14 September 2007
The housing sector is split over whether a new body should be created to regulate social housing, it emerged this week.
Local authorities backed the Audit Commission's bid to combine regulation of the sector with its inspection role. But housing associations want a stand-alone regulator, in line with a proposal made by Professor Martin Cave when he published his review of social housing in June.
The difference of opinion emerged as the consultation launched by ministers in the wake of the Cave report closed on September 10.
Martin Wheatley, housing programme director at the Local Government Association, said it remained unclear how the new regulatory system would link up with the wider local authority performance framework.
But he added: 'Other things being equal, it would be better to have it integrated with the commission's other work with councils.'
The commission's bid was also supported by the National Federation of Arm's-Length Management Organisations.
'We already have a plethora of scrutiny,' said policy officer Gwyneth Taylor. 'If we have yet another body, it just adds to the list of people that we are accountable to.'
But John Bryant, policy leader at the National Housing Federation, said only a stand-alone regulator would protect the non-public status of registered social landlords and allow them to continue borrowing at favourable rates from private lenders.
The Council of Mortgage Lenders said a new independent regulator was important to preserve the confidence of banks and other financial institutions and provide 'an orderly transition' from the existing system.
The Housing Corporation, which is due to disappear within two years, also backs a new body. Director of regulation Clare Miller said the sector should not miss the chance for transformational change. 'Housing deserves a regulator with 100% focus on housing,' she said.
The commission pledged this week that it would create an Office for Housing Standards covering financial regulation, supervision and inspection, if awarded the regulatory function.
Chief executive Steve Bundred said the office would combine the best of existing regulatory and inspection regimes, while delivering better value for money.
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