Two more local authority landlords receive C3 grade from social housing regulator indicating ‘serious failings”

The Regulator of Social Housing (RSH) has handed down C3 grades, indicating serious failings in meeting the outcomes of the consumer standards, to both Newcastle and Nottingham city councils.

Newcastle City Council self-referred in January, May and September 2024 which resulted in RSH finding:

• More than 1,800 overdue repairs cases with works outstanding on over 1,000 damp and mould cases.
• Around half of communal areas and a quarter of its homes do not have a current satisfactory electrical condition report.
• More than 850 overdue fire safety remedial actions.

Additionally, Newcastle City Council had failed to compile adequate information about its homes, with the last stock condition survey completed more than a decade ago, had failed to understand the diverse needs of its tenants and lacked an up-to-date domestic abuse policy. 

RSH’s planned inspection of Nottingham City Council found:

• A lack of accurate, up-to-date data of its stock quality and decency. Almost 40% of its homes had not been surveyed for more than ten years.
• Almost 1,000 live disrepair cases, which is a significant driver of complaints, and issues around data integrity. 
• Weaknesses in its approach to capping gas supplies when it could not gain access to complete gas safety checks and monitoring of compliance with smoke and carbon monoxide detection requirements.
• Tenants were not being meaningfully involved in decision making or able to challenge decisions.

RSH says it is engaging with both landlords "intensively" as they work to put things right for tenants.

Newcastle and Nottingham are the 18th and 19th housing providers to be handed C3 grades of the 58 providers to have been graded by RSH so far. 11 providers have received the top mark, C1 grades, 26 have a C2 grade and just two providers have been hit with a C4, the lowest possible score.

Kate Dodsworth, Chief of Regulatory Engagement at RSH, said: “Having an effective repairs service and keeping accurate data are both vital for keeping tenants safe in their homes, especially when it comes to serious issues such as fire safety as well as damp and mould. 

"It is positive that our planned inspections continue to bring issues to light earlier than they might otherwise. However, it is essential that landlords self-refer to us. As well as being a requirement in our standards, it shows us that they understand their responsibilities and take accountability.

"We are continuing our responsive investigations, including for small social landlords. It is vital that all housing associations and other private registered providers meet the outcomes of our Governance and Financial Viability Standard which remains as important as ever.”

Responding to the grading, Cllr Jay Hayes, Executive Member for Housing and Planning at Nottingham City Council, said: “We have been aware of the need to significantly improve our housing services since we brought the ALMO back in house, so this judgement does not come as a surprise. We proactively engaged with the Regulator in January 2024 and shared our improvement plans then.

“Resident safety and the delivery of our housing services in line with tenant aspirations is a key priority, and we’re committed to making sure that the money we’re investing in addressing some of the failings in the report is spent where it will have the most impact.”

Cllr Hayes outlined a number of steps the council had taken, including investing £20m to improve frontline services and delivering a citywide Stock Condition Survey that is inspecting all 25,000 council-owned homes over the next 18 months.

It has also established a new Housing Assurance Board (HAB), made up of tenants, and a new Executive Housing Oversight Board (EHOB), made up of tenants and senior councillors.

Vicky McDermott, Director of Housing and Communities at Newcastle City Council, meanwhile described the C3 grading the local authority had received as “extremely disappointing” but expected.

She added: “It’s important to note that the Regulator carried out their assessment in October, and we have already seen a significant improvement in several areas highlighted in their report.”

She said: “We know change can’t happen overnight, but bringing all our housing services together in our new Housing and Communities Directorate has helped us to provide more joined up services to help enable better outcomes for residents and to offer better value services for tenants and leaseholders.”

McDermott said that Newcastle's priorities include the introduction of ‘Getting to Know You’ visits to all council and leasehold properties. It has also commissioned an external contractor to complete a stock condition survey of all of its properties.

The council is reviewing its current working practices to ensure it is able to provide a timely and right first-time resolution to repairs, with a particular emphasis on a long-term plan to help to resolve the issues around damp and mould which impacts a number of its properties, she added.

The number of overdue repairs since the assessment has been reduced by more than 10% and the council has now carried out electrical safety tests in over 90% of all communal blocks, with all high-rise block testing completed.

RSH also carried out stability checks on a further 22 landlords and three providers, Halton Housing, Hundred Houses Society, and Golden Lane Housing, were regraded from V2 to V1. 

The rest retained their previous governance and financial viability gradings.

Harry Rodd