charges.
41. A number of respondents also made comments relating to the requirement to make information accessible to tenants. There were queries relating to how information should be provided to tenants where English is not their first language. Some providers noted that they would face significant capacity challenges if they were expected to translate information, for example, or to provide easy read versions of each piece of information provided. Some providers also queried whether, in certain circumstances, they would be able to or expected to provide information to carers and guardians.
42. Several responses highlighted broader concerns around financial and capacity implications of the proposed requirement. Some respondents raised concerns about the financial impact on providers at a time when they are also required to meet additional new requirements.
43. Some respondents queried the reference to the right to “reasonable adjustments” in the draft directions. Responses included a suggestion that this should be expanded beyond adjustments relating to disabled tenants, to include adjustments for other groups, such as tenants who have been victims of domestic abuse. There was also a request for clarification on the meaning of “reasonable adjustments” in this context, noting that it can be understood to mean both adaptations to the home, and wider adjustments in the delivery of information and services to tenants.
Question 4: Do you agree with the likely costs associated with meeting commitments associated with the new requirements, as summarised in the assessment of the impact on the sector set out in the consultation document?
44. This question received a total of 122 responses, from 57 providers, 61 individuals and tenant organisations, and 4 other organisations.
45. 51 respondents agreed with the likely costs associated with meeting the new requirements, as summarised in the consultation document. Of those who did not agree, 8 respondents partially agreed, 30 respondents disagreed, and 33 respondents did not express a clear view either way.
46. Many respondents, including some of those who agreed with the government’s assessment of the likely associated costs, highlighted the challenge for providers to comply with these requirements given the wider financial pressures the sector is facing. Of these respondents, some suggested that the government’s assessment of costs should not be restricted to the direct costs of meeting the new requirements, but considered alongside other financial pressures, including costs associated with other requirements due to be introduced by the government.
47. Additionally, many respondents, some of whom agreed with the likely costs of meeting the new commitments, expressed concerns about the wider implications of these costs. Many of these respondents, including providers and tenants, expressed concern that these costs would be passed on to tenants, for example through rent increases. Some of these responses referred to the need for clarity around future rent settlements.
48. Of the 30 respondents who disagreed with the assessment of the likely costs associated with complying with the new requirements, several argued that some or all of the costs had been underestimated. Some respondents expected the cost of legal advice to be greater than the £26.19/hour used in our estimates. Additionally, one respondent disagreed with the £22.35/hour average staff wage cost that had been applied to calculate preparation costs, on the basis that more senior or specialised staff would be involved in the process of meeting the requirements. Some respondents also noted the difficulty in accurately predicting wage increases, which are not consistently in line with inflation. In addition, some respondents suggested that more time would be required to provide tenants with individualised information on the requirements relevant to them.
49. One respondent noted that many of the figures used in the calculations are based on the 2022 Annual Survey of Hours and Earnings (ASHE) data. Given that the 2023 ASHE has since been released, the respondent requested the calculations be updated with the most recent salary averages.
50. Many of the respondents who disagreed with the assessment of costs argued that some direct or indirect costs of complying with the new requirements had not been considered. This includes the cost of making information accessible to tenants. Respondents highlighted the cost burden of providing information in accessible formats, such as braille, audio versions and easy read, and the cost of translating information into several languages for non-English speakers. Some providers also suggested there would be further associated costs, including the cost of evaluating the effectiveness of the provision.
51. Some respondents queried whether the cost estimates accounted for inflation, noting the impact this would have on wage costs.
52. Many respondents, including some of those who broadly agreed with the cost estimations, noted that the costs of complying with the new requirements are likely to vary between providers. These responses were mixed, with some respondents suggesting that the provisions were likely to have a greater impact on larger providers, given they provide homes for a larger number of tenants, and others arguing the requirements would impact smaller providers more because they would need to spread the fixed cost elements across fewer property income streams.
53. Some respondents questioned the statement that government will not provide new burdens funding for local authority registered providers with a Housing Revenue Account (HRA).
Government response to the consultation
54. We are grateful for the responses received to this consultation. We have considered the comments and additional evidence provided. Our response is set out below.
Question 1: Do you agree with the requirements in 3(1)(c) and (d) of the draft direction for registered providers to provide tenants with information on how to make a complaint about their landlord and about their landlord’s complaints policy and complaints handling process?
