As the new Inspection Regime for social housing, which came into effect in April 2024, completes its first quarter, DTP Director Angela Lomax takes the opportunity to reflect on the significant changes and share insights from working with providers preparing for this new era of regulation.
From IDAs to Inspections: A new approach
The introduction of inspections marks a pivotal shift in the regulatory landscape. Unlike the In-Depth Assessments (IDAs) they replace, inspections now provide a comprehensive evaluation of governance, financial viability and the newly integrated consumer regulation. These three elements are equally weighted, with the addition of a new consumer (C) rating. This means the regulator is not only assessing organisational governance and financial health but also how well providers are meeting Consumer Standards.
What the Regulator expects for the Consumer Standards
At its core, the Regulator’s focus is on assurance at a governance level, particularly in relation to service outcomes. This is not about a detailed self-assessment against each Consumer Standard but rather about demonstrating compliance through outcomes. Boards need to show they understand what compliance looks like for their organisation and provide assurance that they are delivering accordingly.
This new approach is grounded in the Regulator’s co-regulatory model, emphasising that while the Code of Practice underpinning the Consumer Standards offers guidance, it is up to each provider, working collaboratively with colleagues and residents, to determine and demonstrate their compliance.
Preparing for inspections
Preparing for inspections involves a critical self-assessment against all regulatory standards. Boards must ensure their governance structures are fit for purpose and that their corporate plans accurately reflect their performance and objectives. This preparation is not about achieving perfection from day one but rather about ensuring a robust understanding and strategic approach to compliance.
A common area for improvement is the alignment of day-to-day service delivery with strategic goals. If certain areas consistently perform poorly but are not addressed in the corporate plan, the Regulator may question the focus of the board’s oversight. Therefore, it is essential to get the core landlord duties (the foundation of the business) right, allocate resources wisely and ensure the board has the right expertise and curiosity to scrutinise effectively.
Readiness of providers
Most providers should be ready, given the extensive lead time for these changes. However, robust self-assessment and board ownership of the outcomes are crucial. The customer voice must be integral to these self-assessments, ensuring feedback is incorporated not solely in consumer-focused standards but across all areas of operation.
Long-term changes and the importance of good governance
The new regime signals a move towards long-term, embedded changes rather than a tick-box exercise. Providers need to integrate customer feedback meaningfully, ensuring that they offer opportunities for customers to engage and that boards listen, respond, and seek further feedback on their actions. This requires a strategic approach to understanding the service officer, detail about the housing stock and the people who live in the provider’s homes. This point, regarding data collection, management and analysis is a significant undertaking.
The message is clear: do not underestimate the scale of this new regulatory environment. Providers must balance confidence in their strengths with realistic plans to address weaknesses. Setting clear, achievable milestones is key to demonstrating progress and ensuring long-term compliance.
And final thoughts…
To succeed under the new regime, providers must prioritise effectively, recognising that not everything can be addressed at once. Comprehensive planning, resource allocation, and performance measurement are crucial. Boards must be proactive, setting realistic timeframes and ensuring they have the capacity to deliver on their plans.
As the sector moves forward, learning from the initial inspection outcomes will be invaluable. However, the focus should always be on what is right for each organisation and its tenants. By embracing these changes and embedding them into their operations, social housing providers can ensure they meet the new standards and deliver high-quality services to their communities.
