East Midlands landlord returns to top governance grade after nearly three years

However, following a lengthy period of “responsive engagement”, the RSH said it now has assurance that Tuntum’s governance arrangements “enable it to effectively manage its risks and adequately control the organisation, allowing it to deliver its objectives”.

Last August, Tuntum appointed Longhurst Group executive Charmaine Simei as its new boss. She was a replacement for Richard Renwick, who had led Tuntum for nearly 30 years.

In its judgement today, the RSH said: “Changes in the leadership and development of Tuntum’s board have added organisational capacity and improved the oversight and management of risks. 

“In particular, health and safety risks to its tenants, the safeguarding of tenants, and understanding of the quality of its homes are areas where Tuntum has evidenced improvements.”

The regulator also flagged that the landlord had invested in “improving the use and presentation of data on its tenants and homes, and in the quality of reporting to its board”.

The judgement added: “We have also observed improvements in the board’s approach to carrying out its responsibilities, including how board members proactively challenge the executive team and seek assurance over Tuntum’s approach to managing key risks.”

Tuntum has also retained its compliant V2 status for financial viability. 

The regulator said it has assurance that the group’s financial plans are “consistent with, and support, its financial strategy”. 

However it added: “[Tuntum] is operating with a low level of financial headroom, and has plans to increase debt to fund its ongoing development. 

“These factors reduce Tuntum’s capacity and flexibility to cope with downside risk and require ongoing management to ensure continued compliance.”

In its last reported full year to the end of March 2023, the group posted a surplus of £593,000 on a turnover of £10.3m. 

In response to the judgement, Ms Simei said: “We are really encouraged that our hard work and renewed focus has resulted in a strengthened governance framework which has been reflected in our regrading. 

“As an incoming CEO the responsive engagement process with the regulator over the last few months has been an invaluable experience.”

Tuntum is also launching a new corporate strategy “in the coming weeks”, she added.