How a landlord is run, governed and funded.
The economic standards make sure providers are well governed, financially sound and get good value from their money. They protect the homes residents live in, and the public and private money invested in them.
Governance and Financial Viability
Boards must run the organisation well, manage risk, follow the law and stay financially viable. The regulator grades governance G1 to G4 and viability V1 to V4.
Applies to private registered providersValue for Money
Providers must have a clear approach to getting value from their resources, set targets and publish how they’re doing against them each year.
Applies to private registered providersRent Standard
Rents for social and affordable homes must be set and raised within the government’s rent policy. Mistakes can mean refunds to tenants.
Applies to all registered providers, including councilsWhat it means for residents
- A landlord that stays financially sound, so homes are maintained and investment keeps coming
- Rent that’s set fairly and within the rules
- Money spent where it makes the most difference to homes and services
What it means for your organisation
- A board that can show how it gets assurance across consumer and financial risk
- Stress-tested business plans that account for spending on stock and safety
- Accurate rent setting, checked and evidenced
Consumer failings can affect a governance grade. If a board doesn’t know about serious problems with homes or services, the regulator may question whether governance is working.
Economic standards: common questions
What are the economic standards?
There are three: the Governance and Financial Viability Standard, the Value for Money Standard and the Rent Standard.
Do the economic standards apply to councils?
Councils are covered by the Rent Standard only. Governance, viability and value for money apply to housing associations and other private registered providers.
What do G and V grades mean?
Grades 1 and 2 mean the provider meets the requirements, with grade 2 showing some areas need improving. Grades 3 and 4 mean it does not meet them, and the regulator is likely to step in.
Give your board one view of consumer risk.
Be Assured board reports show how consumer standards assurance supports your governance obligations.