55. Too many social housing tenants do not receive the information they need to know how to make a complaint to their landlord. The ability to complain when things go wrong is a fundamental part of ensuring that landlords are held accountable. We want to ensure that all tenants understand how to raise a complaint to their landlord so that they can effectively hold their landlord to account. To support this, providers must provide information about their complaints processes in a way that is accessible to tenants. The requirements set out in the direction will work alongside the wider consumer standards, as consulted on recently by the Regulator, to improve the quality of social housing and ensure landlords can be held to account by their tenants.
56. We recognise that many providers of social housing are already providing their tenants with information about their complaints policies and procedures. We believe the introduction of the new requirements set out in the direction will ensure this happens consistently across the sector, so that all tenants will have the information they need to complain where they are being let down. Introducing these requirements into the standards will ensure the Regulator can hold landlords to account for meeting these requirements in the proactive consumer regulation regime. This will work alongside the Housing Ombudsman Service’s more detailed requirements outlined in their Complaints Handling Code, which was the subject of a recent consultation.
57. Providers will need to tailor their communications to tenants so that they are accessible, to ensure that all tenants understand how to make a complaint. We agree with a number of respondents who noted that it is important that providers have the flexibility to provide tenants with information about complaints in a way that takes their existing communication practices and the needs of their tenants into account. That is why the direction does not stipulate exactly how the information should be provided, giving providers the flexibility to determine what is appropriate for their tenants, including the best ways and timings of providing information to ensure it is accessible. Providers will need to determine the most appropriate way to communicate to their tenants. In some cases, this may mean providing tenants with information in accessible formats on request, such as braille, audio or easy read. In some cases, if having considered tenants’ needs they consider it appropriate, providers may choose to take steps to provide specific tenants with information in foreign languages. However, this is not a requirement in the direction or legislation, which gives providers the flexibility to determine what is appropriate in the circumstances. As outlined in previous DLUHC guidance[footnote 1], there is no requirement under the Equality Act 2010 to translate into foreign languages.
58. In circumstances where a provider’s primary engagement is via a carer or guardian, it may be appropriate for providers to consider how to communicate to or via the carer or guardian. This new requirement will work in tandem with the Regulator’s draft consumer standards which already require providers to “understand the diverse needs of tenants, including those arising from protected characteristics, language barriers, and additional support needs”, and to “ensure that communication with and information for tenants is clear, accessible, relevant, timely and appropriate to the diverse needs of tenants.”
59. We acknowledge that some providers have concerns regarding the timescales for complying with the new requirements. We believe it is important that all tenants know how to make a complaint, to support them to hold their landlords to account for the services and homes they deliver. This should be a fundamental element of the services a landlord provides and we believe it is right that all providers should be meeting this requirement as a minimum. We are confident that providers will have sufficient time to prioritise necessary changes ahead of the standard being introduced, which we anticipate will be in April 2024.
Question 2: Do you agree with the approach to the direction on the provision of information on tenants’ rights and regulatory requirements, as set out in paragraphs 32-42 of the consultation document?
Question 3: Do you agree that the rights and regulatory requirements included in 3(2) of the draft direction are appropriate?
60. We want to ensure that social housing tenants understand their rights and the requirements their landlords must fulfil, to enable them to hold their landlord to account for the quality of the homes and services they provide.
61. We agree with a number of respondents that it is important for providers to share relevant information with tenants and that there should be flexibility on how they communicate this information to tenants. We recognise that a one size fits all approach would not work for all tenants, and that it is right for providers to consider how to best communicate the information to their tenants, including through existing information sharing practices which tenants may already be familiar with. As a result, the direction does not stipulate how providers should provide information, giving providers the flexibility to determine the appropriate approach for their tenants and the ability to adapt their approach based on what works.
62. We recognise that a number of providers have queried exactly what information they should provide to their tenants, particularly with regards to how individualised or “bespoke” this should be for individual tenants. In response to the feedback received, we have amended the direction to provide further clarity on our expectations.
