Housing Leadership at the Crossroads: How Local Authorities Can Hire and Retain Outstanding Leaders in 2026
- truthaboutlocalgov
- Jan 8
- 8 min read
Executive summary
2026 is a pivot year for social housing leadership. Record levels of temporary accommodation, a tightening consumer‑regulatory regime, Awaab’s Law timeframes, the Building Safety Levy, large‑scale decarbonisation programmes and the Renters’ Rights Act (abolishing Section 21 and moving tenancies to periodic) will materially reshape the role and risk profile of local authority housing leadership teams. Competing successfully for talent in this environment requires: (1) an updated leadership capability framework aligned to these reforms, (2) compelling, values‑driven employee value propositions (EVPs) underpinned by flexible work and professionalisation pathways, and (3) robust succession planning that blends permanent, fixed‑term and targeted interim leadership.
Why 2026 is a turning point
Temporary accommodation (TA) at record highs. Official statistics confirm 131,140 households and 169,050 children in TA in England as at 31 March 2025 both all‑time records. Sector bodies highlight the same figures and stress the scale of pressures on councils.
Financial pressures from TA and LHA rules. The Local Government Association projects a cumulative £3bn subsidy gap by 2029/30 because councils can only reclaim up to 90% of 2011 LHA rates for TA housing benefit. Analysts note the annual gap rising towards ~£400m/year without reform.
London homelessness spend. London boroughs are now spending ~£5.5m per day on homelessness (c.£5m/day on TA), up 42% year‑on‑year, underlining the acute cost escalations facing the capital.
Awaab’s Law – phase‑in from October 2025. From 27 Oct 2025, social landlords must investigate and make safe emergency hazards within 24 hours and act to fixed timeframes on significant damp and mould; scope widens in 2026 to hazards including excess cold/heat, falls, fire, electrical.
Social Housing Regulation Act – stronger consumer standards and professionalisation. New consumer standards came into force 1 April 2024 with proactive inspections and strengthened enforcement. The Competence and Conduct Standard is due October 2026 with a 3‑year transition (4 years for smaller providers) requiring senior housing managers and executives to hold or work towards specified qualifications.
Building Safety Levy – from 1 October 2026 (draft regs). Levy payable on most new residential developments at £/m² (with discounts on brownfield) will affect viability and HRA business cases; the Government targets ~£3.4bn over 10 years.
Decarbonisation – Warm Homes: Social Housing Fund (formerly SHDF) Wave 3. Government confirmed £1.29bn core allocation for 2025–2028, with wider announcements totalling ~£1.8bn across social and local grant routes, aimed at upgrading stock below EPC C by Sept 2028 (match‑funding and programme delivery capacity required).
Private rented sector reform – Renters’ Rights Act (RRA). From 1 May 2026, Section 21 is abolished and all ASTs convert to periodic; councils receive enhanced investigatory powers and new possession frameworks apply. Sector guidance and landlord bodies have published detailed timelines.
Implication: 2026 will compress compliance, safety, retrofit, homelessness and PRS‑enforcement workloads into the same window demanding leaders who can govern risk, mobilise delivery at pace, and still keep tenants’ experience central.
What “outstanding housing leadership” looks like in 2026
Use a capability framework specific to the 2026 context. Below are eight capabilities and why they matter now.
Regulatory assurance & tenant safety
Leaders must internalise the new consumer standards (safety & quality, transparency, neighbourhood & community, tenancy) and be inspection‑ready, while operationalising Awaab’s Law time limits with credible triage, response and record‑keeping.
Compliance culture & professionalisation
Directors must build organisational pathways to the Competence and Conduct Standard policy, CPD, CIH‑aligned qualifications and ensure contractors/agents working on the authority’s behalf also meet requirements.
Homelessness systems leadership
With TA at records and LHA gaps widening, leaders must pivot to prevention‑first models, reduce nightly paid/emergency placements, and pursue cross‑system interventions (e.g., PRS access, leasing, and debt prevention).
PRS regulation & legal literacy
From May 2026, authorities’ casework and enforcement will change as Section 21 ends and tenancies move to periodic; leaders must anticipate knock‑on operational impacts (e.g., prevention caseloads, Section 8 advice, rent increase processes).
Building safety & development viability
Expect Levy costs to feed into scheme viability and HRA plans; leaders must work with planning, finance and developers to phase applications and manage the levy interface.
