Regulator urges social landlords to strive for better understanding of stock condition

The advice comes in an RSH focus report on landlords’ knowledge of the condition of their tenants’ homes and whether or not their properties meet the Decent Homes Standard.

The regulator said its standards require landlords to have a strong understanding of stock condition.

The report said that in nearly three quarters of cases where the RSH handed a landlord a C3 (serious failings) or C4 (very serious failings) grade, the issues included low stock condition survey coverage or a failure to demonstrate an understanding of tenants’ homes.

Weaknesses in data quality also play a role in poor governance gradings, where some landlords have failed to use data to support key decisions including long-term investment planning, the RSH said.

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However, the RSH noted a positive trend in landlords’ activity, with most continuing to improve stock condition survey coverage.

The average landlord reported surveying 75% of homes in the last five years (as of 31 March 2024), compared with 68% reported as of March 2023.

RSH has found that landlords who demonstrated a stronger approach had some or all of the following features: 

• having up to date stock condition survey coverage of their homes, which they use to respond quickly to rectify hazards and Decent Homes Standard failures.
• using stock condition data to build a strategic approach to investment and provide better value for money, by proactively addressing potential issues through planned major repairs, rather than fixing issues responsively.
• demonstrating effective data management processes, by triangulating data from a range of sources to inform long-term financial planning and stress test business plans.   
• having effective governance processes and oversight, with clear reporting to boards or councillors. 
• using suitably skilled and accredited surveyors to carry out the work. 

Kate Dodsworth, Chief of Regulatory Engagement at RSH, said: “Many social landlords are putting significant time and resources into understanding and improving the quality of tenants’ homes. This is a crucial requirement of our standards and underpins good governance, sound financial decision making, delivering value for money, and providing good quality homes and services for tenants. 

“Having a strong understanding of tenants’ homes enables landlords to provide more and better homes for people who need them. All landlords should read this report and use the findings to improve their approach.”

Harry Rodd