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How to Become a Registered Social Housing Provider

Chris web

Written by Chris Turner

|

Dec 10, 2024

Becoming a registered provider of social housing in England is a significant undertaking that should not be underestimated as both a process and commitment. It requires careful planning, preparation, and a thorough understanding of the registration process and regulatory requirements.

This guide will walk you through the steps to successfully register as a social housing provider with the Regulator of Social Housing (RSH), including the necessary financial considerations, governance arrangements, and compliance with regulatory standards.

Understanding the Registration Process

Preliminary Application

The first step in the registration process is to submit a preliminary application to the RSH. This application should include:

  1. Details of the applicant organisation
  2. Information about the proposed social housing activities
  3. Evidence of the applicant's financial viability and governance arrangements

The RSH will review the preliminary application and determine whether the applicant meets the eligibility criteria for registration.

Detailed Application

If the preliminary application is successful, the applicant will be invited to submit a detailed application. This application requires more comprehensive information, including:

  1. Details of the applicant's business plan and financial forecasts
  2. Evidence of the applicant's ability to meet the regulatory standards
  3. Information about the applicant's proposed rent-setting and tenancy management policies

The RSH will assess the detailed application against the registration criteria and decide whether to register the applicant as a social housing provider.

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Registration Requirements

To be eligible for registration as a social housing provider, applicants must meet the following key requirements:

  1. Be an English body (a body incorporated under the law of England and Wales)
  2. Be a provider of social housing in England
  3. Meet the eligibility criteria set out in the Housing and Regeneration Act 2008

In addition to these requirements, applicants must demonstrate their ability to comply with the regulatory standards, which include:

Consumer Standards
  • Neighbourhood & Community
  • Safety & Quality
  • Tenancy
  • Transparency, Influence & Accountability
Economic Standards
  • Governance & Financial Viability
  • Rent
  • Value for Money
Governance plans required register social housing provider

Preparing for Registration

To increase the likelihood of a successful registration, applicants should ensure they have the following elements in place:

Business Plan

A comprehensive business plan is essential for demonstrating the applicant's strategic objectives, plans to meet these objectives, and key risks facing the organisation. The business plan should include:

  • Detailed financial forecasts that reflect the applicant's strategies and demonstrate sufficient financing for the immediate future
  • Stress testing of financial forecasts to identify and mitigate potential risks
  • Consideration of combinations of risks that might crystallise and their impact on the business plan

Financial Plan

The financial plan should provide a clear picture of the applicant's financial viability and their ability to manage finances effectively. It should include:

  • Detailed financial forecasts based on reasonable assumptions and aligned with the business plan
  • Stress testing of financial forecasts to identify and mitigate potential risks
  • Robust financial management systems and controls to ensure the proper use of funds

Risk Assessment and Risk Management Policy

Applicants must have a thorough risk assessment and a comprehensive risk management policy in place. These should include:

  • Identification and assessment of key risks facing the organisation
  • Strategies to mitigate and manage identified risks
  • Regular review and updating of risk assessments and risk management policies
  • Integration of risk management into decision-making processes

Management Arrangements

Applicants must have effective management arrangements in place to ensure compliance with regulatory standards and effective operation of the organisation. These arrangements should include:

  • Organisational structures that clearly define roles, responsibilities, and lines of accountability
  • Adequate resources, including staff, systems, and processes, to support the delivery of social housing activities
  • A comprehensive policy framework that covers key areas such as governance, financial management, risk management, and tenant engagement
  • A robust management information framework that enables timely and accurate reporting to the board and senior management
  • A risk management framework that integrates risk management into all aspects of the organisation's operations
  • An effective internal control system that provides assurance on the integrity of financial and operational information, compliance with laws and regulations, and the effectiveness of risk management processes
Registering as a social housing provider housing association

Specific Expectations for Certain Applicants

Registered Group Parents

If the applicant has or intends to have subsidiaries that are registered providers, they should include details of the group structure and outline the arrangements in place to provide, as appropriate, support or assistance to the subsidiaries with a view to ensuring compliance with regulatory requirements.