Decarbonisation programme delivery
Wave 3 funding is significant but match‑funded, KPI‑driven and time‑boxed to Sept 2028; leaders must stand up multi‑year retrofit PMOs, supply‑chain capacity, and tenant engagement for EPC‑C+ uplifts.
Data & performance management
The regulator expects better data on stock condition and outcomes; Housemark’s Pulse shows complaint volumes up and TSMs stabilising leaders must modernise data pipelines to evidence compliance and improve services.
Workforce strategy & succession
Public‑sector surveys report easing recruitment versus 2022 but continuing shortages and weak succession planning; outstanding leaders will “grow your own”, widen entry routes, and design hybrid‑flex models that retain specialists.
The 2026 talent market: what you’re competing with
Recruitment challenges are easing, not gone. State/local workforce surveys show fewer “hard‑to‑fill” roles than 2022, but succession gaps remain and only ~4 in 10 employers have tangible succession elements in place.
Housing‑sector churn and scarcity. Recent sector analyses found frontline turnover elevated, with landlords competing for a small pool of skills, especially where pay lags market rates. Employers are raising salaries and using flexible work to attract/retain talent.
Pay context. NJC pay spines rose again for 2025/26; senior local authority packages vary widely, with external benchmarking for “Director of Housing” typically showing upper‑tens to low‑six figures, depending on scope, geography and market conditions. Use local market data plus NJC frameworks when setting bands.
Role design in 2026: the leadership structure that works
Recommended structure (unitary/metropolitan context)
Director of Housing & Building Safety (statutory accountability for consumer standards, Awaab’s Law oversight; SRO for Building Safety compliance).
Assistant Director – Homelessness & TA Reduction (prevention‑led strategy; PRS access; commissioning and contract governance).
Assistant Director – Asset Strategy & Decarbonisation (stock condition intelligence, EPC‑C+ programme, resident engagement, net zero roadmap).
Assistant Director – Neighbourhoods & Customer Experience (TSMs performance, complaints learning culture, anti‑social behaviour, estate services).
Head of PRS Enforcement & Tenancy Relations (RRA implementation; illegal eviction enforcement; landlord/tenant education).
Why this works: It aligns single‑point accountability to the four consumer standards and clusters the 2026 risk hotspots (Awaab’s Law, Retrofit, TA/PRS). It also clarifies SROs for funding and regulatory conversations.
2026 hiring playbook: how to attract the best
Advertise the mission and the mandate
Lead with the real‑world scale of the challenge (record TA, regulatory reset) and the authority’s investment in solving it (funding routes, programme PMO). This resonates with purpose‑driven leaders and aligns with regulator expectations around safety, transparency and tenant influence.
Make the EVP unmistakeable
Professionalisation support: funded routes to CIH Level 4/5 for those in scope of the Competence and Conduct Standard, with protected learning time and mentoring.
Flexible and hybrid work: sector surveys link flexible work to higher productivity and better recruitment outcomes codify this for senior roles where practicable.
Salary and package
Benchmark using NJC pay spines plus local market comparators; consider targeted recruitment/retention premia (time‑limited), and performance‑linked elements tied to TSMs and TA reduction milestones.
Assessment that predicts performance
Design selection around three work‑sample exercises:
Awaab’s Law mobilisation plan (first 90 days; show 24‑hour emergency hazard pathway and governance).
TA reduction and PRS strategy (7‑point plan to cut nightly paid use; interface with RRA from May 2026).
Retrofit delivery risk review (Wave 3 portfolio risks, supply chain and tenant engagement plan).
Inclusive search
Use values‑based shortlisting to broaden the field and avoid over‑indexing on one pathway (e.g., only development or only homelessness background). The regulator’s new approach prioritises outcomes for tenants, not tenure of service alone.
Interview blueprint (sample questions you can lift and use)
Safety & compliance: “Walk us through your Awaab’s Law operating model how will you guarantee the 24‑hour emergency hazard response across 10,000 homes in winter?” (probe: triage, contractor SLAs, decant thresholds, record‑keeping).
Consumer standards: “How will you evidence compliance against the Safety & Quality and Transparency, Influence and Accountability standards within six months?” (probe: data, TSMs, complaints learning).
