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Value for money hasn’t gone away
The sector must expect greater scrutiny on value for money, says Emma Maier
It is only two years since housing associations were regarded by key sections of Westminster as “part of the problem”.
Behind-the-scenes briefings prompted several prominent media outlets to attack associations, claiming they were bloated, inefficient, under-developing organisations, run by over-paid executives. Associations, government thought, needed squeezing, just as local government had been squeezed until it squeaked.
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Some impressive lobbying and the political fall-out of the Brexit vote turned the situation around. The tone from communities secretary Sajid Javid at the recent National Housing Federation conference could not have been more different. He thanked the sector, acknowledging its crucial role in solving the housing crisis. Value for money didn’t feature once.
"Ministers will ask if landlords are doing enough to cross-subsidise and build affordable homes."
But don’t be fooled. It is still very much on the agenda. The Homes and Communities Agency (HCA) is consulting on plans to revamp its Value for Money Standard next spring. Julian Ashby, chair of the HCA Regulation Committee, warned associations that there is increased focus on the impact of efficiency on organisations’ ability to develop and support tenants.
As the government starts work on its Social Housing Green Paper and considers the sector’s call to return to funding social rented housing, it will undoubtedly ask whether the sector itself is doing enough. Ministers will ask if landlords are doing enough to cross-subsidise and build more affordable homes, and to maintain and invest in the safety and quality of tenants’ homes after Grenfell.
The work on the Sector Scorecard, some of which is expected to be adopted by the HCA, makes an important start, revealing mixed results and forming the basis for exploring the reasons behind variations.
As politicians begin to review public sector pay capping, executive pay will continue to be in the spotlight. This year’s Inside Housing chief executive salary survey shows restraint, with average total pay remaining steady, and basic salaries rising in line with turnover growth. The sector must prepare for greater scrutiny.
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Don’t forget the PRS
Last week Sajid Javid asked if a Grenfell-type fire could happen in a privately owned block of flats. On the same day, one of his civil servants said government is aware of 62 private residential blocks and 27 student blocks with aluminium composite material (ACM) cladding – the type used on Grenfell.
This will be an underestimate as it is drawn only from building owners that voluntarily sent samples for testing.
This week Glasgow City Council said there could be up to 57 private rented sector (PRS) blocks with ACM cladding in the city. The British Property Federation has noted a 37% increase in build-to-rent homes planned, in construction or completed since the first quarter of 2017, up to 95,918.
Many, but not all, PRS homes are high quality. Councils are increasingly helping improve private sector standards. Manchester City Council chief Joanne Roney wrote for Inside Housing that in one area 30% of applicants to its licensing scheme had to seek a gas certificate in order to apply.
It is clear that quality, and fire safety, is a PRS issue. Government mustn’t ignore it.