Registered Providers with Unregistered Parents

If the applicant is a subsidiary of a parent company that is not a registered provider, they should explain how it fits within the corporate structure and outline how the board has assurance that no agreements are in place to support the activity of the parent or another group member that may have a material negative impact on the applicant's social housing assets.

Profit-Making Registered Providers

If the applicant wishes to be designated on the register as a profit-making provider and undertakes activities that do not relate to the provision of social housing, they should detail these activities and how they have determined that these are non-social housing activities. They should also outline how the board has assurance that non-social housing activities form only a very small part of the activities undertaken and are not such as to mean that registered providers place social housing assets, activities relating to the provision of social housing, or their own financial viability at undue risk.

Social Housing Provider registration rent

Rent Standard Compliance

Applicants must demonstrate how they comply with the regulator's Rent Standard, which sets out how rents must be set from 1 April 2020, and the Government's Policy Statement on Rents for Social Housing 2018 (Rent Policy Statement).

Low Cost Rental Accommodation

Applicants should provide evidence of the low cost rental accommodation made available, or intended to be made available, at a rent below market rate level, including:

  • How market rates for rents have been determined in the areas of operation, including evidence of methodologies, comparators, and definitions used
  • Rents charged or intended to be charged, expressed in absolute terms and as a percentage of the relevant market rate
  • Methodologies used to set rent levels for new and existing tenants

Social Rent Levels

Applicants should confirm which properties are or will be let at rents set at social rent levels as defined by the Rent Standard 2020 and provide evidence of the methodologies used or intended to be used in setting social rent levels for new and existing tenants.

Management Arrangements for Rent Setting

Applicants should outline the management arrangements in place to ensure compliance with all relevant statutory and regulatory requirements in relation to rent setting.

Equalities and the Public Sector Equality Duty

As a public authority, the RSH has a specific duty to have due regard to equality issues when exercising its regulatory functions (including the processing of application forms), as set out in section 149(1) of the Equality Act 2010. Applicants must provide assurance of their compliance with the Equality Act, and any restriction of services based on a protected characteristic must be justified on the basis set out in the Equality Act 2010.

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Final Thoughts...

Becoming a registered social housing provider in England is a rigorous process that requires a strong commitment to meeting regulatory standards, maintaining financial viability, and ensuring effective governance. By carefully reviewing the registration requirements, preparing the necessary documentation, and demonstrating a clear understanding of the expectations set out by the RSH, applicants can navigate the registration process successfully and contribute to the provision of much-needed social housing in England.

Thornton & Lowe: Social Housing Consultancy Support

Thornton & Lowe offers comprehensive support to organisations seeking to register as social housing providers in England, including for-profit providers. Our team combines extensive bid writing expertise with in-depth knowledge of the social housing sector to guide clients through the registration process.

Our services include:

  1. Review of existing documentation: We will thoroughly review your organisation's existing documentation, including business plans, financial plans, risk assessments, and management arrangements, to ensure they meet the RSH's requirements.
  2. Gap analysis: Based on our review, we will conduct a gap analysis to identify any areas that need further development or improvement to strengthen your application.
  3. Direct application support: Our team will work closely with you to address any gaps identified in the analysis and provide hands-on support in completing the registration application.
  4. Review and feedback: We will review your completed application, offering comments and suggestions to enhance its quality and improve your chances of successful registration.
  5. Tailored guidance: We understand that each organisation has unique circumstances and requirements. Our consultancy services are tailored to your specific needs, ensuring that you receive the most relevant and effective support throughout the registration process.
  6. Ongoing support: Our commitment to your success extends beyond the initial registration. We offer ongoing support to help you navigate the challenges of being a registered social housing provider and ensure continued compliance with regulatory standards.

By using Thornton & Lowe's social housing consultancy support, your organisation can increase your likelihood of a successful registration and establishing a strong foundation for your future as a registered social housing provider in England.

Registering as a social housing provider registered provider

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