Six social housing providers have been added the the Regulator of Social Housing’s (RSH) Gradings under review list.
Auckland Home Solutions Community Interest Company, 3CHA Ltd, Ash-Shahada Housing Association Limited, Concept Housing Association CIC, Salvation Army Housing Association, and Brent Community Housing Limited have all been placed under regulatory scrutiny, which could see their Governance and Viability ratings being downgraded – or if they’ve yet to be graded, being judged as non-compliant in relation to the regulator’s economic standards.
Only Salvation Army Housing Association (SVHA) has existing gradings for both Governance and Viability (G2/V2), with the remaining five providers either managing fewer than 1,000 properties or managing fewer than 1,000 properties at the time of the last review.
If SVHA were to receive a downgrade for either Governance or Viability, that would place it in the realm of non-compliance (G3/G4 and V3/V4).
Governance downgrade
Elsewhere, Watmos Community Homes had its Governance rating downgraded from G1 to G2.
The RSH said Watmos’ board, which has a tenant majority, “is not currently operating at a sufficiently strategic level to ensure that the provider’s agreed strategy reflects its current activities, and that it is being delivered in a cost-effective manner.”
The regulator added: “[Watmos] needs to strengthen its assurance on the capacity and skills mix on its board…[and] needs to strengthen its stress testing to better inform its business planning.”
Watmos maintained its V2 rating for financial viability.
Governance upgrades
Meanwhile, Hightown Housing Association and YMCA St Paul’s Group have had their governance ratings upgraded.
Hightown has had its governance rating upgraded to G1, giving it an overall grading of G1/V1.
The 7,000-home association’s governance rating was downgraded last June after the RSH said it needed to “improve aspects of its risk management” and “strengthen its oversight of its landlord health and safety obligations”.
In its latest judgement, the RSH said: “[Hightown] has since made improvements in its approach to stress-testing and recovery planning and can now demonstrate that the board is drawing upon both to manage the risks associated with the delivery of its strategy.”
The RSH added that Hightown had also strengthened its reporting of health and safety matters “to enable clearer board oversight of performance and management”.
The RSH said Hightown has “an adequately funded business plan, sufficient security in place, and is forecast to continue to meet its financial covenants under a wide range of adverse scenarios”.
YMCA St Paul’s Group’s Governance rating has also been upgraded to G1, giving it an overall G1/V2 grading.
In another judgement published today, Central and Cecil (C&C), which owns roughly 1,800 homes in London, maintained its G1/V2 grading; however, the basis for its V2 grade has changed.
The regulator said C&C’s priority is to improve its 1960s stock, adding that it needs to manage “substantial development and sales exposures” to ensure the delivery of its stock-improvement programme.
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