Competence and conduct standards for social housing landlords explained
13 May 2024
As a social housing landlord, you are likely aware of the ongoing shifts in regulatory frameworks that influence how housing services are managed and delivered.
However, we felt it was important to draw your attention to a specific development currently in progress within the legislation.
Having just finished the consultation phase and now under review, the introduction of the Competence and Conduct Standard by the Department for Levelling Up, Housing and Communities (DLUHC) might be a significant development in the social housing sector.
It could have far-reaching implications for your finances and your compliance procedures and, from our perspective, is likely to be a key piece of legislation that we advise our clients on in the near future.
The legal framework
The Competence and Conduct Standard forms part of the broader legislative changes under the Social Housing (Regulation) Act 2023.
This Act received Royal Assent in July 2023, marking a pivotal step in enhancing the governance and accountability of social housing providers.
The Act authorises the Regulator of Social Housing (RSH) to enforce these standards, ensuring that landlords not only comply with operational norms but also adhere to ethical standards.
Whilst the standards are still under scrutiny and discussion within the RSH, we believe there’s a fair chance they will be implemented.
The key components of the Competence and Conduct Standards are:
- Qualification requirements: you must ensure that senior managers and executives within your organisation possess appropriate qualifications in housing management. The standard specifies that a level four qualification is necessary for senior housing managers, whereas senior housing executives should have a level five qualification or a foundation degree. These qualifications should cover crucial areas such as ethical practices, housing management, and professional skills.
- Code of conduct: another core requirement is the establishment of a code of conduct that all your staff must follow. This ensures that every member of your team acts in a manner that upholds professionalism and respects the rights and dignity of tenants.
- Performance management: you are required to publish a clear policy detailing your approach to the learning, development, and performance management of your staff. This document should articulate how you plan to maintain and enhance the competence of your workforce, thereby aligning with the standards set forth by the RSH.
We’re welcoming all of these components as positive moves towards a more structured and ethical sector, but that’s not to say they’ll be easily implemented.
The implications for social housing landlords
The introduction of these standards means you will need to undertake a thorough review of your current practices and team qualifications.
Maintaining compliance will likely involve the following steps:
- Assessing staff qualifications: audit the current qualifications of your team to identify gaps. Where necessary, arrange for staff to enrol in accredited courses to meet the required standards within the stipulated timeframes.
- Developing policies: develop or revise your code of conduct and performance management policies to align with the new standards. These documents must be accessible and clearly communicated to all staff members.
- Financial planning: consider the financial implications of implementing these standards. This may include budgeting for training and development, as well as potential operational adjustments during the transition period.
- Engagement with RSH: engage proactively with the RSH to ensure your understanding and implementation of the standards are on track. Regular updates and compliance checks will form part of the regulatory landscape moving forward.
Of course, the financial aspects of these aren’t going to be inconsequential and you may need to assess these implications within the broader operational strategy of your business.
However, regardless of the cost, these are essential, and we strongly recommend you develop a plan to deal with them for when the results of the consultation come out.
If you’d like help writing up a compliance strategy, or you need more information on the issue, we suggest you speak to your solicitor as soon as possible.
Being proactive in the face of legislative change is always beneficial and helps your business navigate through changes more effectively.
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Elizabeth Smith
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Raihan Khoyratee
Sectors
The content of this article is for general information only. It is not, and should not be taken as, legal advice. If you require any further information in relation to this article please contact the author in the first instance. Law covered as at May 2024.