Sanctuary retains G1 grade in first assessment since two mergers

On its G1 rating, the RSH said it saw evidence that Sanctuary is “effectively managing the integration of the social housing providers that came into the group in 2023 and 2024”.

 

“Sanctuary has provided assurance that its governance arrangements are effective in delivering its strategic objectives, social purpose and value for money,” the RSH said in its regulatory judgement.

 

On the C2 grade, the RSH said that Sanctuary provided evidence-based assurance that it has “appropriate systems for ensuring the health and safety of its tenants” in their homes and communal areas, including meeting the Decent Homes Standard.

 

However, the regulator found weaknesses in the provision of an effective, efficient and timely repairs and maintenance service. It said that improvements are therefore needed to deliver the outcomes of the Safety and Quality Standard.

 

“In particular, there is more work to do so that Sanctuary can meet its own repairs timescales for non-urgent works while responding effectively to tenant vulnerabilities,” the regulator said.

 

“While Sanctuary has already initiated improvements, including a new IT system and operating model, it is too early to see the required outcomes being delivered for tenants. We will continue to engage with Sanctuary while it is working to improve its repairs service.”

 

Craig Moule, group chief executive at Sanctuary, said: “We exist to serve our customers. The RSH’s judgement that we are a well-managed, financially resilient provider means we are well-placed to continue providing good-quality, affordable housing and services to customers and communities across the country. 

 

“We recognise there is more to do and will use the feedback we received to ensure we are putting our customers first and continue to improve the services we provide.”

 

Aspire Housing

 

Elsewhere, Aspire Housing, which owns and manages more than 9,000 homes across the north Midlands and Cheshire, saw its governance score upgraded from G2 to G1. The landlord received a C1 in its first consumer grading and retained its V2 grade for financial viability.

 

Aspire was downgraded to G2 in January 2023 after weaknesses were identified in financial planning and risk control that meant the board was not fully sighted on the financial exposures associated with a loss-making subsidiary.

 

This subsidiary was closed at a cost to Aspire, and the landlord committed to additional expenditure on net zero carbon works that were outside its business plan in order to access grant funding.

 

The additional costs arising from these decisions meant that the landlord needed to secure the agreement of its funders to maintain covenant compliance.

 

“From the evidence-based assurance we saw throughout the responsive engagement process and the inspection, we have assurance that Aspire has strengthened its governance arrangements, which has improved its oversight of risks,” the regulator said.

 

“Board membership has been refreshed and effectiveness reviews support a continued focus on governance arrangements.”

Sinéad Butters, chief executive of Aspire Housing, said: “We’re pleased to receive an improved G1 governance grading in our latest inspection, along with a retention of our existing V2 grading for financial viability.

 

“We’re also delighted to be awarded a C1 grading in our first inspection under the new consumer standards, which reflects the hard work of our teams across Aspire.”

 

Ms Butters said that a new corporate plan introduced by Aspire last year outlines its core purpose to “put people first by delivering safe, decent homes and excellent housing services through our talented Aspire team”.

 

“We truly believe in this purpose, and we’re committed in our focus to continually improve our homes and services for customers,” she said.

 

“We will continue to work with our customers and hear their voice as we strive to continuously improve our services.”

 

Financial viability downgrades

 

Elsewhere, the RSH downgraded the financial viability rating of two landlords, Incommunities and Magenta Living, from V1 to V2. Both also retained their G1 grades.

 

The RSH said that Incommunities is investing in its existing homes, and this includes “significant expenditure” relating to building safety. Meanwhile, Magenta is investing in improving the quality of its existing homes and is also continuing to develop new homes.

 

In the judgement of each provider, the regulator said that these factors weaken financial performance, which “set in the context of economic pressures” impact the landlord’s “capacity to respond to adverse events”.

 

Rachael Dennis, chief executive of Incommunities, said: “We acknowledge the Regulator of Social Housing’s most recent assessment.

 

“Not only does it reflect the wider financial challenges affecting the whole sector, but it also shows the importance we have placed on investing in our properties to improve the quality and safety of our homes.

 

“Our recent G1 governance grade reinforces the strength of our leadership, and the viability rating shows that we are financially stable and well-positioned to maintain this stability. We believe our investment decisions mean we’ve got the right balance by ensuring we continue to meet the needs of our customers.”

 

A spokesperson from Magenta Living said: “We are pleased to retain our G1 grading demonstrating our effective approach to governance, meeting regulatory requirements and delivering quality services for our customers. 

 

“The regrade to a V2 is reflective of the increasing costs in delivering services, investing in new and existing homes and ensuring customer safety.    

 

“Our strategic plan, which was launched last year, will be instrumental in helping us to further strengthen our financial position and deliver more for our customers.” 

 

Elsewhere the RSH handed Portsmouth City Council a C3 grade under the consumer regulation.

 

The remaining 10 landlords retained their viability and governance ratings.