Decision

Decision Instrument RSH9: Decision to revise the Regulator’s Fee Principles

Updated 8 May 2024

Applies to England

Introduction

A - Regulation of social housing in England under the Housing and Regeneration Act 2008 (‘the Act’) is the responsibility of the Regulator of Social Housing ‘the regulator’. The regulator is an executive non-departmental public body, sponsored by the Department for Levelling Up, Housing and Communities.

B - The regulator has the power to charge fees to registered providers of social housing under section 117 of the Act. It must set fees in accordance with principles which the regulator prepares and publishes (section 117(5)). In preparing or revising those principles, the regulator must consult persons appearing to the regulator to represent the interests of fee-payers (section 117(8)). Those principles do not have effect until approved by the Secretary of State (section 117(7)).

C - The regulator has developed revised fee principles that are intended to:

a) ensure that our fees principles align with our amended powers once section 4 of the Social Housing (Regulation) Act 2023 comes into force

b) secure sufficient fee income to recover the full cost of regulation therefore enabling the regulator to carry out its role effectively

c) charge providers in a fair and transparent way with fees that are predictable, simple to calculate, and recognise the benefit that registered providers receive from being part of a regulated sector

d) ensure that local authorities aren’t paying for the regulation of private registered providers, or the reverse

e) adhere to legislative and government requirements.

D - The regulator has conducted a consultation on the proposed changes to the regulator’s fees principles and has considered the responses received. The purpose of this document is to set out the decision made following the conclusion of the consultation.

E - The regulator will make arrangements to publish the principles and will set fees for continued registration and for dealing with applications for initial registration in line with the agreed principles (following approval by the Secretary of State of these principles).

Decision

Date decision made: 3 May 2024

Decision made by: Chief Executive Officer

1 - The Chief Executive notes that having conducted the consultation the regulator has met the requirement under section 117(8) of the Act that in preparing or revising those principles, the regulator must consult persons appearing to the regulator to represent the interests of fee-payers.

2 - Having consulted persons appearing to the regulator to represent the interests of fee-payers the regulator in exercise of the powers conferred on it by section 117 of the Act the Chief Executive has decided to set the following fee principles (“the Fee Principles”):

1) A fixed fee applies to all applications for initial registration

2) The annual fee payable by a registered provider is set by reference to the number of social housing units owned by that provider

3) A fixed fee should apply to all providers owning fewer than 1,000 units

4) For groups owning 1,000 social housing units or more where the parent is a private registered provider, the annual fee should be set at group level rather than for each individual entity on the register

5) Providers must pay the full cost of the annual fee for the year that they are on the register when they register or de-register

6) The regulator will publish information annually on its costs and fees

3 - The Chief Executive has decided to charge fees for continued registration to private registered providers and local authority registered providers. Fees for dealing with applications for initial registration will apply to prospective private registered providers only.

4 - Subject to Secretary of State consent (and the commencement of section 4 of the Social Housing (Regulation) Act 2023) the regulator will apply the Fee Principles from 1 July 2024. The current fee principles will apply to fees payable for the period 1 April - 30 June 2024.

Authentication

Name: Fiona MacGregor

Position: Chief Executive