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Regulator widens investigation of London landlord to include financial viability

News23 Mar 2022James Twomey

Shepherds Bush Housing Group, which manages thousands of homes across London, is being investigated over an issue that could affect its financial viability and governance ratings, the Regulator of Social Housing (RSH) has said.

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Shepherds Bush Housing Group, which manages thousands of homes across London, is being investigated over an issue that could affect its financial viability and governance ratings, the RSH has said #UKhousing #SocialHousingFinance

The 5,100-home group, which currently has a G2/V2 rating, was initially placed on the regulator’s ‘gradings under review’ list last December over its governance grading only. 

 

However, the RSH said yesterday that its investigation could now also affect the landlord’s financial viability rating. 

 

“We are currently investigating a matter which may impact on the provider’s compliance with both the governance and financial viability elements of the governance and financial viability standard,” the regulator said. 

 

The outcome of the investigation will be confirmed in a regulatory judgement once completed, the regulator said.

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The group said that it is working closely with the regulator to provide the information required and that any further updates would be provided once the investigation has been concluded and an outcome reached.

 

Matt Campion, chief executive at Shepherds Bush Housing Group, said: “Whilst we are disappointed to have been placed on the gradings under review list, we are and have been committed to closely managing the group’s resources.

 

“The external environment is fast changing and, like most RPs, we are reacting by being agile and continually re-planning, forecasting and managing risks.

 

“We understand the regulator’s role to seek assurance around business plans and we will be working closely with them in the coming weeks and will be doing everything we can to satisfy their concerns.”

In April 2020 the landlord was downgraded from G1 to G2 following a breach of the Home Standard in which it had failed to meet statutory requirements in relation to electrical safety and asbestos safety.

 

In March last year, the landlord secured £110m through a private placement, with ambitions to build 1,181 homes by 2030, of which 1,033 will be for affordable rent or shared ownership.

Housing Association/RPRegulation and Governance
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