Key Points
- The London Borough of Newham continues to face “widespread issues” with housing data and governance a year after being rated C4 by the Regulator of Social Housing (RSH).
- Capsticks LLP’s 89-page independent investigation found Newham still “has some way to go” to achieve full compliance with the regulator’s consumer standards.
- The council’s previous inspection uncovered 9,000 overdue fire safety actions and electrical tests missing for over a decade in nearly 40% of homes.
- Capsticks made 45 recommendations focusing on data consistency, accuracy, and governance improvement.
- Newham Council says it has made “significant progress” and is working with Savills to implement all recommendations.
- The council is considering entering a voluntary undertaking with the RSH that would impose binding improvement targets.
- The regulator had previously handed Newham the lowest possible consumer grade (C4) due to “very serious failings.”
- Both the law firm and council agree improvements will require a “long-term commitment to change.”
The London Borough of Newham still has “some way to go” to achieve compliance with national housing standards a year after being handed the lowest rating by the Regulator of Social Housing (RSH), an external investigation has revealed.
According to an 89-page report by legal firm Capsticks LLP, commissioned by the council and published in December 2025, significant issues remain across the authority’s housing services, particularly in data accuracy, governance, and performance reporting. The independent review examined the borough’s progress since it received a C4 consumer standards grading in 2024.
As first reported by Jack Simpson of Inside Housing, the C4 rating marked the first of its kind under the regulator’s new consumer standards framework. The rating indicated “very serious failings” and stated that “fundamental changes” were required to bring the council’s 16,000-home housing service up to compliance.
What did the Capsticks investigation find about Newham’s housing performance?
The investigation led by Capsticks found “widespread issues” across data collection, reporting, and governance frameworks. The law firm, well known for its work in public sector governance reviews, was appointed by the local authority to assess its oversight of housing services leading up to and following the 2024 RSH inspection.
As reported by Peter Apps of Inside Housing, the regulator found in 2024 that more than 9,000 fire safety remedial actions were overdue and that about two-fifths of Newham’s social homes had not undergone electrical condition testing for more than ten years.
Capsticks’ review, published in December 2025, concluded:
“Newham still though has some way to go to ensure the effective performance of its housing function and compliance with the consumer standards.”
It further warned that these weaknesses were “complex and longstanding” and that “meaningful improvement will require sustained effort and resource over time.”
Why did Newham receive a C4 grading from the regulator?
In 2024, the Regulator of Social Housing (RSH) downgraded Newham’s consumer standards rating to C4 — the lowest possible level — after uncovering critical safety and compliance failings. The decision followed inspections that exposed severe shortcomings in property management and recordkeeping across the council’s housing stock.
As reported by Jess McCabe of Inside Housing, the C4 grade indicated “very serious failings” within the local authority, with the regulator emphasising that “fundamental changes” were necessary. At the time, Newham became the first council to be issued this grade since the introduction of the new standards.
The regulator’s findings spurred a full remediation effort by Newham, which pledged to overhaul its data systems, governance structures, and resident engagement practices.
What are the main recommendations made by Capsticks?
Capsticks LLP made a total of 45 recommendations designed to address persistent problems in Newham’s housing services. These span data consistency, performance tracking, and oversight arrangements.
Among the report’s priorities are:
- Strengthening data accuracy and ensuring unified systems across departments.
- Standardising performance reporting for decision-making transparency.
- Implementing robust follow-up mechanisms for Key Performance Indicators (KPIs).
- Reviewing the council’s housing service delivery model.
Capsticks investigators noted that while Newham had begun digitalising housing data and increasing resident engagement, gaps still existed. The report calls for “consistency and quality assurance throughout the housing function” to avoid failures seen in previous inspections.
The firm cautioned that fixing these structural issues “will not be a quick fix, but rather a long-term commitment to change.”
How is Newham Council responding to the findings?
Newham Council says it is taking the report seriously and has already made “significant progress” toward compliance. In council meeting papers from December 2025, officials confirmed that housing advisors from Savills are working alongside the local authority to implement every recommendation made by Capsticks.
A Newham Council spokesperson, quoted by Inside Housing, said:
“Capsticks LLP has undertaken an exhaustive process over the past 12 months, examining governance, corporate reporting and oversight arrangements for housing services. Their conclusions closely match what the council itself identified as it responded to the regulator’s requirement to produce a Housing Services Improvement Plan.”
The spokesperson added that the council may soon enter into a legally binding voluntary undertaking with the RSH, which would impose clear targets and timeframes to drive compliance.
Officials argue that the authority has already improved oversight processes, rolled out new data management tools, and improved communication with tenants regarding maintenance and safety concerns.
In an update presented to councillors, the local authority described its progress as “significant,” highlighting areas such as void management, health and safety, and complaint turnaround times.
What does this mean for residents and the future of council housing in Newham?
For many residents, the Capsticks report reflects both ongoing frustration and cautious optimism. Longstanding residents have expressed relief that the issues are now being addressed transparently but remain sceptical about timelines.
As reported by BBC London News, tenants had previously raised safety concerns about unresolved repairs, delayed gas checks, and incomplete fire door replacements following the Grenfell tragedy. Resident groups told reporters that while visible progress is encouraging, the community expects faster, more transparent communication and urgent attention to high-risk maintenance.
Housing analysts suggest the situation in Newham underscores a wider national challenge. Many councils face similar pressures from ageing housing stock, limited budgets, and rising compliance standards after the government’s renewed focus on consumer safety within social housing.
According to The Guardian’s Robert Booth, the case at Newham could serve as a “benchmark for how regulators and councils work together to rebuild trust” in public housing.
Is the council confident it can achieve full compliance soon?
While Newham Council remains publicly optimistic, both internal and external reports caution that lasting improvement demands continued investment and leadership commitment.
As noted by Capsticks LLP, some governance failings date back more than a decade and cannot be rectified overnight. The firm warned that sustained monitoring from the RSH and a “clear accountability framework” will be crucial to ensure consistent improvement.
A council representative told Inside Housing that the borough remains “fully committed to transforming housing services and ensuring every resident lives in a safe, well-maintained home.”
The RSH is expected to conduct follow-up monitoring later in 2026 to assess progress. However, no official timeline for restoring the borough’s compliance grade has been released.
