Arun District Council becomes third local authority to get ‘C4’ rating

Arun District Council has been handed the lowest possible grade for consumer regulation after the Regulator of Social Housing discovered ‘very serious failures’ in its service.

arun district council

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Arun District Council in west Sussex has judged ‘C4’

The West Sussex council, which manages 3,500 homes, was found to have 2,500 open and overdue repairs cases and nearly 1,000 overdue fire risk assessment remedial actions.

RSH said: “In respect of fire safety, Arun could not demonstrate that it is adequately managing and mitigating fire safety risks to tenants.” RSH said that of the 1,000 fire risk assessment remedial actions that were overdue, more than 700 were categorised as high or very high risk and overdue for more than 12 months.

It added: “Arun does not have approved plans in place to address the outstanding fire remedial actions and is unable to provide evidence of how it is mitigating fire safety risks.”

More than half of its homes were found not to have smoke detectors and the council does not expect to reach compliance in this area until May 2027. RSH found a lack of meaningful opportunities for tenants to scrutinise performance and influence services and it also failed to provide evidence that it is taking prompt and appropriate action in response to anti-social behaviour cases and hate incidents.

RSH also identified serious failings meeting the required outcomes of the Tenancy Standard. It said: “Through the inspection, we saw no evidence that Arun was offering tenancies or terms of occupation that were compatible with the purpose of its accommodation, the needs of individual households, the sustainability of the community, and the efficient use of its housing stock.”

A ‘C4’ rating means there are very serious failings in the landlord delivering the outcomes of the consumer standards. It must make fundamental changes so that improved outcomes are delivered.

RSH said the council has been engaging constructively and it expects it to “develop a comprehensive plan that will drive fundamental change across all of the areas identified, and to share that with tenants.”

>>See also: Why are councils getting low consumer regulation gradings?

>>See also: L&Q governance rating downgraded one notch to still-compliant ‘G2’

It said it is not at this stage proposing to use its enforcement powers but will keep this under review.

The council is only the third local authority to be awarded a ‘C4’ grading since the new consumer regime came into force in April 2024, following judgements for Castle Point Borough Council and Newham Council.

RSH said: “Although Arun DC has indicated a willingness to address these serious failings, we have not yet seen evidence to sufficiently assure us that it understands the potential risks to tenants and of its ability to put matters right, including taking prompt action to gain assurance that tenants are safe.”

An Arun District Council spokesperson said: ”We are fully committed to addressing all areas highlighted in the judgement. Rectifying these issues is our top priority, and we are taking immediate steps to ensure our tenants are safe and living in satisfactory housing conditions.”

In other judgements today, housing association giant L&Q and 7,000-home Saxon Weald both had their governance rating downgraded by one notch to a still compliant ‘G2’, meaning they need to improve aspects of its governance.

Stonewater’s financial viability rating was downgraded from ‘V1’ to a still compliant ‘V2’. The RSH said: “With increased spending on existing homes, Stonewater has reduced capacity to manage adverse events.”

A Stonewater spokesperson said: ”While Stonewater’s financial position remains strong, it reflects the challenges facing the wider sector, including higher interest rates and investment in repairs and maintenance, as well as our conscious decisions to prioritise investment in our existing properties

”This judgement reflects Stonewater’s financial capacity to deal with a reasonable range of adverse scenarios. We are committed to ensuring that Stonewater remains financially strong and resilient, with the agility and resource to respond to opportunities as they arise.”

RSH also confirmed the removal of the 2023 regulatory notice for Harrow Borough Council which found that it had failed to meet statutory health and safety requirements for electrical and water safety, as those issues have now been resolved.

Kate Dodsworth, chief of regulatory engagement at RSH, said: “Social landlords need to have a strong understanding of their tenants’ homes and ensure that all homes are of a decent standard. Equally, boards must maintain oversight and robust financial governance in order to provide good quality homes and services to tenants.

“We will continue to keep social landlords under close scrutiny through our inspection programme and wider regulatory engagement. We continue to reinforce the importance of self-referrals by landlords, which enables issues to be resolved more quickly. ”

Latest regulatory judgements

LandlordConsumerGovernanceViabilityEngagement Process
Arun District Council C4 - - Inspection
Citizen Housing Group C1 G1 V2 Inspection
Hexagon Housing Association C2 G2 V2 Inspection
London & Quadrant Housing Trust C2 G2 (downgrade) V2 Inspection
Royal Borough of Kensington and Chelsea C3 - - Inspection
Saxon Weald C2 (based on previous assessment) G2 (downgrade) V2 (based on previous assessment) Responsive Engagement
Stonewater C2 G1 V2 (downgrade from V1) Inspection