The HCA announced a consultation on Introducing Fees for Social Housing Regulation on Friday with a return date for comments of the 9 January.
The HCA argue that not only do they have the statutory powers to introduce fees but also that “Fee charging is a common feature of most regulated sectors and we believe it is reasonable to ask providers to contribute towards the costs of an independent regulator. There are a number of benefits of being part of a regulated sector, including lower borrowing costs and better capital weighting of debt issued to registered providers as well as the comfort stakeholders take from doing business with a regulated organisation.”
In a bid to raise £12.5m in fees against a budget of £15m the proposed fees are: £2,500 for a first registration, £300 annual fixed fee for providers with fewer than 1,000 homes and £5 per home for providers with over 1,000 homes. So if you just pass the threshold with say 1,250 homes expect annual fees of £6,250. The jump in fees seem somewhat harsh and we anticipate providers to argue for a more tapered model.
You can find out more on the Government website.