Regulator To Hike Fees By 15%

The Regulator of Social Housing (RSH) will hike its per unit fees by 15% next year as it tries to cope with housing associations’ greater market focus and the emergence of for-profit providers. A review of the regulator’s resources had identified “the need for an increase in capacity to ensure that we can continue to effectively regulate the changing risk profile of the sector”. This includes keeping pace with the “increasing market focus among some registered providers” and new funding models such as “commercial for-profit providers”. The fee increase will add tens of thousands of pounds to the bills of the largest housing associations. Download the letter from the GovUK website.

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/817822/RSH_letter_-_Fees_proposals_2020-21.pdf

Arrears, Collections And Voids Meet Or Exceed Assumptions

Current levels of rent arrears, collections and voids across the sector are within, or outperforming, association business plan assumptions, according to the latest quarterly survey from the Regulator of Social Housing (RSH). The survey – based on regulatory returns from 225 private registered providers (PRPs) and PRP groups who own or manage more than 1,000 homes – shows that, in relation to rent, 86% of providers report levels within their respective business plans. RSH acknowledges responses for each quarter remaining reasonably stable, suggesting providers are managing income collection risks and maintaining cash flows within business plan parameters. Download the survey from the RSH website.

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/780426/Quarterly_Survey_Q3_-_October_to_December_2018.pdf

Sector Scorecard Results Reveal Fall In Average Operating Margin

The ‘Sector Scorecard’ figures for housing associations show a fall in the sector’s overall operating margin.  The scorecard, which was developed by housing associations in 2016, provides benchmark figures for 15 areas which are seen as key to housing association business performance. Some of the metrics are used by the English regulator to assess the ‘value for money’ performance of housing associations. Last year the scorecard was piloted with 315 housing associations, with this year’s report taken from data provided by 329, owning 2.3 million homes and representing 80% of the sector by stock. It revealed the average operating margin has fallen more than two percentage points to 27.89% from 30.3% last year. Read more on Inside Housing.

https://www.insidehousing.co.uk/news/sector-scorecard-results-reveal-fall-in-average-operating-margin--59307?utm_source=Housing60&utm_medium=email&utm_content=article_link&utm_campaign=H60

Regulator: Reputational Risk For Housing Associations ‘Greater Than Ever’

The social housing sector faces a greater level of scrutiny than ever before bringing increased reputational risk, the Regulator of Social Housing has said. In its annual sector risk profile the regulator said it is “vital” that boards consider the expectations of stakeholders in their decision making. It also warned about increased sales risk, noting the increase in housing associations relying on income from market sales to fund affordable housing. Read more on Inside Housing.

https://www.insidehousing.co.uk/news/regulator-reputational-risk-for-housing-associations-greater-than-ever-58588?utm_source=Housing60&utm_medium=email&utm_content=article_link&utm_campaign=H60

Councils To Lose Voting Rights And Have Board Membership Limited

The government quietly put legislation introducing the changes to parliament last week. They will affect dozens of stock transfer housing associations. Under the proposals, dubbed The Regulation of Social Housing (Influence of Local Authorities) Regulations 2017, councils will lose powers of veto over housing associations and the right to vote at general meetings. They will also have board membership limited to a maximum of 24% of the associations’ boards. This second change will force boardroom reshuffles at many housing associations up and down the country which were established with a third of local authority membership. Read more on Inside Housing.