New TSA Standards – Latest News

The TSA is waiting for “Final Directions from the CLG”, based on consultation which before they publish their new standards. We expect to see the new Standards based on those Directions published in about 2^nd week in November 2011.

TSA will consult on the new standards in from November 2011 to February 2012 (12 weeks), after which they will produce their final standards and regulate them from April 2012, as they join the Homes & Communities Agency.

We know this will ratchet up expectations of Tenant Scrutiny Panels reviewing services (not just performance) and of course, will include the implementation of Tenant Cashback, the promotion of the Right to Manage and Involvement in Complaints.

It is not clear yet when the TSA will regulate the issue of Tenant Panels on Complaints, given the 2013 implementation date, or when it will regulate Tenant cashback, given the 18 month CLG pilots will be 9 months or less into their 18 month pilots. I am sure you will want to include some advice to the TSA in your response to the consultation.

This is where the TSA will concentrate its time and effort. Boards will be expected to set targets for achieving VFM and to look back at the delivery of last years’ VFM targets to see if they were met. Targets have to be agreed with stakeholders, including tenants. Who better to decide on where expenditure goes?

Changes to the Tenancy Standard already happened in April 2011, to allow social landlords to bid for grant to build homes at Intermediate rents. This all happened very quietly and without a fanfare.

Also expect to see the new requirements on Allocations (closing of waiting list and Council control over who can join & local people being given priority); Mobility (to reflect the new National Mobility Scheme), and Tenure (to reflect new short terms tenancies – will it be 2 or 5 years?)

What will the threshold for consumer regulation be? It will not exist. It really is  just consumer protection now. A serious breach of protection will have to be a stupendously serious reason for the TSA to intervene.

The consultation paper from the TSA will consult on “serious detriment”, but expect this to be based on risk, or actual “serious harm” to the tenant, like fire, flood, gas and other breaches of security and safety.

It is unlikely to include breaches in delivery of tenant standards which are expected to be resolved through other mechanisms, like complaints or legal action by the tenant(s).

The TSA will set the standards, but will not enforce them. Their enforcement will be through the priority they give to Economic Regulation and the Finance and Governance Standard. This makes it important for Boards to ensure that self-regulation and co-regulation are happening.

An important question will be: Will serious detriment apply if landlords do not co-regulate, or where they do, where landlords do not implement reasonable suggestions made by tenant panels? Only time will tell.

No news there – pretty much dead in the water, but it remains a threat. The private sector has not yet been approached to gear up to bid for this work.