Southern Housing Group was established in 1901 and has grown to become one of the largest housing associations in the south east of England. Southern Housing Group house 72,000 customers, own and manage over 27,000 homes and properties and work with over 40 local authorities. Southern Housing Group employ nearly 1,000 people, offer a range of housing products for rent and sale, and undertake a wide range of activities to improve the lives of their customers. Southern Housing Group experience has taught us (according to them) that investing in people and communities is as important as building homes and this philosophy has informed their activities for more than 100 years. Southern Housing Group aim to provide a first-class housing management service for our customers living in a range of tenures including social rent, affordable rent, private rent, shared ownership and private sale. Southern Housing Group is a member of the g15, which represents London’s largest housing associations. The g15 houses one in ten Londoners and builds a quarter of London’s new homes. Together they are working to solve the housing crisis by delivering good quality, affordable homes of all types.
RSH Regulatory Notice
Provider: Southern Housing Group Limited
Regulatory code: L4628
Publication date: 24 November 2021
Governance grade: G2
Viability grade: V2
Reason for publication: Economic Standards
Regulatory route: Reactive Engagement
Other providers included in the judgement
Rosemary Simmons Memorial Housing Association Limited, Southern Home Ownership Limited
Regulatory Finding
The regulator has concluded that:
a) Southern Housing Group Limited (Southern) was not compliant with the legislative requirements of the Welfare Reform and Work Act 2016 (WRWA 2016) between 1 April 2016 and 31 March 2020. During this period it charged incorrect rents for 677 of its general needs homes, as a result of incorrectly applying the exception for Fair Rent [footnote 1] properties. This meant that Southern did not comply with the WRWA requirement to apply 1% rent reductions for each of the years 2016 to 2020 to the rents charged for these properties.
b) Consequently, Southern was not compliant with the Rent Standard 2020 as these incorrect rents were then used as the basis for subsequent rent rises under the Rent Standard.
The Regulator’s Findings
We have concluded that Southern has not complied with the Rent Standard 2020 or the legislative requirements of the WRWA 2016 in respect of some of its Fair Rent tenancies.
From our review of data submitted by Southern in its 2019/20 Statistical Data Return, we identified an increase in the average rent being charged for general needs properties at a time when providers were required to reduce rents by 1% annually.
In response to our enquiries, Southern explored the issues raised and identified that it may have made errors in its treatment of some Fair Rent tenancies. As a result, Southern commissioned a series of independent investigations to assess the scale and nature of the errors. These investigations identified that between 2016 and 2021, approximately £1.05m was overcharged as a result of Southern applying incorrect increases in some of its Fair Rent tenancies instead of the required 1% reduction.
Southern has concluded that incorrect rents were due to misinterpretations of the legislation when calculating the applicable rent increases and the incorrect application of the exemption which existed in the WRWA 2016 for some Fair Rent tenancies (subject to the Rent Act 1977 rent criterion).[footnote 2] These errors dated back to 2016 and were not identified by Southern’s own internal controls and remained undetected until our intervention.
Southern has considered its approach to rent setting and annual rent changes and has developed an action plan. The key actions in the plan include:
resetting the rents in question to the correct levels;
reimbursing tenants who have been overcharged;
commissioning an independent review of rent policy and procedures to clarify lines of accountability, strengthen knowledge and skills and improve assurance on rent setting; and
an internal audit review of validation of rent setting and annual rent changes.
The Southern board has accepted the regulatory findings and is engaging positively with us, with support from external advisers, to take the steps necessary to resolve these issues.
About the provider
Southern operates in the South East of England and the Isle of Wight.
Southern owns and manages over 30,000 homes. The majority of its homes are for general needs but it also provides homes for shared ownership, for older people, for intermediate and affordable rent, and for private rent.
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.’
Housing Ombudsman
Southern Housing Group Limited (201916044)
The resident has complained about: The quality of the services provided through the service charges at their sheltered housing scheme. The amount charged by the landlord in the service charges.
Southern Housing Group Limited (202007717)
The complaint is about the landlord’s response to the resident’s concerns about: delays to information relating to the increased electricity costs as part of the service charge; the apportionment of electricity costs between properties in the block; information provided when moving into the property, including the following: that the property did not have a separate electricity meter; that the resident was required to contribute to the service charge deficit for the year prior to him moving into the property; delays to the installation of a smart meter at the block; calculation of the service charge.
Southern Housing Group Limited (201915218)
The resident complains about: How the landlord handled the administration of her rent account, specifically, its decision to issue a claim for possession of the property. How the landlord handled reports of anti-social behaviour (ASB) against her and her household, including the actions of a particular member of staff. The landlord’s decision to refuse a tenancy to a particular property to her daughter following a Local Authority nomination and how the landlord handled the tenancy interview. How the landlord handled the formal complaint.
Southern Housing Group Limited (202013713)
The complaint is about the landlord’s response to the resident’s reports of anti-social behaviour (ASB).
Southern Housing Group Limited (202100501)
The complaint concerns how the landlord handled the resident’s: housing application formal complaint into this matter. allegations of discrimination by its staff members.
Southern Housing Group Limited (201907709)
The resident has complained that the landlord has failed to resolve their reports of noise nuisance from a neighbour
Southern Housing Group Limited (202001366)
The complaint refers to: The landlord’s response to the resident’s request for compensation for the interruption of the gas supply to the property. The landlord’s handling of the resident’s Subject Access Request. The landlord’s communication and handling of the associated complaint.
