New regs housing associations in Wales
The Welsh Assembly Government is developing a new regulatory framework for housing associations in Wales with the emphasis on stronger, more consistent regulation.
A consultation document seeking views on the proposals has been issued to a broad range of organisations and the intention is to have the revised regulatory framework in place with effect from 2010/11.
The current regulatory system for housing associations in Wales was originally developed over 20 years ago and is no longer considered adequate to meet current demands and future challenges.
The creation of a modern regulatory framework is one of the recommendations of the Essex Report, an independent review of affordable housing commissioned by the Assembly Government’s Deputy
Minister for Housing, Jocelyn Davies AM, in October 2007.
The Assembly Government is committed to delivering the recommendation by providing the necessary internal capacity and resources and by co-ordinating development programmes to establish the new framework.
The consultation document lists the core principles underpinning the new framework. These include strong accountability and transparency, a citizen-focused approach, proportionality and consistency, supporting improvement and shared learning and a strategic approach.
The key elements of the new framework will include:
• A robust annual self-assessment driven by the board of each housing association, focusing on service delivery performance, financial management and viability, corporate governance and with
strong tenant validation. This would be linked to a suite of performance standards for the sector.
• An annual whole association assessment by the Welsh Assembly Government based on clearly defined information sources provided by housing associations and other external information sources.
• Stronger, more consistent and regular links between the housing associations and new Assembly Government Housing Division Regulation Co-ordinators managing a portfolio of relationships with the housing associations and undertaking the whole association assessment.
• Effective use of the collective results of the whole association assessment to support the publication of annual and specific reports and overviews to help sector improvement and share good practice and learning.
• The introduction of a specific performance measurement framework for the sector, including a set of strategic key performance indicators.
Doug Elliott, Head of Regulation in the Assembly Government’s Housing Directorate, said, “Developing a modern fit for purpose regulatory framework in Wales for such a dynamic sector brings challenges.
“It also provides huge opportunities to help promote improvement to housing services, to stimulate confidence and to improve accountability and assurance. The test will be to put in place regulatory arrangements that are rigorous and proportionate, but which are not prescriptive and which recognise local circumstance and risk. The inclusive nature of our planning and development to date has been particularly encouraging in creating platforms for those aspirations.”
Nick Bennett, Chief Executive of Community Housing Cymru, said, “Community Housing Cymru has been campaigning for regulatory review and reform in social housing for the past three years. We are delighted at the recent progress we have seen from the Welsh Assembly Government and the way in which they have worked in partnership with ourselves and local government in Wales.
“The credit crunch and the impact of tighter public expenditure both mean that there needs to be a greater emphasis on strategic regulation particularly in relation to governance and finance. The reforms that we currently see being implemented are essential to ensuring that the housing
association movement is fit for the future, that the regulatory system is fit for purpose and that we can work in partnership to achieve outcomes not just processes.”
Bob Hutchings, chair of one of Wales’ largest social housing providers, Seren Group, said, “The Seren Group welcomes, and is supportive of, the drive for a robust and effective regulatory regime for housing associations in Wales. Effective regulation not only improves the performance and delivery of individual housing associations but is critical to the credibility and wellbeing of the sector as a whole.
“The strategic emphasis of regulation is increasingly necessary to ensure that it is responsive to the changing risks facing housing associations in today’s economic climate. We need a regulatory regime which understands risk and supports us to deliver more for the many people in Wales who need and deserve a decent place to live.”
