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Oftenant – the Social Housing Regulator for the future
23 May 2008
Anthony Mayer has been announced as the first
Chair of the soon to be Social Housing Regulator, Office for
Tenants and Social Landlords (Oftenant). Oftenant has been
created by the Housing and Regeneration Bill which is in the
process of passing through Parliament. The Bill was produced
following a review by Professor Martin Cave into the regulation of
social housing which was published in June 2007.
It is proposed that Oftenant will take over
the regulatory functions of the Housing Corporation and its
objectives have been set out and include:
- Encourage and support a supply of well
managed social housing of appropriate quality, sufficient to meet
reasonable demands
- Ensure that actual or potential tenants of
social housing have an appropriate degree of choice and
protection
- Ensure that tenants of social housing have
the opportunity to be involved in its management
- Ensure that registered providers of social
housing perform their functions effectively, efficiently and
economically
- Regulate in a manner which:
- Minimises interference; and
is
- Proportionate, consistent,
transparent and accountable
Oftenant is on schedule to be created by April
2009. It is expected that the regulator will be an organisation of
around 250 staff with two principal centres in London and
Manchester. One of the first tasks of Oftenant will be to design a
new regulatory system. However, Oftenant will for a period of time
regulate using the same 1996 legislation that is currently being
used by the Housing Corporation.
At present, it is only proposed that Oftenant
regulates Registered Social Landlords (RSLs). The Government has
indicated that in due course local authorities and Arms Length
Management Organisations will be brought within the remit of
Oftenant.
It will not be obligatory for RSLs to register
with Oftenant. However, if they do not, they are unlikely to
be eligible for grant funding.
Oftenant will have the power to set minimum
standards of and ensure compliance with specified rules such as
criteria for allocating accommodation, terms of tenancies, levels
of rent, maintenance, methods of consulting and informing tenants
of changes to rent/service charges etc.
If Oftenant suspects that a registered
provider is failing to meet its standards, Oftenant can carry out
an inspection. Following an inspection, Oftenant can adopt a
process whereby the social landlord is fined for failing to meet
the required standards. Its powers are greatly increased from
those of the Housing Corporation.
Critics of the Bill say that as it is
currently drafted, it gives Oftenant the right to regulate RSLs’
work at the local level and impose fines if they do not implement
the policy of Central Government. As a result, various niche
local schemes could be under threat as registered providers feel
the need to focus on the subject areas the Government says are
priorities which in turn may threaten the independence of
registered providers.
The legislation that will create Oftenant is
currently being discussed in Parliament and it is likely that
further changes will be made before the legislation is
finalised. We will keep you up to date in relation to any of
these changes that will affect how social landlords are
regulated.
For more information or advice, please
contact Gary Ekpenyoung.
The content of this bulletin is provided for
the purposes of general interest and information. It contains only
brief summaries of aspects of the subject matter and does not
provide comprehensive statements of the law. It does not constitute
legal advice and does not provide a substitute for it.