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Housing and Regeneration Scrutiny Commission - Tuesday 4th March 2025 7.00 p.m.

March 4, 2025 View on council website  Watch video of meeting or read trancript
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Summary

This meeting of the Housing and Regeneration Scrutiny Commission discussed Newham Council's response to the Regulator of Social Housing's (RSH) inspection of housing within the borough in October 2024, temporary accommodation and homelessness prevention in the borough, and the HRA Business Plan. The Commission noted the reports from officers and agreed to include the topics as standing agenda items to enable ongoing scrutiny.

Regulatory Update: Newham Council's Response to the Regulator of Social Housing Inspection

The Commission considered a report that outlined the steps taken by Newham Council since the publication of the RSH report on 16 October 2024. The Regulator of Social Housing issued the Council with a C4 judgement1 against its consumer standards, the lowest available grading, indicating serious failings in compliance across several key areas.

The report identified 20 areas of failing. The Commission heard from Councillor Blossom Young, Cabinet Member for Housing, Landlord and Tenant experience improvements, who acknowledged that the Council had apologised to residents and were taking seriously their response to the issues. Councillor Young also outlined a number of areas where specific improvements had been made, such as the electrification programme, the fire risk assessment actions and the responsive repairs service. The Council has allocated £20 million to addressing fire safety issues, £18 million to the Decent Homes programme, and £2 million to support the transformation of the Housing Service.

Members questioned officers about a number of areas relating to the response and the report, including:

  • The process for appointing Capsticks, the legal firm appointed to undertake the investigation into the discrepancies between the information provided to scrutiny and the findings of the regulator.
  • The frequency of electrical safety inspections in social housing compared with the private rented sector.
  • The Council's approach to identifying and contacting vulnerable tenants, particularly those in high-rise buildings.
  • The governance and assurance mechanisms being put in place for the Housing Improvement Programme, including the reporting lines for Paynton Choices, the compliance partner appointed by the Council.
  • The development of the new cross-council Diverse Needs strategy.
  • The timeline for completion of the actions in the improvement plan, and the milestones agreed with the RSH.
  • The reasons why the information previously provided to scrutiny differed from the regulator’s report, and how confidence levels in the data would be improved.
  • How the Housing service was protecting functions dedicated towards remediating the issues identified by the regulator, and the budget allocated to this area of work.
  • The steps being taken to counter reputational damage and rebuild trust with residents.
  • How the systems for tracking repair requests had been improved since the RSH report.
  • The prioritisation of the 20 areas of failing identified in the report.
  • The progress being made to address the failings and the development of a dashboard showing progress against key metrics.
  • The methods being used to engage with residents, particularly those living in temporary accommodation.

The Commission noted with concern that the information previously provided by officers differed significantly from the regulator’s report and requested further details about the investigation being undertaken by Capsticks, and the progress being made to improve the robustness of the data. Members requested the development of a dashboard showing progress against key metrics, and regular reports on progress. Members also expressed concern about the high number of outstanding fire risk actions, and requested an update on the number of outstanding repairs at the next meeting.

Temporary Accommodation and Homelessness Prevention

The Commission considered a report that set out the current situation regarding temporary accommodation and homelessness prevention in the borough, and the action being taken to address the issues. Newham has the highest number of households in temporary accommodation (TA) in London, which is at an all-time high, and costs the Council an estimated £106 million over the MTFS period. The report identified a number of factors contributing to the problem, including the rise in homelessness applications, the instability in the private rented sector (PRS), particularly evictions, rising rents and the contracting availability of affordable accommodation in the private rented sector, and Newham's large private rented sector.

