Supported housing provider breached Home and Tenancy standards

The RSH said that Westmoreland considered it to be the responsibility of the head landlord to bring the properties up to the required standard and “it had not put in place any arrangements which would allow it to resolve these longstanding issues and their impact on its tenants”.

The notice adds that Westmoreland has told the regulator it is in discussion with the head landlord to resolve these issues.

On health and safety, the RSH said that, although the position is now improved, Westmoreland needs to complete further work while having mitigations in place to manage any “residual risk” to tenants.

Tenancy standards

The regulator’s Tenancy Standard requires registered providers to support tenants to maintain their tenancy and to prevent unnecessary evictions, while its Tenant Involvement and Empowerment Standard requires providers to take the diverse needs of tenants into account.

The RSH said that it had received information indicating that Westmoreland had “issued eviction notices to a number of tenants in order to vacate a property to allow it to return the lease to the head landlord”.

It continued: “A review of this process found that Westmoreland had failed to consult with tenants, failed to provide appropriate advice and assistance, and failed to consider what would happen to tenants during and after the notice period.

“Westmoreland told the regulator that some tenants had moved on to alternative accommodation after the notices had been issued, but that the outcome for some tenants who moved out is unknown, as some individuals could not be traced. It is now sourcing alternative accommodation for the remaining tenants.”

The regulator said that not only did Westmoreland not take steps to support tenants to maintain their tenancies in the case outlined, but evidence also shows that the provider “failed to properly take the needs of these potentially vulnerable tenants into account”.

“We have therefore concluded that this is a breach of both the Tenancy Standard and the Tenant Involvement and Empowerment Standard,” the RSH added.

The regulator said that it is “engaging intensively” with Westmoreland to monitor the delivery of its improvement plan.

It added: “We will work closely with Westmoreland as it now also seeks to resolve the issues which led to the breach of the consumer standards, and will keep our strategy, including the use of intervention powers, under review.”

Sector investor Civitas Social Housing – for whom Westmoreland represented 22 per cent of net asset value at 5 December 2018, according to a previous notice to the markets – issued a statement clarifying that the regulator’s publication “is not in relation to any financial matters and relates to properties which are not owned by Civitas, but by other landlords”.

It continued: “Accordingly, this judgement has no effect on any of the properties owned by Civitas and leased to Westmoreland, which continues to meet its obligations to Civitas and to provide high-quality homes for tenants whilst producing rental income as expected.”

A spokesperson for Westmoreland said: “We have already implemented a plan of action which we are confident addresses and remedies the points raised in the judgement.

“We are also confident that the issues are specific to one small portfolio. Having newly appointed an experienced chairman, board members and chief executive for Westmoreland, the issues raised in both this and the previous judgement are being addressed so that Westmoreland will be able to demonstrate that it is a strong, well-governed and successful organisation.”

Civitas, which quotes Westmoreland’s statement in its notice, added: “Civitas is encouraged by and supportive of the actions outlined by Westmoreland and remains committed to working with all its housing association partners to continue to improve standards in the sector.”

Triple Point REIT has also issued a notice, saying: "The regulatory notice focuses on consumer standards in respect of a discrete portfolio of assets leased by Westmoreland in relation to which the regulator has continued to engage with Westmoreland following the original regulatory judgement.

Whilst none of the assets in the portfolio in question are owned by the group [Triple Point Social Housing REIT], the company notes that Westmoreland is taking steps to address the concerns raised by the regulator."

Update: 6.00pm, 20.05.19

This story was updated to include the statement released by Triple Point, and to confirm that the Westmoreland comment quoted by Civitas in its market update has now been confirmed by Westmoreland.