Implications of TSM legislation for social housing landlords
15 December 2023
With the introduction of Tenant Satisfaction Measures (TSMs) by the Regulator of Social Housing (RSH), the responsibilities of social housing landlords changed, yet again, earlier this year.
The change has created a mix of opportunities and challenges for social housing landlords.
Below, we look at the implications of the legislation, highlighting both its positive and negative aspects as well as discussing your current and possible future obligations as a social housing landlord.
What are TSMs?
Implemented earlier this year, TSMs are designed to evaluate the performance of social housing landlords in key areas including property maintenance, safety, tenant engagement, and neighbourhood management.
This initiative is geared towards ensuring that the quality of homes and services provided to tenants meets a high standard.
However, that could mean added compliance complexity and increased costs for many.
What do TSMs mean for larger landlords?
Landlords managing 1,000 or more social housing units face immediate and direct implications.
By 30 June 2024, these landlords are required to submit a detailed TSM return to the RSH, necessitating a robust approach to data gathering, analysis, and reporting.
On the positive side, this requirement fosters enhanced transparency, building tenant trust and satisfaction.
It provides a clear framework for landlords to benchmark their services and identify improvement areas, potentially giving them a competitive edge in the sector.
However, it also comes with challenges, notably the increased administrative burden and potential financial strain, especially in areas requiring significant improvement to meet the TSM standards.
Implications for smaller landlords
Landlords with fewer than 1,000 units are not currently required to submit TSM returns.
While this offers some reprieve, it does not isolate them from the impact of the legislation.
They have the option to participate in voluntary pilots conducted by the RSH, which offers insights into future regulations and best practices.
This gradual adaptation period allows smaller landlords to align their operations with the new standards without the immediate pressure of compliance.
However, this exemption does mean a level of uncertainty about future requirements and a potential risk of falling behind in service quality compared to larger, compliant counterparts.
It may be worth some landlords participating in the pilot schemes to give them the chance to learn more about their possible future requirements and potentially improve their overall standard of social housing provision.
What are the broader social housing sector impacts?
The introduction of TSM legislation seeks to raise the overall standard of housing quality and tenant services across the sector.
With TSM results being made public, tenants are empowered to hold their landlords accountable, likely leading to improved tenant-landlord relationships.
On the other hand, the sector might witness growing disparities in service quality between larger, compliant landlords and smaller ones who are still adapting to the changes.
The Birketts view
In short, navigating these changes requires a proactive approach.
Staying informed about all updates related to TSMs is essential, as is implementing best practices in line with TSM standards, regardless of the size of your property portfolio.
We recommend engaging with your tenants to gather feedback which can pre-emptively address areas of concern.
Larger landlords need to establish efficient systems for TSM compliance, while smaller landlords should consider preparing for eventual compliance as part of their long-term strategy.
The legislation’s broader impact on the sector is likely to be profound, setting a higher benchmark for housing quality and tenant services in coming years.
Navigating this new terrain requires an understanding of the legislation’s nuances, a readiness to adapt and a commitment to maintaining high standards of tenant services.
As the sector evolves, embracing these changes and viewing them as opportunities for improvement can pave the way for a more robust and tenant-centric social housing landscape.
If you require advice on your new obligations under TSM, please get in touch with one of our team.
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Filip Bodnar
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Robyn Barstow
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 December 2023.