Housing Associations

Kit Malthouse Excerpts

Wednesday 12th June 2019 Westminster Hall

[The Minister for Housing (Kit Malthouse)]

It is a pleasure to appear under your wise gaze, Mr Owen. I congratulate the hon. Member for Poplar and Limehouse (Jim Fitzpatrick) on securing this important debate. He has been a consistent and persistent voice on housing issues, particularly the safety and welfare of residents, not just in his constituency but nationally. I understand his concerns about the accountability and role of housing associations, and particularly about the situations that some of his constituents face. I acknowledge the continuing role that hon. Members across the House play, as I know from my own experience, in resolving issues raised by tenants with their housing associations and other types of landlords; they rightly spend significant amounts of time trying to resolve problems when something has gone wrong.

Everyone has the right to be and feel safe in their home, and to expect their complaints to be dealt with effectively. The Government have taken recent steps to make sure that that happens. As the hon. Gentleman mentioned, we published the social housing Green Paper last year. We engaged extensively with residents to inform and shape it. After its publication, I held roadshows across the country with hundreds of residents in social housing and listened to them to understand their experience at first hand.

The Green Paper contains proposals to rebalance the relationship between residents and landlords, setting out the level of service that residents should expect and clarifying how to hold landlords to account when they are not delivering. We heard that residents want redress quickly when things go wrong, and that they want processes to be clearer and simpler. The Green Paper asks how we can ensure clear and effective redress for residents, including a question about the future of the democratic filter, which can delay the complaints process. I confess that when I was first elected to the London Assembly in City Hall, it came as a surprise that people came to ask for permission to go forward, through the democratic filter, to the ombudsman, which injected a significant amount of delay. We are grateful for the input of residents, landlords and other stakeholders through the process. We are assessing the consultation responses and finalising our response to the Green Paper, and I hope that we will publish that response shortly.

Alongside the Green Paper, we launched a review of the regulation for social housing to make sure that regulation maintains standards for residents while ensuring that landlords remain well run and financially robust. We asked whether social housing regulation focuses on the right things and whether the regulator should be able to take action more swiftly where landlords are not fulfilling their responsibilities. We are analysing what we have heard and will publish the outcome of the review of regulation in due course.

Registered providers of social housing must comply with the outcome-based regulatory standards set by the independent regulator of social housing. It has three standards covering economic regulation and four standards covering consumer regulation. The regulator takes a proactive, risk-based approach to enforcing the economic standards for private registered providers. It monitors landlord performance against those standards and, for larger associations such as Clarion, carries out in-depth assessments and publishes ratings for financial viability and governance.

All local authority landlords and housing associations must comply with the regulator’s consumer standards, which seek to ensure that homes are safe and of good quality, and that landlords deliver the right services. The regulator may take action where a breach of those standards has caused, or may cause, serious harm to tenants. Again, we asked questions in the Green Paper about whether that is the right threshold for intervention by the regulator.

Providers have principal responsibility for effectively identifying and resolving problems, and they are accountable for complaints about their service. The first step for residents with a complaint is to report the problem to their landlord. The regulator expects registered providers to have a complaints process that deals with issues promptly, politely and fairly. The onus is on individual landlords, working with residents, to set their approach and timescales for handling complaints. I stress that if any hon. Member, acting on a constituent’s behalf, is unhappy with a registered provider’s response once their internal complaints process has been exhausted, they may take the matter further.

Social housing residents can also approach the housing ombudsman service at any time to seek advice, but for a complaint to be formally referred, it must pass through the democratic filter. Should the ombudsman determine that a complaint falls within its jurisdiction, it will investigate the complaint to determine whether there has been maladministration by the landlord. As I am sure the hon. Gentleman knows, the ombudsman can then issue a determination letter, which may include orders and recommendations to resolve the dispute. The landlord is expected to follow any orders within a specific timeframe.

All housing associations must be a member of the housing ombudsman service—a free, independent and impartial complaints resolution service. It is primarily the role of the housing ombudsman to investigate individual complaints from tenants. For example, it can consider complaints about how a landlord has responded to reports of a problem. The regulator meets and communicates regularly with the housing ombudsman, in line with the memorandum of understanding that has been agreed between the two organisations. This includes sharing data on providers, such as evidence of potential systemic issues with registered providers, and on other issues. The regulator will intervene should it find that a landlord’s failure to meet a standard has caused, or may cause, serious harm to tenants, and it is for the regulator to decide on the appropriate level of action to take.

The hon. Gentleman raised an interesting point on the plethora of ombudspersons. It is certainly the case that we will add to that number—as he will know, we have already pledged to introduce a new homes ombudsman. He raises an interesting question on whether there should be a general aspiration to agglomerate these ombudsmen into a single housing ombudsman, which is something that the Department has been thinking about. However, there is an argument about specialism and responsiveness in a particular area that needs to be addressed before we move to that stage.