63. The changes to the direction signal our intention that providers should not necessarily have to prepare the information at an individual tenant level. Providers should be seeking to support tenants in understanding the rights and regulatory requirements that are applicable to them as tenants. We are aware that there are other places, such as individual tenancy agreements, which set out detailed information on individual tenant rights. However, we think there is benefit to providers giving their tenants higher level, accessible information about tenant rights and relevant regulatory requirements. This could be, for example, providing clear information on the rights afforded by different tenancy types.
64. The direction lists a number of rights and regulatory requirements that providers must provide information to their tenants on where applicable. This list includes key rights and requirements, such as the requirement for the provider to provide a home that meets the Decent Homes Standard, and the rights of disabled tenants to reasonable adjustments. We recognise that there are a number of other rights and requirements that may be relevant. As such, the direction is worded to clarify that the list of rights and regulatory requirements that must be provided is not an exhaustive list. The intention is that providers should consider any other rights and requirements relevant to the tenant in determining what information it is appropriate to provide.
65. With regards to concerns that providers might overload their tenants with information in order to meet the requirements, we would suggest that providers take a proportionate approach to meeting the requirements and test their approach with their tenants to assess effectiveness.
66. The direction requires the information provided to tenants to be accessible. We note that many providers have sought clarity on how to meet this requirement. In the direction, we have taken the approach of requiring the Regulator to set a standard which sets the outcomes that registered providers must deliver, rather than prescribing exactly how they must deliver it. We strongly believe this continues to be the right approach. The sector is varied and the needs of tenants also varies. It is essential that the Regulator sets a standard that drives better outcomes for all tenants, rather than potentially driving unintended consequences for some by prescribing exactly what registered providers must do.
67. Providers will need to determine the most appropriate way to communicate to their tenants in a way that they understand the rights and regulatory requirements without barriers to comprehension. As outlined in paragraph 57, providers have the flexibility to determine what is appropriate in the circumstances and neither the direction, nor statute or government guidance, set out specific requirements for providers to provide translations. This approach is in line with the Regulator’s draft consumer standards, which already require providers to “understand the diverse needs of tenants, including those arising from protected characteristics, language barriers, and additional support needs”, and to “ensure that communication with and information for tenants is clear, accessible, relevant, timely and appropriate to the diverse needs of tenants.” While we are giving providers the flexibility to determine the appropriate approach, they must ensure that they are seeking to make the information accessible to all tenants.
68. With regards to queries regarding the term “reasonable adjustments” in the direction, this refers specifically to the requirements under the Equality Act 2010. Under the Equality Act 2010 landlords have to make changes in their approach or provision to ensure that services are accessible to disabled people as well as everybody else. Reasonable adjustments can mean: changes to policies, procedures and staff training to ensure that services work equally well for people with learning disabilities; provision of auxiliary aids including the removal, replacement or provision of furniture; replacement or provision of a sign or notice; replacement of a tap or door handle; the replacement, provision or adaptation of a door bell or door entry system; changes to the colour of a wall, door or any other surface; or consenting to a tenant’s reasonable request to make disability-related improvements in certain circumstances. Under the direction, providers would be required to inform tenants of these requirements.
Question 4: Do you agree with the likely costs associated with meeting commitments associated with the new requirements, as summarised in the assessment of the impact on the sector set out in the consultation document?
69. We recognise that there are a number of financial pressures impacting the sector. We believe ensuring that tenants are aware of their rights and understand how to make complaints to their landlords should be a fundamental part of the service a landlord is providing. We note the request made by a number of respondents for this provision to be reviewed alongside some of the other new requirements due to be introduced by the government, for example on decent homes, access to information and competency and conduct. It is the government’s intention to consult on these measures separately at a future date, and they will be the subject of separate impact assessments.
70. We also recognise that providers are seeking further clarity regarding rents. We will consult separately on social housing rent policy in due course. We will also call for evidence on whether social landlords should be permitted, gradually over time, to bring rents back up to the level they would have been had 7% cap not been applied. Other factors including affordability for tenants and welfare expenditure will also be taken into account.
71. We accept the concerns raised by some respondents that our projected costs are based on 2022 ASHE data, rather than the recently released 2023 ASHE data. We will update our estimates of staff and legal costs using the 2023 ASHE data to ensure accuracy.
