News27.10.22by Ella JesselThe mayor of London has warned the capital’s affordable housing providers that they could lose funding if they fail to maintain their properties to high standards.Picture: AlamySharelinesThe mayor of London has warned the capital’s affordable housing providers that they could lose funding if they fail to maintain their properties to high standards #UKhousing Sadiq Khan said he was willing to get tough on underperforming landlords by limiting access to development cash, or in “extreme circumstances”, withdrawing all funds and stripping providers of their Greater London Authority (GLA) investment partner status.
Mr Khan said: “Most social housing in London is well managed and maintained. However, this is unfortunately not always the case and I am determined to use my funding powers to drive up standards in both new build and existing homes.
“London is building some of the most impressive new affordable homes in the country, but it is vital that existing residents experience high standards too.”
It comes after intense scrutiny in the past 18 months over the shocking conditions some social renters are living in, with the spotlight on local authorities like Croydon and the UK’s largest social landlord, Clarion.
Other housing associations, including L&Q, Bromford and Guinness Homes, were also featured in ITV excerpts showing tenants living in sub-standard conditions.
While the Social Housing Bill is currently progressing through parliament, Mr Khan said Londoners should expect high standards “immediately”, and called for a national commissioner for social housing residents. According to City Hall, deputy mayor for housing Tom Copley wrote to the sector in September outlining what actions could be taken against housing associations and councils that do not meet standards set by the Regulator of Social Housing (RSH).
His letter explained that the GLA will reserve the right to withdraw or restrict investment partner status – a requirement for providers wanting to build through the mayor’s Affordable Homes Programme – “where it considers it to be appropriate and proportionate to do so”.
The letter read: “Any changes to [investment partner] status would be reflective of the nature and seriousness of the regulatory issue and would always include discussions with providers to understand remedial actions being taken.”
The GLA confirmed that no landlord has had their IP status restricted as of yet. Some providers that receive grant from the GLA have had regulator notices in recent times.
Southern Housing, which was recently hit with a regulatory notice for breaching the Rent Standard in 2021, is a partner in the GLA’s current Affordable Homes Programme, with a funding request of £33.5m for 300 homes.
Four London councils have recently received regulatory notices and are also GLA investment partners, including the Royal Borough of Greenwich with a grant of £38m, Ealing with £109m, and Barking and Dagenham with £171m. Inside Housing has asked whether the GLA is taking action over any of these providers. Mr Copley’s letter also explains how the annual qualification process for the GLA’s investment partners has also been tightened, with providers applying or reapplying now asked to confirm whether they are compliant with “all regulatory standards” and to state whether they have an active regulatory case against them.
The letter also said the GLA would be monitoring regulatory compliance throughout the year.
Restrictions that could be imposed on investment partners include a pause on entering new GLA capital funding contracts, accessing grants for additional projects under existing funding agreements, and drawing down grants for projects under agreed funding arrangements.
If providers do lose their investment partner status, they will need to reapply, and the GLA will also now ask for housing maintenance track records of newly qualifying investment partners.
For providers wanting to re-qualify following a regulatory breach that led to their investment partner status being removed, there will also be questions on changes made to internal processes since the breach occurred.
Non-compliant housing associations in London include Shepherds Bush Housing Association and Swan Housing Association, but these are not currently GLA investment partners.
Other London landlords with regulatory notices include Ash-Shahada Housing Association, Brent Community Housing, Kinsman Housing and Redbridge Council.
Mr Copley’s letter added: “The GLA understands the pressures that [investment partners] are under to deliver housing in what are currently extremely challenging circumstances. It is crucial, however, to ensure that housing is of the quality Londoners deserve and expect and we know that providers share our commitment to raise standards in social housing.”
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