DTP are pleased to share our latest DTP Briefing which we prepare on a quarterly basis. The aim of our briefings is to provide useful updates on relevant sector content, highlight where DTP can assist in providing support and advice on any issues arising from these and to publicise recent DTP social media activity, future events, and content. The briefing is shared with our clients, on our website and via our email footer. As always, we welcome feedback for future content – please email s.jackson@dtp.uk.com with any thoughts or suggestions.
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Finally, we would like to thank our clients for their ongoing support, we look forward to continuing to work with you and your team.
If you are reading this briefing and are not currently a client, we are happy to have a short call or virtual meeting on a gratis basis, to discuss any challenges you may be experiencing and explore how we could support you. Please contact a member of the team for an informal discussion.
As we enter into 2025, here are DTP’s Directors’ thoughts on what the next 12 months may bring for the sector:
Andy Roskell
Reputation
“I expect more debate about the ‘squeezed middle’ – by which I mean the expectations of the sector to contribute to meeting the new homes target whilst at the same time meeting the demand for action on existing stock (including building safety work, fire safety work, cladding removal, preparing for the impact of Awaab’s Law and preparing for net-zero). Greater clarity on a rent settlement will help, but other pressures, national insurance being one, will eat into this. The reputation of the sector is at stake here, with a new Government and these matters present a looming risk.”
Regulation
“It is likely that we will see greater concentration from the Regulator of Social Housing (RSH) on risk management, stress testing and a requirement for greater sophistication in mitigation planning. I think the RSH will be expecting more proactive planning for uncertainty and for a mature examination of the capacity of boards and executive teams. I would expect there to be a trend towards establishing more of a forward look on the reporting of performance against ‘Golden Rules’, to see what is coming down the line and when ‘Triggers’ might be hit, leading to serious discussions about when to actually deploy mitigations.”
Andy Gladwin
Funding
“I anticipate more retrofit funding made available to help Registered Providers (RPs) meet the minimum EPC rating and net zero challenges in a more cost-effective way than traditional funding allows and a greater choice of retrofit products available to enable RPs to choose a loan structure that best fits their specific needs.”
Angela Lomax
Governance
“A revision to the Governance and Financial Viability Standard seems inevitable. The standard is 10 years old now and no longer reflects the challenges of the operating environment. I would expect to see greater focus on board foresight, controls, and assurance. Also, more about competency as well as skills and experience, and lots more on resilience and recovery plans – including consideration of last resort options around managed wind up and transfer of social housing assets.”
Artificial Intelligence (AI)
“Lots of opportunity, but also lots of caution about data controls and ownership. Some of the easy wins (report writing etc.) run the risk of significant data control breaches. We have heard of issues about confidentiality and disciplinary action against employees using RP information in open access AI apps to write reports.”
Sarah Jackson
Social Housing Rent Policy
“2025 will bring confirmation of the Government’s future policy for social rents, which the sector has been eagerly awaiting. The consultation published in November 2024 sought views on a further five years at CPI plus 1% plus a longer term, 10-year deal. Whilst the consultation confirmed that a return to rent convergence was not being considered due to affordability concerns, we anticipate that feedback from the sector around this will be significant and await the outcome of the consultation in the Spring.”
Governance
“I expect to see more discussion about whether the six-year tenure rule might need to be looked at again, as clients are advising us that the constant churn of board members leads to greater costs in terms of recruitment, but not only that, there is a concern amongst some clients, that it might, for a variety of reasons, serve to undermine the potential for the best possible governance.”
David Tolson
For-Profit Registered Providers
“I expect a continued rise in the numbers of Not-for-Profit RPs looking into establishing ‘For-Profit’ RPs, to assist them, in the face of balance sheet limitations to leverage private equity into the business and, to enable them to continue to meet their own development aspirations.”
The team are here to help you prepare for the next 12 months, please do get in touch to discuss any support needs you have.
a.roskell@dtp.uk.com a.gladwin@dtp.uk.com a.lomax@dtp.uk.com s.jackson@dtp.uk.com
You can find the full range of services that DTP offers on our website here. During the last quarter, we have launched four services which may be beneficial to you to consider, links provided for further information:
For further information and an informal discussion, please contact Senior Consultants, Andy Chapman a.chapman@dtp.uk.com, Mags Pearson m.pearson@dtp.uk.com and Diane Carney d.carney@dtp.uk.com
We have released several podcasts recently, with links provided below, all aimed at providing valuable insight and sharing good practice.
DTP Briefing (Webinar): Learning from Early Regulatory Inspections
Meet the Client – Salix Homes: Learning from Regulator of Social Housing Inspection
Understanding Assets and Liabilities Registers
The Rent Standard and Regulatory Compliance Part 1
The Rent Standard and Regulatory Compliance Part 2
Business and Financial Planning for Small Housing Associations
All of our podcasts are available on our YouTube channel here DTP – YouTube
We regularly post a variety of DTP views and updates via our social media activity. If you have not already had chance to view these and would like to, please follow the links below:
Understanding Assets and Liabilities Registers (Marcus Evans)
Housing Association Boards: Why External Financial Assurance Matters (Andy Roskell)
Financial Benchmarking for Development in Social Housing: A Pathway to Success (Andy Chapman)
The Regulator of Social Housing’s Sector Risk Profile 2024 – Key ‘Takeaways’ for Boards (Sarah Jackson, featuring Devonshires’ Samantha Grix)
The Importance of Data in Navigating the New Regulations in Social Housing (Diane Carney)
Five business and financial planning actions for small housing associations (Andy Chapman)
To keep up to date with all of our publications and general activity, you can follow us on LinkedIn by using this link DTP LinkedIn
All of our past case studies are on our website and shared via our social media channels as they are released. In case you missed our most recent case studies, we have provided links to these below:
Independent Case Review Following a Housing Ombudsman Determination: whg
External Review of Complaints: Railway Housing Association
If you would like to know more about any of these case studies, and how DTP could support you, please contact Senior Consultant, Diane Carney d.carney@dtp.uk.com
We hope that you’ve enjoyed our most recent briefing, don’t forget, feedback as always is greatly appreciated – please contact s.jackson@dtp.uk.com if you have any feedback that you would like to share.
We look forward to working with and supporting you during 2025.
