A combination of welfare reforms and changes to social housing subsidies have put the sector under unprecedented financial pressure, prompting the Homes and Communities Agency (HCA) to write to around 20 housing associations about their “Value for Money” (VfM) performance.
The letter warns that the associations in question could potentially face being downgraded by the regulator if the VfM concerns are not adequately addressed.
The HCA has indicated that none of the social landlords contacted are inevitably to receive a downgrade. A HCA spokesperson said: “The regulator has written to a number of providers which it feels could be performing better on VfM to seek assurance that the matter will be addressed.”
Alistair McIntosh, chief executive of the Housing Quality Network, said: “We have known for a while now that the government wanted action on VfM. The HCA really had to step up and act. The truth is that most associations are doing things to save money. They just need to get a lot better at proving it. The VfM standard is pretty straightforward to comply with. Let’s hope the HCA can give these associations another go at it.”
By adopting a better way to operate, social landlords can offer better value for money, improve their services to their tenants and equip themselves for the challenges ahead.
At Palmers, we have many years’ experience in dealing with Landlord and Tenant issues.
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