72. We note that some providers disagreed with our assessment of costs on the basis that the legal and staff wage costs had been underestimated. We believe the wages used in the calculations provide an accurate overview of the sector average, however we recognise there will be differences in costs for different providers. According to ASHE 2023, the median hourly wage for legal advice is £23.11, more than £3 an hour less than the £26.19 used in the calculations. Additionally, some providers did not agree with the costs on the basis that the staff wage applied did not reflect the cost of paying more senior or specialised staff. We used a weighted average of grades from senior managers to officers to reflect our assumptions about the staff likely to be involved in meeting the requirements.
73. Some of the comments regarding costs reflected providers requiring further clarity on the extent to which they would be required to individualise the information provided to tenants. As outlined in paragraphs 62 - 63, the changes made to the direction will provide further clarity of our expectations, and we anticipate that this will address some of the concerns raised about the assessment of costs. 6. With regards to queries about whether the cost assessment accounts for inflation, all wage data in the assessment of costs were uplifted annually with the OBR’s wage cost inflation assumptions from their long run economic determinates published in June 2023 [footnote 2], as is standard in government impact assessments.
75. We recognise that many providers will incur costs to ensure that the materials they provide to tenants are accessible. Providers are likely to take a range of approaches in meeting this requirement. For example, in some circumstances, it may be appropriate for providers to provide tenants with accessible versions of information on request. Providers may also need to consider how to provide information to tenants with wider communication needs, including through carers or guardians where appropriate. It is likely that many providers will already have systems and tools in place for making information accessible to tenants. Given the range of circumstances and approaches that providers may take in meeting this requirement, it is not possible to monetise the cost of making information accessible.
76. The department’s approach remains that where LAs hold an HRA, costs relating to social housing should be funded by social rents. Local authority housing is accounted for separately from the rest of local government funding, through a council’s HRA. It is not funded through Council Tax and therefore not eligible for New Burdens funding.
77. Finally, we acknowledge that the cost of complying with these new requirements is likely to vary between providers, The costs proposed are intended to provide an average across the sector, rather than an individual overview.
78. Following the minor updates, we have made to our estimates, we estimate a total net impact to PRPs of £4.1 million per year (2023 prices, in present value terms) over the appraisal period. Applying a consistent methodology and assumptions derived from the survey to LARPs, we estimate a net impact of £1.9 million per year (2023 prices, in present value terms) over the appraisal period.
Wider comments
79. There were a number of comments provided that do not relate specifically to the questions asked in the consultation document.
80. Some respondents queried how compliance with the requirements would be monitored and enforced, and a small number of respondents noted that providers should be subject to meaningful enforcement action if they fail to meet the requirements. After the direction is given, the directions will be reflected in the Regulator’s consumer standards. From April 2024, the Regulator will proactively regulate the consumer standards. As part of this, the Regulator will conduct regular inspections of large providers. Where providers are not delivering the outcomes set out in the standards, the Regulator will have a range of enforcement powers at its disposal.
81. Some respondents queried who the requirements would apply to, including whether information would need to be provided to shared owners. The standard will require information to be provided to tenants and other occupiers of social housing, which includes licensees and shared owners.
82. Some respondents noted wider concerns regarding the number of requirements that registered providers are required to meet. We recognise that providers have a number of obligations they are required to meet, including new requirements being introduced following the passage of the Social Housing (Regulation) Act. We believe it is essential that providers give tenants the information they need to understand their rights and how to make a complaint when they are being let down.
Summary
83. The government will proceed with directing the Regulator. As outlined in paragraph 62, in response to the feedback received, the final direction has been amended in response to the draft direction consulted on. The final direction from the Secretary of State to the Regulator for Social Housing can be found at Annex A.
84. The proposed direction has no pre-determined end date, but they may be subject to change or revision. Any further amendments or changes will require further consultation.
Next steps
85. The direction disapplies the requirement for the Regulator to conduct a statutory consultation on revisions to the standards that relate to this direction, which will mean the new requirements can be introduced more quickly. The Regulator is intending to introduce a new suite of consumer standards that will come into effect on 1 April 2024. We anticipate that the provision of information requirements covered by this Direction will form part of that suite of standards.
86. This will be one part of the changes to the consumer standards. The Regulator ran a consultation on wider changes to the consumer standards from July to October 2023.
87. These standards will apply to all registered providers of social housing.