Resident or Customer - More than Just a Collective Noun Change

Housing associations are increasingly adopting the term "customer" to refer to those who reside in their properties. This shift from the traditional label of "resident" to "customer" raises essential questions about the changing nature of the relationship between housing associations and those they serve. In this blog post, we will explore the reasons behind this transition, its potential implications for residents, and the impact on consumer rights and freedom of choice in a housing market marked by limited availability.

From Resident to Customer

For decades, the term "resident" has been the conventional way of referring to individuals who live in properties managed by housing associations. The label itself carries a sense of permanence and belonging, emphasising the idea of a stable community built on long-term occupancy. Historically, housing associations primarily saw their role as providers of housing solutions to individuals and families in need, with a focus on ensuring decent and affordable homes. The relationship between housing associations and their residents was often perceived as more paternalistic, with the emphasis on housing provision and maintenance.

Throughout this period, the role of residents was largely limited to that of beneficiaries of housing services, with limited involvement in decision-making processes. The prevailing notion was that residents were passive recipients of accommodations, and their primary responsibility was to pay service charges or rents for the housing services they received.

In recent years, a paradigm shift has been observed in the housing sector, and housing associations have started using the term "customer" to describe those who live in their properties. This change in terminology reflects a broader transformation in the way housing associations view their role and responsibilities. And of course, the makeup of the residents has changed too, with housing providers now offering shared ownership schemes. This new(ish) offering has forced a change upon the sector, a change that many housing providers have been slow to see coming and have in many instances failed to adopt a more ‘partnership’ approach when dealing, supporting, and communicating with residents/customers.

Due to the above, housing associations are recognising the need to empower residents by acknowledging their rights as consumers. By referring to residents as customers, housing associations signal a commitment to treat them as active participants with the freedom to choose and influence the services they receive. This transition aims to promote a sense of autonomy and self-determination among residents, fostering a more customer-centric approach.

The housing sector itself has undergone significant marketisation, with housing associations operating in an increasingly competitive environment. The introduction of market forces has led housing associations to adopt business-oriented practices, and by using the term "customer," they align themselves with private sector businesses that prioritise customer satisfaction and engagement. This need for marketisation is needed as providers need to build new homes at an alarming rate to keep up with societies need and to provide a cash flow in order to maintain dilapidated stock. Without new homes and new “customers” housing providers put themselves at risk of failing to be able to provide their core service agreement.

Housing associations have needed to evolve from being mere housing providers to offering a wide range of services and amenities to enhance the quality of life for residents. This expanded service delivery model is akin to what customers expect from service providers in other industries. As a result, the language of "customer" better reflects the comprehensive service package offered by modern housing associations.

Undoubtedly, the shift towards treating residents as customers is a significant and necessary step for the future of the housing sector. However, it should be acknowledged that this change in the collective noun alone is insufficient.

Government policies and initiatives have emphasised the importance of tenant empowerment, participation, and accountability. The adoption of the term "customer" aligns with these policy shifts, as it reinforces the idea of residents having a voice in housing decisions and receiving services that cater to their needs and preferences.

By viewing residents as customers, housing associations acknowledge the need to be more accountable and responsive to the demands and expectations of their residents. This customer-centric approach compels housing associations to deliver higher-quality services, maintain transparent communication, and foster positive relationships with their residents.

Undoubtedly, the shift towards treating residents as customers is a significant and necessary step for the future of the housing sector. However, it should be acknowledged that this change in the collective noun alone is insufficient.

Embracing the term "customer" necessitates a profound cultural transformation within housing associations. To truly empower residents and honour their new status as customers, fundamental changes must occur behind the scenes.

Moving towards a customer-centric approach demands a complete reevaluation of how housing providers interact with their residents. It involves more than just a superficial change in language; it requires a fundamental shift in mindset and practices. Housing associations must recognise that, by acknowledging residents as customers, consumer rights become a crucial aspect of this evolving relationship.

Consumer rights encompass a range of entitlements designed to safeguard the interests of customers in various transactions. For residents being treated as customers, these rights become an integral part of their housing experience. As customers, residents have the right to fair and transparent treatment, the right to voice their opinions and concerns, and the right to participate in decision-making processes that directly impact their lives and living conditions.

Moreover, consumer rights entail the right to quality services and the assurance that their needs will be met promptly and effectively. Housing associations must provide clear and accessible channels for feedback, complaints, and suggestions, fostering open lines of communication that allow residents to actively engage with their housing providers.

Additionally, consumer rights extend to the concept of choice. In an ideal customer-centric environment, residents should have the ability to make informed decisions about their housing options. However, the issue of limited housing availability poses a significant challenge in realising this aspect of consumer rights. While the freedom to change providers may not be readily feasible due to restricted housing supply, housing associations can still empower residents by providing flexibility within their existing accommodations and offering various service packages that cater to diverse needs.

Have Housing Providers ‘Jumped the Gun’?

While the adjustment of the collective noun from "resident" to "customer" may seem straightforward, the deeper cultural transformation it signifies is undoubtedly a complex and time-consuming endeavour. Many housing providers already espouse the clichéd phrase of "putting the customer at the heart of everything we do" or its variations, yet genuinely placing residents at the core of their operations may prove considerably more challenging.

This required cultural shift may also be unwelcome by many seasoned housing staff who have, in the past, happily ignored issues and failed to provide a quality and reasonable service. This apathetic culture may have spread deep within the business and will no doubt be hard to uproot.

As housing providers rush to adopt the terminology change, the question arises: have they prematurely embraced the customer-centric approach without fully internalising the necessary cultural shift? The rhetoric of prioritising the customer experience can be easy to employ, but the practical implementation of such a philosophy demands substantial effort and commitment.

Embracing a customer-centric approach places a premium on the quality of services provided to residents.

The essence of becoming a true customer-centric housing association lies not merely in a name change but in the profound reimagining of organisational values, practices, and priorities. Integrating a customer-first culture.

Perhaps a more prudent approach would be for providers to wait until they have demonstrably embedded the cultural change before officially adopting the name change. By doing so, housing associations can ensure that the transformation is substantive rather than superficial, and the commitment to customer empowerment is steadfast.

Moreover, the timing of this transition should also involve residents' input. Residents should have a say in when they are recognised as customers, and this acknowledgment should be based on how well they are treated as customers. Consumer rights and the actual experience of being a customer should align before labelling residents as such.

Embracing a customer-centric approach places a premium on the quality of services provided to residents. Just as customers expect excellence from service-oriented industries, residents will rightfully anticipate improved service levels, maintenance efficiency, and timely issue resolution, enhancing their overall living experience. And why shouldn’t they? Their rent and service charge are among their biggest household expenditures.

While embracing a customer-centric approach also aligns housing associations with evolving government policies that emphasise tenant empowerment, participation, and accountability. This alignment can strengthen relationships with local authorities and promote a more favourable regulatory environment for housing providers.

However, with these opportunities come significant challenges. Limited resources, constraints in housing availability, and the need to manage competing priorities may pose obstacles to fully realising a customer-centric model. Housing associations must navigate these challenges while actively promoting an inclusive and equitable housing landscape.

• Are residents customers?

• Are housing providers service providers?

• Do residents have consumer rights?

• How many residents believe they do?

• Is it truly possible to put the resident at the heart of everything the providers do?

• And finally, if providers can put the customer at the heart of everything they do, why haven’t they been able to put their residents there already…?