When providing homes for social housing or supported living, landlords and investors must adhere to specific regulations. These rules apply whether you are constructing new homes or renovating existing properties to meet the required standards.
Are you considering investing in social housing or becoming a social landlord?
This guide provides a detailed overview of housing associations and providers’ requirements. Understanding these standards is essential for offering quality housing to those eligible for social and supported living, ensuring compliance, and contributing to community well-being.
What is the definition of a ‘decent home’?
The Decent Home Standard was initially introduced in 2001. Over the years, many improvements have been made, and other items that private and socially rented housing must comply with have been added. In 2022, in the Levelling Up White Paper, the government committed to halving the number of non-decent homes in the social housing sector and privately rented housing by 2030.
| Standard | What does it mean? |
| The property is in a reasonable state of repair | Internal and external components of the property must be functional, including appliances. |
| Reasonably modern facilities and services | Modern kitchens and bathrooms must be decent sizes and fully functioning. Noise insulation and enough space must also be provided in common areas. |
| A reasonable degree of thermal comfort | Fully functioning heating and water systems must be provided, and the home must be well insulated and improve energy efficiency. |
Who is the Regulator of Social Housing (RSH)?
The Regulator of Social Housing (RSH) is a government body that oversees registered social housing providers. It sets new consumer and economic standards and takes action against providers who breach these regulatory standards before there is a risk of serious detriment to tenants or potential tenants.
In the UK, the RSH maintains a public register of social housing and supported living providers accessible to the public. All UK social housing and supported living providers, including local authorities, housing associations, housing co-operatives, and profit-making organisations, must register with the RSH.
Why is there a regulator of social housing?
The Regulator of Social Housing makes sure that social housing and supported living providers offer rental accommodation at lower rates, often subsidised by the UK government. The regulator assesses that these providers meet specific standards to maintain quality, affordability, and fairness in housing by inspection.
What happens during an inspection?
Regulators routinely carry out inspections of registered providers and their assets. They can enter properties with 48 hours’ notice to both the provider and occupier. During these regular inspections, the regulator surveys the property and provides a written summary of their findings, which is then reported to the regulator.
The Social Housing (Regulation) Act 2023 aims to strengthen the relationship between regulators and housing providers, ensuring a unified approach to regulation and complaint handling and improving information exchange.
Providers must produce an annual report for tenants detailing local offers, compliance with regulator standards, and how they measure this compliance.
What is included in the register?
The register collects detailed information about registered social housing providers, including their lettings, sales, and spending. It contains data on:
- Types of homes owned
- Rent levels
- Tenant satisfaction with overall services
- Tenant satisfaction with opportunities to participate in decision-making about services
- Tenant satisfaction with repairs and maintenance
This information helps monitor and ensure the quality and effectiveness of social housing services.
What are the criteria to be added to the register?
Local authority providers of social and supported housing are automatically registered with the regulator. However, private providers need to apply and meet specific requirements, including:
- Being based in England
- Currently providing or intending to provide social housing in the UK
- Meeting the regulator’s criteria, which are based on the provider’s financial situation, constitution, and management arrangements
What are the Regulatory Standards?
The RHS establish regulatory standards outlining the responsibilities and outcomes landlords must achieve, using their authority under the Housing and Regeneration Act 2008.
All landlords are required to meet the outcomes specified in these standards, including both mandatory outcomes and detailed expectations for each requirement.
Regulator Framework
This regulatory framework of social housing consists of:
- All regulatory requirements that social housing providers must comply with
- Codes of practice that explain economic and consumer standards and how providers should comply with them
- Regulatory guidance on the requirements and how they are regulated
Economic Standards
The economic standards ensure registered providers manage their finances well and stay financially stable. These standards protect public funds and promote efficient services.
- Governance and Financial Viability Standard: Safeguarding that providers are well-managed and financially sound, with good risk management and decision-making.
- Rent Standard: Sets guidelines for rent levels to keep housing affordable for tenants while maintaining providers’ financial health.
- Value for Money Standard: Providers must show they use their resources effectively, delivering quality services efficiently.
Consumer Standards
The consumer standards encourage transparency and accountability based on tenant feedback. To confirm tenants’ diverse needs are met, a clear and accessible complaints procedure must be in place, and registered social housing providers must keep tenants safe.
There are four new consumer standards (as of 1 April 2024) which assess tenant satisfaction and repairs:
- Neighbourhood and Community Standard: Focuses on maintaining safe and clean neighbourhoods and fostering a sense of community.
- Tenancy Standard: Provides fair and efficient management of tenancies, including allocations and tenure security. This should consider the purpose of the accommodations, the needs of the household, whether housing stock is being used efficiently, and whether it is sustainable within the community.
- Transparency, Influence and Accountability Standard: Assesses tenant satisfaction and whether landlords are being open, fair and respectful when dealing with tenants.
- Safety and Quality Standard: Registered providers must maintain accurate safety and quality standards at all times and keep the condition of the homes they provide up to date, as set out in the Decent Homes Standard.
What happens during an inspection?
Regulators routinely carry out inspections of registered providers. They can enter properties with 48 hours’ notice to both the provider and occupier. During these regular inspections, the regulator surveys the property and provides a written summary of their findings, which is then reported to the regulator.
The Social Housing (Regulation) Act 2023 aims to strengthen the relationship between regulators and housing providers, ensuring a unified approach to regulation and complaint handling and improving information exchange.
Providers must produce an annual report for tenants detailing local offers, compliance with regulator standards, and how they measure this compliance.
What does this mean for me as an investor?
Understanding the regulatory standards and inspection processes can seem daunting to investors. However, working with Yield Investing can benefit you.
We ensure that all properties meet the required standards, both economically and for tenant satisfaction. We handle property maintenance, deal with tenant feedback, and manage regular inspections, providing you with peace of mind. By partnering with Yield Investing, you can trust that your investment is in good hands, complying with regulations and maintaining high-quality standards while you focus on financial growth.
Want to become a hand-off social housing provider? Work with us!
The demand for social housing in the UK is increasing, leading to more people living in inadequate or temporary accommodations or overextending financially on private rentals. We specialise in investing in social housing, which offers a high-yield opportunity that not only benefits investors but also supports those in need of stable housing. This sector, though lesser known to some investors, is a valuable addition to any investment portfolio.
If you’re curious to explore social housing investments and how to invest purposefully to benefit society and your investment portfolio, contact our property advisors today to learn more about working with us.
