New social housing standards could cost councils £18 million

The new standards to boost safety and landlord accountability for the social housing sector could cost councils £17.9 million in the first two years of implementation – and £3.7 million a year afterwards.

And now the Local Government Association (LGA), which represents councils in England and Wales, says that these costs should be fully covered by the government.

If not, the cash will have to come from the councils’ already strained Housing Revenue Accounts (HRAs).

The LGA is also urging the government to work with them and the qualification bodies on a realistic and comprehensive strategy for delivering the new standards, which are part of the Social Housing (Regulation) Act.

It warns that council housing teams are facing significant workforce challenges, and they need flexibility to assess which roles need to comply with the new requirements.

‘Committed to improving the quality of social housing’

The LGA’s housing spokesperson, Cllr Linda Taylor, said: “Councils are fully committed to improving the quality of social housing, supporting housing staff and ensuring they receive appropriate training and can gain qualifications to help them in their roles.

“With costs to councils likely to be almost £18 million just for the first two years, it is essential that these new requirements are fully funded.

“Councils’ Housing Revenue accounts are already facing unsustainable financial pressures, and this would be an additional burden which risks impacting on councils’ ability to fulfil their roles effectively as housing authorities.”

She added: “In addition, as our research shows, councils need more time to plan and implement these new requirements that are being imposed on them.

“This is why it is vital government works with us, and that these changes are carefully and properly managed, while being mindful of the significant workforce challenges housing teams are facing right now including recruitment and retention concerns.”

Councils always put residents first

The LGA says good quality social housing is vital for people and communities, and councils always put residents first – but the new standards could have unintended consequences for the supply and affordability of social housing, if they are not properly funded and managed.

The LGA’s research is based on a survey of 50 councils with HRAs, which found that 86% of councils expected to incur extra costs because of the new standards, with an average cost of £358,000 per council in the first two years, and £74,000 per year afterwards.

The new law will require council housing managers and executives to have a minimum level of qualification, but the research highlights that 66% senior housing managers and 54% executives do not have the qualifications to meet the new rules.

And 62% say it isn’t possible to ensure 100% with the required level of qualifications within a two-year period, given current resource levels.

This could also impact housing officers as 80% of respondents say that recruitment and retention will be more difficult.

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