Decision

Regulatory Notice: London Borough of Croydon (20 May 2021)

Published 20 May 2021

Applies to England

RSH Regulatory Notice

• Provider: London Borough of Croydon
• Regulatory code: 00AH
• Publication date: 20 May 2021
• Governance grade: N/A
• Viability grade: N/A
• Reason for publication: Consumer Standards
• Regulatory route: Reactive Engagement

Other providers included in the judgement

None

Regulatory Finding

The regulator has concluded that:

a) London Borough of Croydon (LB Croydon) has breached the Home Standard and the Tenant Involvement and Empowerment Standard; and

b) As a consequence of this breach, there was actual and potential serious detriment to LB Croydon’s tenants.

The regulator will work with LB Croydon as it seeks to remedy this breach and will continue to consider what further action may need to be taken.

The Case

LB Croydon manages around 15,600 homes. As a local authority registered provider, LB Croydon is required to comply with the consumer standards, including the Home Standard and the Tenant Involvement and Empowerment Standard. The Home Standard requires registered providers to have a cost-effective repairs and maintenance service and to meet all applicable statutory health and safety requirements. The Tenant Involvement and Empowerment Standard requires registered providers to treat tenants with fairness and respect and to have an approach that ensures complaints are resolved promptly, politely and fairly.

The regulator received information from a media report and simultaneously through a self-referral made by LB Croydon. The information available to the regulator shows that LB Croydon has failed to meet the above standards when delivering its housing service.

The media report showed three cases of tenants living in an LB Croydon tower block with significant leaks, damp and mould in their homes, as well as concerns about electrical safety. Through our investigation, including our engagement with LB Croydon and the information it has supplied, as well as our consideration of an independent report commissioned by the council, the evidence shows that these issues arose as a result of widespread and longstanding failures by LB Croydon in relation to its repairs and maintenance service. The independent report found that the issues arose as a result of numerous factors including staffing and cultural issues, issues in how the council responded to tenants’ concerns and complaints and weak performance management. Our engagement with LB Croydon has confirmed failings in the delivery of the housing service.

Taking into account the issues present at the LB Croydon tower block, and the wider evidence about how LB Croydon has managed its housing stock and engaged with tenants, the regulator has concluded that LB Croydon has breached the Home Standard and the Tenant Involvement and Empowerment Standard. The evidence shows that some tenants’ homes were uninhabitable and apparently unsafe, and the evidence demonstrates that other tenants may also have been at risk of serious harm as a result of the conditions in their home. As a result, there was actual, and the potential for serious detriment to tenants.

In response to the problems identified, LB Croydon is seeking to understand the extent of the issues and is taking urgent steps to address the failings. An improvement programme is being implemented and we will continue our intensive engagement with LB Croydon to ensure action is taken with sufficient pace to ensure the safety of tenants while improvements are being delivered.

The Regulator’s Findings

The regulator considered the case as a potential breach of part 1.2 of the Home Standard and parts 1.1 and 1.3 of the Tenant Involvement and Empowerment Standard. Taking into account all of the evidence received during our investigation, the regulator considers that LB Croydon has failed to provide an effective repairs and maintenance service for tenants, and we also lack assurance that LB Croydon has an effective system to demonstrate it is meeting its statutory health and safety responsibilities. The evidence also shows that LB Croydon has failed to treat tenants with fairness and respect, and has failed to provide an effective process for tenants to raise complaints. As a result of these failures, the evidence suggests that some tenants were living in uninhabitable and unsafe properties, and that other tenants were at risk of experiencing the same conditions in their homes.

LB Croydon has demonstrated to the regulator the actions it is now taking to address the issues identified and improve its service for all residents. However, taking into account the seriousness of the issues, the durations for which tenants were potentially exposed to risk, and the number of tenants potentially affected, the regulator has concluded that it is proportionate to find that LB Croydon has breached the Home Standard and the Tenant Involvement and Empowerment Standard and that there was a risk of serious detriment to tenants during this period.

Section 198A of the Housing and Regeneration Act 2008 (as amended) states that the regulator’s regulatory and enforcement powers may be used if a registered provider has failed to meet a consumer standard. In order to use regulatory or enforcement powers, as well as the failure to meet the standard, there should also be reasonable grounds to suspect that the failure has resulted in a serious detriment to the provider’s tenants (or potential tenants) or that there is a significant risk that, if no action is taken by the regulator, the failure will result in a serious detriment to the provider’s tenants (or potential tenants).

LB Croydon is implementing a programme to rectify these failures. The regulator will work with the council as it continues to address the issues which have led to this situation, including ongoing monitoring of how it delivers its programme and mitigates risks to tenants throughout. The regulator will keep under review whether further regulatory action is necessary.

About our Regulatory Notices

Regulatory notices are issued in response to an event of regulatory importance (for example, a finding of a breach of the Rent Standard or of a consumer standard that has or may cause serious harm) that, in accordance with its obligation to be transparent, the regulator wishes to make public. More detail about Regulatory notices is set out in ‘Regulating the Standards.’

Key to Grades

Governance:

• G1 (Compliant): The provider meets our governance requirements
• G2 (Compliant): The provider meets our governance requirements but needs to improve some aspects of its governance arrangements to support continued compliance
• G3 (Non-compliant): The provider does not meet our governance requirements. There are issues of serious regulatory concern and in agreement with us the provider is working to improve its position.
• G4 (Non-compliant): The provider does not meet our governance requirements. There are issues of serious regulatory concern and the provider is subject to regulatory intervention or enforcement action.

Viability:

• V1 (Compliant): The provider meets our viability requirements and has the financial capacity to deal with a wide range of adverse scenarios.
• V2 (Compliant): The provider meets our viability requirements. It has the financial capacity to deal with a reasonable range of adverse scenarios but needs to manage material risks to ensure continued compliance.
• V3 (Non-compliant): The provider does not meet our viability requirements. There are issues of serious regulatory concern and, in agreement with us, the provider is working to improve its position.
• V4 (Non-compliant): The provider does not meet our viability requirements. There are issues of serious regulatory concern and the provider is subject to regulatory intervention or enforcement action.