A proposal that housing associations should be charged for regulation has prompted questions about the current quality of the Housing Corporation's supervision
The government's five-yearly review of the future of the corporation is seeking views on whether charges should be levied on landlords for both registration and regulation by the agency (Housing Today, 16 December).

But the suggestion has focused attention on the quality of current regulation.

A paper prepared by government setting out the questions for the review admits that the rapidly increasing stock transfer programme is "stretching the corporation's administrative resources."

The corporation is known to be concerned that its day-to-day regulation could suffer because of the increasing attention devoted to registering new landlords and the close supervision usually required in the first year after transfer.

The agency's grant from government is regarded as inadequate to meet the increasing workload.

National Housing Federation director of policy Liz Potter said: "Federation members are rightly concerned about the quality and focus of regulation. Inevitably resources are stretched to deal with the work of new registration from transfer organisations. The review is an opportunity to rethink and improve regulation."

Transfer expert and HACAS director Jeff Zitron said: "There are understandable reasons for charging, provided there is a mechanism that ensures you're getting value for money i.e. actually having some market testing of alternatives. A charge is far more acceptable if you can shop around."

But he added that councils are likely to object strongly if registration charges reduced the capital receipts gained from transfer.

The corporation currently has the power to charge for registration, which it does not use, but at the moment it does not have a power to charge for regulation.

However a charging policy would bring the corporation into line with the new Housing Inspectorate for local authorities.

Potter claimed that issue raised broader questions about the need for two housing regulators. She said: "There is an agenda for convergence - there must be a question about whether you need two bodies to regulate and inspect housing organisations. The charging issue is an aspect of that. But rather than have an unhelpful debate about competition between inspectors and the corporation we need to discuss what the appropriate roles for any new bodies in the long term should be."

Source

Housing Today