Agency will regulate all social landlords
Regulation of all Scotland's social landlords is to come under one roof, as part of the radical shake-up of social housing north of the border.

In a move which could have serious implications for the future of the Housing Corporation, ministers have announced that Scottish Homes is to lose its quango status and have its regulatory role extended to include council housing.

Scotland's housing bill, due in the New Year, will propose making Scottish Homes part of the civil service as an executive agency in direct contact with ministers.

Communities minister Wendy Alexander said the agency is to cede its funding role to local authorities, who will co-ordinate the £200m spent annually on development - provided they have transferred all their homes into community ownership.

Scottish Homes and local authorities have welcomed the decision, although councils criticised the emphasis on transfer.

The decision comes at a crucial time for the corporation. Housing minister Nick Raynsford announced this week that a prior options study would "assess the extent to which the Housing Corporation's functions are necessary for the achievement of the Government's policies."

The review is carried out every five years, but critics of the current regime have questioned whether there is a need for two regulators now the Audit Commission's housing inspectorate has been established, and argue that joint commissioning and Supporting People have already undermined the corporation's funding role.

Raynsford told MPs the quango's functions could be contracted out or transferred to another body. The study will also consider registration and regulation charges, whether the corporation effectively tackles regional variations in demand for housing, and how it can improve tenant control.

The study will feed into a more detailed report on the effectiveness of the corporation's regulation and investment programme due next Autumn.

Corporation chairman Baroness Dean admitted the sector was facing a period of "profound change". In a statement on behalf of the board, she said: "Over the next two to three years, we are likely to see major changes, with implications for our regulatory and investment roles."

Chartered Institute of Housing principle policy officer David Fotheringham said: "We're not moving towards a single regulator in the short term. But if in the future there are lots more transfers and the sector becomes more unified then that might change."

Source

Housing Today