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RSH urges small care and supported housing providers facing difficulties to get in contact
The Regulator of Social Housing (RSH) has called on smaller care and supported housing providers to get in contact if they are facing difficulties, as concerns grow over their ability to cope with coronavirus shocks.
Jonathan Walters, deputy chief executive of the RSH, urged providers with fewer than 1,000 homes and large care operations to talk to the regulator about ways to overcome the difficulties they face.
He told Inside Housing: “Some of the bigger care providers have the capacity to deal with some of the issues, the biggest concern in the short term we worry about is smaller organisations with large care and supported housing services compared to size.
“We are most worried about them because they don’t have the capacity to absorb these risks, and we won’t necessarily have much visibility of them because of their size.
“This is why we are working hard to ensure those providers know to come to us if they are facing difficulties and why we are writing to all providers with than less 1,000 homes.”
The comments come after the RSH called on smaller registered providers, as well as those with a high proportion of care and support activity, to respond to its Coronavirus Operational Response Survey.
At the end of March, the regulator announced it would be carrying out the regular survey of associations to assess the impact of the coronavirus crisis on their operations and finances.
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Usually the regulator would only seek responses for those providers who own or manage more than 1,000 homes but it has widened the scope during the pandemic.
Mr Walters said that the risks to these organisations could be operational failure, with risks to tenant safety, or financial risks, as voids increase and operational overheads increase.
He said: “In this sector the margins can be small and it won’t take long to have cash flow difficulties.
“Their risks could be operational failure with the potential for there to be some risks to tenants, or maybe with increased void and arrears levels they simply don’t have money to operate.
“Again, our message is that small providers should contact us urgently if they are facing operational difficulties and we will work with them, and look for operational support to prioritise the health and safety of tenants.”
He added that the regulator was looking at ways to support these groups, including how to help them access tide-over funding until the situation stabilises.
Last month the National Housing Federation (NHF) called on the government to provide more support to small specialist supported housing providers, which includes sheltered accommodation.
Catherine Ryder, director policy and research at the NHF, told Inside Housing: “Smaller, specialist supported housing providers are at the heart of local communities, providing support for vulnerable people in crisis.
“Some of these organisations are facing sudden, significant increases in their operating costs due to the coronavirus outbreak and urgently need short-term support.
“We are talking to the government to ensure these specialist providers, such as those running domestic abuse refuges, can access vital emergency funding through the charities rescue package.”
