The Regulator of Social Housing has today (Wednesday 29 October) downgraded Phoenix Community Housing Association (UK) Ltd to G3, meaning that the landlord does not meet the governance requirements and there are issues of serious regulatory concern.
Phoenix failed to make sure systems and controls were sufficiently robust to ensure timely payments were being made and ensure continued covenant compliance, despite previous findings by RSH that Phoenix needed to increase the effectiveness of its internal controls.
RSH also found that Phoenix failed to address skills gaps and changes in the board in a timely manner and that gaps in resourcing and oversight impacted the effectiveness of its governance arrangements.
While Phoenix has managed its position with funders to avoid default, the failings were so serious that RSH has concluded significant improvement is needed.
Phoenix had its consumer grading downgraded to C2, meaning there are some weaknesses and improvement is needed, specifically in relation to the Safety and Quality Standard.
Phoenix continues to meet the financial viability requirements and its V2 viability grading remained unchanged, meaning it has the financial capacity to deal with a reasonable range of adverse scenarios.
RSH also published a number of other regulatory judgements, including downgrading GreenSquareAccord from G1 to G2. An inspection found that GreenSquareAccord needed to improve aspects of its governance arrangements to support continued compliance, specifically in relation to board oversight of operational delivery and risk and strengthening its internal control arrangements.
GreenSquareAccord also received C2/V2 gradings.
The London Borough of Barnet, North East Derbyshire District Council, and the London Borough of Sutton and received C1 gradings, meaning that each landlord is delivering the outcomes of the consumer standards overall.
The London Borough of Hounslow received a C2, meaning there are some weaknesses in its delivery of the consumer standards and improvement is needed.
Clarion Housing Group received C2/G1/V1 gradings and Honeycomb Group received C2/G1/V2 gradings.
RSH has also published outcomes for the first of this year's annual stability checks, including Lincolnshire Housing Partnership Limited, Advance Housing and Support Limited, Teign Housing, and Two Rivers Housing. All retained their existing governance and viability gradings.
Kate Dodsworth, Chief of Regulatory Engagement at RSH, said:
"Good governance is vital for managing risk properly and making the right strategic decisions.
"We will continue to use our regulatory powers to scrutinise the sector and hold landlords to account."
Notes
Links to each of the judgements are available in the table below:
| Landlord | Consumer | Governance | Viability | Route |
|---|---|---|---|---|
| Advance Housing and Support Limited | N/A | G1 | V1 | Stability Check |
| London Borough of Barnet | C1 | Inspection | ||
| Clarion Housing Group Limited | C2 | G1 | V1 (regrade from V2) | Inspection |
| GreenSquareAccord Limited | C2 | G2 (downgrade) | V2 | Inspection |
| Honeycomb Group Limited | C2 | G1 (upgrade) | V2 | Inspection |
| London Borough of Hounslow | C2 | Inspection | ||
| Lincolnshire Housing Partnership Limited | C2 (based on previous assessment) | G1 | V2 | Stability Check |
| North East Derbyshire District Council | C1 | Responsive Engagement | ||
| Phoenix Community Housing Association (Bellingham and Downham) Limited | C2 (downgrade) | G3 (downgrade) | V2 | Responsive Engagement |
| London Borough of Sutton | C1 | Inspection | ||
| Teign Housing | C2 (based on previous assessment) | G1 | V2 | Stability Check |
| Two Rivers Housing | N/A | G1 | V1 | Stability Check |
Phoenix Community Housing Association (UK) was placed on RSH's gradings under review list in July.
RSH regulates housing associations and other private registered providers against its full set of standards. Councils are regulated against the consumer and rent standards only.
