Key Messages and Learning Points from the Regulation and Governance Conference

I was delighted to be able to join social housing board members and governance and risk professionals at the Inside Housing Regulation and Governance conference earlier this month. At a time when providers are juggling significant competing priorities against a landscape of fast-paced legal and regulatory change, good governance and effective management of risk has never been more important.

My key messages and learning points from the conference are set out below:

Viability – With the release of the Regulator of Social Housing’s 2024 Sector Risk Profile on the same day, and its focus on the mounting pressures on providers and the potential impact on financial viability, this was a key discussion point of the day. Alongside conversations around how to maintain an effective grip on risks to viability and mitigation strategies, there were also conversations about “where the money is coming from”, including the need for a long-term rent settlement (and the desire for rent convergence to be re-introduced) and the opportunities offered through equity investment models.

“Question the Greens” - A key statement heard time and again at the conference sessions was the need to celebrate the reds and question the greens. This reiterated the message around the identification of issues being positive, on the basis that it demonstrates transparency and accountability and allows for improvement, whereas by “questioning the greens” it counteracts potential complacency / optimism bias and ensures that there is effective challenge over whether things are really as good as they seem. We have seen a number of instances in the sector where, for example, boards have relied on “green” KPI reporting, without necessarily questioning what such reporting means in practice.

Know your tenants, know your homes – The new Consumer Standards, and the Regulator’s approach to inspections, were at the centre of discussions, particularly following the release of the recent C4 grading for Newham Council. It was helpful to hear from both local authority and housing association providers who had recently been through the inspection process, with key advice being that thorough preparation is key and to ensure housing providers know their tenants and their homes. 

Tenants - Tenant involvement and engagement in governance structures and tenant scrutiny are both important in ensuring that providers are accountable to their residents and can hear their voice in relation to developing and delivering services, as well as meeting the requirements of the Consumer Standards. It was discussed that during inspections to date, scrutiny functions were at the forefront of the Regulator’s interest and can demonstrate the culture of an organisation, and whether tenants are at the heart of it. 

Data is key -  Although not a new message, the emphasis on good data and data integrity was another key point discussed at the conference. Boards need to have good data in order to make effective decisions and good resident information and data allows decisions to be made with the needs of current and future residents firmly in mind. The need to be able to evidence that things have been done correctly (from health and safety checks to Board decisions), whether that is by recorded minutes or other evidence, was also emphasised. 

Future-proofing – Immediate priorities, linked to issues such as damp and mould and building and fire safety requirements, have dominated many providers’ agendas and investment priorities over the last few years. However, a feature of several discussions at the conference was the need to look at ways to be more forward-looking in decision-making, including in relation to setting and meeting retrofitting and carbon neutrality aims, and working in partnership with investors, the Regulator and the Government to enable this.  

If you have any queries or wish to discuss any of the above themes and what they mean for your organisation, please contact me or Gemma Bell.