Provider that sold tenanted properties returns to top grades

News30 May 2019Sarah Williams

A 20,000-home housing association previously downgraded for governance after it sold a tenanted social housing scheme to a non-charitable organisation has returned to G1.

Picture: Getty

Sharelines

Provider previously downgraded for governance for selling tenanted properties returns to top grades #socialhousingfinance #ukhousing #regulation

The regulator had concluded in its November 2018 judgement that Moat Homes had exercised insufficient oversight over the disposal of the 26 homes for older people, which it sold to a for-profit registered provider (RP).

Now, in a judgement published yesterday (29 May), the Regulator of Social Housing (RSH) has found that the London and South East-based provider has a new disposals procedure in place to support decision-making. Moat also maintains its V1 rating.

The judgement notes: “We now have assurance that an adequate framework of delegations is in place to ensure that decisions are taken at appropriate levels within the governance structure.”

Elizabeth Austerberry, chief executive of Moat, said: “We have worked hard to address the regulator’s concerns by making and embedding changes in the organisation which have not only resulted in the regrade, but which will stand us in good stead for the future.”

Industrial Dwellings Society

Another London-based provider, Industrial Dwellings Society (IDS), was also upgraded to G1.

The 1,400-home provider had previously been told in March 2017 that it needed to strengthen its approach to board recruitment and succession planning. This was particularly in relation to the principles of renewal and refreshment underlying the time limits on terms of office specified in its chosen code of governance.

The RSH said that the provider had developed and had now “fully implemented” an action plan following its previous judgement.

It added that it now has assurance that “clear processes are in place to ensure that the board is refreshed in line with its code of governance”.

IDS also maintains its V1 rating for viability. Suzanne Wolfe, its chief executive, said: “The board and executive have worked hard to ensure Industrial Dwellings Society is ready to meet the challenges of today’s housing sector and move from strength to strength.”

ForHousing

In an interim regulatory judgement, the regulator noted changes to the legal structure at North West-based ForHousing, and gave the new RP a G2 for governance, a notch down from the G1 of former registered parent ForViva.

ForHousing was created from a transfer of engagements of two subsidiaries of registered parent ForViva Group into a third, CityWest Housing Trust, in April 2019. It was then renamed ForHousing.

ForViva Group then divested its group assets – including ForHousing – into a new, unregistered parent named ForViva 2018. Because it previously had a registered parent, ForHousing has not had its own regulatory judgement before.

The RSH said that it considers the constitutional changes to be “significant”, and notes that it “does not have assurance that the previous published governance grading for ForViva remains appropriate for ForHousing Limited”.

It added: “The regulator needs additional regulatory assurance before it can publish a standard judgement.”

Henry Terefenko, ForHousing CEO said: “We have recently undertaken an organisation-wide restructure which has brought together City West Housing Trust and Villages Housing Association under one single, new landlord – ForHousing.

“We have worked with the Regulator of Social Housing throughout this process and look forward to continuing to work with tenants and stakeholders to deliver services of the highest standards, improve people’s lives and make more things possible for more people.”

Strapline judgements

In strapline judgements yesterday, the regulator also confirmed the existing grades of Cottsway Housing Association (G1, V1), Home Group (G1, V1), and Vale of Aylesbury Housing Trust (G1, V1).

Update on 30/05/2019 at 15:00

This story was amended to include a comment from ForHousing.