The changing role of the regulator

April 2012

Yvonne Daviesyvonne@tenantadvisor.net

07867 974659 Scrutiny and Empowerment Partners

Background to changing expectations

• New Government Review – May 2010• Review of Housing Regulation - October 2010• CLG consultation on draft directions to Tenant Services Authority (TSA) -

July 2011• Localism Bill - November 2011• New Housing Strategy - November 2011• Consultation on new standards – November 2011• New regulatory standards - March 2012• TSA closes to become part of the Homes & Communities Agency (HCA) - 1st

April 2012

What the Government wanted to change when it came into power

• “Landlords are accountable to their tenants, not to the regulator.”• “The review’s recommendations will result in the system becoming more

co-regulatory – with a clearer role for tenants in scrutinising performance… while the regulator’s attention will be focussed on serious failures”

Review of Social Housing Regulation October 2012

The government view on localism

“Today is the start of a deep and serious reform agenda to take power away from politicians and give it to people.“

David Cameron“We need to give people the platform to get things done ….. a system which properly puts tenants and their representatives firmly in the driving seat.”

Grant Shapps

What we are covering todayEconomic StandardsGovernance and financial viabilityValue for moneyRentConsumer StandardsTenant Involvement and EmpowermentHomeTenancyNeighbourhood and Community

Strong messages• Tenant Panels (inc Scrutiny Groups), MPs and Councillors have a role to scrutinise landlords• Boards are responsible for governing whether standards are met• Consumer standards – the regulators powers are restricted to circumstances where the

serious detriment test is met• Economic standards are to enable access to private finance and to protect previous govt

funding• Regulator can intervene for poor performance in a proportionate, transparent and

consistent way• Leaseholders are excluded from regulation as are home owners who have purchased

outright

Tenant involvement and empowerment standard

Customer care – not many changesChoice – more of the sameScrutiny and co-regulation – more importantCashback – newEquality – collecting all 9 diversity strandsComplaints – coming soonThis is a cross cutting standard

Tenant Involvement & Empowerment Standard (TIES) – cross cutting standard

• Customer service• Choice• Complaints – later changes in 2013 not mentioned• Equality and additional support for vulnerable people• Consult at least once every 3 years on best way to involve

tenants in governance and scrutiny• Involvement in: formulation of policies; setting and

monitoring standards; recommendations on how performance can be improved; agreeing local offers

• Scrutiny• Cashback

Co-regulation – key messages• Transparency and accountability are key• A role for Boards to ensure co-regulation• Honest and robust self assessment and challenge• Regular reporting to tenants and consultation• Value for Money (VFM)– new annual assessment and

involvement of stakeholders (including tenants) on how the landlord will optimise VFM

• Annual published judgements by regulator• Will complaints be heard by the HoS?

Complaints (TIES & Localism Act)

• Housing Association Ombudsman will deal with all complaints, including those which used to go to the Local Govt Ombudsman from April 2013

• Tenants panels to be recognised by the Housing Ombudsman Service (HoS) as a designated person -if they wish to register as referral body for complaints

• Choices – tenants part of internal procedure• Independent Tenant Panel – as advocates OR as a panel

which can consider and mediate and refer on to the HoS, OR scrutinise the service

Right to Manage – RTM (TIES)

• Landlords to support their tenants to exercise the Right to Manage

• Tenants to have further opportunities to take responsibility for the management of their homes

• Landlords should support tenants in that right

Tenant scrutiny Panels (TIES) • Landlords to capacity build tenants to ensure they can be

effectively involved• Landlords to support the formation and activities of tenant

panels.• Landlords are to welcome this challenge via a tenant panel (or

equivalent group)• Clear regulatory obligation on landlords to provide timely,

useful performance information to tenants in order to support effective scrutiny and provide training

• Annual report to tenants continue to be regulatory obligation, as do local offers

• Landlords to provide accurate and timely information to enable scrutiny

Customer Inspection and Improvement Panel

Established in October 2010

Aims:• Independence• Accountability & transparency• Tenant led• Informed choices • Continuous improvement

Considerations:• Access to information• Formal safeguards• Formal powers

Initial set up

CIIP

East Durham Homes Board

Board panels•Customer service•Equality and diversity•Finance and human resources•Audit and risk

