Minimal Regulation - Minimal Regulation - A Providers PerspectiveA Providers Perspective

Eamon McGoldrick Chief Executive

Homes for Islington

Order/Objectives of PresentationOrder/Objectives of Presentation Describe the outgoing regulatory regime – Will we miss it?

Explain more about the new landscape with minimal regulation

Suggest how housing providers could respond

Stimulate discussion and debate

Islington – A few factsIslington – A few facts

Inner London Borough.

14th most deprived Local Authority

One of 20 most wealthy

Over 40% of households live in Social Housing

Homes for IslingtonHomes for Islington Islington’s ALMO Established April 2004 Management of 25,000 tenants and 10,000 leaseholds Decent Homes completion August 2011 (£650m invested)

Audit Commission 2008 - 3 Stars/Excellent Prospects Tenants Satisfaction 2004 – 50%

2011 – 72%

Currently Building New Council housing/sharing and trading services

The Changing World of RegulationThe Changing World of Regulation 2004 – 2010

- 4 Audit Commission Inspections

Services and prospects assessed consistently

Very comprehensive (14 Service Areas with KLOES)

Clear road map for continuous improvement

“Cheap consultancy”

Encouraged sharing and benchmarking

Post Decent HomesPost Decent HomesCo.

Regulation

Cross Domain Self

Underpinned by - Emphasis on Self Assessment - Engagement with residents - Threat of Short Notice Inspections

Post April 2012Post April 2012 HCA “Backstop” Regulation

Strong focus on Governance and Financial viability (except LAs)

Customer Services – Intervention restricted to “serious detriment”

Local Offers still deemed to be good practice

Co-Regulation/Self Regulation still alive and well!

What are the Benefits of the new regulatory regime?What are the Benefits of the new regulatory regime?

- Less “Big Government”- Cheaper- Less Bureaucracy/Paperwork- Less Box ticking- More time for other priorities- More Freedom

BUT…… with freedom comes risks and responsibilities

New and Emerging RisksNew and Emerging Risks How will providers develop new build in a world with less HCA

Grant/Affordable Rents?

Local Authorities – Are you ready to explain to residents your position on

- tenure reform?- allocations policy?- use of Affordable Rents?- HRA/Self Financing?

Lets examine two risk areas in more detail.

Local Authorities and HRA Self FinancingLocal Authorities and HRA Self FinancingCurrent Regime Government sets guideline rents Annual Subsidy settlements No local influence/debate Little room to use your asset base to raise funds Easy to blame Government

From April 2012 Councils will

- set rent increases for 3/5/7 years- decide their own spending priorities- consider “sweating their assets”

- and there is no cavalry coming over the hill!

Does your Council have

- a robust Asset Management Strategy?

- an up to date Stock Condition Survey?

- a 30 year Business Plan?

- a continued focus on value for money

- staff and members with the right skill sets?

- decision making processes that involve residents?

Customer ServicesCustomer ServicesHow dependent were you on the Regulator to improve services?

Will the past emphasis on

- Continuous improvement

- Excellence in customer services

- Comparing/Sharing/Benchmarking

- Accountability to an independent regulator

Be replaced by

- Mediocrity

- Complacency – we’re ok!

- “Coasting middle”

- Abandonment of non core business

A Thought!A Thought!

If your organisation didn’t improve under the previous robust regulatory regime how is it going to under the new one?!

My Recipe for the Way ForwardMy Recipe for the Way ForwardUse tried and tested principles of good governance and leadership

Self Regulation

Strong Leadership and Governance at all levels

Produce robust Annual Improvement Plans

Write an honest and open Annual Self Assessment

Go for appropriate external assessments and accreditations

Use a wide range of Independent Customer Surveys

Benchmark and compare with “Best in class”

Undertake Peer/Service Reviews

Embrace and demand a strong performance culture (Collecting PIs and setting challenging targets is still legal!)

Risk Management is crucial

Don’t forget the other “Regulators” out there

Civil/Criminal Courts

Housing Ombudsman - Single service from 2013

Health and Safety Executive

Land Valuation Tribunals

Employment Tribunals

Fire Authorities

Co-Regulation

Get residents involved in designing and shaping services at every opportunity

Are you doing enough to involve residents in areas such as

- Procurement exercises?- Appointments of senior staff?

If you are a Local Authority are you still holding onto all the key decisions?

Resident led ScrutinyResident led ScrutinyHomes for Islington - Board and Monitoring Meetings held in public

- Procurement Panels converted to Scrutiny - Focus Groups

- Mystery Shopping- Resident Inspectors

The combinations are endless, but make sure you encourage/train/support and incentivise residents to take part.

If you get it right residents can make a real contribution to

- Co-Regulation- Public scrutiny of services- The Localism agenda- New Ombudsman arrangements- Improvement of services across the local housing sector- Help keep robust regulation at bay!

One Final Thought……One Final Thought…… The Government message is clear – “Over to you”

In the near future some housing providers are going to fail

Lets work together to minimise the risk of failure because if we don’t, you will hear the call for a return of- Robust regulation/Inspection programmes/Intervention.

The “ball is in our court” – Lets keep it there!

THANK YOU