MPs’ committee to carry out inquiry into financial sustainability of social housing sector

Mr Betts told the conference: “You have got ability to raise some resources yourselves, but you are going to need more social housing grant in order for you to deliver on the challenges I’ve just outlined.”

He urged the sector to “start shouting” about the costs. 

“Don’t think it will all be alright if you try and do a deal with the secretary of state. The secretary of state will, in the end, simply say you are not doing your job, you are failing your tenants, your properties are in an awful state. 

“Tell him, tell us in parliament, tell the country how much this problem really is going to take in resources of all kinds. And quite simply, if you don’t get the extra finance to deal with building safety and remediation and net zero, you won’t have any money left to build the homes that people need,” Mr Betts said. 

He said he could make the announcement on a new inquiry because as a committee “we are very aware of these issues”. 

“And therefore, I’ll be asking my colleagues on the committee to agree to undertake an inquiry into the financial sustainability of the social housing sector. 

“I’m hopeful we will formally announce this before Easter – I’m giving you a bit of advance warning to get your evidence prepared and ready – and then we’ll be calling on your expertise. 

“We will need to hear loud and clear about the challenge you’re facing, about the cost of doing all the things that I’ve just outlined, and in the end what you will need to build the new homes that the country needs, the people on the waiting list,” Mr Betts added.

In an earlier session, the conference heard from Jonathan Walters, deputy chief executive of the Regulator of Social Housing (RSH), who also discussed all the major challenges facing landlords. 

He said the sector “owes a debt of gratitude” to housing secretary Michael Gove, who he said pushed for the 7% rent increase cap. 

“He really went out and made sure that you got that 7%, which was the best available option. I can’t count the number of times during the course of last year I was told authoritatively by someone in the sector that they had heard the minister say there was going to be a rent freeze or rent cut,” Mr Walters said. 

He added that the decision “speaks to the recognition” that the sector delivers a “really important and valuable contribution to society”. 

Asked how concerned he was about one of the increasing number of giant organisations failing and who would rescue in that circumstance, he said the thought of it “keeps [him] awake at night”.

Mr Walters said: “First of all, our regulatory requirements are that everyone has an asset and liability register so big landlords should know where their liabilities sit and where their assets are.”

He also said that social landlords should create ‘living wills’, the aim of which is to provide a roadmap for what would happen to homes and tenants if a “catastrophic” shock meant they could no longer provide services.

It also aims to help reduce the chances of a landlord getting into financial difficulty in the first place. The G15 group produced guidance around living wills last year. 

Mr Walters was asked whether he could foresee a situation where there would be no rescue if a housing association failed.

“We, the regulator, are personally incentivised to make sure that doesn’t happen,” he said.