The recent Tenant Services Authority consultation on the future of regulation for the sector proposed a number of profound changes to the ways in which the regulator would conduct its role.
Arguably, one of the most far-reaching relates to the significant changes on value for money. It is clear from discussions with a variety of housing associations that there remains some confusion over precisely what these requirements are intended to be and how the regulator will assess compliance. However, what is clear is that under the current proposals there is likely to be a significant increase in focus on this area combined with a much higher level of reporting, seeking to demonstrate to stakeholders that good value for money is being achieved.
There is a danger that this change will result in a free for all for consultants advising associations on report writing, rather than focusing on the core issue of understanding how value for money is or is not being achieved within the association. There is also a danger that focus is placed on cost rather than value, although the commentary in the consultation papers is in our view very clear that it is the latter that matters.
Quite a lot could change as a result of the consultation. There is also time for proper reflection. However, the importance of this area to the Tenant Services Authority/ Homes & Communities Agency, and to Government more generally, is hard to over-emphasise. This will therefore require considerable focus by associations in the months to come and should be high on the list of priorities for each finance director, chief executive and board. Our advice to RPs in the short term is to focus on understanding the ways in which value for money is achieved within their association rather than on how best to report progress on this key issue.
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