The Homes and Communities Agency is considering charging housing associations in England a fee for regulation as part of a drive to boost its resources.The move, discussed by senior regulation figures this week, is also aimed at increasing the regulator’s independence, so it is less reliant on support from the Communities and Local Government department.
Under the Housing and Regeneration Act 2008 the regulator is able to charge fees, following a consultation and approval by the secretary of state.It is understood CLG officials have shown interest in the plan and the HCA regulation committee on Tuesday discussed a number of possible proposals.The regulator is believed to be seeking assurances it could retain the income generated and have the freedom to decide how the money is spent.
David Orr, chief executive of the National Housing Federation, said a fee structure would need to ‘increase the resources available and improve regulation’. He added: ‘There cannot be a situation where funding to the HCA is cut and housing associations’ fees make up the shortfall.’
The regulator has yet to decide how fees should be calculated but has instructed staff to draw up two detailed proposals. A source said the HCA is keen to try to keep the system as simple as possible while ensuring the regulator can cover its costs.A fee system is unlikely to be introduced until at least the 2015/16 financial year.
The HCA’s budget for regulation in 2013/14 is £8.3 million. It is currently restructuring and appointing seven new directors to improve its effectiveness. It will have 134 staff under the new structure, compared with 205 employed by its predecessor the Tenant Services Authority, which had a wider consumer remit.