The Mayor of London, Sadiq Khan, has warned London’s affordable housing providers that they could lose access to funding if they fail to maintain their properties at the high standards Londoners deserve.
While Parliament is currently debating new legislation on strengthening consumer protection, the Mayor is clear that Londoners should expect high standards immediately. He is calling for leadership from Government, with additional affordable housing funding and reforms, such as a Commissioner for social housing residents, to drive better conditions.
The Mayor’s warning follows a letter to City Hall’s housing investment partners from the Deputy Mayor for Housing & Residential Development, Tom Copley, sent last month. In this letter Tom Copley set out the actions City Hall will take if the Regulator issues either a non-compliant grade or a Regulatory Notice against a housing provider. Both notices indicate that a provider has breached a consumer or economic regulatory standard.
In extreme circumstances, the GLA may limit access to funding to a specific set of projects, including those already underway, and in the most severe cases, withdraw all funding and revoke investment partner status.
The Mayor of London’s new £4bn 2021-26 Affordable Homes Programme already requires higher standards on design, safety and environmental performance for new homes than those funded outside London. The Regulator has a requirement to assure these standards are maintained in the long-term where they exceed the Decent Homes Standard benchmark.
The GLA is also introducing additional scrutiny of the housing maintenance track-records of newly qualifying investment partners, and in the requalification process for partners who have had their investment status restricted.
Mayor of London, Sadiq Khan, said: “Most social housing in London is well managed and maintained. However, this is unfortunately not always the case and I am determined to use my funding powers to drive up standards in both new build and existing homes.
“London is building some of the most impressive new affordable homes in the country, but it is vital that existing residents experience high standards too.
“I will continue to call on the Government to also take responsibility for pushing for higher standards, including by making much needed additional funding available.
“We owe it to all Londoners to provide better, safer, and fairer housing in the capital.”
Notes to editors
The Deputy Mayor wrote to all housing partners on 23 September 2022.
The GLA has a Memorandum of Understanding with the Regulator, with the purpose of the two organisations consulting and co-operating with each other.
The Mayor’s Affordable Homes Programme funds genuinely affordable homes for Londoners delivered by councils and housing associations
Organisations delivering housing through the Mayor’s Affordable Homes Programme must be qualified as an investment partner.
A decent home is defined by central government as meeting the following four criteria:
(1) it meets the current statutory minimum standard for housing;
(2) it is in a reasonable state of repair;
(3) it has reasonably modern facilities and services; and
(4) it provides a reasonable degree of thermal comfort.
Under the current regulatory regime, the Regulator of Social Housing may issue non-compliant grades only for housing associations; Regulatory Notices may be issued to both housing associations and councils.
The restrictions which may be imposed on investment partners include a pause on the following:
- entering new GLA capital funding contracts for affordable housing;
- accessing grant for additional projects under existing funding agreements;
- drawing down grant for projects under agreed (‘indicative’) funding arrangements
- claiming grant on any project which has yet to have an initial grant claim accepted;
- all AHP funding.