Audit Commission inspections could be scaled back for associations that win a 'quality mark'
A group of registered social landlords are gearing up to launch an independent quality mark scheme that could free housing associations from rigorous Audit Commission inspections.

The voluntary scheme will assess issues relating to housing management, concentrating on outcomes for tenants. It is unlikely to look at an association's financial health or development expertise, although its exact scope is still under discussion.

A working group of up to 30 RSLs has appointed lawyers to set up a limited company that will hire inspectors and administer the new scheme.

An unnamed recruitment company has also been briefed in the search for a chief executive.

Initial funding thought to be in the region of £250,000 will come from founder members and a possible grant from the Housing Corporation's innovation and good practice programme.

The idea was inspired by the success of a similar scheme in the Netherlands, called KWH (see "Going Dutch", below). The British version does not yet have a name, although several options are under consideration.

The core group of housing associations behind the scheme includes Amicus Group, Gallions Housing Association, Circle 33, Moat Housing Association, Ujima Housing Association, Prime Focus and Festival Housing Group.

Stephen Howlett, chief executive of Amicus, and Gallions HA chief executive Tony Cotter have led negotiations on the scheme for the past year.

Cotter said: "The scheme will differentiate quality housing associations: not because they say they're offering a good service, but because a rigorous assessment says so. In a world where target rents means there's not a lot of difference in price, the consumer will look more quality issues and be attracted to an organisation that's got a quality label."

Housing associations seeking quality assessment will pay an annual subscription in relation to the size of their organisation and number of branch offices.

Once an association has achieved the quality standard, it will be constantly monitored to help it achieve continuous improvement.

Cotter explained: "It's not like you pay your subscription and get you badge – you have to earn it. The scheme is governed by a set of services that will be regularly checked and assessed. If your performance drops, you are given a period of time to recover. If not, you lose the right to display the quality mark."

Under other schemes, such as human resources programme Investors in People, organisations must meet a target standard every three years.

The group of RSLs has held talks with the Office of the Deputy Prime Minister and Audit Commission on how the quality mark fits with other initiatives in the sector. One suggestion is that associations with the quality mark would have scaled-down Audit Commission inspections.

Circle 33 chief executive Donald Hoodless said: "If you think about it, inspectors come for a few weeks then disappear for the rest of the year. But this quality assessment is continuous – there's no let-up. In that sense, its much more demanding than annual inspections."

Vivien Knibbs, director of housing services at Moat Housing Association, said: "The [goverment's] Charter Mark is multifunctional, whereas this is rooted in our business. Once it is established, it will send a clear message about an association to the outside world."

She added that the scheme would potentially complement the National Housing Federation's "Housing's Better Future" rebranding campaign. This also suggests the use of a quality mark.

The news came as the government paved the way for the Audit Commission to take over as the single inspector of housing association.

Amendments made this month to the Local Government Bill will allow for the government to fund Audit Commission inspections directly, and could allow the commission to charge inspection fees to housing associations.

However, at the NHF board members' conference on Friday, junior housing minister Tony McNulty stressed there were no plans to charge housing associations for inspections.

He said the power to charge fees would only be used where additional consultancy had been carried out.

Going dutch

KWH was set up in 1995 to help Dutch housing associations to become more client-focused by allowing them to share good practice. Membership has grown from an initial six associations to more than 120. Each housing association member is judged against a 10-point housing service criterion as part of a continuous auditing process. KWH has its own accreditation standard, the Renting Label.

How other sectors regulate themselves

  • Around 800 tour operators and 6700 travel agents are members of the Association of British Travel Agents, which provides an insurance safety net if a travel company goes bust and handles complaints from holidaymakers through its own arbitration scheme
  • The PCC was set up in 1991 by newspaper editors and publishers as an alternative to a government watchdog. Its code of practice is “written by editors for editors”
  • The Lion Quality mark on eggshells and boxes guarantees the eggs were produced under strict safety and hygiene standards. The scheme is administered by the British Egg Industry Council
  • The British Farm Standards scheme is run by a limited company that employs inspectors to visit farmers and growers. It awards a logo to products that meet high environmental, safety and animal welfare standards

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    Housing Today