Addressing Uncertainty in Housing
In a keynote address at the Housing Community Summit, Jonathan Walters outlined the increasing uncertainty facing the housing sector, emphasising the challenges that are likely to persist in the coming years. He noted, “We are in a world of greater uncertainty and cannot predict that it will get any easier in the next few years.” This uncertainty, he explained, is compounded by significant pressures within the system, making investment in existing homes a critical yet costly endeavour.
Jonathan elaborated on the current financial landscape for landlords, revealing that over two-thirds now possess a viability grading of V2. However, he pointed out that issues vary geographically, particularly in major urban centres like London, where fire safety remediation costs are notably higher.
The Importance of Social Housing Development
While acknowledging the challenges, Jonathan underscored the necessity of developing new homes. He stated, “Landlords have a dual ambition to achieve more and better social homes,” which highlights the sector’s need to prioritise effective governance. He commended the consistent efforts of housing providers who have delivered 50,000 homes annually, amounting to half a million over the last decade. However, he posed a pertinent question: “How do you continue to achieve this when the economic landscape is shifting?”
Jonathan referenced the Regulator’s discussion document titled “More and Better Social Homes,” which advocates for increased innovation and regulatory reform within the sector to facilitate the delivery of more housing.
Accountability and Governance
In his address, Jonathan clearly articulated the distinction between accountability and control, asserting, “We are really clear that this is a question about accountability; not control.” He reassured attendees that the regulator is not seeking to intrude into boardroom decisions but expects housing providers to be responsible for their choices.
He urged boards to enhance their communication regarding decision-making processes, recognising that not all stakeholders will be satisfied. “You won’t be able to please everyone,” he warned, but emphasised the importance of maintaining focus and engaging in transparent discussions about the rationale behind decisions.
The Responsibilities of Registered Providers
Jonathan reiterated the significance of being a registered provider, describing it as more than just a label but as a role that comes with substantial responsibilities. “Building new homes and providing a quality service matter,” he stated, reinforcing the expectations placed upon housing providers.
He concluded his speech by reinforcing the standards set for the sector, stating, “The outcomes in our standards are there because you need to deliver good services to tenants, build new homes, and serve local communities.” He affirmed the regulator’s commitment to holding housing providers accountable for these essential outcomes.
With these insights, Jonathan’s address highlighted the pressing challenges and expectations within the housing sector, urging all stakeholders to strive for better governance and accountability while navigating an uncertain economic environment.