All change for regulation, as TSA publishes new framework

Changes to the way that social housing is regulated have been published by the Tenant Services Authority (TSA) and the organisation is seeking the industry’s views on the proposed framework.

The framework reflects the changes to the regulator’s role in the Localism Act, and the Government’s published Directions on standards. The regulator’s role in relation to consumer standards will change significantly. It will set consumer standards that all providers are required to meet. The proposals include changes to standards directed by DCLG. These include significant changes on tenure, tenant involvement and empowerment, and mobility.

The regulator may only consider intervention in relation to consumer standards where it judges that there is serious harm, or a risk of serious harm to tenants, the organisation says. In the vast majority of cases, it will be for registered providers working with their tenant panels and with councillors and MPs to deal with less serious breaches of the consumer standards.

The regulator’s main role will be the economic regulation of private registered providers of social housing, where its top priority will be to ensure that they are financially viable for the long term and that their Boards are providing effective direction and oversight to their organisations. There is a new standard for private registered providers in relation to value for money.

Anthony Mayer, chairman of the Tenant Services Authority, said: “These are major changes to the regulatory regime. The regulator’s top priority is to ensure that we develop a regulatory regime that will secure the confidence of all those with interests in the sector - whether landlords, lenders and investors, taxpayers or tenants. The priority is to ensure that social housing businesses are well run and can withstand the challenges of a difficult financial environment and housing market for the long term.”

Providers, lenders, tenants and other stakeholders will be given the opportunity to have a say on the new regulatory framework and how regulation will operate in the future.

The consultation will be open from 21 November 2011 and will close on 10 February 2012.