Lease-based provider ordered to get ‘immediate’ advice on solvency and install new board

The RSH’s notice today said that immediate “solvency” advice must be sought by My Space to explore the options in a draft solvency report sent to the regulator last November. The options are its ability to trade solvently, a company voluntary arrangement or administration, the notice said.

The landlord must then develop an action plan based on the preferred choice of its board and present it to the regulator within 14 days. 

It must also get “immediate” advice on its rent compliance position, including whether it meets the definition of social housing, the RSH said. 

My Space must also appoint an “appropriately skilled, experienced and independent board” to ensure it has the capacity and governance to bring it back to compliance, the RSH said in the notice.  

The board must be in place within the next two months. 

My Space must also hire a “suitably skilled and experienced” finance director within 28 days to deliver the action plan arising from the solvency advice, the RSH said.

In addition, the landlord has been told to write to all relevant local authorities informing them that it has concluded that it does not provide specialised supported housing (SSH) for the majority of its tenants. 

It must also speak to the regulator before it makes any new “material” property transactions or “material” changes to the organisation, according to the notice. 

My Space, which has around 1,800 SSH homes across the North West, the North East, the Midlands and Wales, has previously been the subject of a BBC Panorama investigation, which looked at its financial affairs. 

Harold Brown, senior assistant director for enforcement and investigations at the RSH, said: “My Space has continuously failed to address the governance issues we have identified, including conflicts of interest with a connected property developer. It has also failed to provide assurance on its ability to meet its financial obligations.

“This is unacceptable. We are using our enforcement powers to require My Space to undertake specific actions, including the appointment of a new, independent board.

“My Space and its new board must act immediately to put things right and if necessary we will use further powers against it if it fails to do so.”

In a statement, My Space said: “The charity accepts the reasons why the regulator has taken this decision and the charity is committed to undertaking a comprehensive review of its compliance to the Governance and Financial Viability Standard.”

“The charity will continue to work with the Regulator of Social Housing to strengthen its governance and compliance to the Governance and Financial Viability Standard. 

“A robust action plan has been developed to ensure that the direction under the notice is complied with and the charity is well underway with finalising these actions to ensure that the concerns of the regulator can be resolved.”

My Space is a lessee of social housing real estate investment trusts Triple Point and Civitas. 

In a filing today, Triple Point said its investment manager is continuing to “engage actively” with My Space over “making significant improvements to its operations”.

It added: “As part of this ongoing engagement, the group will consider whether it is appropriate to put in place alternative arrangements for some or all of its properties currently leased to My Space.”

Civitas said in a filing its investment manager has "continued to engage actively with My Space", which represents 1.3% of its rent roll. 

It added: "Civitas Social Housing will continue to monitor the position closely and will determine whether it is appropriate to make different arrangements in respect of some or all of the leases held with My Space." 

My Space is one of a number of lease-based providers of supported housing that has been found non-compliant by the English regulator. 

Update: at 10.12am, 17/01/2023

This article was updated to include comment from Civitas.