The Regulator of Social Housing (RSH) has taken enforcement action against Concept Housing Association over serious failings in the way it is run.
The regulator said Concept had failed to address its concerns over a sustained period. It described the association’s approach to business planning as weak and its risk management as inadequate.
RSH also said Concept could not demonstrate that its arrangements with external organisations were appropriate. It added that social landlords must act in the best interests of tenants, not external organisations.
The regulator said it no longer had confidence in Concept’s long-term viability or its ability to protect tenants’ homes from undue risk. It pointed to a significant financial deterioration in recent months, and said Concept’s financial statements were more than a year overdue.
RSH said it had pushed Concept to address the issues but the association had repeatedly failed to do so. It is now using its powers to require Concept to:
- Commission a third-party insolvency expert to develop a wind-down plan, setting out the steps needed to protect tenants if its financial position worsens further
- Obtain an independent review of board and executive skills to identify gaps, and produce a plan rapidly afterwards to address them
- Give RSH evidence and independent assurance that it is meeting health and safety obligations for all its social homes, and that a plan is in place to address any issues
- Use these independent reviews to produce a credible improvement plan that demonstrates a clear route to compliance
RSH said it would take further action if Concept failed to comply.
RSH chief executive Jonathan Walters said: “Our standards set vital protections for social housing. Landlords need to be well run and financially viable, so they can ensure tenants’ homes stay in the social housing sector.
“Concept has failed to address our concerns and hasn’t put things right despite our intensive engagement.
“We will not accept this. So today we are using our powers to make Concept address its widespread failings.”
RSH also announced that it is investigating matters that may indicate serious failings at Hexagon Housing Association in delivering the outcomes of the Governance and Financial Viability Standard.
Hexagon has been added to the regulator’s gradings under review list. The outcome of the investigation will be confirmed in a regulatory judgement once it is complete.
Image: mapo_japan/Shutterstock
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