Southern Housing Group Limited (202007148)
The resident complains about the landlord’s decision to refuse her request for the notice period for the property to be reduced to two weeks, following her reports of ASB and communal repairs.
Southern Housing Group Limited (202012017)
The complaint concerns the landlord’s handling of a compensation request following reports of damp and mould.
Southern Housing Group Limited (201915929)
The resident has complained about the landlord’s handling of: Repairs to his boiler His concerns about the location of a picture frame in the communal hallway His reports about the communal lighting His reports of marks on walls in the communal hallway His formal complaint
Southern Housing Group Limited (202000055)
The complaint is about the landlord’s handling of the resident’s: reports of water ingress into his property and the consequential repairs which were required; associated complaint and claim for compensation.
Southern Housing Group Limited (202004084)
The complaint is about the landlord’s response to the resident’s concerns about the standard of cleaning in the communal area.
Southern Housing Group Limited (202006745)
The complaint is about the landlord’s response to: The resident’s reports of various repairs namely: A fault with a dimmer switch in the lounge of the property. Wooden panels being removed in the communal area. A boiler repair. The resident’s concerns about: The colour of gas pipes and marks near those pipes. The communal lights. Pigeons. The landlord’s delayed response to his letter of 5 February 2020. The resident’s concerns about its response to: A request for a gas safety certificate. His assertion that he had not spoken to a named person with regard to the fire door replacement. The quality of its service centre and its opening hours. Complaint handling.
Southern Housing Group Limited (202009095)
The complaint is about the landlord’s response to investigate and resolve the resident’s reports of: Dog fouling by tenant A. Threats to kill by tenant B. The Ombudsman has also considered the landlord’s complaint handling.
Southern Housing Group Limited (202112147)
The complaint is about the landlord’s response to the resident’s reports about: Communal lighting. An intercom system.
Southern Housing Group Limited (202102647)
The complaint is about: The landlord’s handling of damp and mould at the property. The associated communication and complaints handling.
Southern Housing Group Limited (202110741)
The complaint is about the landlord’s response to the resident’s: Reports of damp and mould at her property. Request to be moved to another property.
Southern Housing Group Limited (202106100)
REPORT COMPLAINT 202106100 Southern Housing Group Limited 22 April 2022 Our approach The Housing Ombudsman’s approach to investigating and determining complaints is to decide what is fair in all the circumstances of the case. This […]
Southern Housing Group Limited (202000544)
The complaint is about the landlord’s response to the resident’s request for a move to alternative accommodation.
Southern Housing Group Limited (202010169)
The complaint is about the landlord’s response to the resident’s reports of heating and hot water issues at the property.
Southern Housing Group Limited (202016172)
The complaint is about the landlord’s response to the resident’s reports of a data breach.
Southern Housing Group Limited (202008950)
This complaint is about the landlord’s handling of repairs to: The resident’s immersion heater. The mixer taps to the resident’s bath.
Southern Housing Group Limited (202111282)
The complaint is about the landlord’s response to the resident’s reports about damaged items following a leak at the property
Southern Housing Group Limited (202108927)
The complaint is about: -
Southern Housing Group Limited (202106187)
The complaint is about the landlord’s response to repairs in the resident’s property, in particular who is responsible for progressing an insurance claim.
Southern Housing Group Limited (202010510)
The complaint refers to the landlord’s handling of: repair works to improve the security of the property following a break-in. the resident's reports of damp and mould at the property. communication with the resident and record keeping. the associated complaint and offer of compensation.
Southern Housing Group Limited (202003355)
The complaint is about the landlord’s response to a repair issue with the resident’s boiler.
Southern Housing Group Limited (202118131)
The complaint is about: The landlord’s handling of the resident’s concerns about the condition of the property when he moved in. The landlord’s handling of outstanding repairs. The landlord’s complaints handling.
Southern Housing Group Limited (202107885)
REPORT COMPLAINT 202107885 Southern Housing Group Limited 11 February 2022 Our approach The Housing Ombudsman’s approach to investigating and determining complaints is to decide what is fair in all the circumstances of the case. This […]
Southern Housing Group Limited (202012080)
The resident complains about the landlords handling of:
Southern Housing Group Limited (202101220)
REPORT COMPLAINT 202101220 Southern Housing Group Limited 13 December 2021 Our approach The Housing Ombudsman’s approach to investigating and determining complaints is to decide what is fair in all the circumstances of the case. This […]
Southern Housing Group Limited (202000414)
The complaint is about the landlord’s handling of the resident’s reports of:
Southern Housing Group Limited (202011557)
The complaint concerns the landlord’s response to reports of repairs to the resident’s garage.
Southern Housing Group Limited (202008692)
The complaint is about: The landlord’s handling of the resident’s Right-to-Buy application for his property. The landlord’s handling of the associated complaint.
Southern Housing Group Limited (202104632)
The complaint is about the landlords response to the resident’s concerns regarding a data breach.
Southern Housing Group Limited (201912882)
REPORT COMPLAINT 201912882 Southern Housing Group 23 December 2020 Our approach The Housing Ombudsman’s approach to investigating and determining complaints is to decide what is fair in all the circumstances […]