The Regulator of Social Housing has found that London housing association East End Homes is non-compliant with the governance element of the economic standards and downgraded it to G3 status.
Following an in-depth assessment and investigation, the regulator concluded that East End Homes does not have adequate governance, risk management, or control frameworks in place.
In addition, the regulator does not have assurance that the provider’s board has managed the organisation with appropriate skill, independence or foresight.
East End Homes has failed to demonstrate that it is appropriately identifying and managing its risks, according to the regulator.
Further, issues with the provider’s data have resulted in a “weak” understanding of its tenants’ homes, with the regulator stating that it is unable to provide assurances that it meets the Decent Homes Standard.
As a result of the regulator’s investigation, East End Homes has commissioned external consultants to develop an improvement plan and an asset management strategy.
It is also carrying out condition surveys of its tenants’ homes.
The landlord maintains its compliant status for financial viability, which currently sits at a V2 rating.
East End Homes is a community-led social housing provider based in the London Borough of Tower Hamlets.
Board ‘weaknesses’
Harold Brown, the Regulator of Social Housing’s senior assistant director for Investigations and Enforcement, said: “Our investigation found issues in the way that East End Homes is run, including weaknesses in its board, an inadequate approach to risk management, and poor-quality data on its tenants’ homes.
“East End Homes is working to improve the way it is governed, and we will continue to monitor the provider as it works to return to compliance.”
Kevin Moore, chair of the East End Homes board, said: “While we are very pleased to retain our V2 rating, we are obviously disappointed our governance rating is now a G3.
“Through the regulatory process our board and executive have been fully transparent, engaged with the regulator’s concerns, and have prioritised actions to ensure East End Homes move back to a G1 rating as swiftly as possible.
“Prior to the IDA, we had commissioned a comprehensive external governance review – this was completed earlier this year, many of the recommendations have already been actioned, and we expect all improvements to be in place this year.
“A good example is that we have already strengthened the quality of our data, having completed a survey of 50% of our stock, with the remaining 50% to be captured in the next 12 months.
“This, coupled with our extensive proxy measures, including our strong local presence on estates, has helped to further validate our fully costed and sustainable asset management strategy.
“The regulator’s confirmation of our V2 rating signals that our agreed financial plan supports our strategy, which has prioritised building safety, stock decency, and energy efficiency.
“The board carefully monitors our financial performance to ensure that we remain in a good place to achieve our strategic objectives and to provide a local housing service which meets the needs, priorities, and aspirations of all our residents.”
Image credit: Bacho/Shutterstock
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