[Dr Poulter]

My hon. Friend mentioned this earlier. From a tenant’s perspective, one of the main challenges is the issue of serious harm and how it is defined. The threshold for serious harm often relates to something that might cause a danger to life or safety. If we are talking about having civilised housing conditions that are free from damp and fit for human habitation, we need to have a lower threshold. I hope that is something that the Government will look at very seriously in the Green Paper and their further work in this area.

[Kit Malthouse]

My hon. Friend is quite right. As I said earlier, the serious detriment test is one of the hurdles that need to be passed before there is intervention. We have asked in the Green Paper whether this is at the appropriate level. I would just point out that there is a difference between detriment and harm. In a situation where there is the threat of serious harm, local authorities have powers to step in and do the work that is required to deal with any immediate threat to safety or life. We have enhanced the housing health and safety rating system assessment tool, which local authorities can use when they look at a particular property in order to detect whether there is a particular harm that will allow them to intervene. That has been very pertinent to safety, particularly on the cladding issue that we have been dealing with over the past few weeks. We expanded the test to cover the envelope of a building, so that the local authority can make such an assessment.

[Jim Fitzpatrick]

Have local authorities actually availed themselves of that power in respect of defective cladding? It is quite difficult for local authorities to step in, is it not?

[Kit Malthouse]

It is, and the bar for that is very high, because there has to be an immediate threat to life. With cladding, one of the things that we have tried to ensure is that everybody is safe tonight. I have just commissioned and received reassurance through a review that that is still the case—everybody is still safe in buildings. If interim measures are in place in buildings that have not yet been remediated, one hopes the immediate threat is receding. Nevertheless, the power is there for local authorities to use. That is not just the case in a situation involving cladding; it is available to them in any situation.

I shall move, rather conveniently, on to safety. The hon. Gentleman and I have both spent time this week with Grenfell United, and we will spend more time with the group later in the week. Safety is uppermost in our mind. When things do go wrong, particularly on safety, it is of the utmost importance that such concerns are resolved as soon as is practicable. Registered providers must ensure that properties meet, and are maintained at, the decent homes standard. The regulator’s standards also require landlords to provide a repairs and maintenance service that responds to the needs of tenants and offers them choices. The objective is for landlords to ensure that repairs and improvements are right the first time. When they are not, tenants should complain and have the right to expect that something is done.

I should point out that if hon. Members believe they have constituents living in properties with serious hazards that present a risk to health and safety, they can report that to their local council, which can inspect and assess properties using the HHSRS. Should the local council become aware of a category 1 hazard, it can intervene.

[Albert Owen (in the Chair)]

I am sorry to intervene on the Minister, but we are expecting a vote very shortly. It might be helpful if he could finish.

[Kit Malthouse]

I will conclude very quickly.

The hon. Member for Poplar and Limehouse raised several other issues. The first was accountability for safety. As he will know, we accepted all of Dame Judith Hackitt’s recommendations. In the consultations that we published last week, however, we are seeking to pin individual responsibility for safety on a named individual throughout the process—from design, through construction and management—so that there is clear accountability.

The hon. Gentleman quite rightly raised the issue of the residents’ voice, which is something that I heard consistently on the roadshows. Again, this is a big part of both the Hackitt review and our social housing Green Paper, because a lot of residents feel that either they are excluded from the conversation in a committee, or it is just not happening at all. We already have a group of housing associations that stepped forward to look at best practice in this area, and they are working away at the moment.

The hon. Gentleman raised the size of housing associations. There is some truth to the view that the bigger any organisation gets, the more it has to have due regard for its responsiveness on the frontline. We hope to address in the Green Paper whether that is a structural issue about it being localised, or whether it loses focus on its primary product, which must primarily be the happiness and care of its tenants.

Finally, the hon. Gentleman raised freedom of information. There is a technical issue with freedom of information: the Office for National Statistics tends to classify organisations that are subject to freedom of information as being part of the Government, hence their debt moves on to the national balance sheet. Given that housing associations have something like £72 billion-worth of debt, that would make a fairly significant dent on our national accounts. Having said that, one of the issues that we will, I hope, address in the social housing Green Paper—when it eventually emerges—is transparency.

One of the key issues that Grenfell United has raised with me again and again is that the group has asked for information and has just not been given it. We think all those organisations—they are fundamentally not for profit, but serve the public and their tenants—have a duty to be as transparent as they can, subject to commercial sensitivities. That is something we hope to embed when the social housing Green Paper reforms come to light.

I thank hon. Members for their participation; it has been very useful. I will take into account the hon. Gentleman’s submission to our general consultation. As he knows, we have stood shoulder to shoulder in trying to reach the reforms we need to ensure that everybody is safe and well served in their homes.

Question put and agreed to.