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Regulator finds serious failings in City housing standards

  • February 27, 2026
  • 4 min read
Regulator finds serious failings in City housing standards

The Regulator of Social Housing has issued a C3 grading to the City of London Corporation following an inspection report published on Tuesday, concluding that serious failings were identified in how the authority delivers required housing standards across its estates.

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The judgement places the Square Mile’s governing body under formal pressure to accelerate improvements for thousands of residents living in properties it manages both within the City and across several London boroughs. A C3 rating means the regulator considers that significant improvement is required in meeting consumer standards.

The Corporation oversees 12 housing estates in the Square Mile and a further six estates beyond it. It has committed more than £300 million to a long-term upgrade programme, including a £211 million funding package agreed in December alongside an earlier £110 million investment plan. Planned works include upgrades to kitchens, bathrooms, heating systems, lifts, roofs, fire safety measures, electrical compliance and communal areas.

The inspection forms part of a national regulatory programme assessing whether social landlords meet required consumer standards. While the report identified serious failings, it also recorded evidence of improving performance and acknowledged the scale of the recent funding package.

The City Corporation said it accepts the findings in full and had already self-referred to the regulator last summer after identifying backlogs in electrical safety testing and outstanding fire risk actions. It described the issues as historic and linked them to longstanding underfunding and rising building safety requirements affecting the wider social housing sector.

Policy Chairman Chris Hayward said the authority was determined to meet required standards and described the funding package as a significant investment in residents’ safety and comfort. Helen Fentimen, chair of the Community and Children’s Services Committee, said a ten-year transformation programme was under way to address historic under-investment.

The C3 grading carries reputational implications for the City Corporation and places regulatory oversight on the pace of its improvement plan. For residents, the test will be whether the scale of investment translates into measurable improvements in safety, maintenance and day-to-day service.

For continued coverage of housing standards, local government accountability and policy developments across the Square Mile and beyond, follow EyeOnLondon.

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