Rochdale Boroughwide Housing (RBH) will no longer receive an expected £1m from the Affordable Homes Programme (AHP) following the death of a toddler.
The decision comes after a coroner ruled that the respiratory condition which caused Awaab Ishak’s death was a result of exposure to mould in his home.
Michael Gove, Secretary of State of Levelling Up, Housing and Communities, branded tens of thousands of homes “unsafe” and said he would consider stripping existing funding where construction hasn’t yet started.
Mr Gove will also prevent any new AHP contracts for new homes until the Regulator of Social Housing has concluded its investigation and can prove RBH is a responsible landlord.
He said: “RBH failed its tenants so it will not receive a penny of additional taxpayers’ money for new housing until it gets its act together and does right by tenants.
“Let this be a warning to other housing providers who are ignoring complaints and failing in their obligations to tenants. We will not hesitate to act.
“Everyone deserves the right to live in a safe, decent home and this government will always act to protect tenants.”
This comes after Mr Gove wrote to all councils and housing associations insisting they raise the bar on standards and act urgently when people complain about damp and mould.
The Regulator of Social Housing has also demanded evidence from local authorities and associations proving that they are dealing with these issues. They will then take action where standards are not being met.
Speaking on BBC Breakfast about the future of RBH, Mr Gove said the Housing Association had “failed” but there are signs the provider knows it needs to improve.
RBH recently announced their decision to remove Gareth Swarbrick as Chief Executive with immediate effect and said they are “committed” to sharing what they have learnt.
They also expressed sadness and devastation at the death of Awaab Ishak and said they must ensure “it never happens again”.