Executive Management Team

The Housing Partnership Mystery shopping

Tenant and Resident Associations

Service review panels and focus groups

Editing panel, estate inspections, surveys, feedback panels

Accountability and Authority

• Decides how to take decisions forward

• Implements the recommendations it makes

• Makes demands

• Looks into key services in great detail

• Makes recommendations for improvements

• Makes reasonable requests

• Supports the continual development of the organisation

The role of the CIIP

Company overview

Performance Management/ VFM

TPAS Scrutiny Training

Joint working event with EDH Board and CIIP

VFM training

E&D training

Planning scrutiny

Report writing and presentations

Training

• Role-specific: Chairing a meeting How to challenge

• Individual appraisals

• Feedback from inspections

• ALfR Level 3 Award in Resident Scrutiny

• Continual development

Additional training

1st service area to inspect

Estate ManagementBased on lower than desirable

customer satisfaction scores

• Desktop review

• Estate walkabout

• Mystery Shopping

• Interview with members of staff

• Shadowed a member of staff

• Customer Focus Group

• Consulted resident associations

First inspection

• Add timescales and clearer wording to the new Ground Maintenance SLA with Durham County Council.

• Investigate supplying estate officers with heavy duty tools kits (one per van) to reduce the fuel costs, labour costs, wear and tear on vehicles and improve time management

• Improve layout of estate management page by grouping the headshots of estate officers by the areas they work in.

A few of therecommendations

• Investigate the possibility of creating an estate walkabout ‘card in window' scheme for disabled/elderly/vulnerable tenants to indicate to estate officers/assistants that the tenant has a comment to make

• Further promote the role of the handyman service so that it is clearly understood

Recommendationscontinued

Reasoning

New approaches: Working as one large group Team co-ordinators Approach to interviewing Improved communication between interviews Telephone interviews

Taken to the Board for approval in November 11

ASB inspection

• Consider rewording the VMS surveys at the start of each question (‘how do you rate’) is very repetitive and off putting to tenants.

• Take a survey along to a visit in the final stages of a case and ask tenants to fill them in and post them back

• Consider offering letter box locks to victims of ASB

• Advertise the use of twitter/Facebook/smartphones to report ASB

ASB recommendations

• Peer review completed in January 2011

• Suggested by Board of Directors as an area to look at

• Reality check

Communication around repairs

(Report not yet been presented to Board)

Ideas for recommendations…

Courtesy calls

Automatic trigger

Emergency call outs

Changes to scripting and letters

Changes to PDAs

• Membership of other groups/

panels

• Clearer explanation of what’s involved

• Flexibility in the level of involvement

• More support with desktop review

If we could start again, what would we do differently?

• Communication with wider tenant body

• Monitoring implementation of action plan

• Involving more tenants in the recruitment process

• Conflict resolution with Board

Further considerations

• 23 recommendations for Estate Management approved in May 11 - all have now been actioned

• 15 recommendations for ASB service approved in November 11 - 12 now in place

• Provisionally 22 recommendations for Communication around Repairs

• Company buy in

• Better understanding of the process from staff

Outcomes

Panel member’s experience

Tenant Cashback (TIES)• Give tenants opportunities to be involved in the undertake or

commission routine repairs themselves, as agreed with the landlord

• Tenants to be given a chance to share in the financial savings• Publication of information on repairs budgets will help

tenants judge whether the schemes are sufficiently ambitious• Local circumstances of stock age and condition and type is to

be recognised• Tenants may gain practical and transferrable skills• Outcomes to be published in annual reports

Darrin GambleHead of Neighbourhood

Northern Housing

Consortium

16 April 2012

BONKERS!!!!!!

Why get involved?• We like to innovate

•Ability to influence tenancy standard

•Learning •Know the opportunities•Know the risks

•Ethos

Something for Something

•Increasing self reliance

•Reducing dependency

•Training & employment

•Bromford Deal

•Tenant Cashback

Home Rewards Club Pilot

Home Rewards ClubRepairs

• Clear split of responsibilities

•Customer•Bromford

• Excluded repairs

• Repairs Diary

• Annual Property Service (APS)

• DVD

• £150 / £150

Home Rewards ClubHousing Management

• Clear split of responsibilities•Customer•Bromford

• £200 after 12 mths

Home Reward Club Pilot Areas

• Sandwell and Dudley• Inner city and flats

• Lichfield• Large stock concentration

• Central Cotswolds• Semi rural

• Stratford Upon Avon

• 2500 customers

Home Reward Club Members

• 5% Sign Up Rate130 Customers

• Feedback•What customers liked•What customer didn’t like

Home Rewards ClubWho can join?

