This Month In Social Housing: November 2024
It only seems like yesterday that we were pushing out our annual The Experts Predict What’s Next feature that we traditionally kick off January with, yet somehow, it’s December already! Yes, the season of festivities and frosty mornings has taken hold, with twinkling lights beginning to brighten our streets, the same five Christmas songs on constant rotation in any kind of retail outlet, and thoughts of cherished family time/an onslaught of rampant commercialism (delete depending upon personal levels of festive cynicism) beginning to enter our collective conscious.
With the anticipation of winter holidays in the air, it’s a time for both reflection and preparation. While December often brings a whirlwind of end-of-year planning and celebration, it’s also a good moment to pause and catch up on the latest developments in the world of social housing. So, let us help you stay informed during this busy time with our latest news round-up in which we bring you the top social housing news stories from the past month. Grab a brew and settle in for This Month in Social Housing: November 2024…
Whistleblower Allegations up by 66% According to RSH Report
A new report by the Regulator of Social Housing (RSH) has revealed a 66% rise in whistleblowing allegations, with 40 disclosures made between April 2023 and March 2024, up from 24 the previous year. Of these, 17 cases were investigated, but none led to regulatory action. Most providers assured the RSH they were addressing the issues raised, while others became part of ongoing engagements. Whistleblowing concerns typically involve health and safety risks, legal breaches, or concealed failings. Since 2019, the RSH has been a “prescribed person” under the Public Interest Disclosure Act, allowing workers to report concerns independently. The RSH also published data revealing only 700 new social homes were built in England last year, alongside consumer judgements highlighting two regulatory failures.
Ombudsman Makes Nearly 22,000 Orders and Recommendations Against Landlords in a Year
The Housing Ombudsman issued nearly 22,000 orders in 2023-24, over three times the previous year’s total, to address tenant complaints. These included repair mandates, compensation payments totalling £4.9m, and recommendations for improved practices. Severe maladministration findings surged from 131 to 856, with larger landlords accounting for 88% of these cases. The ombudsman identified widespread failures, with 73% of decisions citing maladministration, often due to landlords neglecting legal requirements or policies. London had the highest upheld decisions (77%), while the North East and Yorkshire had the lowest (62%). Ombudsman Richard Blakeway emphasised the urgent need for landlords to invest in housing quality, improve systems, and address complaints effectively to rebuild trust and mitigate adverse impacts on residents and communities.
Landlords’ Average Operating Margins Increase for First Time in Five Years According to Housemark Report
English housing associations’ average operating margins rose to 19.3% in 2023-24, up from 18.5% the previous year, according to Housmark’s recently released Value for Money report. The research suggests that the first increase in five years is attributed to rent rises, cost controls, and increased capitalisation. However, margins remain below the 26.8% recorded in 2018-19. Housing costs per property rose 11% to over £5,000, with London and supported housing landlords incurring the highest costs. Maintenance spending increased significantly, with in-house services proving more cost-effective than outsourcing. The sector invested £14.4bn in new housing, delivering 43,000 homes, while reinvestment hit a record high of 8.2%. Sector debt grew 7% to £99.2bn. Housemark predicts a decline in tenant satisfaction and emphasises the importance of data in improving efficiency, service design, and maintenance planning amid financial challenges.
Whitepaper on Commonhold and Plans to Ban Leasehold Flats Anticipated Next Year
The UK government plans to consult on banning new leasehold flats in 2025 and will publish a white paper on commonhold reforms early next year. Housing minister Matthew Pennycook aims to make commonhold the default tenure by the end of this parliament. Commonhold, widely used globally, allows flat owners to own their unit outright and manage shared building areas collectively. Despite being introduced in England and Wales, fewer than 20 commonhold developments exist, hindered by outdated rules. Draft legislation in 2025 will address leasehold system flaws, including excessive ground rents, the forfeiture process, and Section 20 major works charges. Leasehold campaigners welcomed the reforms but urged immediate action to protect current leaseholders facing financial pressures and abusive practices.
20,000 More Children Now Living in Temporary Accommodation
New government figures reveal that the number of children in temporary accommodation has risen by over 20,000 in the past year, reaching 159,380 by July 2024 – a 14.5% increase. Overall, 123,100 households now live in temporary housing, a 16.3% rise. John Glenton of Riverside said it is “time to start treating the homelessness crisis as a national emergency,” calling for “effective solutions the government can deploy at a larger scale.” He added, “Increasing investment in hostels and supported housing would give England the scale it needs to get more people out of temporary accommodation.” Emma Haddad of St Mungo’s noted the “devastating impact” of homelessness, stating, “We need a longer-term vision, funding, and partnership working to prevent people facing homelessness in the first place.” Adam Hug of the Local Government Association highlighted the “urgent pressures facing councils,” calling for an updated subsidy system and a national affordable housing strategy.
And just like that, we’ve wrapped up another This Month in Social Housing! Now it’s time for us to all slink off to wrestle with the thermostat, argue with Christmas lights that refuse to work (and family members who refuse to help put up the decorations), and dig through last year’s ‘meh’ pile for something we can ‘re-gift’ to the cousin that nobody likes. With just a few weeks left to panic about the holidays and hold off on devouring all the mince pies, we’re in full end-of-year sprint mode! But don’t worry, we’ll be back in the new year with all the latest social housing updates (and probably more tips on surviving winter without losing our sanity). Until then, tschüss!
- This Month In Social Housing: November 2024 - December 3, 2024
- This Month In Social Housing: October 2024 - November 1, 2024
- This Month In Social Housing: September 2024 - September 30, 2024