Handling complaints: landlords struggle to learn from their mistakes

When Helena Partnerships' tenants used to complain about the service they received, they'd get a prompt reply. The trouble was, it wasn't necessarily the response they were after. "We didn't have a personal approach in dealing with complaints," says performance manager Nina Peters. "We were very driven by target times. But tenants were saying to us that even if it took two days more, they'd rather wait if they got a fuller response, and they definitely needed more communication about the process. "Under our old system, it was easier for people to put complaints on the back burner. Now there's been a culture change and they are a real priority." Over the past couple of years, the housing association has completely overhauled the way it deals with complaints. The changes include everything from a new IT system to track the handling of complaints, to small but helpful measures such as making a phone call or a home visit when a tenant first raises a problem, rather than just sending out a standard letter. The new approach is paying off. Helena Partnerships is now one of just 10 social landlords across England selected by the Tenant Services Authority (TSA) as a champion for the way it works with tenants to monitor standards and improve performance. It has placed itself in pole position as the handling of complaints becomes ever more important in the housing sector. Now that housing inspections and the TSA are to be abolished, how landlords react when things go wrong will be a key element of the new regulatory regime. Tenant panels, councillors and MPs will all have a new role in looking at tenants' complaints, a set-up that's been dubbed the "democratic filter". And if complaints can't be resolved at this local level, they will go on to the Housing Ombudsman , which is to take on responsibility for councils and arm's-length management organisations on top of housing associations. Housing minister Grant Shapps has said that the new set-up means "consumer protection is going local". For landlords, the changes will bring new opportunities to learn from mistakes and to drive up standards. But there will also be new risks, especially as councillors and MPs will be sitting in judgement on the performance of social landlords. As Samantha McGrady, deputy chief executive of performance improvement organisation HouseMark puts it: "Getting your complaints handling right from the customer perspective has never been more important for landlords. It's essential to making co-regulation work; it's also critical in managing an organisation's reputation, particularly when the democratic filter is introduced." Are we getting it right? HouseMark's figures from its benchmarking service show that landlords are already reacting better when things go wrong. Satisfaction with the way complaints were handled rose from 61% in 2008-09 to 67% in 2010-11, while the average time taken to respond has fallen. Some housing providers, however, still haven't got the message. Consultant Phil Morgan, formerly executive director of the TSA, has analysed complaints policies across the sector. "Among good landlords, some had good complaints policies, some had OK ones and some had awful ones — but for bad landlords they were all awful," he says. "If your approach to consumer regulation is to base it on complaints, then if you have a bad landlord, you are also going to get a bad complaints policy." Yet deputy housing ombudsman Rafael Runco believes the housing sector is ready to continue what he calls the "process of evolution" that has seen housing associations under the ombudsman's jurisdiction viewing complaints not just as a nuisance, but as a way of driving up performance. His main concern is with local authorities, which will come under his service's remit from 2013. "We have to ensure that landlords who have put a lot of effort into this continue to be encouraged to move forward," he says. "I'm optimistic about arm's-length management organisations as generally from what I've observed they also have a very progressive philosophy and values system. Local authorities with retained stock, however, I'm not so sure about as frankly you hear some horror stories. We hope to be able to put our energy in to support those new stakeholders to see they are up to the challenge and up to scratch compared with the rest of the social housing sector. Local authorities need to concentrate on the positives and be less defensive." Runco is pleased that the government has shifted course on controversial plans to prevent tenants taking their cases directly to the ombudsman. A government amendment to the Localism Bill confirming the rethink is now expected this month. "Now we should all concentrate in the sector first and foremost on ensuring the complaints procedures of landlords continue to improve," says Runco. "We must do that by involving tenants in the formulation of those policies. And secondly, we need to make sure that councillors, MPs and panels are aware of their responsibilities." On the front line, housing providers that have made complaints a priority certainly see it as an ongoing process. Ian Shepherd is performance manager at South Yorkshire Housing Association, the latest landlord to have its complaints process accredited by HouseMark after an overhaul of what he concedes used to be an inconsistent approach. "It is part of an ongoing journey," he says. "We still get parts of the organisation who say 'Oh no, Mr So and So is complaining again'. But we recognise that complaints are the visible part of what your customers think about you and that's why they are so important." Blazing a trail: lessons from the best performers • Be pro-active in publicising your complaints procedure. Pre-empt problems by writing to tenants asking whether they need assistance with particular issues. • Make personal contact with the complainant at an early stage – and keep them well informed during the process. • Consider new ways of allowing tenants to get their voices heard. One housing provider has set up a telephone "rant line", allowing tenants to report problems out of hours. • Use more than just a standard letter to acknowledge a complaint. Set out the key issues you will be investigating. • Ensure that your complaints procedures are not intimidating to complainants, for example by including too many panel members on hearings. • Share the learning from complaints – and compliments – across your organisation. Update residents as well as the board and staff.