•Minimal exclusions•Damage to property•Possession

•Find out where the risks are

Cost/Resources

• Full Time Project Manager

• £500 x 130 = £65k

• Additional APS

• Colleague time

• Savings - are they real?

What do we want to test?

• Reduction in repair costs• Reduction in housing management activity• Insurance/compensation risks• Quality• What are the costs of administration• Change in customer behaviour• Who does it work for? Who doesn’t it work for?• Potential to extend

Experience to Date• Colleagues• Customers• Hurdles• Insurers• Health & Safety• Asbestos• Financial Link• Agreement• Marketing – How do we get through

• Welfare Benefits• Bureaucracy

Customer Feedback

Pete Docherty

Lisa Norris

Analysis• Repair costs/numbers• Use of the contact centre• Any access issues• Training & employment

• Repairs activity – customer / Bromford

• Housing management activity – customer / Bromford

Last 12 mths

After HRC

What next?

Share learning

Roll out

Phase 2

Questions

ContactDarrin GambleHead of Neighbourhood – West Midlands1 Venture CourtBroadlandsWolverhamptonWV10 6TB

Darrin.Gamble@Bromford.co.uk@Darrin_Bromford

01902 378646

Tenancy Standard• Allocations – co-operate with Local Authority• Mutual exchanges – access to a new data base• Manage under-occupation and overcrowding• Publish the policy – common register; common

allocations and local lettings policies• Clear tenure policy – type of tenancy – including new

fixed term tenancy; when you will grant the tenancy and what the grounds of appeal will be

• When probationary tenancies will be used• Continue the tenure when tenants transfer

The Revised Regulatory Framework for Social Housing April 2012

A Perspective on Tenancy Policies

Garry CrollAssistant-Director Housing Services

Liverpool Mutual Homes

Northern Housing Consortium Seminar Monday 16th April 2012, Helena Housing

Introducing the Revised Tenancy Standard• Two elements (Rents now part of Value for

Money Standard)• Allocations• Tenure

Allocations & Mutual Exchanges- Required Outcomes

• RP’s to let their homes in a fair, transparent & efficient way• Take into account housing needs & aspirations of tenants &

potential tenants• Lettings must demonstrate:-

– Best use of available housing– Compatible with the purpose of housing– Contribute to LA’s strategic housing function & sustainable

communities• Clear application, decision making & appeal’s processes• Enable access to opportunities to exchange via internet based

mutual exchange service

Some Specific Expectations- Mutual Exchanges & Homelessness

• RP’s to co-operate with LA’s strategic housing function & assistance with delivery of homeless duties & meeting obligations in nominations agreements.

• RP’s must subscribe to an internet based mutual exchange service • Internet based exchange service must be a signatory to an

agreement such as Homeswap direct• RP’s must take reasonable steps to publicise availability of the

service to tenants• RP’s must provide reasonable support in using the service to

tenants who do not have internet access.

Questions for Discussion?

• How does your authority enable RP support \ input into delivery of the strategic housing function?

• What contribution are you making to assist the LA meet its homeless duty

• Are your nomination agreements robust?• Which provider to go for?• Sub-regional CBL – Abritas system will provide a link to national

exchange scheme provider• What publicity is regarded as reasonable?• Will you introduce Internet cafés & Kiosks, other?

Other Allocations Policy Issues

• Affordable Homes • Under-occupation – welfare reforms• Overcrowded

Tenure – Required Outcomes & Specifics

• RP’s to offer tenancies or terms of occupation compatible with the purpose of the accommodation, needs of individual households, sustainability of the community and efficient use of the stock.

• They shall meet all applicable statutory & legal requirements in

relation to the form & use of TC agreements or terms of occupation.• RP’s to publish clear & accessible polices that outline their

approach to tenancy management including interventions to sustain tenancies & prevent unnecessary evictions & tackling tenancy fraud.

Questions

• Are we going to be able to provide tenancies that satisfy all the above criteria?

