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The True Cost of Awaab’s Law Non-Compliance: Legal Risk, Reputational Damage, and Unplanned Spend

When Awaab Ishak died in December 2020 following prolonged exposure to mould in his home, the tragedy cut through the sector. It was not framed as a technical compliance failure or a performance issue. It was a human failure. The legislative response, now known as Awaab’s Law, sits within the wider reforms of the Social Housing (Regulation) Act 2023 and the subsequent prescribed requirements regulations that set out what landlords must do, and by when.

For social housing providers, the conversation has shifted. Compliance is no longer about good practice and internal targets. It is about legal timelines, enforceable rights, and the ability to evidence action. The true cost of getting this wrong is becoming clearer with every Ombudsman determination, every investigation, and every story that reaches the public.

Awaab’s Law Compliance Risk Is No Longer Theoretical for Social Landlords

Awaab’s Law creates binding expectations around the management of hazards, starting with damp and mould and then expanding into other HHSRS categories between 2026 nand 2027. The direction of travel is clear in the UK Government’s Awaab’s Law guidance for social landlords and the framework behind it in the Hazards in Social Housing (Prescribed Requirements) (England) Regulations 2025.

Miss prescribed deadlines and landlords face legal challenge, enforcement activity, and escalating cost. What starts as a repair can quickly become a claim, a complaint, and a reputational event.

A review of 100 published Housing Ombudsman damp and mould determinations by Mobysoft shows that compensation is rarely insignificant. The average award sits at £3,079, with the highest single award exceeding £9,000. But compensation is only the visible portion. Once legal costs, remedial work, inspections, and decanting are factored in, the average spend per home can climb to £8,682, with total cost exposure often much higher.

In a climate of rising regulatory scrutiny, these figures reflect more than isolated service failures. They demonstrate the financial consequences of non-compliance with Awaab’s Law.

Poor Housing Data Governance and Record Keeping Drive Regulatory Failures

Across Housing Ombudsman investigations, one theme emerges repeatedly. Weak data governance and poor information management underpin maladministration findings. The Ombudsman has reported that in two-thirds of upheld repairs cases, poor records or information management played a pivotal role. That finding appears in the Ombudsman’s Spotlight on Knowledge and Information Management Follow-Up Report.

In practical terms, this means landlords are unable to evidence when hazards were reported, what action was taken, and whether legal timeframes were met. In an environment where Awaab’s Law introduces fixed deadlines, the absence of reliable data becomes a direct compliance risk.

Many organisations still rely heavily on legacy Housing Management Systems designed for operational transactions rather than regulatory assurance. Fragmented data, inconsistent definitions, and siloed workflows make it difficult to surface emerging risks in real time. As regulatory expectations intensify, reliance on incomplete or poorly governed data becomes a material governance issue.

A wooden gavel rests on a red book titled "OMBUDSMAN: Complaints Investigation & Dispute Resolution," with a small scale of justice icon above the text. The image evokes themes of law and justice, echoing recent social housing news about dispute mediation and resolution. ©Mobysoft

Housing Ombudsman Investigations and Reputational Risk in Social Housing

The Housing Ombudsman continues to increase scrutiny through special investigations and published determinations. Its broader work on complaint handling and hazard management is outlined in its Guidance on Complaints Involving Hazards.

Once a case escalates into a public finding of maladministration, the consequences extend beyond compensation. Public confidence can erode quickly. Regulators may increase scrutiny. Boards face difficult questions about oversight and culture.

For social landlords operating under heightened consumer regulation, reputational risk is now closely tied to compliance performance. Poor handling of damp and mould or other HHSRS hazards can quickly evolve into a narrative about systemic weakness rather than operational oversight.

Social Housing Finance Pressures Increase the Cost of Awaab’s Law Non-Compliance

The Regulator of Social Housing’s Global Accounts 2025 confirm the scale of financial pressure facing the sector. Repairs and maintenance spend rose by 13 percent to £10bn. Forecasts suggest sustained high investment in existing homes. Sector debt has climbed to £105.4bn.

On the surface, these figures demonstrate resilience and continued investment. Beneath them, they reveal tightening margins and reduced tolerance for unplanned expenditure.

At the same time, income collection and arrears performance are increasingly recognised as strategic levers for financial resilience. Rental income underpins service delivery, investment in stock, and regulatory confidence. In this context, avoidable legal costs and compensation linked to Awaab’s Law non-compliance represent preventable financial leakage. Compliance failures are no longer isolated operational issues and are now in fact balance sheet risks.

Expanding HHSRS Hazard Requirements Under Awaab’s Law Increase Compliance Complexity

From October 2025 onwards, landlords must address emergency hazards and significant damp and mould cases within prescribed timeframes. In 2026 and 2027, Awaab’s Law extends to a broader range of HHSRS hazards, as reflected in updates from sector bodies such as the Chartered Institute of Housing.

Each additional hazard category introduces new investigation thresholds, reporting requirements, and overlapping compliance timelines. Managing these concurrent KPIs across thousands of homes requires more than reactive reporting.

Without integrated oversight, landlords risk missed deadlines, inconsistent performance data, and weakened audit trails. As hazard categories expand, the operational complexity of social housing compliance increases significantly.

Board Assurance and Governance Expectations in the Era of Awaab’s Law

Governance expectations are rising alongside regulatory reform. Boards are expected to have clear line of sight into compliance risk, data integrity, and hazard management performance.

Investigations have shown that gaps between reported KPIs and operational reality can undermine regulatory confidence. Weak oversight of data quality, fragmented dashboards, and unclear risk escalation pathways weaken assurance at board level.

The sector’s purpose remains clear, as reinforced in the National Housing Federation’s Strategic Review. Delivering safe, good quality homes with good services is central to long-term success. Under Awaab’s Law, that purpose is underpinned by enforceable legal standards.

In this environment, Awaab’s Law compliance becomes a measure of organisational character. Providers that invest in strong housing data governance, proactive risk management, and clear board assurance frameworks are better positioned to protect tenants and safeguard financial resilience.

The alternative carries a far higher cost.

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