The Commission heard from Councillor Amar Virdee, Cabinet Member for Housing Needs, Homes, Sector and Community Safety and Crime, and Lee Georgiou, Assistant Director of Housing Options and Supply, who outlined the Homelessness Response Programme, which was initiated in 2022 to take a One Council approach to coordinate the delivery of actions identified in the Homelessness and Rough Sleeping Strategy 2021-2026. Councillor Virdee highlighted the proactive work in terms of the homeless prevention programmes, and some of the positive outcomes being delivered, such as the 160% increase in prevention activity. The programme has three strands:

  • Improving standards for the increasing numbers in TA
  • Improving prevention of homelessness
  • Mitigating the decrease in affordable residential supply

Members questioned officers about a number of areas relating to temporary accommodation and the homelessness prevention programme, including:

  • Whether the policy limiting placements in TA to within 90 minutes of Newham was still in place.
  • How the Council was going to address the increase in applications to TA and bring down the costs of TA, particularly the use of nightly-paid accommodation.
  • The confidentiality of data being shared with UEL as part of the development of new systems using AI and IT to improve service delivery.
  • The gateway review of the programme carried out by PwC in May/June 2024, and the resourcing of the programme.
  • The impact of government policy on Newham’s ability to address the issues, such as the Right to Buy scheme and the Renters’ Reform Bill.
  • Whether the Council was missing a trick with regards to early intervention, and helping people to remain in their homes.
  • How the Council was seeking to improve engagement with residents, and the development of a new Resident Participation Framework.
  • The work of the task force set up to look at the homelessness issue, particularly with regards to the lack of female representation on the task force.
  • Whether our ask to government was sufficiently wide-ranging, and the work being done to address broader determinants of homelessness.
  • How the financial experience of residents moving out of TA into the private rented sector was being supported.
  • The review of the Council’s allocations policy.
  • When the number of homelessness applications was expected to peak.

The Commission noted with concern that a decision about the policy limiting placements in TA to within 90 minutes of the borough had not yet been taken, despite being discussed at numerous previous meetings. Councillor Virdee committed to taking a decision on the policy and reporting back to the Commission. Members also expressed concern about the lack of female representation on the task force looking at the issue, and recommended that the final report include consideration of the impact of homelessness on women in particular.

HRA Business Plan

The Commission considered a report summarising the Housing Revenue Account (HRA) Business Plan, which was last updated and presented to Cabinet in October 2024.

The Commission heard from Paul Kitson, Corporate Director for Inclusive Economy Housing and Culture, who set out the work that had taken place to refresh the HRA Business Plan, the impact of recent government policy announcements, and the pressures facing the HRA. The HRA Business Plan is a financial model that sets out the Council’s obligation to account for the income and expenditure relating to its social housing stock. It is a live and evolving piece of work, continually updated in response to changing circumstances, including government policy, financial assumptions, investment needs, and service delivery.

The report drew the Commission’s attention to the report, Securing the Future of Council Housing, led by Southwark Council and supported by 100 councils across England, including Newham, which identified the need for transformation of the council housing model. The government’s Autumn Statement (30 October 2024) included a number of measures to address the issues identified in the report, and announced plans to change the Right to Buy scheme, including the reduction in discounts available to tenants.

Members questioned officers about a number of areas relating to the HRA Business Plan, including:

  • The funding shortfall identified in the business plan, and the actions being taken to address this.
  • The impact of the recent changes to the Right to Buy scheme on the financial viability of the HRA, and the increase in Right to Buy applications in response to the government’s announcement about plans to reduce discounts.
  • The impact of the outcome of stock condition surveys and other regulatory requirements on the budget for major works.
  • The impact of increased interest rates on the affordability of borrowing and the ability of the HRA to meet its financial commitments.

The Commission heard that a full review of the HRA Business Plan would be carried out and presented to Cabinet in early summer, which would take account of the impact of the change to the Right to Buy policy and the outcome of stock condition surveys. Members noted with concern that the HRA Business Plan may be quickly outdated, and that further investment in the housing stock may be required.


  1. The Housing Regulator undertakes inspections of all social landlords. Where failings are identified, they issue a Regulatory Judgement which may include a grading. The gradings range from G1, which indicates the highest level of compliance with the regulatory standards, to G4, which indicates serious failings and a breach of the regulatory standards. If a provider receives a G3 or G4 grading, this indicates a failure to meet the requirements of the consumer standards, meaning that residents are not receiving the quality of service they deserve. The gradings range from G1, which indicates the highest level of compliance with the regulatory standards, to G4, which indicates serious failings and a breach of the regulatory standards. If a provider receives a G3 or G4 grading, this indicates a failure to meet the requirements of the consumer standards, meaning that residents are not receiving the quality of service they deserve.