• Have you reviewed your tenancy agreements?• Are they compliant with legislation?• How does your tenancy policy fit with LA’s strategic tenancy policy?• What tenancies are you going to use?• What will be the tenancy length?• How will you differentiate?• What appeal arrangements will you put in place?

Conclusions – Questions?

• Early days! Still assessing the way forward.• Welcome the opportunity to share thinking.• Particularly on tenure strategies & affordable

homes.• Concerns about challenge - inevitable?

LUNCH

Governance and Financial Viability

• Test the effectiveness of governance once a year

• Let the regulator know of any non compliance• Annual returns• Effective controls and procedures• Risk management – ever important• Financial checks – let HCA know if you have a

problem

Home Standard• Meet decent homes standard• Continue to meet this standard• Provide cost effective Repairs service to homes and

communal areas• Right first time repairs• Ensure a prudent, planned approach to repairs• Right balance of planned and responsive repairs• Meet health and safety arrangements• Approach which includes cyclical, responsive, planned, capital

works, work on adaptations and empty homes

Neighbourhood and Community Standard

• Keep neighbourhoods and communal areas clean and safe• Work in partnership with tenants and public bodies• Co-operate with partners and local partnership

arrangements to help promote the social, environmental and economic wellbeing of areas

• Identify and publish the roles that landlords can play in areas where they have homes

• Prevent and tackle ASB – using full legal powers available• Take decisive action on ASB and make it easy to report• Support witnesses and victims of ASB

HOME, NEIGHBOURHOOD& COMMUNITY STANDARD

Chris SmithManaging Director

Erimus Housing

TO COVER

Home

Neighbourhood & Community

Local Partnerships

HOME• Quality of Accommodation

- ensuring Decent Homes Guidance is maintained

• Repairs & Maintenance

- planned approach to R & M of homes and communal areas

- co-operated with relevant organisations to provide an adaptations service

NEIGHBOURHOOD & COMMUNITYSTANDARD

• Neighbourhood Management

- published policy for maintaining and improving neighbourhoods

EXPECTATIONS

NEIGHBOURHOOD & COMMUNITYSTANDARD

EXPECTATIONS

• Local Area Co-operation

- identify and publish the roles you are able to play in areas

- co-operate with local partners and strategic housing functions

NEIGHBOURHOOD & COMMUNITY

STANDARD

NEIGHBOURHOOD & COMMUNITYSTANDARD

• Anti-Social Behaviour

- publish how you work with relevant partners to prevent and tackle ASB

- early intervention

- prevention

- support

IN GENERAL

• No real change

• Not prescriptive

• No interference – except if serious detriment

LOCAL AREA CO-OPERATION

• Why now more than ever?

• The new challenges

• How we can respond

WHY NOW MORE THAN EVER?

• RPs have a strong partnership ethos but poor reputation in Parliament

• Impact of continuing austerity measures

WHY NOW MORE THAN EVER?

• New structures emerging

• We are a neighbourhood based service

• It can offer new opportunities & service development

THE NEW CHALLENGES

• Welfare Reform

- bedroom tax

- Universal Credit

- Financial Inclusion

• Local Authority Tenancy Strategies

- best use of stock?

THE NEW CHALLENGES• Health & Social Care Act

- Health & Wellbeing Boards

- New commissioning framework

• Anti-Social Behaviour

- impact of Pilkinton case

- Renewed ‘Respect’ agenda

• Troubled Families

- how defined?

- who intervenes?

THE NEW CHALLENGES

• Building New Homes

- reduced grant rate

- Affordable Rents

- reinvigorated RTB

• Asset Management

- best use of stock & buildings

HOW CAN WE RESPOND• Depends on your business model:

“…having taken account of their presence and impact within the areas they own properties”

• Where is best impact to deliver directly or to outsource?

• e.g. Erimus Housing - 10,500 properties

- 1 Local Authority area

Tees Valley Housing - 4,500 properties

- 16 Local Authority areas

PARTNERSHIP WITH MIDDLESBROUGH COUNCIL

• Chair of the LSP• Strategic Housing Forum• Deliver Homelessness & Advice Service• Strategic review of community assets• Development of Neighbourhood ‘Hubs’ and shared

services• Troubled Families Pilot• Financial Inclusion – Lead on Big Lottery Bid• One Planet Living / Green Agenda

