Regulatory decisions consistent themes identified
### Title: Local Authorities Can Learn from Recent C1 Judgements by the Regulator of Social Housing
The Regulator of Social Housing (RSH) has issued new judgements that local authorities with retained housing stock can learn from. Three local authorities – Barnsley Metropolitan Borough Council, West Lancashire Borough Council, and the City of Westminster Council – have received a C1 regulatory judgement, the top possible grade for social landlords.
These judgements highlight several key takeaways and practical governance improvements for local authorities. Entities like Pickering and Ferens Homes (PFH) have been commended for effectively delivering consumer standards across all areas, reflecting strong tenant engagement and service outcomes.
Entities awarded C1 grades demonstrate robust governance arrangements, with boards and leadership teams possessing appropriate skills and capacity to achieve strategic objectives. Effective risk management and performance reporting frameworks are central to these positive assessments. Achieving a C1 judgement often coincides with high grades in governance and financial viability, evidencing prudent financial management with access to sufficient liquidity and compliance with financial covenants.
Judgements are based on comprehensive inspections involving document reviews, board meeting observations, tenant engagement sessions, and interviews with executives and board members. Even C1-rated organisations acknowledge the importance of ongoing improvement, particularly in governance and tenant scrutiny, to maintain and build upon their standards of service and regulatory compliance.
Local authorities can improve governance to meet these standards by strengthening scrutiny and tenant involvement, enhancing training, reviewing and strengthening assurance arrangements, embedding risk management and performance frameworks, fostering transparent communication, and planning for continuous governance development.
Preparations and senior level engagement were evident at each of the councils, with one part way through delivering an improvement plan. A culture of treating tenants with fairness and respect is a strength for two of the councils, in complaints handling, engagement, and interactions with tenants.
Tenant safety is central to the RSH's approach, and they expect evidence of correct safety checks, risk assessments, and prompt fixes. The RSH does not have the remit to give a governance grading to local authorities, but good governance is central to demonstrating compliance with the regulatory standards.
Interested individuals can register for a free seminar on governance for councils with retained housing stock, conducted by Campbell Tickell, on Thursday 24th April. Images related to the seminar and other topics are supplied by Campbell Tickell and Shutterstock.
[1] RSH Judgement Report - Pickering and Ferens Homes (PFH) [2] RSH Improvement Plan - Barnsley Metropolitan Borough Council [3] RSH Judgement Report - West Lancashire Borough Council [4] RSH Judgement Report - City of Westminster Council
- Local authorities can adopt prudent financial management strategies, like those demonstrated by C1-graded entities, to ensure financial viability and access to sufficient liquidity, thereby supporting the long-term success of their housing businesses.
- By strengthening their tenant engagement and scrutiny, enhancing training, and embedding risk management and performance frameworks, local authorities can work towards meeting the high governance standards set by the Regulator of Social Housing, potentially leading to improved housing business operations and positive regulatory compliance.
