Homelessness charity and Cambridgeshire provider upgraded for governance

In a previous assessment of the provider in November 2016, the RSH found that St Mungo’s needed to strengthen aspects of its governance arrangements, particularly its internal “control and compliance environment, and board oversight of key risks, including health and safety”.

Following a stability check and reactive engagement, theRSH has concluded that since that previous assessment, St Mungo’s has enhanced its governance oversight and made a number of improvements to its risk management and internal control assurance framework, as well as the quality of its data returns to the regulator.

The RSH wrote: “Oversight and management of health and safety is now comprehensive and extends to leased properties. It is supported by a regular audit of the health and safety control environment.

“Compliance at all levels has been improved through delivery of an organisational culture action plan, informed by an independent review. This has been evidenced by improved systems, accountability and monitoring.”

On viability, St Mungo’s remains at compliant V2, and the RSH found that there remain risks that St Mungo’s needs to manage.

“Whilst there is access to significant cash, a proportion of this is ringfenced for specific projects limiting St Mungo’s ability to utilise these funds to manage adverse risks.”

St Mungo’s has been contacted for comment.

Hundred Houses Society

HHS was upgraded to G1/V1, following a reactive engagement, after the RSH found that the provider had “made the necessary improvements” to aspects of its governance highlighted in a previous regulatory judgement in July 2018.

“Its new leadership team is now established and effective asset management arrangements have been introduced and embedded. HHS now has a clear asset management strategy. Following a stock condition survey the board has appropriate data to inform strategic planning,” the RSH wrote.

On financial viability, HHS has refreshed its stress testing and associated mitigations, and “put in place new facilities in accordance with a clearly articulated timetable”, the RSH found, earning it the top rating of V1.

Matt Thomas, chief executive of HHS, said: “[This] represents really positive external validation for all the improvements that have taken place at Hundred Houses over the past few years and provides a great foundation for our future.”

Thrive Homes

After an in depth assessment, the regulator has upgraded the viability score of Thrive Homes, which owns and manages around 4,600 homes in South West Hertfordshire, Bedfordshire and Buckinhamshire. Thrive moves to V1, from V2, and also maintains its G1 rating for governance.

In an improvement from the "weaker future performance" forecast at the time of its last regulatory judgement as a result of an increased debt burden, Thrive’s latest plan and stress testing demonstrates "greater financial capacity to manage its risks", the RSH said.

Thrive Homes chief executive Elspeth Mackenzie said: “Over the past two years our plans have matured, supported with additional funding. This has reassured the regulator that we have the financial capacity and security to manage our future growth.”

Also in a narrative regulatory judgement this morning, Orbit group maintained its existing G1/V2 ratings, but with a changed basis for the viability grade.

The RSH stated: “While treasury management changes since the last regulatory judgement have improved Orbit’s financial capacity, its development strategy remains predicated on cross-funding between affordable provision and a debt-funded market sales programme.

“This gives rise to risks and exposures which Orbit has identified and which it will need to continue to manage.”

Orbit has been contacted for comment.

In an interim regulatory judgement, following its acquisition of Arcon, Bolton at Home has had its existing grades confirmed, at G1/V2.

The regulator has also confirmed the existing grades of the following providers.

• Aster (G1/V1)
• Gateway Housing (G1/V1)
• Incommunities (G1/V1)
• Places for People (G1/V1)
• Selwood Housing Society (G1/V1)
• Settle (G1/V1)
• Soha Housing (G1/V1)

In separate publications from the regulator this morning, three providers have been downgraded for governance, and two regulatory notices have been issued concerning breaches of the Home Standard.