JOINT VENTURE

• Innovative approach to regeneration• Capitalising stock transfer commitments• Match funding through Erimus VAT Shelter• Regeneration ‘pot’ of £5 – 6 million• Asset transfer vehicle• Use of MBC / Erimus land to deliver housing priorities

HEALTH & HOUSINGThe Gateway Project

ANTI-SOCIAL BEHAVIOUR

• PIER approach

• Strong links with Police, Fire Brigade,

Local Authority

ANTI-SOCIAL BEHAVIOUR

Investing in Young

People

Neighbourhood Approach

GROUNDWORKS PARTNERSHIP

• Strategic alliance

• Consultancy and project delivery

• Environmental works

• Developing skills and training opportunities

• Volunteering

TO CONCLUDE

• Partnerships here to stay

• Influence and impact

• Common vision important, who delivers is not

• Outcomes are the priority

Thank you

&

Questions

Rent standard

• Separate guidance on this• Rent formula• 5% tolerance in individual rents• 10% tolerance on supported housing rents• Annual RPI + 1% increase (capped)• Annual target rents RPI + 0.5% increase• Rent is no more than 80% of market rent

Value for Money standard

• Robust assessment of all its assets and resources – financial, social and environmental

• Take account of stakeholders interests• On going improvements in value for money• Annual assessment:

– Set out absolute and comparative costs– Evidence the gains in VFM

Practical applications of VFM.. Sue Smith – Director of Finance and Performance

Strategies Cost data Performance data Benchmarking clubs

Value For Money

Do you know what it is telling you?

Reducing costs Improving outputs Improving performance Mixture of all?

Value For Money

Are you clear about what you are trying to achieve?

Value For Money

Value For Money

Value For Money

Transactional, transitional and transformational change

Customer Services Flexible working Office working ICT systems

Value For Money

Preferred method of Communication – telephone Reconfigured offices Electronic Document Management Hot Desks, drop down zones, pods More time out with customers Invest in customers preferred contact methods Culture change

Value For Money

Office Refurbishment

Work is something you do…not somewhere you go Smarter about how you work Changes to T’s and C’s Core hours removed Technology –sun rays Staff benefits Staff retention

Value For Money

Flexible working

Resolution of queries at first point of contact

Brought a number of teams together Cover hours from 8am to 7pm Cost neutral – doing more for the same

Value For Money

Customer Services

Sun Ray technology Savings on lap tops New ICT systems being implemented-

right information at the right time Dedicated team Work flows

Value For Money

ICT Systems

What is important to you?

Who do you admire Visit them! Meet for a coffee Learn from them Its not easy!

Value For Money

Benchmarking results

Look at costs year on year… Budget for 10/11 Actual for 11/12 Budget for 12/13

Value For Money

Budget Setting

Value For Money

Project Appraisal

• Improved processes • Motivated/educated

employees • Enhanced

information systems • Monitored progress • Greater customer

satisfaction • Strong financial base

Value For Money

Balanced Scorecard

Joint Procurement Shared services Procurement clubs Framework agreements Services in house or not?

Value For Money

Procurement activities

Value For Money

Are you Lean?

Profiling data Impact assessments Focus groups Scrutiny Panel Annual Report STAR survey results Learn from complaints

Value For Money

Customer Involvement

Neighbourhood Investment Framework Halton Standard Void Standard Social Value – Beyond the Garden Gate Sustainability assessments Invest or divest?

Value For Money

Asset Management

Name: Sue Smith

Tel: 0151 510 5123

Mob: 07947 614289

Email: sue.smith@haltonhousing.org

Value For Money

Questions

?

Serious Detriment (SD) Test• Regulator may not apply this if the landlord fails to meet one

or more standard• Regulatory intervention is at a much higher level than with

economic standards• Defined as risk of, or actual, serious harm to tenants• No further definition will be given, but likely to be H&S; loss

of home; unlawful discrimination; loss of legal rights; financial loss

• Assessment is based on the degree of harm for failure to meet consumer standards

• If it is not to be taken up by the regulator, then it is a matter for the Complaints Procedure

Intervention and enforcement

The same powers remain as beforeRegulator has a new duty to minimise interferenceInvestigation and terms when significant risk is identifiedIs there a role for the Housing Ombudsman service on a failure of co-regulation?What KPIs are you going to collect on complaints?

Thanks for listening and taking part

Any Final Questions?

yvonne@tenantadvisor.netTel: 07867 974659

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