Government withholding funding from social housing providers
1 January 2023
This article was first published on the Batchelor’s Solicitors website prior to its merger with Birketts.
The Government has signalled its intention to take a tougher stance on housing providers that fail to meet standards by announcing that it will block funding.
The crackdown follows the death of toddler Awaab Ishak from exposure to black mould after the family’s social housing landlord, Rochdale Boroughwide Housing (RBH) repeatedly ignored their pleas to deal with the issue.
A recent inquest into Awaab’s death was highly critical of the housing provider’s lack of action and RBH’s Chief Executive, Gareth Swarbrick, was subsequently fired.
Levelling Up and Housing Secretary, Michael Gove, has now confirmed that RBH will be stripped of £1million worth of funding from the Affordable Homes Programme and will not receive any new AHP contracts for new homes, until the Regulator of Social Housing has concluded its investigation and the housing association can prove it is a responsible landlord.
As part of a wider crackdown on poor standards, the Department for Levelling Up, Housing and Communities (DLUHC) will also block any housing provider that breaches the Regulator’s consumer standards from new AHP funding until they make improvements.
The Government will also consider stripping providers of existing AHP funding unless construction has already started on site.
The move comes after Michael Gove wrote to all councils and housing associations warning that they must raise the bar dramatically on standards and demanding urgent action where people complain about damp and mould.
Commenting on the withdrawal of funding, Mr Gove said: RBH failed its tenants so it will not receive a penny of additional taxpayers’ money for new housing until it gets its act together and does right by tenants.
“Let this be a warning to other housing providers who are ignoring complaints and failing in their obligations to tenants. We will not hesitate to act.”
The Regulator of Social Housing has also added its weight, demanding evidence from all housing association and local authority landlords that they are identifying and dealing with damp and mould issues in their homes. The Regulator has confirmed that it will take action where standards are not being met.
For more information on the specialist legal support we are able to offer the social housing sector, please get in touch with us.
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 January 2023.