Regulator highlights areas increasing the risk of non-compliance before new Rent Standard is in force
RSH has published an addendum to its 2019 Sector risk profile and updated its Regulating the standards document to reflect the changes.
The Regulator of Social Housing has warned registered providers and local authorities about a range of circumstances which make non-compliance with rent requirements more likely to happen, in advance of the new Rent Standard coming into force on 1 April 2020.
The introduction of the 2020 Rent Standard is the first time one of the regulator’s economic standards has been applicable to local authority registered providers as well as private registered providers.
RSH published an addendum to its Sector risk profile today (5th March 2020) identifying the areas that are most likely to increase the risk of non-compliance with rent and data quality requirements. It also highlights what the sector can expect with regard to the regulation of the Rent Standard.
In addition, RSH has updated its Regulating the Standards document which outlines how the regulator approaches its work and what is expected from registered providers. This includes the new requirement for local authority registered providers to complete the LA Data Return and that the regulator will issue regulatory notices for non-compliance with rent requirements in future.
RSH Chief Executive Fiona MacGregor said:
Co-regulation remains at the heart of our regulatory approach, so it is imperative that registered providers’ boards and local authority councillors are assured the risks we have identified are being effectively managed when setting rents for social housing.
Where we lack sufficient, timely assurance of compliance with rent or data quality requirements we will take appropriate follow-up action with the registered provider.
The addendum to the 2019 SRP supplements the section on rents and reiterates some of the themes set out in the addendum to the Sector Risk Profile 2018 on lease-based providers of specialised supported housing in relation to the risks of inappropriately applying exceptions from rent regulation.
The updated Regulating the Standards also includes changes to information on In Depth Assessments and the issuing of interim regulatory judgements as well as the rent additions.
The addendum to the Sector risk profile and Regulating the Standards are available on the RSH website.
Note for editors
- The 2020 Rent Standard and other Rents guidance are available on the RSH website.
- From 1 May, RSH will begin issuing regulatory notices for any registered provider (whether they are a PRP or a local authority) where it lacks sufficient, timely assurance of compliance with rent or data quality requirements. RSH does not publish regulatory judgements in relation to local authority registered providers because the Governance and Financial Viability Standard is not applicable to them. Therefore, where we lack assurance of compliance with the new Rent Standard, we will use regulatory notices to communicate this.
- The Regulator of Social Housing promotes a viable, efficient and well-governed social housing sector able to deliver homes that meet a range of needs. It does this by undertaking robust economic regulation focusing on governance, financial viability and value for money that maintains lender confidence and protects the taxpayer. It also sets consumer standards and may take action if these standards are breached and there is a significant risk of serious detriment to tenants or potential tenants. For more information about RSH, visit its About us page
- For press office contact details, see our Media enquiries page. For general queries, please email enquiries@rsh.gov.uk or call 0300 124 5225.