Homelessness & PRS: “TA is at a record high. You have 12 months: what specific interventions reduce TA by 15% while RRA changes go live on 1 May 2026?” (probe: PRS leasing, prevention triage, Section 8 readiness).
Decarbonisation: “How would you phase Wave 3 works to hit Sept 2028 completion with minimal decant and strong tenant satisfaction?” (probe: PAS 2035, supply chain, resident communications).
Building safety & development: “Demonstrate how the Building Safety Levy alters scheme viability in our HRA and how you’d respond in programme planning.”
100‑day plan for a newly appointed Director of Housing (practical)
Days 1–30: Stabilise compliance and insight
Awaab’s Law readiness review: confirm 24‑hour pathways, backlog triage rules, alternative accommodation protocol; publish a single source of truth.
Consumer standards evidence map: gap‑analysis for each new standard; confirm TSMs and complaints learning loops.
Days 31–60: Re‑profile risk and delivery
TA & prevention operating model: nightly paid reduction plan, PRS access and landlord engagement strategy ahead of RRA May 2026.
Retrofit PMO mobilisation: confirm Wave 3 pipeline, match‑funding, resident engagement calendar to 09/2028.
Days 61–100: Workforce and partners
Professionalisation roadmap: who is in scope for the 2026 Competence and Conduct requirements; fund CIH routes; launch mentoring.
Development viability: refresh business cases accounting for the Levy; sequence planning/building control submissions before/after Oct 2026 where appropriate.
Retention: keeping great leaders once you’ve got them
Purpose, autonomy and support. Surveys show flexible work and compelling missions are decisive for senior public‑sector talent. Bake in hybrid/flexible arrangements and clear autonomy within a cabinet‑approved strategy.
Professionalisation as a benefit. Fund CIH L4/L5 qualifications and CPD aligned to the Competence and Conduct Standard; recognise time spent mentoring as part of objectives.
Data‑driven recognition. Tie performance awards to TSMs, complaints resolution, arrears and voids (which have recently shown sector‑wide improvement) so leaders see line‑of‑sight between service outcomes and reward.
Succession planning that actually exists. Given evidence that most public bodies lack robust succession elements, create named deputies for each directorate objective and rotate acting‑up opportunities.
Metrics every leader should be held to (and how to report them)
Safety metrics: % emergency hazards made safe <24 hours; % damp/mould hazards triaged in 10 working days; % alternative accommodation offers where timeframes cannot be met.
Consumer outcomes: TSMs trajectory; complaint resolution within target; independent tenant scrutiny feedback.
Homelessness: TA caseload trend; nightly paid usage; prevention/relief success rates; PRS placements post‑RRA.
Retrofit: EPC‑C+ completions vs. plan; resident satisfaction with works; programme spend vs. match‑funding profile.
People: % roles in scope with CIH pathways underway; vacancy and turnover trends by sub‑function.
Risk register (top five and mitigations)
Failure to meet Awaab’s Law timeframes → Mitigation: 24/7 dispatch model; contractor escalation protocols; decant criteria; monthly audit to cabinet member.
Consumer standards non‑compliance → Mitigation: quarterly assurance panels; external “critical friend” reviews; data quality programme.
Retrofit slippage to Sept 2028 → Mitigation: multiple LOTs, framework capacity, tenant co‑design; early procurement and stock segmentation.
Levy shocks to development viability → Mitigation: pre‑Levy submissions where feasible; brownfield discounts; partnership models; live HRA scenario planning.
Post‑RRA operational surge (advice, enforcement, court activity) → Mitigation: PRS enforcement team resourcing; landlord/tenant communications; legal clinics; data dashboards for casework.
Conclusion
2026 marks a defining moment for housing leadership in local government. The convergence of record homelessness pressures, sweeping regulatory reforms, decarbonisation deadlines, and private rented sector changes will stretch organisational capacity like never before. Success will hinge on leaders who combine compliance assurance with strategic agility those able to deliver tenant safety, drive prevention-first homelessness strategies, and mobilise complex retrofit programmes while maintaining financial viability.
For local authorities, the challenge is twofold: attracting the right calibre of housing professionals and creating conditions that keep them engaged and effective. This means competitive packages, clear professionalisation pathways, and a culture that values flexibility, innovation, and tenant outcomes. With the right leadership in place, councils can turn this period of intense pressure into an era of transformation building safer homes, stronger communities, and a housing system fit for the future.
