Guidance Note 11: Sections 251-252 – Appointment of a Manager
This note is part of the statutory guidance under s215 of the HRA 2008 (from 1 April 2024)
Applies to England
| Applicable | |
| PRP (For Profit) | yes |
| PRP (Not For Profit) | yes |
| PRP (Registered Charity) | yes |
| Local Authority | no |
Type of power: enforcement power
The power
This power enables the regulator to appoint, or require a private registered provider to appoint, a manager to manage the entirety of their affairs relating to social housing or specific aspects of social housing.
The manager can be an individual or a corporate body.
When the regulator will use this power
Section 251(1) of the Act sets out the grounds under which the regulator can use this power. These grounds are:
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where a PRP has failed to meet a standard under section 193, 194 or 194C of the Act; or
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where the affairs of a PRP been mismanaged in relation to social housing.
Process for using the power
If the regulator is satisfied that one or more of the grounds as set out in section 251(1) of the Act apply, the regulator will decide whether to make the appointment itself, or to require the PRP to make the appointment. In making this decision, the regulator will consider all the circumstances of the case including but not limited to:
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the PRP’s ability and willingness to make the appointment;
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whether the circumstances require the appointment to be made urgently.
The regulator will also decide:
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the scope of the manager’s role i.e. whether they are required to manage the entirety of the registered provider’s social housing affairs, or specific aspects of them; and
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specific powers that the manager will be given.
Depending on whether the regulator is making the appointment itself or requiring the PRP to make the appointment, the regulator will either decide itself or determine the process for agreeing:
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the terms and conditions under which the manager will be appointed including remuneration;
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who is to be appointed as the manager – factors including professional expertise, experience and availability will be considered.
Before appointing the manager or requiring the PRP to appoint the manager, the regulator will give the PRP a pre-appointment notice as required by section 252 of the Act which will:
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where known, specify the matters referred to above or the process to be used to agree such matters;
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specify the grounds under which the appointment of the manager or requirement to appoint the manager is being proposed;
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explain the effect of section 252 of the Act;
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warn that the regulator may take action;
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explain that the registered provider may make representations to the regulator within the period of 5 days beginning with the day on which the PRP receives the pre-appointment notice; and
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indicate whether or to what extent the regulator would accept a voluntary undertaking instead of, or in mitigation to taking the proposed action.
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explain that the registered provider has a statutory right of appeal in accordance with section 252(10) if the regulator requires it to appoint a manager, or imposes such a requirement.
The regulator will also provide a copy of this pre-appointment notice to key stakeholders as set out in 252(4) of the Act.
The regulator will consider any representations and/or voluntary undertakings offered ahead of notifying the PRP of its decision to appoint the manager or require the PRP to appoint a manager (‘appointment notice’).
The regulator will notify Homes England, the GLA (where the PRP owns land in Greater London) and other stakeholders (where appropriate) where it has appointed a manager, or required the PRP to appoint a manager.
The manager will report to the regulator on matters relating to its appointment.
Appeal process
There is a statutory right of appeal to the High Court, which must be brought within the period of 28 days beginning with the day on which the regulator notifies the PRP of an appointment of a manager under section 251(2)(a) or the imposition of the requirement to appoint a manager under section 251(2)(b).