Housing and Regeneration Bill

My Lords, I am completely sympathetic to the intention and the vocabulary of the noble Lord as he described the amendments and I welcome them back because I strongly agree with the need to ensure that registered providers are indeed properly accountable to their tenants and that tenants have the information that they need to exercise their rights. Where we disagree is on how that imperative should be reflected in the Bill. Generally, we have preferred to use regulatory tools rather than impose direct statutory requirements on RSLs because, as we all know, that is more flexible, lighter touch and more consistent with the independence of the sector. I do not want to return to the debate on the risk of reclassification of RSLs as public rather than private sector bodies, but we always have that in mind when considering these issues. I very much doubt whether those concerns would be eased by imposing a direct statutory duty on every RSL in England at this stage of the Bill’s progress. I am also reluctant to impose such a requirement on RSLs without consultation with the sector. For those reasons, I am not convinced that it would be wise to impose a statutory duty, as the noble Lord proposes. However, we have given careful thought to the aims behind the amendments and how we can translate them into reality. We think that the best way to do so would be through regulatory guidance. That would have several advantages. It would allow the RSL sector to be consulted first, as required by Clause 214. It would give the regulator some flexibility to determine what should be included in the accountability statements. That would help to ensure consistency with whatever regulatory standards had been set. Consistency is very important, given the sector that we are dealing with. It would also integrate the requirement into the broader regulatory system. It would be for the regulator to decide whether this was appropriate, but I believe that the National Housing Federation is keen on these changes. If it wanted to submit this requirement as a regulatory proposal, I am sure that the regulator would consider it seriously. Although accountability statements would be better dealt with through regulatory guidance, it is also important to recognise that the Bill will provide a strong impetus for RSL accountability to tenants. The ability to set standards for methods of consulting tenants and enabling them to influence or control the management of their accommodation and environment also means that those standards have to be consulted on and enforced, and in doing so the regulator has to observe his objectives. We are aiming for choice, protection and the opportunity for tenants to be involved in the management of their homes. It is therefore highly likely that these standards will include requirements that relate to accountability to tenants as well. In fact, that makes perfect sense. However, consultation is a more appropriate route to the same goal than a statutory requirement. We had extensive debates in Grand Committee about the importance of information and how information alone can bring choice and empowerment. The same logic applies to accountability, because tenants will not be able to hold their landlords to account unless they can access information. The Bill provides for that, because the regulator is subject to a statutory requirement to publish information about RSLs’ performance against standards. I hope the noble Lord will be reassured that we are at one with his intention and that we can achieve what he wants through the new regulatory system. I assure him that we differ only on the means, not the ends.