Decision

Regulatory Notice: The Industrial Dwellings Society (1885) Limited (29 June 2022)

Updated 13 December 2023

Applies to England

RSH Regulatory Notice

• Provider: The Industrial Dwellings Society (1885) Limited

• Regulatory code: L0266

• Publication date: 29 June 2022

• Reason for publication: Consumer Standards

• Regulatory route: Reactive Engagement

Other providers included in the judgement

Otto Schiff Housing Association

Regulatory Finding

The regulator has concluded that:

a) The Industrial Dwellings Society (1885) Limited (IDS) has breached part 1.2 of the Home Standard; and

b) As a consequence of this breach, there was the potential for serious detriment to IDS’s tenants.

The regulator will work with IDS as it seeks to remedy this breach. The regulator will also consider the implications for its view of IDS’s governance grading.

The Case

As a registered provider, IDS is required to comply with the consumer standards, including the Home Standard. The Home Standard requires registered providers to have a cost-effective repairs and maintenance service that responds to the need of, and offers choices, to tenants, and has the objective of completing repairs and improvements right first time.

IDS made a self-referral to the regulator following tenants’ concerns around property conditions at one scheme, Evelyn Court. The concerns included mould, damp, condensation and drainage and flooding issues. IDS tenants at this, and other IDS schemes, complained of a poor repairs and maintenance service and a lack of responsiveness from IDS. Having considered the information provided by IDS, the regulator has concluded that IDS has failed to deliver an effective service for routine and planned repairs and maintenance.

Information provided by IDS during our investigation demonstrated that prior to tenants raising concerns there was no cohesive remediation plan for the issues at Evelyn Court or across the wider IDS stock. Further to this, the repairs process was difficult to navigate and there was poor tenant engagement. IDS acknowledge these failings extended beyond Evelyn Court and to its wider stock.

Taking into account all of the information received during our investigation, the regulator has concluded that IDS breached the Home Standard, and that, as a consequence, there was the potential for serious detriment to tenants.

Following tenants’ concerns being raised, IDS has carried out a root cause analysis and is seeking to understand the full extent of the issues across its whole stock. An action plan is in place for Evelyn Court involving each individual property and a programme of repairs work and tenant engagement has commenced to resolve the issues.

The Regulator’s Findings

The regulator considered the case as a potential breach of part 1.2(a) of the Home Standard and has concluded that IDS did not have a cost-effective repairs and maintenance service for homes and communal areas that responded to the needs of tenants and had the objective of completing repairs and improvements right first time.

IDS has demonstrated to the regulator the actions it is now taking to address the issues identified and improve its service for all tenants. However, taking into account the seriousness of the issues, the durations for which tenants were potentially exposed to risk, and the number of tenants potentially affected, the regulator has concluded that it is proportionate to find that IDS has breached the Home Standard.

Section 198A of the Housing and Regeneration Act 2008 (as amended) states that the regulator’s regulatory and enforcement powers may be used if a registered provider has failed to meet a consumer standard. In order to use regulatory or enforcement powers, as well as the failure to meet the standard, there should also be reasonable grounds to suspect that the failure has resulted in a serious detriment to the provider’s tenants (or potential tenants) or that there is a significant risk that, if no action is taken by the regulator, the failure will result in a serious detriment to the provider’s tenants (or potential tenants).

IDS has put in place a programme to rectify these failures and the regulator will therefore not take enforcement action at this stage, as it has assurance that the breach of the standard is being remedied. The regulator will work with IDS as it continues to address the issues that have led to this situation, including ongoing monitoring of how it delivers its programme. In the meantime, the regulator is considering the implications of this breach on its view of IDS’s governance grading.

About our Regulatory Notices

Regulatory notices are issued in response to an event of regulatory importance (for example, a finding of a breach of the Rent Standard or of a consumer standard that has or may cause serious harm) that, in accordance with its obligation to be transparent, the regulator wishes to make public. More detail about Regulatory notices is set out in Regulating the Standards.