Since April 2024, local authorities have been subject to inspection and grading by the Regulator of Social Housing (RSH), marking a significant shift in oversight for the circa 220 stock-owning councils in England.
These inspections assess compliance with the Consumer Standards, issuing grades from C1 (highest) to C4 (lowest), criteria that not only inspects standards and safety of the housing stock but also looks at wider factors that assess the quality of the service that tenants receive and quality of neighbourhoods in which they live. This new regime reflects the scrutiny seen from Ofsted and the Care Quality Commission (CQC), providing a singular assessment of performance, and placing housing firmly under the spotlight.
Recent data reveals a concerning trend in local government: over 80% of the lowest gradings (C3 and C4) have been issued to local authorities (most recent data published on gov.uk). These poor outcomes raise critical questions about leadership capability, strategic oversight, and the depth of tenant engagement in council housing services.
The role of housing in achieving positive outcomes for individual tenants, families and whole communities cannot be overstated. A warm, safe and secure home is foundational to wellbeing, enabling families to thrive, children to grow and older people to remain connected to their communities. Conversely, inadequate or poor quality housing can lead to poor mental health outcomes, is a likely trigger to crisis situations, resulting in intervention from social services; with many social housing tenants being in financially precarious situations this can lead to further poor health outcomes.
Effective leadership in local government housing is pivotal in aligning housing with broader social and economic outcomes, moving far beyond the boundaries of regulatory compliance.
Unlike those in the private rental sector, tenants in social housing often lack choice. Our work in senior and executive recruitment across local government and housing associations gives us a unique insight into broader leadership styles.
Housing associations are characterised by a very customer-centric approach to their service delivery, recognising the expectations and demands of those living in social housing, in a way similar to services they receive elsewhere in their lives. Leaders often see service delivery through a customer lens to meet those needs. In comparison, local authorities with their greater statutory responsibilities tend to retain a stronger focus on tenants, where the relationship is landlord- driven and determined by occupant rights and housing standards as opposed to a service-oriented customer dynamic driven by a user focused approach.
The disparity in regulatory outcomes suggests local authorities could adopt more customer-focused practices. The focus on regulatory compliance, which is paramount to resident safety, can lead to attention being more directed to stock management rather people and outcomes.
This behavioural shift comes at a time when leadership capability and availability is also under pressure. There are looming skills gaps across the sector with future leaders needing not just technical knowledge but emotional intelligence, resilience and the ability to lead diverse teams. Succession planning, mentoring and inclusive recruitment are vital to building leadership pipelines that reflect the communities they serve, while having the expertise and knowledge to lead a service that is increasingly challenged, pressurised and regulated.
These challenges do not exist in isolation; we are seeing throughout housing services a shortage of experienced and qualified senior leaders in the sector, including housing officers and those working in housing needs, asset management and building safety, repairs services, renewal and new developments. Demand has never been higher, exacerbated by the need to address stock quality compliance, and increasing responsibilities beyond consumer standards, such as Awaab's Law and the Building Safety Act. The sector must invest in developing future leaders, upskilling the workforce and shaping a more customer centric culture, while recognising the unique needs of social tenants.
Introducing external talent from the housing or private sector could add to the available talent pool, though the significant salary disparity, even between housing associations and local authorities, can be prohibitive. Perception from these candidates, whether true or not, can be that the pace is slower and that ‘getting things done' is hampered by bureaucracy. Building leadership agility and communicating this externally should be a priority.
As the regulatory spotlight intensifies, local authorities must seize this moment to redfine what the most effective leadership in housing means to drive better outcomes. This will demand leaders who are equally technically proficient and deeply attuned to the lived experiences of tenants and who see housing as a catalyst for wellbeing, opportunity and community resilience.
t is through embracing a more customer-centric mindset, investing in talent pipelines and fostering inclusive leadership that councils can truly transform whole community wellbeing and outcomes
Philip Emms is a principal consultant within GatenbySanderson's local government practice
