Birmingham landlord downgraded after regulator flags exempt accommodation issue

SSH is a type of exempt accommodation that houses vulnerable people with significant care needs. 

It has attracted controversy and become popular with lease-based providers, a number of whom have been found non-compliant by the regulator. It is known as ‘exempt’ as it is not subject to Local Housing Allowance caps, meaning operators can charge high rates to claimants in their properties. 

Birmingham has emerged as the epicentre of exempt accommodation. 

The regulator said that Trident, which manages around 3,600 homes across the West Midlands and Derbyshire, has commissioned a review of its rents and identified “some issues that need further investigation”. 

The issue has highlighted “underlying weaknesses in Trident’s risk management and the quality of its data”, the judgement said.

It added: “Improvement is needed to ensure that effective controls are in place for managing risks and that Trident’s board has appropriate levels of assurance.”

The regulator said it will continue to assess the landlord’s compliance with its Rent Standard, but Trident has “improved its communication” with the agency.

In a response on its website, Mr Wilson said: “When appointed by the board of Trident Group I felt we needed to sharpen some historic governance practices and ensure that our relationship with the Regulator of Social Housing is a positive one. 

“Clearly some recovery work is required and we are determined to collectively improve our work and regain the trust and confidence of our regulator.”

Mr Wilson joined Trident last September after abruptly leaving 30,000-home Gentoo at the start of 2023. He had been with the Sunderland-based landlord for nearly four years. 

Brian Carr, Trident’s chair, added: “Whilst this is obviously disappointing news for us, we are committed to continuing at pace the improvement journey recently agreed by the board.”

Trident retained its V2 status today as the regulator said it has an “adequately funded business plan, sufficient security and is forecast to continue to meet its financial covenants”. 

However it added: “Trident is increasing investment in its existing homes which is reducing its interest cover headroom. 

“Set in the context of economic pressures including inflation and interest rates, this impacts on Trident’s capacity to respond to adverse events.”

Trident was downgraded to V2 in late 2022 amid an initial wave of sector-wide downgrades as the current economic conditions began to bite. 

In its last full year to March 2023, Trident Group, which includes two subsidiaries, recorded a reduced post-tax surplus of £628,000 on turnover of £41.7m.