The annual National Housing Federation (NHF) Housing Governance Conference brings together leaders from across the social housing sector to look at how we navigate an operational environment that is becoming increasingly complex. While there was the usual discussion about process, the conversation focused on the realities of the current model of governance for registered providers (RPs). Now more than ever, RPs are being challenged to ensure governance acts as an enabler of positive outcomes rather than a bureaucratic obstacle.

Reflecting on the discussions across the day, our Housing experts summarise some of the conference’s key themes below.

Compliance and culture

One of the most dominant messages from the conference is that economic and consumer regulation are interconnected. True governance cannot be measured by a successful inspection or a top regulatory grading. The test is whether good governance is felt daily by residents.

Delegates discussed that residents do not experience an organisation’s written policies, but rather the everyday actions. This requires shifting the governance lens from compliance to culture and behaviour. The question for RPs should not be ‘are we compliant?’ but rather ‘are we confident that we are delivering the right outcomes?’.

Boards must look beyond “curated” feedback from residents or the usual respondents. Loud voices usually signify immediate issues, but a well-run business cannot assume that quiet residents are content. Complaints should not just be viewed as problems to resolve, but also as vital insights and learning opportunities. While critical indicators like culture and experience are the hardest to capture in raw data, they are the most important. The tone must be set by the board and translated throughout the entire organisation.

Avoiding defensive bureaucracy

Attendees agreed that effective governance requires an adaptive, responsive approach, but fear of accountability can lead to poor outcomes. RPs must resist the urge to slip into “defensive governance” out of anxiety over new regulations such as STAIRs standards (the Social Tenant Access to Information Requirements).

Good governance means being prepared to be the “grit in the oyster”, as discussed at the conference. Governance must provide challenge, but that challenge must be constructive, not bureaucratic. To keep governance sharp, boards should:

• Maximize committee value – committees have value to provide. The board should avoid replaying entire conversations for the main board or presenting identical papers that have already been dealt with at committee level.
• Embrace unfamiliar challenge – some of the best strategic scrutiny comes from board members who are not deeply familiar with the operational minutiae and are willing to ask the fundamental or “obvious” questions.

STAIRs and shifting transparency

The upcoming STAIR standards will put RP governance directly in the front window. While the initial policy statement may seem simple, the practical implementation will trigger a wider culture change within organisations.

The requirements will mean that RPs need to think about potential disclosure at the point of document creation. Every time a document is written, teams must consider whether it will eventually be publishable and how accessible the language is for residents in the event that it is published. Of course, if publication is refused, then a legally justifiable reason must be clearly documented.

The sector expects resource allocation to be the biggest hurdle when it comes to implementing the STAIR standards. Drawing on the experience of Scottish RPs – who have been subject to Freedom of Information requirements since 2019 – we can anticipate around three requests per 1,000 units of stock, weighted toward queries around services like repairs rather than RP finances.

Organisations must also navigate the potential muddle between STAIR data requests and the Housing Ombudsman’s Complaints Handling Code when an issue crosses into both territories, which will require skilful management of the customer journey.

Rescuing boards through better reporting

The perennial struggle between strategic oversight and operational detail remains a frontline issue. When polled at the conference on what would make the biggest difference to improving governance effectiveness, the audience vote was overwhelming: better board reporting.

Good governance is of course not necessarily giving the board everything, and excessively long board packs can be considered a symptom of bad governance. Instead of obsessing purely over page counts, providers need to critically evaluate the quality and structure of the data presented to ensure it highlights the core issues and helps the board step out of the operational detail.

While new technologies such as artificial intelligence could be a way to improve reporting and keep boards strategic, innovation can also mean improving how fundamental tasks and processes are completed or continuing existing good practice. The role of the Chair is vital in setting a strategic tone, but organisations must also commit to taking dedicated time out of everyday operation to focus on long-term strategy and innovation, a discipline that likely needs to happen more than once a year.

How Capsticks can help

Capsticks’ social housing governance experts work alongside boards to refine reporting structures, prepare for the practical realities of STAIRs and the Competence and Conduct Standard, and build adaptive governance frameworks. If you have any queries around the issues discussed in this article, and the impact on your organisation, please speak to Partner Darren Hooker or another member of our Housing team to find out more our Governance Support Service and about how Capsticks can help.